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  1. Overview: Georgia
  2. Expand without a company set up
  3. Global PEO and payroll
  4. Global HR Compliance
  5. Contractor vs. employee: which is better?
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“The Global Expansion Guide: How To Grow Fast and Limit Risks Without Setting Up A Company In Georgia”

Become An International Business And Gain Presence in Georgia Without The Risk Or Expense Of Setting Up a Company.

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to understand the key global expansion factors that make the difference between success and failure

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In this guide you’ll learn how to:

  • Attract and compliantly pay commission-based sales reps
  • Develop international sales and extra revenue opportunities, without setting up own companies overseas
  • Enter more markets, test the markets before getting established there, and easily withdraw from the unattractive countries
  • Avoid legal and compliance risks
  • Design an efficient system of international sales with a strong team of global salesforces

The key to expanding seamlessly into Georgia is finding and effectively managing local people. Just a single pair of boots on the ground is a game-changer. Immediate revenue increases with a skilled globally distributed salesforce, or expedited growth with foreign local IT pros; all benefits of a strong international team and presence in the global marketplace.

However, if your company is trying to go global, or is already in those early stages, chances are that you’re starting to understand how complicated global operations can be.

Learn How You Can Expand Your Business Globally Through Employment Fast, Easily, And Risk-Free!

Evaluating the Subsidiary Model in Georgia

Advantages

  • Market Intelligence: Operating a subsidiary enables companies to acquire proprietary market intelligence that can't be gleaned from afar, giving you a competitive edge.
  • Local Relatability and Cultural Assimilation: A local entity can adopt the business customs and communication styles that resonate with the Georgian local norms, enhancing brand perception.
  • Capital and Asset Control: With a subsidiary, the parent company has complete governance over capital allocation and asset utilization, making it easier to implement corporate strategies at the local level.
  • Benefit from Geo-specific Incentives: Countries like Georgia often offer incentives aimed at foreign investment, ranging from tax holidays to grants and subsidized land, which could be easier to access as a local entity.
  • IP Protection: Operating via a subsidiary can offer better intellectual property protection, especially if the subsidiary is involved in R&D or software development.

Challenges

  • Bureaucratic Labyrinth: Georgia, like many other countries, has its peculiarities in terms of paperwork and legalities, making the process of establishment complex.
  • Foreign Exchange Risk: Operating in a different currency brings in an added layer of financial risk, as exchange rate fluctuations can impact profitability.
  • Localization Friction: Adapting your business model to local Georgian tastes, habits, and regulations can be time-consuming and expensive.
  • Governance Complexity: With operations scattered across geographies, maintaining a consistent corporate governance structure can be challenging.
  • Data Sovereignty Issues: Housing customer or operational data in Georgia may subject you to local data protection and privacy laws, which may differ considerably from those in your home country.

Special Considerations for the Georgian Market

Georgia offers a unique blend of Eastern and Western business cultures. Besides the traditional bureaucratic processes—incorporation, licensing, and banking—it's essential to build robust relationships with local entities as Georgian business heavily relies on networks and relationships. Understanding the local etiquette, often steeped in traditions, can offer an unrivalled advantage.

The Global EOR Paradigm: A Strategic Imperative for Today’s Businesses

While a subsidiary could provide a sturdy long-term foundation in a foreign market, the heavy resource commitments may not align with every business's strategic goals. In contrast, Express Global Employment's EOR service blends speed, compliance, and agility. It is a highly efficient vehicle for companies eyeing swift market entry without sacrificing operational integrity.

Save Up to 80% of Talent Management Costs in Georgia with Employer of Record

 Average Cost & TimeOur Solution *
Time to Market10+ weeks72 hours
Legal Advisors Fees$ 10 000 +………….
Official Employment & Benefits$ 20 000 +………….
Incorporation & Liquidation Costs$ 11 000 +………….
Bank Account Setup$ 2 000 +………….
Maintenance costs and in-house staff to manage the foreign entity, payroll set-up, and administration.$ 25 000+………….
The approximate total cost of new market entry**$ 74 000 +$ 15 000

* Per one Employee
** Costs vary from country to country

Partnering with an EOR: Beyond Conventional Benefits

While traditional advantages like quick market entry and reduced compliance burdens are commonly cited for EORs, less-talked-about benefits include:

  • Hyperlocal Insight: By outsourcing certain functions to an EOR familiar with the Georgian business environment, you gain access to local market analytics that can inform your business strategy.
  • Lean Management: Using an EOR can allow your home office to maintain a leaner management structure, focusing your human capital on areas where it will provide the most value.
  • Plug-and-Play Talent Access: Need a specialized skill set for a limited time? An EOR can facilitate the quick hiring of local experts, without the need for long-term commitments.

