On March 1, 2026, major changes to Georgia's labor migration legislation will come into effect. They will fundamentally alter the conditions for foreign sole proprietors. The amendments are aimed at combating fictitious sole proprietorships and stimulating the genuine economic presence of foreigners in the country.
The main innovation
Starting in 2026, a work permit from the Georgian Ministry of Labor will be mandatory for all foreign individual entrepreneurs—both existing and those planning to open a business. Without a permit, operating a business will be considered illegal and punishable by fines ranging from 2,000 to 6,000 lari (approximately $740–$2,220), up to and including revocation of registration.
What is needed for legalization?
To obtain permission, you will need:
- confirmation of qualifications
- business plan
- at least $5,000 in the account
- certificate of no criminal record
The processing time is 30–60 days. The cost is approximately 200 lari (~$74). The permit is valid for one year and can be extended. Once received, you must apply for a D1 visa (if you are outside Georgia) or a work residence permit (if already in the country). The business must not be dormant—tax authorities will check its activity and income.
Transition period
A transition period is in place until January 1, 2027. It is available to those who register on the labormigration.moh.gov.ge portal before March 1, 2026. This provides a deferment of fines and time to prepare documents.
Who does this concern?
Individual entrepreneurs in Georgia are required to obtain a permit by March 1, 2026 (or January 1, 2027, if registered).
Remote sole proprietors without a physical presence will face difficulties – they will need to justify the benefits of their business to the country's economy.
Digital nomads working for foreign companies can reside in Georgia without a permit—it is only required for work within Georgian jurisdiction.
What to do
Existing individual entrepreneurs should register on the portal before March 1, 2026, and collect the necessary documents.
Individual entrepreneurs who have retired should evaluate whether it's worth maintaining their business. If they no longer have a physical presence, it's best to close it by the end of 2026.
Those ready to legalize their business should prepare a business plan in advance. Legal support will cost $200–500.
Digital nomads can consider alternatives - Armenia (1% for IT), Kyrgyzstan (2% or 1% in the High-Tech Park) and other countries.
Conclusion
Georgia is no longer suitable for "remote" sole proprietors without a physical presence. Taxes remain low (1% for small businesses), but real involvement is now required. Either legalize and relocate, or close your sole proprietorship and choose another jurisdiction.
If you need help with paperwork, risk analysis, or alternatives, please contact us and we'll figure it out together.
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