Employer of Record (EOR) service providers in the Caucasus: 10 best to consider in 2026
- Natia Gabarashvili
- 2 hours ago
- 13 min read
Table of contents
Why Employer of Record (EOR) services are gaining ground in the Caucasus
What defines the best Employer of Record (EOR) providers in the Caucasus
Top 10 Employer of Record (EOR) companies in the Caucasus for 2026
Comparing Employer of Record (EOR) pricing models in the Caucasus
How to Choose the Right Employer of Record (EOR) in the Caucasus
Local vs global Employer of Record (EOR) providers: Which Is right for the Caucasus?
Final Thoughts: Why Team Up is the Caucasus’ most reliable EOR partner
Introduction
Hiring in the Caucasus is easier said than done.
You get incredible talent, bilingual, well-educated, and surprisingly affordable, but three countries mean three legal systems, three tax codes, and endless paperwork.
That’s why more international employers are turning to Employer of Record (EOR) service providers in the Caucasus to manage everything from payroll to compliance.
An EOR lets you hire full-time employees in Georgia, Armenia, or Azerbaijan without registering a local entity. They handle contracts, pay social contributions, manage benefits, and file all the right taxes with local authorities. You focus on building your team; they keep you compliant.
According to PwC’s Eurasia Payroll Trends 2025, the Caucasus region has become one of the top five emerging destinations for global hiring, thanks to its mix of low tax rates, high digital literacy, and strategic access to both Europe and Asia. But the same report found that foreign businesses lose 15–20% of potential savings if they mishandle local payroll or tax filings.
This guide will help you avoid that.
Below, we’ll break down the 10 best Employer of Record providers in the Caucasus for 2026, plus what to look for in a compliant, cost-effective EOR partner.
Why Employer of Record (EOR) services are gaining ground in the Caucasus
The Caucasus is small on the map, but big on opportunity.
Georgia leads the pack in ease of doing business, Armenia’s IT sector is booming, and Azerbaijan’s energy market keeps pulling in foreign investment.
But while the region is unified geographically, its employment laws are anything but harmonized.
Each country has its own tax structure, benefits framework, and reporting timelines:
Georgia has a 20% flat income tax and minimal employer contributions, making it one of the most business-friendly labor environments in the region.
Armenia uses a tiered income tax (from 20% to 36%) and mandatory social contributions.
Azerbaijan requires employer social payments around 22% and employee contributions of 3%.
So, when you hire across borders, the administrative overhead multiplies.
That’s why EOR services are growing at double digits across the region.
They consolidate all these moving parts under one umbrella — managing employment contracts, monthly payroll filings, and statutory benefits across all three countries.
For global companies, that means faster setup, cleaner compliance, and zero local bureaucracy.
“The Caucasus has become the bridge between EU and CIS hiring markets, but compliance requires localized precision, not one-size-fits-all platforms.” — EY Eurasia Workforce Report 2025
And that’s exactly what a strong EOR provides.
What defines the best Employer of Record (EOR) providers in the Caucasus
Let’s get one thing straight: anyone can claim to be an EOR.
But the best Employer of Record providers in the Caucasus do one thing exceptionally well: they understand how to keep your business compliant locally while scaling regionally.
Here’s what sets the good ones apart.
1. Local legal registration across Georgia, Armenia, and Azerbaijan
If your EOR doesn’t have legal entities in the countries they claim to operate in, they’re outsourcing your risk.
Each country in the Caucasus requires EORs to be registered with local authorities:
Revenue Service of Georgia for tax and payroll reporting.
State Revenue Committee (SRC) in Armenia.
Ministry of Taxes in Azerbaijan.
Providers like Team Up hold direct registrations in all three, meaning all filings are done through official employer codes, not third-party accountants.
That’s the difference between legal compliance and administrative delegation.
2. Transparent, flat-rate pricing (no percentages, no surprises)
Let’s be honest, global EOR platforms love percentage-based pricing. “10–15% of salary” sounds harmless until you realize it scales with every raise or bonus.
Flat-rate pricing is cleaner.
With Team Up’s €199/month per employee model, you pay a predictable, fixed amount that covers payroll, benefits, compliance, and bilingual HR support.
That consistency matters for planning your operating costs in emerging regions like the Caucasus, where salaries and exchange rates fluctuate.
