Georgia has eased a rule that had made it difficult for some foreign nationals to activate new labour permits after establishing a business in the country.
Under amendments adopted in July to the rules for work residence permits, a newly registered company may support an initial application without meeting the usual annual-turnover threshold, provided it has no more than three foreign employees.
A route for newly registered businesses
Since March, Georgia has been introducing a new system governing the right of foreign nationals to carry out labour activity. Subsequent changes exempted several groups, including many foreign company owners, entrepreneurs whose income comes from outside Georgia, and directors of larger enterprises.
The rules nevertheless continued to affect some people, notably directors of Category IV enterprises — a category that includes most newly formed companies — and individual entrepreneurs working with the local market.
For those applicants, the previous requirements could create a practical impasse. A work residence permit was needed to activate the right to work, while an application for that residence permit generally required the employer to show GEL 50,000 turnover per foreign employee. A company that had only recently been registered was unlikely to have that history.
Initial permit can be issued for six months
The July amendment addresses that issue for first-time applications. A company registered no more than three months earlier and employing up to three foreign nationals does not need to provide the usual turnover certificate. It must instead submit a company-issued certificate stating the number of foreign employees.
The resulting work residence permit may be issued for up to six months. Standard conditions, including the turnover requirement where applicable, apply when it is renewed.
In practical terms, a foreign national running a qualifying new Georgian business can now seek the required right to work and an initial work residence permit without first establishing a revenue record. The measure applies to a limited group of new entities and does not remove the wider labour-migration requirements.
What remains to be seen
The changes clarify a route that had been difficult for new businesses to use in practice. Applicants should still check which category applies to their company or individual activity and prepare the supporting documents required for their particular case.
Georgia Times will continue to follow how the updated procedure is applied by the relevant authorities.