Crafting a Tailored Strategy for Expanding into Georgia

Expanding your business into Georgia requires more than just a “copy-paste” of your existing operations. With complex socio-political dynamics, evolving regulatory landscapes, and distinct cultural nuances, Georgia demands a well-researched and agile strategy. Whether you opt for a subsidiary or choose to partner with a Global EOR like Express Global Employment, due diligence and local customization will be your pillars for sustainable growth and profitability.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly-specialized areasEmployee Work Visa and Work Permit sponsorshipHealth checksEmployment Agreement draftingIn-country registration with statutory bodiesWorking hoursMandatory BenefitsTax Reporting frequency and requirements;Employment agreement termination:
Executive searchDependent VisaCriminal record checksCompliant worker onboarding on your behalfDay-to-day payroll managementOvertimeHealth insuranceEmployer taxes & contributionsDismissal – by the employer
Contingency workforceVisa extensionBackground checksAccount setup in the payroll and HR system​Monthly pay slips or other pay frequencyPublic holidaysWorkers’ compensationEmployee taxes & contributionsResignation – by the employee
 Application for a sponsor license for a foreign nationalEducation checksEmployee data entry and records maintenanceAccrualsAnnual leaveUnemployment insuranceWithholding taxTermination by mutual agreement
 Relocation assistance Managing probation periodsAllowancesParental leaveVoluntary BenefitsLocal tax payments and reporting to local authoritiesNotice period handling
    13th and 14th salarySick leaveShare plans for executivesEnd of financial year reportingFinal settlement & severance payments
     Additional leaveBonuses & Equipment provision De-registration with statutory bodies
      Expenses reimbursement & business trip processing  
      Health insurance, dental treatment  

Your Next Strategic Move: Employee Onboarding and HR Operations in Georgia

So you've decided to broaden your business horizons by expanding into Georgia— a commendable decision. While initiating operations in a new market is thrilling, it comes with its complexities, particularly in employee recruitment, onboarding, and payroll management. Generally, setting up a legal entity in Georgia can take up to three months. Moreover, you should also account for potential liquidation procedures, which may be necessary if you choose to exit the Georgian market. Often, winding down operations can be more intricate than setting them up.

Simplifying Georgian Operations with Express Global Employment

Express Global Employment can act as your strategic partner in this endeavour, serving as the local employer of record for your Georgian workforce. Our comprehensive solution covers the entire HR and payroll responsibilities and even extends to business expense management. In addition, we ensure that all allowances and benefits are duly paid to your employees, maintaining a seamless operational flow.

Work Permits and Visas: Facilitating Global Mobility

Global talent management is vital in today's business landscape. If your strategy involves deploying expatriate staff to Georgia, we've got you covered. Express Global Employment can sponsor and extend the necessary work permits and visas, eliminating the complexities of the international workforce hiring.

Your Focus: Business Strategy and Development

In this arrangement, you, as the factual employer, continue to steer the ship. Your company retains full authority over employee compensation, role definitions, project assignments, and terminations. Our role is to act as the legal employer of record, freeing you from Georgian employment and tax law's intricacies. This lets you focus entirely on what matters most: growing your business in this promising new market.

Recruitment Support: Finding the Right Talent

Identifying the right human resources is crucial for your Georgian operations to thrive. Whether you're looking to convert existing freelancers into full-time employees or hire anew, we offer recruitment services that complement our Employer of Record offerings. This integrated approach ensures you get a comprehensive, hassle-free solution for scaling your business in Georgia.

Navigate Georgia with Expert Global Employment Support

Navigating the operational complexities in Georgia can be overwhelming, but it doesn’t have to be. With Express Global Employment as your partner, you can concentrate on your core business functions, while we handle the legal and operational nuances. From payroll management to visa facilitation and recruitment support, we provide a streamlined, efficient pathway to achieving your Georgian business objectives.

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