3. Real compliance management (not just payroll Software)
Running payroll is not the same as managing compliance.
In the Caucasus, you’re responsible for accurate social fund payments, labor inspections, and data reporting.
The best EORs file:
Monthly income tax and social security contributions with the Revenue Service (Georgia), SRC (Armenia), and Ministry of Taxes (Azerbaijan).
Employee insurance and pension contributions.
Legally binding, bilingual employment contracts compliant with local labor codes.
They also track labor law changes — like Armenia’s 2025 pension reform or Georgia’s new data privacy rules under EU association updates.
Software can’t do that alone. You need people who actually know the system.
4. Bilingual HR and Documentation Support
Hiring regionally means dealing with more than one language.
In the Caucasus, employment contracts and payslips often need to be in English + local language (Georgian, Armenian, or Azerbaijani) to be enforceable.
Top EOR providers issue bilingual documentation and ensure both parties — employer and employee — fully understand their rights and obligations.
This isn’t a formality. It’s a compliance safeguard.
Labor disputes in Georgia and Armenia are often decided based on whether contracts were understandable to local employees.
5. Regional coverage and scalability
The real value of a Caucasus-based EOR isn’t just local expertise, it’s regional integration.
If you hire a designer in Tbilisi, a developer in Yerevan, and a finance officer in Baku, you shouldn’t need three vendors.
Team Up covers all three markets under one contract, with unified reporting, consolidated invoicing, and one point of contact.
That means no juggling multiple local vendors or paying hidden cross-border fees.
Top 10 Employer of Record (EOR) companies in the Caucasus for 2026
Here’s the shortlist of the best Employer of Record providers in the Caucasus, based on compliance infrastructure, regional coverage, and cost transparency.
1. Team Up: Best regional EOR for full Caucasus coverage
Team Up is the only EOR provider with an active legal footprint across Georgia, Armenia, and Azerbaijan, offering unified hiring under one regional model.
Why does it lead:
Direct registration with each country’s tax and labor authorities.
Transparent €199/month flat pricing.
Handles Employer of Record payroll taxes in Caucasus, social contributions, and benefits filings end-to-end.
Bilingual contracts and payslips in English and local languages.
Onboarding in 3–5 days with full compliance coverage.
Talent pool of world-class professionals.
Best for: Companies hiring distributed teams across multiple Caucasus countries.
“When you need a region-wide partner, not just a software login — Team Up gives you local precision and regional scalability.”
Team Up isn’t just an EOR; it’s the bridge between Eastern Europe, Central Asia, and MENA.
For businesses building cross-border teams, that makes it the go-to partner.
2. Deel
Deel is a global EOR platform that covers 150+ countries, including parts of the Caucasus region through partner entities.
Strengths:
Lightning-fast onboarding for contractors and employees.
Integrations with HR platforms like BambooHR and QuickBooks.
Automated contract generation and centralized payroll dashboard.
Limitations:
Relies on local partners in Armenia and Azerbaijan — no direct legal registration.
English-only contracts and support.
Best for: Global startups prioritizing speed over localized compliance nuance.
3. Remote
Remote appeals to small and mid-size teams that value simplicity.
It’s a global EOR with clear pricing and user-friendly tools — great for founders who want to manage everything from one dashboard.
Why companies choose it:
Transparent global pricing, no salary-based markups.
Employee onboarding automation and benefits management.
Excellent for startups hiring under 10 staff.
Where it falls short:
Operates through third-party partners in the Caucasus.
Limited understanding of local compliance requirements (e.g., social security in Azerbaijan).
Best for: Bootstrapped teams testing the Caucasus market for the first time.
4. Papaya Global
Papaya Global is built for complexity — if you’re managing multi-country payroll at scale, it delivers deep analytics and CFO-friendly dashboards.
Key features:
AI-powered global payroll engine.
Workforce data insights across 100+ countries.
Integrations with ERP systems for large enterprises.
Limitations:
Limited local expertise in the Caucasus.
Compliance handled via partner networks, not direct filings.
Best for: Multinational enterprises needing consolidated payroll intelligence, not local day-to-day management.
5. Velocity Global
Velocity Global stands out for companies relocating international talent to the Caucasus.
It’s one of the few EORs offering work permit sponsorship, visa support, and tax equalization across emerging markets.
