Statement for VZP on the New Migration Rules

New labour migration regulations have entered into force in Georgia. Certain legal statuses already benefit from exemptions and simplified procedures. However, companies holding Virtual Zone Person (VZP) status were not included in the list of exemptions.

This does not mean that the matter is closed.

However, at the time the relevant decisions were adopted, a consolidated sector request and clearly articulated member interest had not been formed to support initiation of this issue at the industry level.

In the absence of exemption mechanisms, Virtual Zone companies may face increased administrative burden, additional compliance costs, operational delays in engaging foreign specialists, and potential exposure to sanctions arising from ambiguous interpretation of the new requirements.

For IT companies operating with cross-border teams and remote work models, such regulatory constraints may directly affect business flexibility and competitiveness.

The Association of Georgian Virtual Zone Persons has analysed the regulatory developments and is assessing the possibility of initiating a formal proposal to the Government of Georgia regarding the inclusion of Virtual Zone companies (VZP) in the list of exemptions.

Exemptions granted to certain statuses were achieved through systematic engagement and an active business position. When a sector articulates its position, regulation reflects its interests. When no position is formally expressed, decisions are adopted without sector input.

Without an active stance from Virtual Zone companies, similar issues may continue to be resolved without consideration of their interests.

The key question today is straightforward:

Do Virtual Zone companies require similar exemption mechanisms?

The Association is prepared to:

• initiate formal communication,

• develop a structured legal position,

• engage in dialogue with relevant state authorities,

• represent members’ interests at the institutional level.

   

Subject to demonstrated interest from companies and legal feasibility, the Association may initiate preliminary consultations with competent state authorities in the coming months to assess potential formats for regulatory amendments.

However, advancement of this initiative depends on the willingness of companies to express their position and support it through the Association.

If you believe that Virtual Zone status should be included in the exemption framework, we encourage you to formally indicate your position.

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A unified sector position and member support will enable the Association to formally initiate the process and submit a substantiated proposal on behalf of the industry.

The outcome depends on the sector — and on the level of engagement and support provided to the Association as its institutional representative.