I. About This Article
Individual entrepreneur registration is one of the fastest and most practical ways to officially start a small business, self-employment or independent commercial activity in Georgia.
The individual entrepreneur form is often used when an individual wants to carry out business activity in their own name, through a simple administrative procedure and with relatively low organizational costs. This form may be practical for consultants, small trade activities, service providers, craftsmen, freelancers and other independent professional activities.
However, the status of an individual entrepreneur should not be assessed only by the simplicity of registration. Its most important legal feature is that an individual entrepreneur is not a legal entity and, as a rule, is personally liable with all personal property for obligations arising from entrepreneurial activity.
For this reason, before registering as an individual entrepreneur, it is necessary to understand not only the procedure, but also the legal risks of this business form. In some cases, individual entrepreneur status may be the best choice, while in other cases it may be more appropriate to establish a limited liability company or another entrepreneurial company.
This article will help you understand what an individual entrepreneur means, how it differs from a legal entity, what liability an individual entrepreneur bears, what documents are required for registration and how registered data may be changed or registration cancelled.
The article also discusses the company name of an individual entrepreneur, legal address, registration of foreign citizens, registration of minors, timeframes, fees and practical issues that should be assessed before starting business activity.
II. Who Is an Individual Entrepreneur?
Under the Law of Georgia on Entrepreneurs, an entrepreneur may be an individual or a legal entity that has an enterprise. An enterprise is an organized system for carrying out entrepreneurial activity, while entrepreneurial activity means lawful, repeated, independent and organized activity carried out for the purpose of generating profit.
Entrepreneurial activity may be carried out in the form of an individual entrepreneur or an entrepreneurial company. Entrepreneurial companies include, for example, general partnerships, limited partnerships, limited liability companies, joint stock companies and cooperatives.
The Supreme Court of Georgia also emphasized in its decision of 31 October 2025 that, under Article 2 of the Law of Georgia on Entrepreneurs, entrepreneurial activity may be carried out in the form of an individual entrepreneur or an entrepreneurial company, and an entrepreneurial company is a legal entity.
An individual entrepreneur is an individual who carries out entrepreneurial activity with registered status. This person does not create a separate legal entity, but participates in business relations as an individual who has been granted individual entrepreneur status.
Therefore, in practical terms, an individual entrepreneur is a person who carries out commercial activity under a legal regime connected with their own name and personal property liability.
III. How Does an Individual Entrepreneur Differ from a Legal Entity?
An individual entrepreneur is not a legal entity. This is the main difference between an individual entrepreneur and a limited liability company, joint stock company or another entrepreneurial company.
An entrepreneurial company is an independent legal entity. It has its own property, rights and obligations. For example, a limited liability company independently assumes obligations and, as a rule, shareholders are not personally liable for the company’s obligations, except in cases provided by law.
An individual entrepreneur, however, exercises rights and performs obligations in business relations as an individual. This means that the business activity is legally closely connected with the person’s personal property liability.
This difference has practical importance especially where the activity involves contracts, creditors, tax obligations or liability toward third parties.
For more information about LLC registration, see our blog: LLC Registration in Georgia – Company Formation, Founding Agreement and Public Registry Procedure.
IV. What Does Personal Liability with All Property Mean?
One of the most important legal risks of an individual entrepreneur is personal liability.
The Law of Georgia on Entrepreneurs directly provides that an individual entrepreneur is personally liable to creditors with all personal property for obligations arising from entrepreneurial activity, unless otherwise agreed between the individual entrepreneur and the creditor.
This means that if an individual entrepreneur fails to perform an obligation arising from business activity, the creditor may have a claim not only against business-related assets, but also against the individual entrepreneur’s personal property.
For this reason, individual entrepreneur status should not be chosen only because registration is simple. It is necessary to assess the scale of activity, potential obligations, volume of contracts, dispute risk and how important limitation of liability is for the business.
V. When Is Individual Entrepreneur Status a Practical Choice?
Individual entrepreneur status may be a practical choice where the activity is relatively small-scale, organizationally simple and not connected with high-value obligations or significant legal risks.
For example, the individual entrepreneur form may be used for independent services, small trade activities, craftsmanship, consulting, freelance work or a business where the volume of contracts and risk of liability toward third parties is relatively limited.
However, if the activity involves hiring employees, high-value contracts, relations with creditors, investors, licensed or regulated activities, significant property risks or joint activity with partners, it may be more appropriate to establish an entrepreneurial company.
