What has changed in the Georgian legislation regarding the employment of foreigners or starting a business by foreigners?

Under the existing regime, there was no "work permit" or preliminary control mechanism as such for legally residing foreign citizens in the country. Companies mainly had an obligation of transparency; they had to register foreign employees on the special portal of the Ministry of Health and reflect the data accordingly. Therefore, under the old model, mere registration on the portal was sufficient and did not require the government's consent. This model did not provide the state with a tool for real control and management of labor migration.

With the new legislative amendments and Government Decree No. 70, completely new, strictly defined procedures are introduced, according to which the employment of foreigners and/or the start of a business by foreigners is possible only if a permit is issued by the state. The new regulations cover practically all economic activities, regardless of whether they are performed physically on the territory of Georgia or completely remotely.

Below, we detail who is affected by the new law and what steps businesses must take under the new reality.

Who is Affected by the New Law?

The legislation divides target groups into two main categories. The first category is the Self-Employed Foreigner. This includes independent contractors, partners, and those individuals who receive financial benefits in Georgia. It is important to know that foreign citizens who are company directors and founders also fall into this category if they receive economic benefits from the business.

The second is the Labor Immigrant, meaning a foreigner who has an employment contract with a specific local company.

The Main Novelty: The "Right to Work"

The foundation of the new system is the introduction of the so-called "Right to Work" (Labor Activity Right). From March 1, merely signing an employment contract is no longer sufficient for the legal employment of a foreign citizen.

This right represents a special administrative "permit". Without it, a foreigner has no right to carry out remunerated activity in Georgia. Moreover, this very permit is a mandatory prerequisite for a foreigner to subsequently obtain a D1 category immigration visa or a work residence permit.

Who is Considered "Self-Employed" and Why Does It Affect Directors/Partners?

The concept of a self-employed foreigner is defined very broadly in the new legislation. This is a person who independently carries out economic activity, is a service provider, an independent contractor, a partner, or is involved in the entrepreneurial process in any other form to receive financial benefits.

Due to this broad definition, foreign founders, partners, and directors of a company unequivocally fall under the "self-employed" category. Because they are directly involved in managing or owning the enterprise and receive economic benefits, the new regulations fully apply to them.

This means that even citizens of those countries who have the right to enter Georgia visa-free (for example, UK or US citizen directors), will have to obtain a special right to labor activity and subsequently obtain a residence permit to legally execute their authority.

Procedure for the Self-Employed and Founders/Directors

Unlike labor immigrants, where the administrative burden falls on the employer, a self-employed foreigner (including a director/partner) must apply to the Agency themselves. The procedure for these individuals looks like this:

Submission of Documentation: Personal data, information about education and qualifications, the company's identification code, documents confirming annual turnover, or a detailed business plan for a new company are submitted electronically to the Agency.
Mandatory Video Interview: This is a completely new and important stage. After submitting the application, the foreigner is obliged to undergo a video interview with the Agency representative to confirm the authenticity of their application and their real business plan.
Visa and Residency: After receiving the Right to Work, the foreigner has 30 calendar days to obtain a D1 visa (if abroad), and if already in Georgia - 10 calendar days to apply for a work residence permit.

Exception: If the foreigner works/operates fully remotely and this does not require entering the territory of Georgia, they must obtain the Right to Work but are exempt from the obligation to subsequently obtain a D1 visa and residence permit.

Steps for Hiring a New Employee (Labor Immigrant)

When a company wants to hire a foreign national, the process becomes much more complex. The core idea of the legislation is to prioritize the employment of the country's own citizens; therefore, the state has introduced the so-called "Labor Market Test" to primarily protect the interests of the local workforce.

