Do I Need a Local Entity to Hire in Georgia?

In Georgia, a "local entity" refers to a recognized legal presence that can act as an employer, commonly a subsidiary or branch office. This setup allows your company to be acknowledged locally and fulfill payroll and employment obligations.

Without a local entity, you generally cannot register as an employer, manage mandatory social security processes, or run compliant payroll. An EOR can be a practical alternative, allowing you to hire without the complexities of establishing a local entity.

What is Required to Employ Someone in Georgia?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (mandatory for tax compliance)
• Withholding/tax remittance required? Yes (employers must withhold income tax)
• Social contributions required? Yes (mandatory employer contributions apply)
• Local employment agreement required? Yes (written contracts are standard)
• Mandatory benefits to budget? Yes (includes annual leave and social security)
• Works council/collective agreements considerations? Usually (depending on the sector)

Best Options If You're Hiring in Georgia

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

While hiring contractors in Georgia doesn't require a local entity, it's essential to ensure that the contractor relationship is genuinely independent. Misclassification can lead to legal issues, especially if the contractor is treated like an employee.

• Ensure the contractor has multiple clients.
• Limit control over how they perform their work.
• Keep the relationship project-based rather than ongoing.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to establish an entity in Georgia, depending on the type of entity and registration requirements.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 1,000–2,500 GEL per month ($350–$875)
• Payroll provider: Estimated 200–600 GEL per employee per month ($70–$210)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 1,500–4,000 GEL per year ($525–$1,400)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Georgia

Hiring in Georgia can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Georgia quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.