Georgian payroll, when your LLC scales into operational substance.

What you get#

Georgian payroll administration for foreign-founded LLCs hiring Georgian-paid local staff. Most foreign-founder configurations don't initially have Georgian payroll in scope — IE+SBS runs solo by definition, LLC operations often start with the foreign founder under foreign-paid arrangements. Hiring/Payroll becomes in-scope when the configuration scales into substance: hiring local staff to support LLC operations, hiring qualifying employees for International Company status compliance, or hiring Georgian-paid employees as part of grounding Investment residence permit substance.

The structure has four other clean properties:

Hiring/Payroll is genuinely episodic for most foreign-founder configurations. Solo IE+SBS configurations don't have employees by definition. LLC operations frequently start with the foreign founder as sole employee under foreign-paid arrangements (no Georgian payroll required). Hiring becomes in-scope when operational scale requires Georgian-paid local staff — and that's a meaningful operational milestone, not an automatic next step. We confirm the configuration warrants Georgian payroll before recommending the engagement.

Georgian-paid employees trigger specific compliance layers. Once you have Georgian-paid local staff, the compliance picture broadens: monthly payroll runs (gross-to-net calculations), employee tax withholdings (Georgian income tax at 20% on Georgian-source employment income, plus pension contributions), social security registrations, employment contract administration, ongoing compliance with Georgian employment law (working hours, paid leave, dismissal procedures, social security obligations). Each layer requires ongoing attention; missing any creates regulatory and litigation risk.

Common triggers for Georgian payroll in scope. Three configurations typically warrant Georgian payroll: scaling LLC operations into substance with hired staff (foreign founder hires Georgian developers, marketers, ops staff for LLC operations); satisfying International Company status hiring requirements (Resolution 619 qualifying employees, with the 5% personal income tax rate applying to qualifying IC employees); grounding Investment residence permit substance (hired Georgian staff as part of demonstrating investment-grade Georgian commitment for the 5-year accelerated permanent residence track).

Filed via delegated rs.ge access. Same delegation mechanism as the rest of monthly accounting — Power of Attorney grants our team rs.ge access for tax filings including monthly payroll filings, employee tax declarations, and social security submissions. Payroll administration flows through the same delegated channel.

The combined effect: full Georgian payroll compliance when the configuration warrants it, honestly framed as not-needed for most early-stage foreign-founder configurations.

What we do#

Hiring/Payroll engagement runs as a setup component (employment contract, registration, payroll system configuration) plus an ongoing monthly component (monthly payroll runs, tax filings, employee onboarding/offboarding as it occurs).

Step 1 — Hiring scope assessment. We work through your specific hiring configuration: number of employees, gross compensation levels, employment relationship structure (full-time vs part-time, fixed-term vs indefinite, employee vs contractor), residency status of hires (Georgian citizens vs foreign residents), specific compliance layers triggered (IC status qualifying employees, Investment residence substance employees, FIZ resident-company employee requirements). The output identifies the scope of payroll setup work + the ongoing monthly payroll administration scope.

Step 2 — Setup work. Initial setup includes employment contract drafting (Georgian-language contracts conforming to Georgian Labour Code requirements), employee tax registration with the Revenue Service, social security registration, payroll system configuration, and onboarding-cycle compliance (medical examinations where required, work safety briefings, etc.). Setup typically takes 2–4 weeks per hiring round.

Step 3 — Monthly payroll cycle. Each month follows the same rhythm: gross-to-net payroll calculation for each employee, employee tax withholding (income tax on Georgian-source employment income + pension contributions), payroll filing via delegated rs.ge access, salary payments coordinated with your banking, monthly summary confirmation. Standard payroll deadlines fall on the 15th of the month following the payroll period.

Step 4 — Ongoing employment compliance. Beyond monthly payroll filings, ongoing compliance includes employment law considerations (working hours tracking, paid leave management, sick leave coordination, contract amendments, employee onboarding and offboarding cycles). We surface compliance items as they arise rather than assuming you'll know what's needed; Georgian employment law specifics differ from most foreign-founder home-country expectations.

What's included#

Setup component (initial hiring or expansion of staff):

• Hiring scope assessment in the consultation
• Employment contract drafting (Georgian-language conforming to Labour Code)
• Employee tax registration with Revenue Service
• Social security registration
• Payroll system configuration
• Onboarding-cycle compliance coordination

Ongoing monthly component:

• Monthly gross-to-net payroll calculations
• Employee tax withholding and filing via delegated rs.ge access
• Pension contribution administration
• Social security contribution administration
• Salary payment coordination with your banking
• Monthly payroll summary confirmation

Episodic compliance work:

• Employee onboarding cycles (new hires)
• Employee offboarding cycles (departures, dismissals)
• Contract amendments (compensation changes, role changes, fixed-term to indefinite conversions)
• Employment law compliance reviews when configuration changes

Pricing structure: setup fee per hiring round, ongoing monthly payroll administration fee per employee, episodic compliance work hourly or scope-quoted depending on complexity. Quoted at engagement onboarding based on the specific hiring configuration.