The employer will have to go through the following steps:

Publishing the Vacancy: At least 10 working days before making an application, the vacancy must obligatorily be posted on worknet.moh.gov.ge.
Justification of Refusal: If the Agency offers a local candidate and the employer refuses them, the employer must submit a justified refusal within 3 working days. The Agency will review the validity of this refusal within an additional 3 working days.
Requesting the Permit: Only after a positive response can the Right to Work be requested. The process takes 10 working days (expedited processing - 400 GEL) or 30 calendar days (standard processing - 200 GEL).
Visa and Residency: If the employed foreigner is not in Georgia, they must request a D1 visa within 30 calendar days of receiving the right. In case of being in the country, they must apply to the Public Service Development Agency for a work residence permit or an IT specialist residence permit within 10 calendar days.

Exceptions to the Labor Market Test

The new labor migration legislation provides for specific exemptions. It should be noted that these exceptions only exempt the employer from the preliminary "Labor Market Test" (publishing the vacancy). Obtaining the right to work remains mandatory in all cases.

The labor market test is not required for:

Businesses with "International Company" or "Innovative Startup" status.
International members of the expert corps of the National Center for Educational Quality Enhancement.
Employers offering high-paying positions. Specifically, if the monthly remuneration provided for the vacant position exceeds 15,000 GEL (gross) and the position objectively requires higher education in the relevant specialty.

Despite the exception, if the Agency considers that there is no objective necessity for a specific foreigner to perform the work in this high-paying position, it may, in agreement with the Ministry of Economy, still require passing the labor market test. The legislator reserves this right to prevent the artificial circumvention of its regulations and established priorities.

Quotas and Prohibited Sectors

The state has introduced a system of annual quotas for professions that do not require high qualifications or where the local workforce fully meets the demand. The main novelty is that a zero (0) quota has been established for a number of popular sectors. This means the Right to Work for foreigners will no longer be issued for the following activities:

Courier services.
Passenger transportation (e.g., taxi drivers).
Tourist guide services.

In addition, a strict limit was set for providing mountain, alpine, and ski guide services for tourists – the annual quota is only 200 permits.

Strict Sanctions: Liability for Employers and Employees

The new regime is reinforced by very strict financial sanctions. It is important to note that liability is imposed not only on the employer but directly on the employee and the self-employed foreigner as well.

Fine for the Employer: Employment of a foreign citizen without the Right to Work leads to a fine of 2,000 GEL per employee for the company.
Fine for the Employee: For unauthorized work, the labor immigrant themselves is also fined 2,000 GEL.
Fine for the Self-Employed: Similarly, if a self-employed foreigner (including a director) operates without a permit, they are fined 2,000 GEL.
Arbitrary Change of Sector: If a foreigner changes their field of activity or employer without renewing the permit, they will be fined 2,000 GEL.
Hindering Inspection: Hindering the activities of the Labor Inspectorate leads to strict fines. If a self-employed person commits this, their fine is 5,000 GEL.

Repeated violation of the legislation leads to a double, and subsequently triple, fine amount. Changing the conditions and position of labor activity without agreement is also subject to a fine to prevent the circumvention of the law. Also, the employer is obliged to notify the system about the termination or modification of the employment contract within 5 calendar days, the violation of which entails an additional fine of 1,000 GEL.

Transitional Period for Active Businesses

The state took into account the interests of business and established a transitional period:

Self-employed and Directors: If they are already engaged in activities by March 1, 2026, the penalty mechanism will only apply to them from May 1, 2026. Therefore, they have time to go through the procedures until this deadline.
Existing Employees: Those foreign citizens who are already registered in the system of the Ministry of Health (have active status) by March 1, 2026, are given time until January 1, 2027, to obtain the labor right and residency according to the new rules.

How "Justice League" Can Help You Manage Immigration Risks

The new labor migration legislation introduces a complex and bureaucratic process that requires great attention from businesses. Missing any deadline or submitting a document incorrectly may result in financial penalties and operational delays for your company. The law firm "Justice League" offers full legal support both at the transitional stage and during further activities under the conditions of the new legislation. We will help you in correctly passing the labor market test, timely obtaining the labor right and safely planning the residence permit procedures.

Read related articles: Legal Requirements for Foreign Investors in Georgia ; How to Get Residency in Georgia