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Work Permit and Residence Permit for Individual Entrepreneurship in Georgia

 

Foreign professionals who start Individual Entrepreneurship in Georgia often ask whether they need a work permit or residence permit. This question has become particularly relevant following recent changes to the Georgian labour migration regulations.

Many freelancers, IT specialists and consultants operate in Georgia as Individual Entrepreneurs (IE) with Small Business Status. In international terminology this structure is often called a Sole Proprietorship. This article explains how the new rules apply to self-employed professionals working in Tbilisi, Batumi and other regions of Georgia.

 

Individual Entrepreneurship and Small Business Status in Georgia

Registering Individual Entrepreneurship in Georgia is one of the most popular solutions for freelancers and remote professionals. Under the Georgian tax system, entrepreneurs can apply for Small Business Status, which allows taxation of only 1% of annual turnover up to 500,000 GEL.

This tax regime is widely used by software developers, consultants, digital marketers, designers and other professionals who provide services to international clients.

 

Your Status Under the New Labour Law

Foreign nationals operating as Individual Entrepreneurs with Small Business Status are generally considered self-employed under the new labour migration rules.

If your activity consists of freelance services exported abroad — for example software development for foreign companies — there is a reasonable legal argument that you are not directly participating in the Georgian labour market.

However, because your business is registered in Georgia and you may operate a local bank account, the safest legal approach is to obtain a work permit to ensure full compliance with the new regulations.

Failure to comply with the work permit requirement may lead to administrative fines starting from ₾2,000 for a first violation and increasing up to ₾12,000 for repeated violations.

 

Work Permit Application Process

Applications for a Georgian work permit are submitted through the Labour Migration Electronic System operated by the Ministry of Health and Social Affairs.

Applicants must provide the following information:

✔ Personal information and passport details

✔ Educational and professional background

✔ Description of business activity or freelance services

✔ Documentation confirming registration of Individual Entrepreneurship

A video interview with the Employment Promotion Agency is typically required during the evaluation process.

Government fees currently include:

  • Standard processing (30 calendar days): ₾200
  • Expedited processing (10 business days): ₾400

 

Residence Permit for Individual Entrepreneurs

Once the work permit is approved, foreign entrepreneurs must apply for a Work Residence Permit if they intend to stay in Georgia long-term.

For IT freelancers and professionals operating under Individual Entrepreneurship, the IT Employment Residence Permit may be available. This permit can be granted for up to three years and may be renewed for additional periods.

Family members such as spouses and children can obtain residence permits through the family reunification procedure.

 

VAT Registration for Freelancers

Many freelancers with Individual Entrepreneurship in Georgia provide services to foreign companies. In such cases it may be beneficial to register as a Reverse Charge VAT payer.

Reverse charge VAT registration allows entrepreneurs to issue invoices to foreign companies while maintaining proper compliance with the Georgian Revenue Service.

 

How We Can Assist

Our team assists foreign entrepreneurs with the full legal and administrative process related to Individual Entrepreneurship in Georgia.

Our services include:

✔ Work permit application preparation and submission

✔ Coordination of mandatory video interviews

✔ Work residence permit applications

✔ Family reunification residence permits

✔ VAT registration and compliance verification

✔ Ongoing business and immigration compliance support

We assist clients registering Individual Entrepreneurship in Tbilisi and Batumi and provide full guidance throughout the process.