Individual Entrepreneurship in Georgia VS EOR in Belarus

In today’s business world, entrepreneurs always look for the most effective ways to organize their activities in different countries. Special attention is paid to taxation, legal structure and the possibility of easy access to international markets. In this article, we will look at two approaches to doing business: individual entrepreneurship in Georgia and Employment of Record (EOR) in Belarus. 

Georgia offers a dynamic business environment with simple registration procedures and attractive tax rates. On the other hand, Belarus, with the EOR model, provides flexibility in personnel management and reduces the risks associated with labour legislation. What should the service customer choose? Let’s take a detailed look at the key aspects of these two options to help you make an informed decision.

Features of the Individual Entrepreneur Status in Georgia 

Georgia is considered one of the most attractive countries for business due to its simplified business registration procedure and low taxes. The status of an individual entrepreneur has its characteristics that make it a convenient option for small businesses.  

1. Conditions for obtaining individual entrepreneur status for foreigners 

Foreigners can freely register as individual entrepreneurs in Georgia. To do this, it is necessary:  

• Availability of a valid passport.  
• Obtaining an identification number in Georgia (can be obtained from the tax service).  
• Be present in person when submitting documents or issuing a power of attorney for a representative.  

2. Terms of consideration of documents 

The process of registering an individual entrepreneur in Georgia is very fast:  

• Documents are usually processed within one business day.  

If desired, you can use an urgent procedure (registration within a few hours for an additional fee).  

3. What is needed to register an individual entrepreneur 

To register, you must:  

• Bring your passport or its notarized translation.  
• Fill out an application to the tax service.  
• If necessary, issue a power of attorney if a representative submits the documents.  
• To pay the registration fee: about 20-50 GEL, depending on the urgency (about 7 to 17 euros).  

Registration occurs at the House of Justice, where all necessary services are provided.  

4. Additional benefits of individual entrepreneurship status 

• There is no mandatory requirement to open a corporate bank account (you can use a personal account).  
• The convenience of accounting is that entrepreneurs often manage without the involvement of a professional accountant.  
• There is no need to permanently stay in Georgia after registration (business can be conducted remotely).  

Opportunities to Work with Legal Entities, including Foreign Ones 

An entrepreneur in Georgia can work with individuals and legal entities, including foreign companies. You don’t need to get any permissions for this. For individual entrepreneurs, it is important to correctly indicate identification data in financial documents (individual entrepreneur’s number and tax number).  

Taxes for Individual Entrepreneurs in Georgia  

The main advantage of doing business in Georgia is low tax rates:  

• The usual income tax for individual entrepreneurs is 20% of net income.  
• A simplified tax system is available for small entrepreneurs (with an income of up to 500,000 GEL per year (up to about 169,350 euros):  The fixed rate is 1% of the turnover (it can be increased to 3% in some cases).  

To obtain the status of a small entrepreneur, you must apply to the tax service.  

VAT (18%) is paid only if the annual turnover exceeds 100,000 GEL (approximately 33870 euros).  

Conclusion

Obtaining the status of an individual entrepreneur in Georgia is quite simple; you just need to collect and, if necessary, translate the necessary documents. Individual entrepreneurs can freely work with legal entities, including foreign individuals, and use the preferential tax system, which makes Georgia an attractive jurisdiction for small businesses.

Features of the Provision of EOR Services in Belarus

Employer of Record (EOR) is a service that allows companies to hire employees in another country without creating their legal entity there. In Belarus, EOR services are becoming increasingly popular due to their efficiency and convenience for companies seeking to enter the local market or attract Belarusian specialists for remote work.

What does the EOR Service Include in Belarus?

1. Legal registration of employees:  

The EOR provider acts as an official employer, taking over the registration of employees with local government agencies and the execution of employment contracts in accordance with Belarusian legislation.  

2. Calculation of wages and taxes:  

EOR ensures the accurate calculation and payment of wages, including all necessary taxes and insurance premiums.  

3. Compliance with labor legislation:  

Belarus has a Labor Code that strictly regulates the rights of employees and employers. EOR monitors compliance with all legal regulations related to labour relations.  

4. Management of administrative processes:

The Provider can manage vacations, sick days, and dismissals and resolve possible labour disputes.  

Stages of Agreeing with an EOR Provider 

The process of signing an agreement with an EOR provider takes from 1 to 3 weeks. The deadline depends on the complexity of the approvals and the required services. The procedure usually consists of the following steps:  

Stage 1. Preparation of the commercial offer and approval of the terms.  