When Hiring/Payroll is in scope#

Three configurations typically warrant Georgian payroll engagement:

LLC scaling into operational substance. Foreign-founded LLCs that started with the foreign founder as sole employee (often under foreign-paid arrangements) and are now scaling into substance with Georgian-paid local staff. Common scenarios: hiring Georgian developers for VZ LLC software operations, hiring Georgian marketers/ops for LLC general operations, hiring Georgian customer service for international LLC service delivery. The hiring usually correlates with revenue scaling beyond solo-founder capacity.

International Company status compliance. International Company status under Resolution 619 includes substance requirements with qualifying employees — Georgian-paid hires meeting specific qualifying criteria, with the 5% personal income tax rate applying to qualifying IC employees specifically. Hiring/Payroll engagement supports IC status compliance with the substance and qualifying-employee documentation needed at each MoF reporting cycle.

Investment residence permit substance. Investment Residence permit grounds in substantial Georgian operational substance — hired Georgian staff often forms part of the substance picture demonstrating investment-grade Georgian commitment. The hiring is part of the broader substance package, with Hiring/Payroll engagement providing the operational implementation.

For configurations not yet at hiring scale (most foreign-founder early-stage configurations), the consultation outcome is "no Georgian payroll needed yet, here's when it would become in scope" — typical thresholds are LLC operations scaling beyond solo-founder revenue, IC status pursuit requiring qualifying employees, or Investment residence pursuit requiring substance documentation.

When Hiring/Payroll isn't in scope (the more common case)#

Most foreign-founder configurations don't have Georgian payroll in scope. The honest framing:

Solo IE+SBS configurations. The IE+SBS regime is for solo professionals by definition — the structure doesn't accommodate employees beyond the IE holder themselves. Foreign-client freelancers operating IE+SBS don't have payroll in scope. If you reach the point of needing employees, the structural shift is typically from IE+SBS to LLC (which can hold employees), with the hiring engagement following the structural shift.

LLC operations with foreign founder under foreign-paid arrangements. Many foreign-founded LLCs operate with the foreign founder as sole employee receiving foreign-paid compensation through foreign banking — no Georgian payroll involved. The configuration is operationally simpler (no Georgian payroll compliance overhead) and works for foreign-client revenue patterns where the founder's compensation flows through home-country tax-and-banking infrastructure. Most early-stage LLC configurations operate this way until scaling into operational substance with Georgian-paid hires.

LLC operations with contractor relationships. Some LLC configurations engage Georgian contractors (B2B relationships with separately-registered Georgian IEs or LLCs) rather than direct employees. Contractor relationships don't trigger Georgian payroll obligations — the contractor's tax-and-social-security compliance runs through their own structure, not the engaging LLC's. We confirm the relationship structure during the consultation; configurations that look like employment but are documented as contractor often have re-classification risk that warrants careful structuring.

Configurations served by foreign payroll arrangements. Some foreign founders operate Georgian LLCs while paying themselves and any team members through foreign payroll structures (home-country employer arrangements, foreign-employer-of-record services). These configurations don't trigger Georgian payroll either, though they may warrant careful tax positioning for the Georgian-side reporting.

Why Happy Georgia#

Independent advisory. No tied employer-of-record service, no commission for steering you toward unnecessary Georgian payroll setup. We tell you when configurations operate fine without Georgian payroll (most early-stage foreign-founder configurations) and when the configuration genuinely warrants the engagement (substantial LLC operations, IC status compliance, Investment residence substance). The independence shows up in the consultation outcome — we don't recommend Georgian payroll for configurations that don't need it.

Foreign clients only. Our entire practice is foreigners running Georgian companies. We've worked through Hiring/Payroll engagements across the in-scope configurations — Berlin founder's VZ LLC scaling from solo-founder to 4-person Georgian development team, Tel Aviv founder's IC status compliance with qualifying-employee documentation maintenance, Singapore investor's Investment residence permit substance built around hired Georgian operational team, London-based founder's LLC general operations with mixed Georgian-citizen and foreign-resident staff requiring different compliance handling.

Fixed pricing, no tourist tax. Setup fee per hiring round + ongoing monthly payroll administration fee per employee + episodic compliance work hourly or scope-quoted. Quoted at engagement onboarding based on the specific hiring configuration. We quote in EUR, we honor the quote, no surprises later.

Trusted by clients across Western Europe, Israel, the UK, Singapore, and beyond.

