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IEMobile App Developer

Individual Entrepreneur in Georgia — Mobile App Developer Formation Guide

When choosing a jurisdiction, consider where Apple and Google will send your payouts. Ensure your chosen country has favorable double taxation treaties with the US to minimize the default 30% withholding tax on your US app sales.

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 Mobile App Developer 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

Detailed cost calculator →

Why Individual Entrepreneur for Mobile App Developer?

Independent developers or small studios creating and monetizing applications on platforms like the Apple App Store and Google Play. Revenue streams typically include paid downloads, in-app purchases (IAPs), subscriptions, and in-app advertising.

Ideal for

  • Indie developers
  • Small gaming studios
  • SaaS mobile app creators
  • Freelance developers transitioning to product owners

Challenges to watch

  • High platform fees (15-30% from Apple/Google)
  • US withholding tax on royalties if no tax treaty exists
  • Managing global VAT/GST compliance for digital services
  • Protecting intellectual property across borders

Key decision criteria

  • Double taxation treaties with the US
  • Corporate tax rates on digital income
  • Ease of opening a business bank account compatible with App Store payouts
  • IP protection laws in the jurisdiction

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.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $85,000 revenue)

Gross Revenue$85,000
Corporate Tax-$850
Formation Cost-$10
Annual Fee-$0
Net Profit$84,140

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 Mobile App Developer

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

PayPal2CheckoutPaddleUniPAYPayze

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

1

Draft and notarize a Power of Attorney (PoA) and passport copy, then apostille or legalize them in your home country.

2

Send the physical apostilled documents via international courier to your representative in Georgia.

3

Secure a registered legal address in Georgia (usually provided by a local agency) and obtain the property owner's consent.

4

Your representative translates the documents into Georgian and notarizes the translation locally.

5

File the Individual Entrepreneur registration application at the Public Service Hall (House of Justice).

6

Once registered (usually 1-2 days), apply for the Small Business Status at the Revenue Service to activate the 1% tax rate.

7

Open a multi-currency corporate bank account (GEL, USD, EUR) at a local bank like Bank of Georgia or TBC.

Mobile App Developer FAQ

Do I need a US company to publish on the App Store?

No, you can publish from almost any country. However, having a US LLC or a company in a country with a US tax treaty can significantly reduce the 30% withholding tax on US sales.

How does VAT work for app sales?

Apple and Google generally act as the 'Merchant of Record' and handle VAT/GST collection and remittance for consumers in most countries, simplifying your tax compliance.

Where is the best place to incorporate an app studio?

Popular choices include the US (Wyoming/Delaware LLCs for low maintenance), UK (favorable tax treaties and IP laws), and Estonia (0% tax on reinvested profits, great for growing studios).

Ready to form your Individual Entrepreneur?

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Related terms

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