Closing a Business in Georgia 2026: IE and LLC Liquidation

Closing a business in Georgia is more than just stopping work: to shut down without debts or penalties you must complete a tax and registration procedure. Here is the order and timing for an individual entrepreneur (IE) and for an LLC in 2026.

Closing an IE: fast and simple

Deregistering an individual entrepreneur is relatively quick — a few working days when there are no open issues. You file a deregistration application, submit final tax declarations, settle obligations to the budget, and close the business account. While the IE stays on the register, reporting duties continue, so delay does not help.

LLC liquidation: the steps

1. Decision and liquidator

The partners decide to liquidate and appoint a liquidator who runs the process and handles settlements.

2. Publication and the creditor period

The liquidator publishes a closure notice on the National Agency of Public Registry portal. From publication, a statutory window for creditors to submit claims runs — around 45 days.

3. Tax review and settlements

Most of the time is taken by the tax review, usually several months. An inventory is carried out and obligations to the budget, employees, and counterparties are settled.

4. Distribution and removal from the register

Remaining assets are distributed among the partners and the company is struck off. In practice the whole procedure takes around five months.

Order of settlement with creditors

Priority goes to employees' wage claims, then tax obligations, then secured creditors. These debts must be cleared before assets are distributed to partners.

What to prepare in advance

Before you start, gather the constitutional documents, access to the tax portal, details of open contracts, and a list of creditors. Clear any outstanding declarations early — it shortens the review. If you have employees, complete the termination of employment and final settlements before applying to liquidate.

Frequently asked questions

How long does closing take?

An IE takes a few working days; an LLC takes around five months, mainly because of the tax review.

Can I close with debts?

You must first settle creditors in the set order; where assets are insufficient, insolvency procedures apply.

Do I need a lawyer?

Usually not for an IE; for an LLC, support reduces the risk of reassessments and timing mistakes.

This article is general information, not legal or tax advice. Verify timing and procedure before starting. — Legal.GE NewsMaker