From 1 March 2026, the rules for working and running a business in Georgia changed significantly. Foreign nationals — including Individual Entrepreneurs, LLC directors, and freelancers — must now hold a Special Labour Activity Permit (also called the Right to Labour Activity) before legally operating in Georgia. If you are already working or plan to set up in Georgia, this guide covers exactly what changed, who is affected, what is exempt, and the steps to stay compliant.

Georgia has long attracted foreign entrepreneurs with its minimal bureaucracy, low tax rates, and open visa policy. But this rapid growth created a gap: by mid-2024, nearly a quarter of a million foreigners had entered Georgia in just six months, yet only a fraction were formally registered in the labour system.

The amendments to the Law on Labour Migration, adopted by Parliament on 26 June 2025 and effective from 1 March 2026, are designed to close that gap — aligning Georgia with international standards while preserving its reputation as an entrepreneur-friendly destination. Georgia remains attractive. The new system adds a layer of compliance, not a barrier to entry.

The permit is required for any foreign national who:

•       Is registered in Georgia as an Individual Entrepreneur (IE) and resides in Georgia

•       Serves as a director of a Georgian LLC or JSC

•       Works as a freelancer or independent contractor in Georgia

•       Is employed by a Georgian company under a local contract

•       Works remotely for a Georgian startup or company while physically based in Georgia

Georgia has long attracted foreign entrepreneurs with its minimal bureaucracy, low tax rates, and open visa policy. But this rapid growth created a gap: by mid-2024, nearly a quarter of a million foreigners had entered Georgia in just six months, yet only a fraction were formally registered in the labour system.

The amendments to the Law on Labour Migration, adopted by Parliament on 26 June 2025 and effective from 1 March 2026, are designed to close that gap — aligning Georgia with international standards while preserving its reputation as an entrepreneur-friendly destination. Georgia remains attractive. The new system adds a layer of compliance, not a barrier to entry.

The permit is required for any foreign national who:

•       Is registered in Georgia as an Individual Entrepreneur (IE) and resides in Georgia

•       Serves as a director of a Georgian LLC or JSC

•       Works as a freelancer or independent contractor in Georgia

•       Is employed by a Georgian company under a local contract

•       Works remotely for a Georgian startup or company while physically based in Georgia

You do not need the work permit if you fall into one of these categories:

The new system is a two-stage process. You must complete both steps to be fully compliant:

Penalties are enforced against both the individual and their employer:

•       First offence: GEL 2,000 fine (approx. USD 740)

•       Repeat offence within one year: GEL 4,000 fine

•       Third offence: GEL 6,000 fine

•       Companies may face workplace inspections from the Ministry of Internal Affairs

•       Continued non-compliance risks deportation and entry restrictions

The short answer is no — your tax regime is not cancelled by the new immigration rules. The 1% Small Business Status tax for IEs remains available for qualifying activities. The new work permit is an immigration compliance requirement, separate from your tax registration.

However, the two are now linked in practice: banks, payment providers, and compliance-minded counterparties are increasingly asking for evidence of legal work status. Having both your tax registration and your work permit in order will make banking and contract relationships smoother.

Yes — if you are a foreign national serving as director of a Georgian LLC or JSC, you are classified as conducting entrepreneurial activity and must obtain the permit. The Public Registry may technically register a foreign director without one, but operating without the permit exposes both you and the company to fines.

The only exemption is if the director already holds an investment residence permit or permanent residency — in which case no additional work permit is needed.

1.    Check your current status. Are you resident in Georgia? Are you operating as an IE, LLC director, or freelancer? If yes to either — you are almost certainly in scope.

2.    Gather your documents. Passport, Georgian tax ID, IE registration ID, any existing residence permit. Have these ready before applying.

3.    Apply online. Self-employed individuals apply at labourmigration.moh.gov.ge. Processing takes up to 30 days, so do not leave this to the last minute.

4.    Align your residence status. Once you have the permit, ensure your residence permit or visa matches. If you do not yet have residence status, this is the time to apply.

5.    Get professional guidance. The secondary legislation under Decree No. 70 is still being interpreted. If your situation is not straightforward — mixed activities, partial time in Georgia, LLC with foreign director — seek legal advice before applying.

I work for foreign clients only. Do I still need the permit?

If you reside in Georgia and operate your IE or freelance business from Georgia — yes, even if all your clients are outside Georgia. The permit is triggered by your physical presence and business activity in Georgia, not the location of your clients.

I am a citizen of an EU / UK / US country with visa-free access. Does that change anything?

No. The visa-free stay allows you to live in Georgia for up to 365 days, but it does not grant the right to work or conduct business. The work permit is required regardless of your nationality or entry conditions.

Can I still set up an IE in Georgia if I am not resident here?

Yes. If you register a Georgian IE but operate entirely from outside Georgia — your management, clients, and activity are all abroad — you are exempt from the work permit requirement. This is a nuanced area and depends on your specific circumstances.

How long is the work permit valid?

The permit duration aligns with your employment or entrepreneurial activity. The exact validity periods are set by the Ministry — current guidance indicates annual renewal is required, applied for at least 30 days before expiry.