Strengths:
Full immigration and relocation support.
Dual handling of expat and local payroll.
Strong compliance documentation for government filings.
Limitations:
Higher base cost than regional providers.
Slower setup times due to documentation requirements.
Best for: Enterprises transferring global employees into Georgia or Armenia for long-term assignments.
6. Multiplier
Multiplier is a tech-driven EOR solution known for its automation-first payroll approach.
It supports hiring in developing markets like India, Southeast Asia, and parts of the Caucasus through verified partner networks.
Strengths:
Automated payroll processing and compliance notifications.
Unified dashboard covering multiple countries.
Real-time visibility on employment costs and tax deductions.
Employee self-service access for payslips and tax details.
Limitations:
Operates via third-party vendors in Georgia and Armenia.
Limited language localization — English-only interface.
Tax filings often depend on partner turnaround times.
Best for: Mid-size companies running payroll across multiple emerging markets, where automation outweighs manual control.
Regional compliance note: Multiplier’s automation helps track contributions to Armenia’s Social Fund and Georgia’s Revenue Service, but it still lacks direct in-country filing rights.
For sensitive filings like Azerbaijan’s social security declarations, local oversight remains essential.
7. Globalization Partners (G-P
Globalization Partners (G-P) is one of the biggest EOR names globally, and its Caucasus coverage has expanded steadily since 2024.
G-P’s strength lies in its infrastructure — it handles payroll, benefits, and risk management for global corporations hiring hundreds of employees at once.
Advantages:
Fully integrated global compliance system (180+ countries).
Dedicated enterprise onboarding managers.
Strong financial reporting and workforce analytics.
ISO-certified data protection protocols.
Limitations:
Complex onboarding for small or early-stage businesses.
Pricing tends to be higher than local competitors.
Limited flexibility for hybrid workforce models.
Best for: Large enterprises managing teams across Caucasus, Eastern Europe, and MENA.
Regional insight: While G-P supports hiring in Georgia and Armenia, its Azerbaijan operations still rely on third-party legal partners. For region-specific filings (like bilingual contracts or notarized payroll forms), local EORs like Team Up offer stronger protection.
8. Oyster HR
Oyster HR caters to remote-first companies, particularly startups that employ small teams across different continents.
It helps businesses in Europe and the U.S. hire in the Caucasus without setting up entities or managing cross-border payroll.
Strengths:
Fast onboarding for remote roles (software, design, marketing).
Integrated benefits and contract templates.
Transparent pricing for small teams.
Compliance guidance through partner network.
Limitations:
No physical presence in the Caucasus.
Limited customization for region-specific benefits.
Best for: Early-stage tech companies hiring their first remote employees in the Caucasus.
Regional insight: While Oyster’s contracts meet international employment standards, they don’t fully cover Georgian Labor Code Articles 33–36 (on notice periods and severance). For companies scaling regionally, localized documentation remains critical.
9. Safeguard Global
Safeguard Global markets itself as “workforce-as-a-service”, an EOR solution built for corporations that prioritize internal governance and audit readiness.
It excels at building compliance pipelines across high-regulation industries like finance, construction, and IT.
Strengths:
Comprehensive labor and tax audit trails.
Integration with enterprise HR systems (SAP, Oracle, Workday).
Dedicated legal support teams per country.
Multi-layer approval workflows for payroll accuracy.
Limitations:
Expensive for startups and small-scale employers.
Longer onboarding timelines due to extensive documentation.
Best for: Enterprises expanding across regulated sectors in the Caucasus energy, fintech, and telecom industries.
Regional insight: Safeguard’s compliance models align with Georgia’s Employment Contracts Act and Azerbaijan’s Tax Code (2020 revisions). However, its filings in Armenia are still managed through local partners, meaning a slower turnaround on employee registrations.
10. WorkMotion
WorkMotion is one of the few EU-based EORs focusing on expansion into emerging Europe and the Caucasus.
It’s particularly popular among German, Dutch, and Nordic companies hiring regional development or customer support teams.
Strengths:
Onboarding in as little as 72 hours for verified employees.
Pre-approved contract templates aligned with local labor law.
Simple interface for managing multiple hires across countries.
Excellent for cross-border payments in EUR and USD.
