Residence in Georgia through your own company or IE

Why "open an IE and get residency" is outdated

For years, a common route was simple on paper. A foreigner registered as an individual entrepreneur (IE, a sole trader registered with the National Agency of Public Registry), or set up a limited liability company. Once the business showed annual turnover of about GEL 50,000, the founder applied for a work residence permit. No separate work permit was needed.

Three changes ended that:

• Law 863 of 26 June 2025 tied the work residence permit and the D1 visa to the right to labour activity from 1 March 2026.
• Ordinance No 146 of 2 April 2026 added the right-to-work decision to the document list for the work residence permit.
• Law 1510 of 15 April 2026 redrafted Art. 15(a) of the Aliens Law: the work residence permit is issued to a foreigner who has obtained the right to labour activity.

The Law on Labour Migration also counts a self-employed person as a labour migrant. Its definition covers traders, service providers, partners, independent contractors and anyone doing entrepreneurial activity for financial benefit (Art. 3(h)). Running a business in Georgia therefore brings you under the work permit rules unless an exemption applies.

Enforcement against self-employed foreigners who were already active on 1 March 2026, including partners in operating companies, started on 1 May 2026 (Decree 70 Art. 14(1)). Working without the right to work costs GEL 2,000 for the first offence and can end your stay.

The route for a company founder or IE today

1. Register the company or IE. IE registration does not need a residence permit. A secondary summary of the registry's fee page gives GEL 26 for a 1-working-day service.
2. Apply for the right to work as a self-employed alien at labourmigration.moh.gov.ge, and complete the video interview with the State Employment Support Agency (SESA). The fee is GEL 200 for a 30-day decision or GEL 400 for 10 working days. The permit is tied to the speciality and field you state.
3. Within 10 days of the decision, apply for the work residence permit at the Public Service Development Agency or a Public Service Hall (the state service centres where residence files are lodged).
4. Show that your company has annual turnover of at least GEL 50,000 for each foreign applicant, and that your income is at least 5 times the subsistence minimum (or that you hold the same amount in a bank for the permit term).

A company no more than 3 months old, with no more than 3 foreign employees, can skip the turnover proof for its first permit. The residence permit is then issued for 6 months only (Ordinance No 317 of 9 July 2026). After that, the turnover test applies at each extension.

The work permit details are on our Georgian work permit page, and the residence step is on the work residence permit page.

Directors of larger companies

Managers and directors of category 1, 2 or 3 enterprises, as sized under the Law on Accounting, Reporting and Audit, do not need the right to work (Labour Migration Law Art. 1(4)). When such a manager applies for a work residence permit, they file a size-category certificate from reportal.ge in place of the right-to-work decision (Ordinance 317). The company's category depends on its size, so check the certificate before you rely on this exemption.

Individual entrepreneurs in IT

The IT residence permit (Art. 15(l)) names one group directly: foreigners registered as individual entrepreneurs with small business status who have the right to work and do qualifying IT activity. The qualifying activities are NACE codes 58.21, 58.29, 62.01, 62.02, 62.03, 62.09, 63.1 and 63.12. You also need at least 2 years of IT experience and annual income of at least USD 25,000, received at least twice in the last year, 30 days apart.

The IT permit lasts 3 years and can be extended by 3 years at a time up to 12. It ends if you spend 183 days or more outside Georgia in any 12 consecutive months. The PSDA fee is GEL 500 for a 30-day decision.

Small business status is a tax status, not an immigration one. It taxes Georgian-source income at 1% up to GEL 500,000 a year and 3% above that. How it works, and why foreign client fees count as Georgian-source for a resident, is on our page about the individual entrepreneur regime.

Freelancers with only foreign clients

The Law on Labour Migration exempts people working for, or providing services to, a non-resident, where the work relates to that non-resident's activity outside Georgia. A freelancer whose clients are all abroad may fall under it. If so, they would not need the right to work, but they would still need a lawful basis to stay, such as visa-free time, a C5 visa, a property permit or a family permit.

When the investment permit fits better

If you plan to put at least USD 300,000 into a Georgian business, the investment residence permit may be the better route. It lasts 5 years, covers your spouse and minor children, and its holders do not need a work permit. In exchange, the business must reach yearly turnover of USD 50,000, USD 100,000 and then USD 120,000. After 5 years it can become an unlimited permit.

Residence and tax are separate decisions

A work residence permit lets you stay. It does not make you a tax resident. Tax residency depends on spending 183 days in Georgia in any continuous 12-month period. Many founders need both, and they come from different agencies: the residence permit from PSDA, tax status from the Revenue Service. See Georgian companies and tax for the company side.