ProximaEOR Logo

Georgia-focused corporate services

Hire, pay and operate in Georgia with clarity.

Choose the right structure for your team: employ people through a Georgian Employer of Record, work with independent contractors, administer local payroll, or register your own entity. We connect the legal model with practical HR, tax and operational support.

Start with the right model

Four services. Different legal needs.

The cheapest-looking arrangement is not always the right one. Choose based on who will legally employ the worker, who controls the operations, and which ongoing obligations your business wants to manage.

Service Specifications

Understand the scope before you commit.

Every option features a different balance of control, administration, and legal responsibility. The details below clarify what is coordinated locally and what stays with you.

01
Service Scope

Employer of Record (EOR)

A Georgian employing entity enters into the local employment arrangement and administers agreed employer-side obligations. Your business directs the employee's day-to-day work and sets business priorities.

Practical Example:

"An overseas company wants to hire a Georgia-based software engineer without first establishing a Georgian LLC."

Explore Employer of Record

Operational Workflow

Foreign companyGeorgian employerGeorgia-based employee

What We Coordinate

  • Employment documentation and onboarding coordination
  • Payroll processing, tax filings and pension administration
  • Leave records and employment lifecycle support

Your Responsibilities

You select and supervise the employee, define the role, fund salary and related costs, and meet your responsibilities under the B2B service agreement.

Important to Check

Employment, immigration and IP arrangements depend on the person's circumstances, applicable law and the signed contracts; an EOR does not remove every client-side operational risk.

02
Service Scope

Independent Contractor Management

We coordinate the documentation and administration of independent service relationships, including the agreed invoicing and payment workflow. The individual or business must actually operate as an independent contractor.

Practical Example:

"A foreign agency purchases a defined design project from an independent Georgian service provider utilizing the 1% SBS tax regime."

Explore Contractor Management

Operational Workflow

Agreed scopeIndependent serviceInvoices and records

What We Coordinate

  • B2B agreement and onboarding documentation coordination
  • Invoice administration and consolidated payment routing
  • Contractual confidentiality and IP provisions, where appropriate

Your Responsibilities

You define the services and deliverables, maintain a genuine commercial relationship, and approve invoices and payments under the agreement.

Important to Check

A B2B label does not prevent employment reclassification. Tax treatment, including any Small Business Status (1%) benefit, depends on actual eligibility and is the sole responsibility of the contractor.

03
Service Scope

Payroll & Employment Administration

From gross-to-net calculations to reporting and payment coordination, this service helps you operate a repeatable monthly payroll process tailored to your actual Georgian entity and workforce.

Practical Example:

"A business with an existing Georgian LLC needs predictable monthly payroll administration in local GEL currency."

Explore Payroll Administration

Operational Workflow

Approved gross payApplicable deductionsPayment and RS.ge filings

What We Coordinate

  • Gross-to-net calculations and compliant payslip records
  • Income-tax withholding (20%) and reporting coordination
  • Applicable funded-pension and treasury remittance administration

Your Responsibilities

You approve payroll inputs, keep attendance and compensation records accurate, and provide the global funds required to cover salaries, taxes and contributions.

Important to Check

The standard personal income tax rate is generally 20%. Pension participation and contributions are case-specific. Domestic salary payments generally must be disbursed in Georgian Lari (GEL) per NBG regulations.

04
Service Scope

Company Registration in Georgia

We coordinate the steps needed for Georgian LLC or Individual Entrepreneur registration. We facilitate document preparation, translation, and representation arrangements before the public registry.

Practical Example:

"A foreign founder wants to establish a 100% foreign-owned Georgian LLC and needs help coordinating registry documents remotely."

Explore Company Registration

Operational Workflow

Prepare PoARegistry procedurePost-setup actions

What We Coordinate

  • LLC or individual entrepreneur setup planning and execution
  • Registry documentation and Power of Attorney (PoA) coordination
  • Relevant registration, tax-portal and legal-address provision

Your Responsibilities

You approve the ownership model, supply Apostilled/Legalized corporate documents, and govern the company after incorporation.

Important to Check

Registration does not itself grant tax incentives (e.g., Virtual Zone), work authorization or a bank account. Banking decisions remain subject to independent AML/KYC checks by financial institutions.

The Local Rules Matter

Employment and tax questions to resolve early

A clear setup prevents surprises later. These are common statutory decision points, not a substitute for formal advice on a specific transaction.

Understand the full employment cost

Georgia generally applies a 20% personal income tax rate to taxable income. Applicable pension contributions, FX payment procedures and the agreed administrative fee should be considered separately when budgeting.

Tax Code of Georgia

Plan for statutory employment rights

Georgian employment law includes strict rules on contracts, working conditions, and termination. For example, employees are legally entitled to at least 24 working days of paid annual leave.

Labor Code of Georgia

Pension and eligibility variations

Participation and contribution obligations must be checked for the individual. State-funded pension co-contributions vary by annual income band rather than remaining a universal 2% at every income level.

Law on Funded Pension

Working Together

From the first question to a working local setup

The exact steps and timing depend on the engagement. This sequence outlines the decisions typically made before and after formal onboarding.

01

Tell us the objective

Who will work in Georgia, in what capacity, and for how long? We first distinguish employment from independent services and entity setup.

02

Confirm the legal model

We clarify the proposed employer or contracting entity, required documents, responsibilities, likely fees and payroll inputs before execution.

03

Complete the setup

Depending on the selected service, we coordinate contracting, registration, tax administration and onboarding steps locally.

04

Administer and review

For recurring services, agreed payroll, documentation and reporting workflows continue seamlessly with periodic compliance checks.

Decision Guide

EOR, Independent Contractor, or Own LLC?

Compare how legal responsibility and control differ across models. Payroll administration is not a substitute for determining who the formal legal employer is.

Swipe to view comparison
ResponsibilityEmployer of RecordIndependent ContractorOwn LLC
Who legally employs staff?ProximaEOR (The Georgian employing entity)No employer in a genuine B2B engagementYour Georgian LLC
Who manages daily work?Your businessContractor delivers agreed services independentlyYour business
Payroll and taxesCalculated & remitted under the EOR arrangementSole responsibility of the contractorResponsibility of your entity
Key considerationEmployer/client responsibilities must be allocatedMisclassification risks and IP transfer termsOngoing governance, bookkeeping and filings
Best fitEmploy staff formally without forming a subsidiaryPurchase independent deliverablesBuild a permanent local corporate presence

* Illustrative comparison only. Classification, tax, banking, immigration and employer responsibilities depend on the actual arrangement and applicable Georgian law. No timeline, tax eligibility, or bank approval is guaranteed.

Beyond routine administration

Cross-border engagement often requires more than payroll: carefully drafted service terms, confidentiality and intellectual-property provisions, company documents, and advice on specific regulatory questions.

Where additional legal advice or representation is needed, the appropriate scope can be discussed with our partners Proxima Legal or Tbilisi Law.

Clarifications

Frequently Asked Questions

Do I need to register an LLC to hire someone in Georgia?

Not necessarily. An appropriate Employer of Record arrangement allows a foreign company to engage staff through a Georgian employing entity without first incorporating its own subsidiary. The arrangement and applicable responsibilities must be reviewed for your particular case.

Can I engage everyone as an independent contractor instead?

No single contract label decides worker status. The real relationship, degree of independence, and working practices matter under Georgian law. Where the intended arrangement involves strict control and subordination, an employment-based model is legally appropriate.

Does company registration include a guaranteed bank account?

No. Incorporation and banking are strictly separate processes. Top-tier Georgian banks independently assess their customers under rigorous KYC/AML requirements, especially for foreign-owned entities.