Founding director of a company in Georgia: how to apply for a work permit

After the introduction of the work permit system, foreign entrepreneurs had many questions about how to obtain work permits for company owners.

One of the most common questions was whether a founding director must obtain a work permit and how to apply for one.

The Georgian Ministry of Labor has provided clarification on this issue.

The founding director submits an application as a self‐employed person

According to the explanation of the Ministry of Labor, if a foreigner:

• is the founder of a company,
• simultaneously holds the position of director,
• and actually manages the company,

then when applying for a work permit, he submits an application as a self‐employed person.

In this case, the application must indicate the identification code (IC) of the company he manages.

This is an important point, since formally the activities of a founding director are considered independent economic activity, rather than standard employment.

Why is self‐employed status used?

This approach is explained by the peculiarities of corporate law.

In fact, the founding director:

• manages their own company,
• makes strategic decisions,
• is responsible for the business’ activities.

Therefore, their role does not fully coincide with the classic model of an employee.

That is why the application system provides for applications to be submitted as a self‐employed entrepreneur.

What this means in practice

Several important conclusions can be drawn from this clarification.

1. The director of the company must also obtain a work permit

Even if a person:

• owns the company,
• has appointed themselves as director,

this does not exempt them from obtaining a work permit.

Without a work permit, the actual management of the company may be considered a violation of migration law.

2. The company must be specified in the application

When submitting an application, it is necessary to specify:

• the company’s identification code,
• the legal entity’s details.

This allows the state to see the scope of the business’ activities.

3. In fact, this is a separate category of applicants

The founding director is formally:

• not an employee,
• and not a classic individual entrepreneur.

But for the purposes of the system, his activities are equated with self‐employment.

What entrepreneurs need to consider

Foreign business owners in Georgia should consider several practical issues.

If you:

• have registered a company in Georgia,
• have appointed yourself as director,
• are involved in the management of the company,

then you need to obtain a work permit.

When submitting an application:

• indicate your status as a self‐employed person,
• additionally indicate the company’s identification code.

Conclusion

The clarification from the Ministry of Labor confirms an important principle of the new system: the founding director of a company in Georgia must also obtain a work permit.

In this case, the application is submitted:

• as a self‐employed person,
• indicating the company’s identification code.

This means that business owners should prepare their documents in advance and obtain a work permit to avoid fines and problems with their legal status in the country.

Need help with obtaining a work permit?

ESPERO specialists assist foreign entrepreneurs at all stages:

• obtaining a work permit,
• registering sole proprietorships and companies in Georgia,
• preparing documents for a D1 visa and residence permit,
• consulting on new labor migration rules.

We monitor the application of the law and help prepare the right strategy for obtaining status.