Limitations:
Relies on partner entities in Georgia and Armenia.
Support is limited to EU business hours.
Minimal coverage in Azerbaijan.
Best for: European SMEs expanding into Georgia or Armenia with hybrid remote models.
Regional compliance note: WorkMotion provides compliant contract templates under Georgia’s Labor Code (2019 update), but doesn’t yet offer local payroll filing — which means employers still need an intermediary EOR for tax remittance.
Comparing Employer of Record (EOR) pricing models in the Caucasus
If there’s one thing that separates good EORs from great ones, it’s pricing transparency.
Most providers still use percentage-based models (10–15% of gross salary), which can quietly inflate your costs as salaries grow.
Here’s how EOR pricing typically breaks down in the Caucasus:
Model | How It Works | Advantages | Drawbacks | Examples |
Flat Fee | Fixed per-employee monthly rate | Predictable, transparent, easy to scale | None significant | TeamUp, Remote |
Percentage-Based | 10–15% of salary | Flexible for variable pay | Unpredictable, costly for senior hires | Deel, G-P |
Hybrid | Base fee + add-ons (benefits, payroll extras) | Customizable | Hard to forecast | Papaya, Multiplier |
Case example:
Hiring a senior software engineer in Georgia at €3,000/month:
A 12% fee = €360/month.
Over a year, that’s €4,320, versus TeamUp’s €199/month flat fee (€2,388/year).That’s nearly 45% in annual savings.
Bottom line:
Flat-rate EOR pricing is fair, scalable, and predictable.
It’s how Team Up ensures clients can plan ahead, whether they’re hiring one engineer or fifty.
How to Choose the Right Employer of Record (EOR) in the Caucasus
Choosing an EOR in the Caucasus isn’t about picking the biggest brand, it’s about finding the one that actually understands the laws, languages, and liabilities of where you’re hiring.
Here’s your step-by-step checklist for evaluating EORs in the Caucasus:
Check Local Registration: Confirm your EOR is registered with the Revenue Service (Georgia), SRC (Armenia), and the Ministry of Taxes (Azerbaijan). If they’re not, they can’t legally employ anyone on your behalf.
Review Payroll Filings and Cycles: Ask how they handle monthly filings: tax (20th), social fund (25th), and pension (end of month). Missed deadlines can mean government audits or late fees.
Request Sample Documentation: Ask for anonymized copies of contracts and payslips. They should be bilingual (English + local) and compliant with each country’s labor code.
Evaluate HR Support Quality: Who answers when something goes wrong — a local HR manager or a chatbot? Team Up assigns regional HR specialists for every client.
Understand Data and Security Standards: Look for EORs with GDPR-aligned data protection, since many Caucasus employees work with EU-based companies.
Local vs global Employer of Record (EOR) providers: Which is right for the Caucasus?
The answer depends on your goals.
If you’re hiring for the short term or just one country, a global EOR might suffice.
But if you’re planning multi-country operations, regional precision matters more than global reach.
Criteria | Local EOR (TeamUp) | Global EORs (Deel, G-P, Remote) |
Entity Ownership | Direct entities in Georgia, Armenia, and Azerbaijan | Operates via third-party partners |
Pricing | Flat €199/month | 10–15% of salary |
Contracts | Bilingual and locally notarized | English only |
Support | Regional HR & legal teams | Centralized global tickets |
Setup Time | 3–5 business days | 1–2 weeks |
Scalability | Regional (Caucasus + MENA + Eastern Europe) | Global |
Verdict: If you’re hiring within the Caucasus or neighboring regions, TeamUp’s local compliance model wins hands down — faster onboarding, no intermediaries, and real accountability when regulators come calling.
Final Thoughts: Why Team Up is the Caucasus’ most reliable EOR partner
Remote hiring in the Caucasus should be a competitive advantage, not a compliance gamble.
But with three distinct legal frameworks, cross-border payroll complexity, and language barriers, one mistake can erase all your savings.
That’s why Team Up stands out.
With direct registration across Georgia, Armenia, and Azerbaijan, bilingual HR teams, and a transparent €199 monthly rate, it delivers what every international employer actually needs: compliance that doesn’t slow you down.
Team Up’s model isn’t about automation; it’s about accountability.
You get real human oversight, real local expertise, and one unified partner for your entire regional hiring strategy.
