Regulations on corporate activities in Georgia is governed by the Law of Georgia on Entrepreneurs, according to which, corporations are subject to mandatory registration at the National Agency of the Public Registry.
Legal entity in Georgia could be established in six different forms:
- Limited Liability Company (LLC) - is a commercial legal entity that is liable before creditors with its whole property; Limited Liability Company may be established by one or several persons.
- Joint Stock Company (JSC) - is a legal entity the carter capital of which is divided into shares.
- General Partnership (GP) - is a company whereas several partners carry out continuous and independent entrepreneurial activity under same company name. The founders are all personally liable for any debt the company may undertake;
- Limited Partnership (LP) - is a company where several persons jointly carry out independent entrepreneurial activity under the same company name. Limited Partnership has two kinds of partners: Limited partners (Comandits) – their liability towards the creditors is limited to their investments into the company; Complete partners (Complementars) whose property liability towards the creditors is not limited.
- Cooperative (CO) - is a company incorporated with the objective to develop common business and increase the income of its members. The objective of the CO is to accomplish the interests of its members. It is not orientated towards receiving the profit.
- Individual Enterprise - a legal entity established by a natural person, carrying full personal liabilities before its creditors.
Georgian Legislation does not envisage any restrictions regarding establishment of the legal entities by foreign physical or legal persons. Foreign legal or physical person can establish a legal entity without any restrictions.
It should be underlined that Georgian legislation envisage simplify (principle of one window, documents required, timing and etc.) procedure for establishing legal entity.
Addition, the following advantages should be taken into consideration:
- There is no minimum charter capital determined under the law. Legal entities can be established with zero capital or no mention of capital in the documents at all. Capital formation is carried out independently by the companies based on the shareholders’ decision.
- Management, registration or status of Georgian companies are confirmed by single document (excerpt from the Registry), which is available online.