Contractor Management in Georgia
Streamline your B2B engagements with independent Georgian freelancers. We handle contract templates, invoice routing, and administrative monitoring, helping you structure engagements that align with Georgia's legal framework.
Structuring Independent B2B Relationships
Unlike our formal Employer of Record (EOR) service, Contractor Management is strictly an administrative layer for engaging independent B2B freelancers. In this model, neither you nor ProximaEOR is the employer; you are procuring services from an independently registered Georgian business entity (typically an Individual Entrepreneur).
We provide localized B2B service agreement templates that include robust Intellectual Property (IP) assignment and Non-Disclosure (NDA) clauses. While these contracts establish the legal mechanism for IP transfer, actual protection ultimately depends on the specific operational relationship and applicable law.
- Standardized B2B Service Agreements
- Consolidated monthly invoice processing
- Direct localized payment routing to contractor accounts
The Misclassification Risk
Engaging an individual as a contractor when their actual working conditions resemble formal employment carries severe financial and legal penalties under Georgian law. A contract template alone does not prevent reclassification. A relationship may be reclassified as employment if the worker:
- Operates under direct, continuous corporate subordination.
- Is bound by strict, fixed working hours mandated by the client.
- Uses equipment, software, and tools exclusively provided by the client.
- Does not bear any true entrepreneurial or financial risk.
If you require direct control over working hours, PTO, and strict performance metrics, our Employer of Record service is the legally appropriate model.
The 1% Small Business Status (SBS)
Georgia is highly attractive to international tech talent largely due to its preferential tax regime for registered Individual Entrepreneurs.
How SBS Taxation Works
Under the Tax Code of Georgia, individuals formally registered as Individual Entrepreneurs (IE) may apply to the Revenue Service for Small Business Status (SBS). If officially granted, they benefit from a significantly reduced tax burden compared to the standard 20% flat personal income tax.
The contractor pays a 1% tax on their gross annual business turnover up to 500,000 GEL.
If gross turnover exceeds 500,000 GEL, the 3% rate applies to the relevant taxable income beginning from the start of the month in which the threshold was exceeded, through the end of the calendar year.
Statutory Exclusions
The 1% SBS rate is not universally available. Georgian tax law explicitly prohibits certain professional activities from utilizing this regime.
Excluded professions include:
- Legal & Accounting Services
- Financial & Tax Advisory
- Management Consulting
- Medical & Architectural Services
- Gambling & FX Trading
IT & Software Development: Generally qualifies for the 1% rate subject to formal Revenue Service approval, making Georgia a prime hub for freelance tech talent.
Our Administrative Process
How ProximaEOR facilitates your B2B contractor engagements safely and efficiently.
Compliance Verification
We verify NAPR business registration and confirm the contractor holds a valid Georgian business bank account.
Contract Templates
We issue localized B2B service agreement templates featuring standard IP assignment and NDA clauses for your use.
Invoice & Payment Routing
We consolidate your contractor invoices into a single monthly bill and route the gross fees directly to your contractors subject to standard banking/FinTech network capabilities.
Fixed Monthly Administration
Pay only for active contractors. No percentage fees, no setup costs. Streamline your global payouts with predictable administrative overhead.