Frequently asked questions
1. What does “Employer of Record” (EOR) mean?
An Employer of Record (EOR) is a third-party company that legally employs workers on behalf of another business. The EOR handles all employment-related responsibilities, contracts, payroll, taxes, benefits, and compliance — while you manage the employee’s day-to-day tasks.
In the Caucasus region (Georgia, Armenia, and Azerbaijan), an EOR lets foreign companies hire talent quickly and compliantly without opening a local entity.
2. What are the best Employer of Record (EOR) companies in the Caucasus?
The best Employer of Record companies combine local compliance expertise with transparent pricing and fast onboarding.
Top EOR providers operating in the Caucasus include:
TeamUp – Best for regional expertise and cost-effective local compliance.
Deel – Ideal for multi-country payroll automation.
Remote.com – Strong for distributed teams and software integration.
Papaya Global – Best for enterprise-level HR automation.
Velocity Global – Suitable for large global organizations.
3. Why should startups use an Employer of Record in the Caucasus?
An Employer of Record for startups simplifies expansion by:
Eliminating the need to set up a legal entity.
Managing payroll, taxes, and HR compliance.
Helping startups access affordable engineering and tech talent in Georgia, Armenia, and Azerbaijan.
Providing flexible, pay-as-you-scale EOR services for lean operations.
Startups benefit most from using TeamUp, a regional EOR provider built for scalable, transparent hiring.
4. How do Employer of Record payroll services work in the Caucasus?
Employer of Record payroll services include:
Salary calculation and on-time payments in local currency (GEL, AMD, AZN).
Tax and social contribution withholdings.
Compliance with local payroll and reporting regulations.
Payslip generation and monthly filings.
An EOR provider like Team Up ensures your payroll is compliant with every country’s tax authority.
5. What’s the difference between a global EOR and a local EOR provider?
A global EOR (like Deel or Remote.com) manages employment in multiple countries through one platform — perfect for large international teams. A local EOR provider (like TeamUp) focuses on specific markets — offering deeper on-the-ground compliance, faster onboarding, and personalized support.
In the Caucasus, a regional EOR provider is often more effective due to strong local legal networks and lower operating costs.
6. What services do the best EOR companies offer in the Caucasus region?
Top EOR service providers typically handle:
Employment contracts and documentation.
Payroll processing and compliance.
Statutory benefits and insurance.
Work permits for foreign employees.
HR administration and onboarding.
In addition, many EOR vendors provide EOR software dashboards for payroll tracking and document management.
7. How much do Employer of Record services cost in the Caucasus?
EOR costs in the Caucasus vary by country and provider:
Georgia: $300–$600 per employee/month.
Armenia: $250–$550 per employee/month.
Azerbaijan: $400–$700 per employee/month.
Pricing depends on employment type, benefits, and scope of services. Team Up offers flat, transparent pricing, ideal for small to mid-sized businesses.
8. Which industries benefit most from EOR services in the Caucasus?
EOR solutions are popular in industries like:
IT & Software Development
Fintech and iGaming
Marketing & Creative Services
Customer Support and Sales
Consulting and BPO
These sectors use EOR providers to access skilled, English-speaking professionals while ensuring full compliance.
EOR solutions are popular in industries like:
IT & Software Development
Fintech and iGaming
Marketing & Creative Services
Customer Support and Sales
Consulting and BPO
These sectors use EOR providers to access skilled, English-speaking professionals while ensuring full compliance.
9. Can an EOR help with international and cross-border payroll?
Yes. A global Employer of Record like TeamUp or Deel manages multi-currency payroll across borders while maintaining compliance in each country.
For the Caucasus, this includes:
Handling foreign currency conversions.
Ensuring compliance with local and international tax treaties.
Managing both employer and employee contributions.
This makes EOR payroll a seamless option for distributed global teams.
10. How do I choose the best EOR provider in the Caucasus?
When looking for an EOR, compare providers based on:
Legal presence and experience in the Caucasus region.
Transparent pricing (no hidden fees).
Quality of local HR and payroll support.
EOR software and data protection.
Ability to scale with your hiring needs.
If you need a reliable, local EOR solution, TeamUp is one of the top employer of record companies trusted by global startups and enterprises hiring in the Caucasus.
