Work permit for the director of the Kutaisi Free Industrial Zone (Georgia) — Will it be required in 2026?

Following the update to Georgia’s labor migration regulations, the issue of obtaining work permits has become relevant not only for standard companies but also for businesses in the Kutaisi Free Industrial Zone (FIZ). Despite the special legal and tax regime applicable to such zones, the requirements of migration legislation also apply to them.

Short answer

In most cases, a foreign director of a company in an FIZ must obtain a work permit if they are actually conducting business in Georgia and do not have a permanent residence permit or other legal grounds for exemption. The mere fact of registering a company in an FIZ does not grant automatic exemptions.

Why the confusion arises

Free Industrial Zones in Georgia have a number of distinctive features:

• a preferential tax regime;
• separate rules for conducting business;
• specific customs regulations.

This creates the impression that such companies operate “outside” the general legal framework. However, this applies to business operations, not to the immigration status of employees and directors.

What the labor migration law covers

The updated regulations apply to foreigners without a permanent residence permit who:

• work for a Georgian employer;
• engage in entrepreneurial activities;
• derive income from activities within the country.

Starting March 1, 2026, these requirements will also apply to self‐employed foreigners.

The law introduces key categories:

• local employer — a legal entity registered in Georgia;
• self‐employed foreigner — a person deriving income from activities;
• labor migrant — a foreigner working in Georgia without a permanent residence permit.

Thus, a foreign director managing a company within the country generally falls under these regulations — regardless of whether the company is located in a Free Industrial Zone, the Virtual Zone, or outside of special economic zones.

When a director of a foreign‐owned company requires authorization

Authorization is generally required if:

• the director is a foreign national;
• the director does not hold a permanent residence permit;
• the company is managed from Georgia;
• the director participates in operational activities (signing documents, conducting negotiations, overseeing processes);
• he receives income or benefits from the business.

Permission may not be required if:

• management is conducted entirely from abroad;
• the director has a permanent residence permit;
• a direct exemption applies under the law or international agreements.

Why FIZ status does not exempt from requirements

The Law on Free Industrial Zones regulates:

• the establishment and operation of zones;
• tax and organizational incentives;
• business operating conditions.

However, it does not establish a separate immigration regime for directors. Therefore, a Free Industrial Zone offers business incentives but does not exempt individuals from labor migration requirements.

Practical scenarios

• The director lives and works in Georgia — a permit is almost always required
• Is regularly present in the country and manages the company — a permit is most likely required
• Manages entirely remotely — often not required, but depends on the facts
• Has permanent residence — a different regime applies
• Company in a Special Economic Zone without additional benefits — the zone’s status has no effect

The main criterion is actual activity, not the company’s place of registration.

Risks in the absence of a permit

Starting in 2026, enforcement of immigration regulations will be tightened. Possible consequences:

• fines (e.g., starting at 2,000 GEL);
• inspections by authorities;
• difficulties obtaining a residence permit or D1 visa;
• increased legal risks for the business.

Practical conclusion

If the director is actually working from Georgia, it is safer to obtain a work permit. Since the law does not currently provide for any special exceptions for companies in the Special Economic Zone, the general rules apply.

Are changes possible?

Theoretically, yes. As practices evolve and dialogue between business and the government continues, specific incentives or simplified procedures may emerge. However, no such mechanisms currently exist.

What to do right now

• Check the director’s immigration status;
• determine where actual management takes place;
• if operating from Georgia — prepare documents for a work permit;
• do not confuse tax benefits with immigration benefits;
• monitor changes in legislation.

FAQ