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Foreigners Working in Georgia in 2026: Work Permit and Residence Permit Rules for Directors, Shareholders, Entrepreneurs, and Employees

As of March 1, 2026, Georgia has introduced important changes to the legal framework governing foreigners who work, manage companies, or conduct entrepreneurial activity from within Georgia. For many years, foreign nationals could often rely on visa-free stay or another lawful basis of presence in Georgia and still carry out business or work-related activities in practice. This approach has now changed. Under the new regime, the right to stay in Georgia and the right to work in Georgia must be assessed separately.

In simple terms, a foreigner may still be allowed to remain in Georgia, but this alone no longer means that he or she may legally work, manage a business, or conduct independent economic activity from the territory of Georgia. Depending on the role of the person and where the work is physically carried out, a work permit in Georgia and, in many cases, also a residence permit in Georgia may now be required.

What Changed in Georgia from March 1, 2026?

The main principle after March 1, 2026 is that lawful stay is not the same as lawful work. A visa-free regime, a visa, or another legal basis for remaining in Georgia does not automatically authorize a foreign national to engage in employment, management activity, freelance work, or self-employment from Georgia.

These new rules are highly relevant for:

  • foreign employees of Georgian companies,
  • individual entrepreneurs and sole proprietors,
  • freelancers and remote workers,
  • directors of Georgian LLCs and other legal entities,
  • foreign shareholders who are actively involved in company operations,
  • employers hiring foreign nationals in Georgia.

This reform is especially important for persons who previously relied on visa-free stay, repeated border crossings, or other informal practical solutions. Such approaches may no longer be sufficient where the foreigner is in fact working or managing a business from Georgia.

Difference Between Shareholder and Director of a Georgian LLC

One of the most important legal distinctions under Georgian law is the difference between being a shareholder and being a director of a company. These two roles are not treated the same way for immigration and work authorization purposes.

Passive Shareholder of a Georgian LLC

If a foreign national is only a shareholder of a Georgian LLC and does not actively manage the company, provide services to it, or otherwise perform work on its behalf, then simple ownership of shares is generally not treated as employment or entrepreneurial activity. In such a case, a shareholder does not usually need a work permit merely because he or she owns the company.

This means that if you are only the owner of the Georgian company, but you are not acting as its manager, not signing documents in the role of executive, and not carrying out business functions from Georgia, your position is legally much safer and simpler.

Director of a Georgian LLC

The position of director is more complex. Under Georgian corporate law, the director is not a standard employee in the labor law sense. The relationship between the company and the director is usually based on management authority and corporate appointment rather than on an ordinary employment agreement. However, from the standpoint of the new 2026 rules, a foreign director who manages a Georgian company is generally viewed as a person performing economic or management activity.

As a result, a foreign director may need legal authorization to work. The practical position can be summarized as follows:

  • if the foreign director manages the Georgian company from abroad, a work permit may be required, but residence in Georgia may not be necessary;
  • if the foreign director manages the Georgian company from within Georgia, both a work permit and a residence permit may be required.

No Transition Period for Many Directors

One of the most problematic practical issues concerns the transition period. Employees who were already registered through the Ministry of Labor system may in some situations continue under transitional arrangements until January 1, 2027, provided that their compliance is regularized within the allowed time.

However, directors are usually not in the same position. Since directors were often not registered as employees on the Ministry of Labor portal, they may not benefit from the same transition logic. This creates a legal and practical gap. In many cases, a foreign director may need to address compliance immediately and should not assume that the employee transition period automatically protects a corporate management role.

What About a Founder Who Is Also Director and Employee?

In practice, especially in IT, consulting, startup, and service businesses, one foreign person may simultaneously be:

  • the shareholder of the Georgian LLC,
  • the appointed director, and
  • the actual person performing daily work for the business.

This is very common, but legally it must now be analyzed role by role. The fact that one person holds several functions does not eliminate compliance obligations. It simply means that each role must be assessed separately. In some cases, the operational function may be structured through employment, while company management may remain a separate corporate role. This kind of structuring can be important for planning the correct path toward work authorization and residence.

Rules for Foreign Employees in Georgia After March 1, 2026

The reform also changed the procedure for hiring foreign employees in Georgia. Under the old approach, it was often enough to conclude an employment agreement and register the person afterward. The employee could often begin working without first having a residence permit. This approach is no longer reliable for new cases.

For new foreign employees after March 1, 2026, the process is stricter. The employer must consider that:

  • the employment arrangement should be prepared in a way that reflects the need for prior authorization,
  • a work permit may need to be obtained before the work can lawfully begin,
  • if the employee will actually work from Georgia, a residence permit application may also need to follow within the relevant legal time frame.