In practice, when choosing a business form, it is more important to assess the real risks, taxes, liability, future growth and relations with partners than to focus only on the simplicity of registration.
For legal support in choosing the correct business form and organizing your company structure, see our service page: Corporate Law Services in Georgia.
VI. What Information Is Required for Individual Entrepreneur Registration?
For individual entrepreneur registration, an individual must submit a written application to the National Agency of Public Registry.
The application must include the applicant’s name, legal address and personal number. In the case of a foreign citizen or stateless person, it must include the identification data of the relevant identity document.
In practice, the application also indicates the company name of the individual enterprise, legal address, date of completion of the application, applicant’s signature, email address and phone number for the purpose of creating the electronic portal.
Providing accurate information is important because registered data is reflected in the registry and used in public, tax and commercial relations.
VII. What Documents Must Be Submitted to the Public Registry?
For individual entrepreneur registration, the following documents are usually submitted to the Public Registry:
an application requesting registration as an individual entrepreneur; identity document of the interested person; a document confirming the legal address, if the address is not real estate owned or used by the applicant or the applicant’s registration address; and proof of payment of the service fee.
If the application is submitted by a representative, the representative’s identity document and a properly prepared and certified document confirming representation authority, such as a power of attorney, are additionally required.
During the registration process, the Public Registry may request an additional document or information if this is necessary for making a decision.
VIII. How Is the Legal Address of an Individual Entrepreneur Determined?
When registering as an individual entrepreneur, indication of a legal address is required.
If the legal address is real estate owned or used by the applicant, or the applicant’s registration address, additional consent may not be required.
If real estate owned by another person is used as the legal address, properly certified consent of the owner of the location or a relevant agreement on use of the location is required.
The legal address is important for official notifications, registry records, tax communication and business identification.
If you do not own real estate in Georgia or do not have a relevant legal address for individual entrepreneur registration, TB Legal can assist you with this part as well, including providing an address required for registration and preparing the necessary documentation.
IX. What Requirements Apply to the Company Name?
The company name of an entrepreneur is the name registered in the registry under which the entrepreneur carries out activity.
The company name of an individual entrepreneur may be the individual entrepreneur’s name and surname. It may also be connected with the subject of activity or be a creative name, provided that legal requirements are met.
The company name must include an indication of the legal form: “individual entrepreneur” or the relevant Georgian abbreviation.
When choosing a name, it is important that it is not misleading and complies with legal requirements.
X. Can a Foreign Citizen Register as an Individual Entrepreneur?
Yes. A foreign citizen or stateless person may register as an individual entrepreneur in Georgia.
In such a case, an identity document used for identification during notarial actions must be submitted to the Public Registry. This may be a passport, neutral identity card, neutral travel document or another relevant document.
For a foreign citizen, it is also important to assess the legal regime of staying in Georgia, tax matters, access to banking services and whether any additional permit is required for the specific activity.
XI. Can a Minor Register as an Individual Entrepreneur?
A minor may register as an individual entrepreneur if the person is between 16 and 18 years old and the additional consent required by law is submitted.
In such a case, consent of the legal representative is required with approval of the guardianship and custody authority.
Entrepreneurial activity by a minor requires particular caution because it involves not only the registration procedure, but also issues of property liability, representation, entering into transactions and scope of authority.
XII. What Is the Timeframe for Individual Entrepreneur Registration?
Individual entrepreneur registration may be carried out under the standard or expedited procedure.
According to the practical rules of Public Registry services, registration may be completed within one business day or on the day of submission of the application if expedited service is selected.
Calculation of the registration period begins on the day following registration of the application and ends upon expiry of the last day of the period. If the last day falls on a holiday or non-working day, the next business day is considered the last day.
XIII. What Is the Fee for Individual Entrepreneur Registration?
The fee for individual entrepreneur registration depends on the service timeframe.
According to practical data, the registration fee within one business day is GEL 26, while the fee for registration on the day of submission of the application is GEL 75.
If certification of signatures on a transaction submitted for registration is required, GEL 7 is added to the registration fee. The fee for preparing an extract in English is GEL 26.
Fees may change under applicable regulations, so it is advisable to verify current Public Registry tariffs before registration.
XIV. How Are Changes Made to Registered Data?
To make changes to the registered data of an individual entrepreneur, a relevant application must be submitted to the Public Registry.