Frequently asked questions#

Do I need Georgian payroll if I'm running an LLC solo?#

Almost certainly not. LLC operations with the foreign founder as sole employee can typically run under foreign-paid compensation arrangements — your home-country payroll, foreign banking, foreign social security — without triggering Georgian payroll. Georgian payroll comes into scope when you hire Georgian-paid local staff. Solo-founder configurations operate cleanly outside Georgian payroll for substantial periods of time.

What's the Georgian income tax rate on employment income?#

20% on Georgian-source employment income — flat rate applied to gross compensation for Georgian-paid employees. International Company status holders' qualifying employees benefit from the 5% personal income tax rate specifically (Resolution 619 framework), but LLC employment outside IC status uses the 20% rate. Pension contributions are an additional layer (employee + employer contributions to the mandatory pension scheme).

What about hiring Georgian contractors instead of employees?#

Contractor relationships (B2B with separately-registered Georgian IEs or LLCs) don't trigger Georgian payroll obligations — the contractor's tax compliance runs through their own structure. The trade-off: contractor relationships have re-classification risk if the relationship looks like employment in practice (regular hours, exclusive engagement, integrated workflow, employer-style supervision). We work through the relationship structure during consultation and recommend structuring that's defensible to Georgian authorities. Some configurations are genuinely contractor-style (project-based, multiple-client engagements); others are employment-disguised-as-contractor and warrant re-classification.

How does payroll interact with International Company status?#

International Company status under Resolution 619 includes qualifying-employee substance requirements — IC status holders with Georgian-paid qualifying employees benefit from the 5% personal income tax rate on those employees' compensation. The qualifying-employee criteria include specific role and substance requirements. Hiring/Payroll engagement for IC status holders includes the qualifying-employee documentation maintenance alongside the standard payroll administration.

How does payroll interact with Investment residence?#

Investment Residence permit grounds in substantial Georgian operational substance, and hired Georgian staff often forms part of the substance picture. The hiring isn't strictly required for Investment residence (substantial business or financial commitments can satisfy the substance requirement through other means), but for many Investment residence configurations, hiring Georgian staff is part of the broader operational footprint. Hiring/Payroll engagement supports the substance documentation alongside the residence permit application and ongoing renewal cycles.

What does monthly Georgian payroll actually involve?#

Each month: gross-to-net calculation per employee (gross compensation minus 20% income tax minus pension contributions equals net pay), payroll filing via delegated rs.ge access on the regulatory deadline (typically 15th of the following month), pension contribution administration to the mandatory pension scheme, social security contribution administration, salary payment coordination with the LLC's Georgian banking, monthly summary confirmation to you. Standard payroll cycles run smoothly once setup is complete; deviations (bonus payments, contract amendments, terminations) require additional handling.

What about Georgian employment law beyond payroll?#

Georgian Labour Code covers working hours, paid leave (annual leave + sick leave + parental leave), dismissal procedures, employment contract requirements, social security obligations. Hiring/Payroll engagement includes the employment law compliance layer — we surface compliance items as they arise (annual leave accrual tracking, contract amendments, dismissal coordination) rather than assuming you'll know what's needed.

What if I'm hiring foreign residents (not Georgian citizens)?#

Foreign residents working in Georgia have additional compliance considerations — work permit framework (most foreign residents in employment relationships need work permit consideration; see Work Permit for the exemption framework), residency permit considerations, potentially different tax treatment depending on the foreign resident's tax-residency status. Hiring foreign residents adds complexity beyond standard Georgian-citizen employment; we work through the specific configuration during consultation.

Can I run Georgian payroll without monthly accounting?#

Not in practice. Payroll filings flow through rs.ge alongside the standard monthly tax declarations; the same delegated access mechanism handles both. Configurations with Georgian payroll need the broader monthly accounting engagement to handle the LLC tax compliance alongside the payroll work. Hiring/Payroll engagement runs as an add-on to monthly accounting rather than as a standalone service.

What's the typical onboarding timeline for new hiring?#

Setup work typically takes 2–4 weeks per hiring round — employment contract drafting, employee tax registration, social security registration, payroll system configuration. The first monthly payroll cycle follows setup completion. For configurations onboarding Hiring/Payroll engagement alongside ongoing monthly accounting, the integration adds 1–2 weeks to the standard onboarding timeline.

Ready to set up?#

A free consultation maps your hiring configuration against the Georgian payroll engagement scope and identifies whether Hiring/Payroll is in scope for your situation. For most foreign-founder early-stage configurations, the consultation concludes "no Georgian payroll needed yet" — that's the honest answer when it applies. For configurations scaling into operational substance with Georgian-paid hires, we handle the setup and ongoing monthly payroll administration end-to-end. Most consultations resolve the engagement scoping question in 30 minutes.