Individual Entrepreneur in Georgia — Digital Products Seller Formation Guide
Focus on jurisdictions that support global payment processors. If selling to EU customers, consider how the jurisdiction handles VAT OSS (One Stop Shop). US LLCs are popular for accessing Stripe, while UK or Estonian companies offer great European integration.
Last verified: June 13, 2026
Corporate Tax
1.0%
State Tax
0.0%
Formation Cost
$10
Annual Fee
$0
Forming a Individual Entrepreneur in Georgia as a Digital Products Seller means a total tax burden of 1.0% and an official formation cost of $10. There is no minimum capital requirement. Standard formation takes 2-3 business days, or 1 business day expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $845
Ongoing (per year)
≈ $510
Why Individual Entrepreneur for Digital Products Seller?
Entrepreneurs selling non-physical goods such as software, e-books, online courses, templates, and digital art. This business model requires a jurisdiction with excellent payment gateway access (like Stripe or PayPal) and clear rules on digital VAT/Sales Tax.
Ideal for
- E-book authors
- Online course creators
- Software and SaaS developers
- Digital template designers
Challenges to watch
- Managing global VAT and sales tax compliance
- High chargeback rates for digital goods
- Intellectual property protection across borders
Key decision criteria
- Access to Stripe, PayPal, and other major payment gateways
- Tax treaties to avoid double taxation on royalties
- Ease of remote company management and banking
Individual Entrepreneur formation requirements
Minimum capital
None
Standard timeline
2-3 business days
Expedited timeline
1 business day
Local director
Not required
Registered office
Virtual office allowed
Notarization
Required
100% foreign ownership is allowed. No local partner or resident director is needed.
Estimated breakdown (based on avg. $60,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 18%. Registration threshold: 100,000 GEL. Non-resident companies providing B2C digital services in Georgia must register and charge 18% VAT. B2B transactions fall under the reverse charge mechanism.
Banking & payments for Digital Products Seller
Opening a bank account in person is straightforward and usually takes 1-3 days. Remote opening is possible via a notarized and apostilled Power of Attorney, though banks have increased KYC scrutiny for non-residents. Multi-currency accounts (GEL, USD, EUR, GBP) are issued by default.
Supported payment gateways
Remote-friendly accounts
Bank of Georgia
One of the largest banks in Georgia. Offers excellent digital banking, multi-currency accounts, and premium 'SOLO' banking. Remote opening is possible via Power of Attorney.
TBC Bank
A major traditional bank with strong business tools and a premium 'Concept' tier. Supports remote account opening via Power of Attorney.
Payoneer
A global fintech widely used by Georgian IT contractors and freelancers to receive USD/EUR payments from international clients.
Georgia incentives & advantages
Small Business Status (SBS)
1% tax rate on gross revenue instead of the standard 20% personal income tax.
0% VAT on Exported IT Services
No VAT is charged on invoices to foreign clients, increasing international competitiveness.
Individual Entrepreneur formation steps
Draft and notarize a Power of Attorney (PoA) and passport copy, then apostille or legalize them in your home country.
Send the physical apostilled documents via international courier to your representative in Georgia.
Secure a registered legal address in Georgia (usually provided by a local agency) and obtain the property owner's consent.
Your representative translates the documents into Georgian and notarizes the translation locally.
File the Individual Entrepreneur registration application at the Public Service Hall (House of Justice).
Once registered (usually 1-2 days), apply for the Small Business Status at the Revenue Service to activate the 1% tax rate.
Open a multi-currency corporate bank account (GEL, USD, EUR) at a local bank like Bank of Georgia or TBC.
Digital Products Seller FAQ
Do I need to charge VAT on digital products?
Yes, in many jurisdictions like the EU, UK, and parts of the US, you must collect VAT or sales tax based on the customer's location, regardless of where your company is incorporated.
Which country is best for a digital product business?
The US (Wyoming or Delaware LLC) is excellent for Stripe access and low maintenance. Estonia (OÜ) is ideal if you want to keep profits in the company tax-free and need EU market access.
Can I run this business as a digital nomad?
Absolutely. Digital product businesses are location-independent. However, ensure your chosen corporate structure doesn't trigger tax residency issues in the country you are temporarily living in.
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Related guides
Complete Individual Entrepreneur guide
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One-time and annual cost breakdown
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