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IEProprietary Trading Firm

Individual Entrepreneur in Georgia — Proprietary Trading Firm Formation Guide

Choose a jurisdiction with 0% capital gains tax and clear regulations on trading your own funds. Ensure the country has crypto-friendly banking if you trade digital assets.

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 Proprietary Trading Firm 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 Proprietary Trading Firm?

A proprietary trading (prop) firm trades financial instruments like stocks, forex, commodities, or cryptocurrencies using its own corporate capital rather than client funds, keeping 100% of the profits.

Ideal for

  • Algorithmic traders
  • Quantitative analysts
  • Crypto investors
  • Forex traders

Challenges to watch

  • Opening corporate brokerage accounts
  • Navigating complex tax classifications for trading income
  • Securing reliable banking for crypto-to-fiat off-ramps

Key decision criteria

  • Corporate tax vs. capital gains tax rates
  • Whether trading own funds triggers licensing requirements
  • Availability of high-leverage institutional accounts
  • Local substance requirements

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. $500,000 revenue)

Gross Revenue$500,000
Corporate Tax-$5,000
Formation Cost-$10
Annual Fee-$0
Net Profit$494,990

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 Proprietary Trading Firm

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.

Proprietary Trading Firm FAQ

Do I need a financial license to trade my company's own capital?

In most jurisdictions, trading your own corporate funds does not require a financial services license. However, if you accept outside capital or engage in high-frequency market making, licensing may be triggered.

Which jurisdictions are best for a prop trading firm?

Tax-neutral jurisdictions like the BVI, Cayman Islands, and UAE (Dubai DMCC) are highly popular due to zero capital gains tax and established frameworks for proprietary trading.

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