Stage 2. The signing of an agreement between the client company and EOR.  

Stage 3. Registration of employees in Belarusian state bodies – the Social Protection Fund, Belgosstrakh, sometimes the migration service, the military enlistment office, passing a medical examination when required by the position (usually takes 5-7 working days).  

Expenses for EOR Services in Belarus

The cost of EOR services has options depending on the number of employees, their salary level and the volume of services provided. The costs usually include:  

• A fixed monthly fee for each employee is from $300 to $800.  
• The commission for registering new employees is a one—time payment, which can be about $500–$1000 per employee.  
• Additional fees for specialized services (for example, visa processing or labour dispute management).  

Benefits and Advantages of EOR services  

1. Saving time and resources:

There is no need to open a legal entity in Belarus and hire specialists to manage personnel and tax issues.  

2. Reducing the risks of non-compliance with legislation 

The EOR provider is responsible for complying with local laws and minimizing the likelihood of fines.  

3. Flexibility in hiring

Companies can quickly scale their teams by adding new employees or ending collaboration with minimal administrative costs.  

4. Focus on the core business

EOR services allow the company to focus on developing its business without being distracted by organizational issues.  

5. Convenience for remote teams

The service is especially useful for companies that hire specialists from Belarus to work remotely, which allows them to attract highly qualified personnel from the region.  

EOR in Belarus is the optimal solution for companies that want to work in the Belarusian market or attract local specialists. It minimizes costs and administrative burdens.

How can an IT Customer Choose Between Individual Entrepreneur in Georgia and EOR Services in Belarus?

When choosing an executor to provide IT services between an individual entrepreneur in Georgia and a company providing EOR services in Belarus, the following criteria should be taken into account:

1. Let’s compare the legal and tax aspects 

Individual entrepreneurs in Georgia:

• A simple tax regime, for example, the status of a “small business” with a low tax rate (1% or 3%, depending on turnover).
• There is less bureaucracy and reporting, which makes the interaction process faster and easier.
• It is suitable for direct cooperation if the customer does not require official registration of employees.

A company with EOR services in Belarus:

• The possibility of official employee registration may be important for customers who want to be sure that their employees work in strict accordance with labour laws.
• A more complex tax system may affect the cost of services.
• The customer’s security is due to the company’s legal obligations, which, unlike the individual entrepreneur, is not mobile and has a legal address (located in a certain location, accessible during business hours).

2. Compare the cost of services

Individual entrepreneurs in Georgia:

• It is usually lower due to minimal taxes and a simplified structure.
• Additional fees for international transfers are possible.

Company with EOR in Belarus

• The cost is higher due to the company’s overhead, tax obligations, and administrative costs.
• It may include personnel management and document management services.

3. Compare reliability and reputation

Make sure you have reviews, portfolios, and recommendations:

• Individual entrepreneur: Rely on personal recommendations or the performer’s reputation on the platform through which you found the individual entrepreneur.
• EOR company: Check the work experience, reviews from other clients, and the availability of confirmed cases. Also, check the availability of a website that provides complete information about the company, customer reviews, and communication methods.

4. Compare flexibility and scalability

Individual entrepreneurs in Georgia:

• This is a more flexible approach, but the possibilities for scaling and registering a large number of employees are limited.
• Suitable for working with freelancers and small teams.

A company with EOR in Belarus:

• Suitable for large-scale projects and increasing staff while maintaining legal purity.
• There is less flexibility in the individual approach but more administrative support.

5. Compare risks and responsibilities

Individual entrepreneurs in Georgia:

• Lack of strict obligations to the customer: the conclusion of a contract is often less formalized.
• Limited individual entrepreneurs’ liability can be a risk for large projects.

Company with EOR in Belarus:

• Higher customer security: the company is obliged to comply with the agreements within the framework of the official contract.
• Higher legal transparency, especially if compliance with local and international laws is required.

6. Let’s compare the terms of financial transactions

Individual entrepreneurs in Georgia: 

• The ability to work directly, most often via bank transfer.

EOR in Belarus:

• Transactions go through the company, which may require additional accounting documents. The contract for the provision of EOR services must also clarify the methods and procedure of payment for services.

Conclusion

The choice between an individual entrepreneur in Georgia and an EOR company in Belarus depends on the scale and type of the project:

It is more profitable and easier to cooperate with an individual entrepreneur in Georgia for small or one-time tasks.

A company with EOR services in Belarus is better suited for long-term projects requiring official employment. 

We recommend that you consult with lawyers and financial experts in addition to financial experts to minimize risks and make the right choice.