Since Georgia introduced a permit requirement for foreign economic activity in March 2026, two claims have circulated that do not hold in the form they are made: that incorporating a company now requires physical presence, and that every company owner needs a work permit. This article sets the documented legal position alongside them — including the points that have genuinely become stricter.
What actually applies
Since 1 March 2026 the Special Labour Activity Permit has been mandatory for foreign nationals carrying out economic activity in Georgia — as employees, as self-employed persons or in an operational function within a company. For self-employed persons working as sole traders or independent contractors a transition period ran until 1 May 2026.
The permit is therefore the central document for carrying out an activity in Georgia. So far the widespread account — and so far it is correct.
It does, however, leave out two things.
The exemption that is usually missing
Founders and shareholders of Georgian companies are exempt from the permit requirement, provided they hold no position in that organisation. That is not an interpretation but part of the rule.
The distinction is legally clean and practically decisive:
| Permit required | Permit not required | |
|---|---|---|
| Shareholder without an operational function holds shares, does not run the business personally | ||
| Managing director operating on the ground holds a position in the organisation | ||
| Employee of a Georgian company | ||
| Sole trader active in Georgia the transition period ended on 1 May 2026 | ||
| Remote work for foreign clients clarified by statute, see below |
The second omitted point concerns remote work. Law N1509, in force since 15 April 2026, clarifies that remote work for foreign clients does not fall under the permit requirement. That is precisely the constellation of the audience most written about — and it is governed by statute, not a grey area.
The two false claims
What follows in practice
- Holding shares without an operational function: no permit requirement the typical constellation in a holding or participation structure
- Remote work for foreign clients: exempt by statute under N1509 in force since 15 April 2026
- Registration by power of attorney without presence: still possible
- Operational activity on the ground without a permit: not permitted management, employment, sole trading in Georgia
- Relying on blanket statements from forums: not advisable the rule is new and administrative practice is developing
The honest summary is this: Georgia has regulated an area that was previously largely unregulated. That is a tightening compared with the state before, and anyone denying it is selling an outdated picture. But it is not the abolition of remote formation and not a presence requirement — and anyone claiming that is selling a false one.
The full account of permit types, deadlines, fees and sanctions is in Georgia Work Permit 2026; the constellation for location-independent workers in Digital Nomads in Georgia; the ongoing obligations after formation in Accounting & Compliance in Georgia.
Frequently asked questions
Do I need a work permit as a shareholder of a Georgian company?
Not as long as you hold no position in the organisation. Founders and shareholders are exempt from the permit requirement provided they do not become operationally active themselves. Share ownership and economic activity are two different connecting factors — that is the distinction missing from most accounts.
Do I have to travel to Georgia to incorporate since March 2026?
No. Registration at the Public Service Hall still takes place on the basis of a notarised and apostilled power of attorney. The permit requirement does not attach to registration but to the carrying out of an activity in Georgia. Anyone who incorporates and holds shares without working operationally on the ground does not trigger it.
What applies to remote work for foreign clients?
Law N1509, in force since 15 April 2026, clarifies that remote work for foreign clients does not fall under the permit requirement. That is precisely the constellation of location-independent self-employed people and it is expressly governed, not a grey area.
When did the transition period end?
For self-employed persons working as sole traders or independent contractors in Georgia, a transition period ran until 1 May 2026. The general permit requirement itself has applied since 1 March 2026.
Can I get a business account without a work permit?
That cannot be answered in blanket terms, and we deliberately do not present it as the legal position. Banks’ requirements have risen since the new rules; institutions examine residence and work status more closely during onboarding, and in some constellations the permit is applied for as part of the process. A general statutory rule to that effect cannot, however, be evidenced. Practice differs between institutions and remains in flux — which is something to settle before account opening.
Has Georgia become less attractive as a result?
An area that was previously largely unregulated has been regulated — that is a tightening compared with the state before, and it should not be played down. For the most common constellation among our clients, namely share ownership without operational activity on the ground and remote work for foreign clients, nothing changes in terms of permissibility. What changes is the documentation effort.
This article is general information and does not constitute legal or tax advice. The statements relate to the permit requirement for foreign economic activity in Georgia in force since 1 March 2026, the transition period for the self-employed until 1 May 2026 and Law N1509 with effect from 15 April 2026. The rule is new and administrative practice is developing; the passages on banks’ onboarding practice are expressly marked as practice observation and not as the legal position. As of May 2026, subject to changes in the law.