Checking Micro Business Status Before Becoming Self-Employed

The status is not a legal form and does not arise automatically through business registration or the setup of a tax account. It may be available only to an individual, not to a legal entity such as a Limited Liability Company. For the assessment, all relevant income from the activity must be combined and monitored against the GEL 30,000 limit. It is also necessary to determine whether the planned activity qualifies for the status and whether employees will be engaged. Certain activities are excluded or subject to special rules, so low turnover alone is not enough. If the requirements are met, income from the qualifying activity may be exempt from income tax. This does not automatically eliminate other tax liabilities, possible VAT issues, or obligations as a payer or employer. The application and tax registration are separate from any possible registration as an Individual Entrepreneur. Before starting the activity, document expected annual turnover, types of income, the employment model, and a description of the activity. Keep ongoing records of income during the year so that approaching the income limit can be identified in time. If turnover, activity, or employment changes, check whether the status remains valid or a different tax classification is required. Before relying on the status, check the currently applicable requirements, excluded activities, application procedures, and consequences of exceeding the limit with the Revenue Service.