Georgia

Employer of Record (EOR) in Georgia

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Georgia . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Georgia.

Employer of Record people
A coin
Currency
Georgian Lari
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Capital
Tbilisi
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Region
Asia
Megaphone
Language
Georgian
Hire remote employees
Population
3989167
A pile of gold
GDP
$15.08 billion
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GDP growth
0.0483
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Ease of doing business
83.7
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World GDP share
0.0002

1. Grow your team in Georgia with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Georgia , particularly if you don't have established local relationships. You can hire employees in Georgia effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Georgia is a nation in the Caucasus region, at the crossroads of Eastern Europe and Western Asia. It is surrounded to the west by the Black Sea, to the north and east by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The nation has a population of 3.7 million people and an area of 69,700 square kilometers (26,900 square miles) (excluding the Russian-occupied Georgian territories). Georgia is a unitary parliamentary country administered by a representative democracy. Tbilisi, Georgia's capital and biggest city, is home to nearly one-third of the country's population.

Several autonomous kingdoms, including Colchis and Iberia, were created in what is now Georgia throughout the classical period. Ethnic Georgians formally joined Christianity in the early fourth century, contributing to the spiritual and political union of the early Georgian republics. During the reign of King David IV and Queen Tamar in the 12th and early 13th centuries, the United Kingdom of Georgia arose and attained its Golden Age. Following that, the kingdom weakened and finally crumbled under the dominion of other regional forces such as the Mongols, the Ottoman Empire, and subsequent Persia dynasties. In 1783, one of the Georgian kingdoms formed an alliance with the Russian Empire, which continued to acquire modern Georgia gradually during the nineteenth century.

Georgia formed as an independent country under German protection during the 1917 Russian Revolution. Following World War I, the Soviet Union invaded and conquered Georgia in 1922, making it one of the Soviet Union's fifteen component republics. By the 1980s, an independence movement had arisen and rapidly expanded, eventually culminating to Georgia's separation from the Soviet Union in April 1991. Economic catastrophe, political instability, ethnic violence, and separatist conflicts in Abkhazia and South Ossetia plagued post-Soviet Georgia throughout the majority of the next decade. Following the bloodless Rose Revolution in 2003, Georgia adopted a pro-Western foreign policy, instituting a series of political and economic reforms aimed at gaining membership in the European Union and NATO. The country's Western orientation eventually led to deteriorating ties with Russia, culminating in the 2008 Russo-Georgian War; Russia has subsequently occupied a section of Georgia.

Georgia is a developing nation with a Human Development Index score of "very high." Economic changes implemented since independence have resulted in increased economic freedom and ease of doing business, as well as decreases in corruption indices, poverty, and unemployment. It was one of the world's first nations to legalize cannabis, and the only former socialist state to do so. The country is a member of numerous international organizations in Europe and Asia, including the Council of Europe, the Organization of Black Sea Economic Cooperation, the Organization for Security and Cooperation in Europe, Eurocontrol, the European Bank for Reconstruction and Development, the Association Trio, and the GUAM Organization for Democracy and Economic Development.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Georgia is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

After 11 months of continuous service, the employee is entitled to 24 days of paid annual vacation. Employees are now paid holiday pay equal to their annual wage three months prior to their departure.

They will also take up to 15 days of unpaid leave each year. An employee must provide two weeks' notice before taking unpaid leave.

Public holidays

Georgia recognizes seventeen public holidays.

Sick days

Employees will take up to 30 days of paid vacation. An employee must procure a sickness card from a licensed practitioner in order to be paid.

Maternity leave

In the event of complications or the birth of babies, mothers are entitled to 126 days of maternity and delivery leave, or 143 days in the case of complications or the birth of twins. Employees are paid 100% of their monthly wage (up to a total of 1,000 GEL).

They also have an extra 604 days of maternity leave.

Paternity leave

Paternity leave is enclosed in parental leave.

Parental leave

A total of 57 days from maternity leave will be applied to childcare leave. Either the mother or the father may use this.

An extra two weeks a year can be given to an employee who requests it for the treatment of a child under the age of five.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employers must submit a written statement and a notice period when terminating an employee. Additionally, the employer must have justifiable grounds for terminating the employee.

Notice period

In the event of a termination, both the employer and the employee must give 30 days' notice.

Probation period

Probationary periods should be written in contract and should not exceed 6 months.

Severance pay

Employees are entitled to at least one month's pay within 30 calendar days of the expiration of the labor agreement.

6. Working hours

There is no information about the working hours for this country.

General working schedule

The standard workweek is 40 hours, divided into eight eight-hour days. Between working days, a minimum of 12 hours must be allowed for rest.

Employees between the ages of 16 and 18 can work up to 36 hours per week, while those between the ages of 14 and 16 can work up to 26 hours per week. Nursing mothers will receive an additional hour break to care for their child.

Overtime

Overtime compensation is paid to employees who work more than 40 hours per week (48 hours in some sectors), and work should not exceed four hours per week and two hours per day. Salary should be 125 percent of the normal hourly rate, but the parties may agree on additional rest.

7. Minimum wage

There is no information about the minimum wage for this country.