The application should be accompanied by the identity document of the interested person and, where necessary, another document required for making the registration decision.
For example, if the legal address changes and the new address is not real estate owned by the applicant or the applicant’s registration address, properly certified consent of the owner of the location or an agreement confirming the right of use is required.
Registration of changes is important because the data in the registry should reflect the actual legal status of the individual entrepreneur.
XV. How Is Individual Entrepreneur Registration Cancelled?
The grounds for cancellation of individual entrepreneur registration are a personal application, death of the individual registered as an individual entrepreneur, declaration of death by a court, recognition as missing, or recognition as a support recipient, unless otherwise determined by the court decision.
For cancellation of registration, an application, identity document and proof of payment of the service fee must be submitted to the Public Registry.
Cancellation of registration results in termination of general commercial power of attorney if such authority existed.
After cancellation of individual entrepreneur registration, the legal successor is the relevant individual.
XVI. What Happens in Case of Death or Recognition as a Support Recipient?
If an individual entrepreneur dies, is declared dead by a court, is recognized as missing or is recognized as a support recipient, registration may be cancelled at the request of any person or on the initiative of the registering authority.
In case of death, a death certificate prepared and certified in accordance with the law is required for cancellation of registration.
If the individual entrepreneur has been declared dead, recognized as missing or recognized as a support recipient by a court, the relevant court decision is required for cancellation of registration.
In such cases, it is important to legally assess the remaining obligations, assets, relations with creditors and possible succession of the individual entrepreneur.
XVII. What Should a Person Consider Before Registration?
Before registering as an individual entrepreneur, a person should assess not only the simplicity of the procedure, but also the legal and financial consequences of this form.
First, the nature of the activity should be assessed. If the activity is small-scale and does not create high-value obligations, the individual entrepreneur form may be practical.
Second, the risk of personal liability must be understood. An individual entrepreneur is liable with all personal property for obligations arising from business activity.
Third, tax and accounting issues should be assessed. Individual entrepreneur status may be connected with different tax regimes and obligations.
Fourth, it should be checked whether the specific activity is licensed, permit-based or regulated.
Fifth, if the person plans to work with a partner, attract investment, hire employees or scale the business, establishing a company may be more appropriate than individual entrepreneur registration.
For more information about choosing the correct legal form and legally organizing a business, see our service page: Corporate Law Services in Georgia.
XVIII. How TB Legal Can Help
TB Legal assists individuals and businesses with individual entrepreneur registration, selection of the correct legal form, corporate structure planning, preparation of documents required for registration and assessment of legal risks before starting business activity.
Our approach is based not only on the technical registration procedure, but also on analysis of the real nature of the activity, liability risk, tax and contractual issues, future growth and prevention of possible disputes.
If you plan to register as an individual entrepreneur, change existing registered data, cancel registration or choose the correct business form, it is important to obtain legal advice before making a decision.
XIX. Conclusion
Individual entrepreneur registration in Georgia is a fast and relatively simple procedure, but its legal consequences require serious attention.
An individual entrepreneur is not a legal entity and, as a rule, is personally liable with all personal property for obligations arising from entrepreneurial activity. For this reason, choosing this form should be based not only on the simplicity of registration, but also on assessment of business risks, obligations and future plans.
Georgian legislation defines individual entrepreneur registration as a legal way for an individual to start entrepreneurial activity. However, if the business involves significant obligations, relations with partners, cooperation with investors or high-risk activity, another legal form may be necessary.
Contact TB Legal if you plan to register as an individual entrepreneur or want to assess whether this form matches your business goals. We will help you make the right legal decision.
XX. Sources Used
This article is based on the following sources:
- Law of Georgia on Entrepreneurs.
- Practical information of the National Agency of Public Registry on individual entrepreneur registration, amendment of registered data and cancellation of registration.
- Instruction on the Public Registry.
- Supreme Court of Georgia, case No. A-273-SH-12-2025, 31 October 2025, Tbilisi.
- TB Legal’s practical experience in entrepreneurial law.
Disclaimer
This article has been prepared for general informational purposes only and does not constitute individual legal advice or a legal opinion. The issues discussed in this article may be assessed differently depending on the specific factual circumstances, protected interest, severity of damage, conduct of the parties, evidence and applicable legal basis.
Before making a decision in a specific matter, it is recommended to obtain individual legal advice from a qualified lawyer.
