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JSCHR & Recruitment Agency

Joint Stock Company (JSC) in Georgia — HR & Recruitment Agency Formation Guide

Consider jurisdictions with clear labor leasing laws and favorable payroll tax structures if you plan to act as an Employer of Record (EOR). Data privacy compliance (like GDPR) is critical when handling candidate data.

Last verified: June 13, 2026

Corporate Tax

15.0%

State Tax

0.0%

Formation Cost

$135

Annual Fee

$0

Forming a Joint Stock Company (JSC) in Georgia as a HR & Recruitment Agency means a total tax burden of 15.0% and an official formation cost of $135. The minimum capital requirement is 100,000 GEL. Standard formation takes 1-2 business days, or Same day (1 business day) expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$3,087

Ongoing (per year)

$1,700

Detailed cost calculator →

Why Joint Stock Company (JSC) for HR & Recruitment Agency?

A business model focused on sourcing, vetting, and placing candidates for client companies, or providing comprehensive human resources and payroll management services.

Ideal for

  • Headhunters and executive search consultants
  • Employer of Record (EOR) startups
  • Freelance recruiters
  • Global payroll providers

Challenges to watch

  • Strict data protection and privacy regulations (GDPR, CCPA)
  • Complex cross-border employment and tax laws
  • High liability risks regarding employee misclassification
  • Licensing requirements for temporary work agencies in many countries

Key decision criteria

  • Does the jurisdiction require a specific license to operate a recruitment or staffing agency?
  • Are there favorable tax treaties to prevent double taxation for cross-border placements?
  • How strict are the local labor laws regarding temporary staffing and contractor classification?

Joint Stock Company (JSC) formation requirements

Minimum capital

100,000 GEL

Standard timeline

1-2 business days

Expedited timeline

Same day (1 business day)

Local director

Not required

Registered office

Virtual office allowed

Notarization

Required

Foreigners can own 100% of the shares and act as the sole director. No local residency is required.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $250,000 revenue)

Gross Revenue$250,000
Corporate Tax-$37,500
Formation Cost-$135
Annual Fee-$0
Net Profit$212,365

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 18%. Registration threshold: 100,000 GEL. Non-resident companies providing digital services to Georgian consumers must register and pay 18% VAT.

Banking & payments for HR & Recruitment Agency

Opening a corporate bank account in Georgia is straightforward for local residents but has become increasingly difficult for non-residents due to strict AML/KYC regulations. While remote opening via Power of Attorney is legally possible, banks now require strong proof of economic substance and local ties to approve the account.

Supported payment gateways

UnipayTBC PayPayze2CheckoutPayPal

Remote-friendly accounts

  • Payoneer

    Widely used by Georgian IT companies and freelancers to receive international payments in USD and EUR.

  • Wise

    Popular alternative for multi-currency accounts, though availability for Georgian corporate entities may depend on the specific business activity.

Georgia incentives & advantages

Free Industrial Zone (FIZ)

0% Corporate Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.

International Company Status (ICS)

Reduced Corporate Tax (5%), Dividend Tax (0%), and Personal Income Tax for employees (5%).

Virtual Zone Person (VZP)

0% Corporate Income Tax and 0% VAT on export revenues.

Joint Stock Company (JSC) formation steps

1

Draft the company Charter (Articles of Association) detailing share classes, voting rights, and capital structure.

2

Secure a registered legal address in Georgia (virtual office is permitted).

3

Notarize and apostille the founders' passports and Power of Attorney if registering remotely.

4

Submit the registration application and pay the state filing fee (100-200 GEL) at the National Agency of Public Registry (NAPR).

5

Deposit at least 25% of the minimum issued capital (25,000 GEL) into a temporary bank account.

6

Register the newly formed JSC with the Revenue Service of Georgia to obtain a Tax Identification Number (TIN).

7

Open a corporate multi-currency bank account and transfer the initial share capital.

HR & Recruitment Agency FAQ

Do I need a special license to start a recruitment agency?

It depends on the jurisdiction and your exact model. Executive search often requires no license, but temporary staffing or acting as an Employer of Record (EOR) usually requires strict licensing and capital deposits.

Which country is best for a global HR agency?

Countries with strong B2B service sectors, clear employment laws, and extensive double tax treaty networks, such as the UK, Singapore, or Estonia, are popular choices for global HR operations.

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Related terms

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