Georgia has the former Soviet Union's lowest minimum wage, which is set at 20 lari per month, or about $7. In 2019, however, members of parliament and labor rights organizations were attempting to raise the minimum wage to 400 lari per month. They calculated this figure based on the minimum wage in Georgia, which they estimate to be around 390 lari per month.

8. Employee benefits

There is no information about the employee benefits for this country.

Georgia has no mandated health insurance. The government provides healthcare vouchers to the poor and elderly, but the majority of citizens can choose to buy insurance or go without.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Corporate taxes are collected at a fixed rate of 15%. Non-distributed earnings are tax-free beginning in 2017. There are very few deductions available. This structure was put in place to entice foreign investment. Furthermore, certain luxury and ecologically harmful products, such as gasoline, are subject to excise taxes. Customs duties are also levied on certain imported products. There are just six distinct taxes that apply.

Individual income tax

In Georgia, personal income tax is levied at a flat rate of 20% on all local-source income. Personal income earned abroad is tax-free. However, the definition of "foreign-source income" is widely misrepresented, and a closer examination of the tax code reveals that income from abroad earned through active work (on a laptop, for example) while physically present in Georgia would be considered Georgian-source income even if said income was never remitted to Georgia or derived from a foreign source. The personal income tax rate for interest, dividends, and royalties is 5%. There are just a few allowances that are deductible.

VAT, GST and sales tax

The value-added tax (VAT) is levied at a fixed rate of 18%. With few exclusions, almost all products and services are subject to VAT. VAT is not levied on medical treatment, exports, or education. If a taxpayer manufactures or imports products, regardless of sales, he or she must register for VAT. Exempt are turnovers of less than 100,000 GEL.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Individuals from 98 countries are permitted to visit Georgia without a visa for a period of one year; however, individuals who want to stay longer and work must get an immigration visa.

People must get a Type D visa for Immigration in order to work. There are other alternatives for short-term and long-term visas; the most popular visas are the C and D types.

Unless they are visa free, foreign citizens going to Georgia on business normally utilize the C Visa. Depending on their nationality, business travellers may remain in Georgia for up to 90 days in each 180-day period.

Depending on the nature and length of the intended activities in Georgia, the C3 or D1 visa categories are appropriate for short-term employment.

The D1 visa may be paired with an Employment/Residence permit and acquired in the nation for broader/longer-term work activities. Typically, the permission is provided for one year at first. Exceptions are granted at the discretion of the State Service Development Agency based on employment contracts or assignment letters with a longer validity period. The permit may be renewed for a maximum of six years, after which the foreign national may be eligible for permanent residency.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment contracts must be in writing and contain information such as the nature of the employment, job description, compensation, overtime, work hours, yearly leave, other forms of leave, and termination, notice, and probation periods. The contract must be signed by both parties. Employers may seek basic biographical information, a criminal record background, a driving record, a credit check, past job records, and a reference from an applicant.

With Rivermate being your Employer of Record (EoR) in Georgia, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Georgian Lari (GEL)

Euro (EUR)

United States Dollar (USD)

Pound Sterling (GBP)

13.Opening a subsidiary in Georgia

There is no information about the working hours for this country.

How to set up a subsidiary

The procedure of establishing a Georgia subsidiary is influenced by various variables, including location and the kind of business selected. Georgia subsidiary rules that you must follow may vary depending on where you live, since various cities or regions may have their own restrictions. It is advisable to investigate these legal variances before incorporating, or to engage with a consultant, lawyer, or accountant who is familiar with the relevant legislation.

The structure of your organization will also have an influence on the Georgia subsidiary establishment procedure. A limited liability company (LLC), a joint stock company, an international trade business, an international finance company, a free zone company, a branch office, and a representative office are all available in Georgia. Every organization has its own set of rules, so you'll need to select the structure that best meets your needs while also having the most favorable laws.

The LLC is the most common kind of Georgia subsidiary. It will provide you the maximum operating flexibility in Georgia while also shielding your parent business from all of the LLC's actions. The following are the stages to forming an LLC:

1. Using the LEPL National Agency of the Public Registry to register the firm

2. submitting all papers to the Public Registry in order to make them public

3. Obtaining a charter, also known as Articles of Association or Bylaws, including the company's identity information and regulations

4. Keeping a stamp on file for dealings with banks, tax agencies, and civil counteragents

5. Notarizing and legalizing all papers signed in countries other than Georgia

Subsidiary laws

The subsidiary laws in Georgia that apply to LLCs are typically seen as more advantageous than those that apply to other companies. However, you must still adhere to each one in order to remain compliant. You'll need one shareholder and one director, both of whom may be foreigners living outside of Georgia. To incorporate, you'll also require share capital, although the regulations don't specify how much.

You must submit financial statements to the tax office each year as an LLC, but you are not required to face an audit. Georgia has a number of tax strategies that exclude all foreign-sourced income from taxation.

13. Why choose Rivermate as your Employer of Record / PEO in Georgia

Establishing an entity in Georgia to hire a team takes time, money, and effort. The labor law in Georgia has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Georgia simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Georgia give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Georgia via our Employer of Record (EOR) / PEO solution.

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