Upon termination of the employment relationship, the work authorization basis may also end, which may have direct consequences for the residence status of the foreign employee.

Freelancers, Sole Proprietors, and Self-Employed Foreigners in Georgia

The 2026 changes are not limited to formal employees and company directors. They are also important for:

  • freelancers working remotely from Georgia,
  • self-employed persons,
  • individual entrepreneurs registered in Georgia,
  • foreign nationals carrying out independent services from within Georgia.

A person may be paid by foreign clients, invoice abroad, or provide services online, yet still fall within the concept of work or economic activity carried out from Georgian territory. This means that many foreigners who previously assumed that only local employment matters may now need to reassess their legal position.

Can a Visa-Free Stay or Visa Run Still Solve the Problem?

No. Under the new approach, visa-free presence in Georgia or periodic exit and re-entry does not create the legal right to work. It may still regulate lawful stay, but it does not replace work authorization where such authorization is required by law.

This is especially important for foreigners who were previously refused a residence permit and hoped to continue working through repeated entries into Georgia. That strategy may now expose the person and sometimes also the company to legal and practical risks.

Practical Risks of Non-Compliance

Failure to regularize the legal basis for work in Georgia may lead to significant practical difficulties. These may include:

  • problems during residence permit applications,
  • banking and KYC issues,
  • questions from authorities regarding the legal basis of activity,
  • difficulties for company directors signing documents or managing operations from Georgia,
  • uncertainty regarding the validity of ongoing business arrangements.

Even where enforcement develops gradually in practice, foreign nationals and their companies should not rely on uncertainty or delay. Proper legal structuring and timely preparation remain the safest approach.

Power of Attorney as a Temporary Practical Solution

In some cases, a foreign founder or director may choose to issue a Power of Attorney to a trusted person, second director, employee, or local representative in Georgia. This may help maintain practical continuity of business operations while the foreign national arranges the appropriate legal status.

A properly drafted and notarized Power of Attorney may allow the authorized person to:

  • sign selected company documents,
  • interact with authorities,
  • assist with banking matters,
  • maintain administrative continuity.

However, the exact wording and permitted scope should always be reviewed carefully based on the corporate structure and the practical needs of the business.

Alternative Route: IT Residence Permit in Georgia

Some foreign professionals working in IT may also consider the separate route of an IT residence permit in Georgia. This route may be available where the applicant can prove relevant professional experience and sufficient income, subject to the documentary requirements in force.

In general, this option may be attractive for certain software developers, engineers, remote IT specialists, and technology professionals who genuinely perform qualifying activity and are ready to meet the supporting evidence requirements. Foreign documents normally need to be apostilled or legalized and then translated into Georgian by an authorized legal translator or through notarial procedure as required.

What Should Directors and Shareholders of Georgian LLCs Do After April 15, 2026?

If you are a foreign shareholder only and you are not actively working for the Georgian company, your legal position may remain relatively simple. If, however, you are also the director, or if you are actively managing, freelancing, invoicing, signing, or operating from Georgia, you should review your status immediately.

In practical terms, the key questions are:

  • Are you only a shareholder, or are you also a director?
  • Are you physically located in Georgia while performing the activity?
  • Are you acting under employment, management authority, or self-employment?
  • Do you need a work permit only, or both a work permit and a residence permit?
  • Would an interim corporate authorization, such as a Power of Attorney, be advisable?
  • Would an IT residence permit or another residence basis be more suitable for your case?

How We Help at ResidencePermits.ge

At ResidencePermits.ge, we assist foreign clients with legal assessment and practical preparation related to:

  • work permit matters in Georgia,
  • residence permit applications in Georgia,
  • IT residence permit strategy,
  • legal structuring for directors and shareholders of Georgian LLCs,
  • document review, translations, apostille coordination, and corporate support.

Every case should be reviewed individually. The legal position of a foreign shareholder is not the same as that of a foreign director, and the correct strategy often depends on whether the activity is performed from Georgia or from abroad. Early legal review can help avoid interruptions in business activity and reduce future compliance risks.

 

The 2026 changes mark an important turning point for foreigners living or doing business in Georgia. From now on, it is no longer enough to ask whether a person may legally stay in Georgia. The correct question is whether the person may also legally work, manage, or conduct economic activity from Georgia under the updated rules.

For passive shareholders, the answer may often remain simple. For directors, entrepreneurs, freelancers, and active company founders, the legal analysis is now much more serious. Proper preparation, correct structuring, and timely filing of the necessary permits can make the difference between smooth business continuity and significant legal and practical complications.

If you need legal assistance with a work permit in Georgia, a residence permit in Georgia, or a legal review of your position as a director or shareholder of a Georgian LLC, our team at ResidencePermits.ge is ready to assist.