Establishing a Legal Presence in Georgia
There are no restrictions on the foreign ownership of companies in Georgia.
As a result of changes to the tax code and law on entrepreneurs in 2005 and 2006, business registration is simple, cheap and efficient, taking only three days for legal entities and one day for individuals. State and tax registration of companies is now carried out by tax inspectorates under one single procedure.
Annual Business Registrations
The number of registered businesses in 2006 has increased by 109 % in comparison to the number registered in 2001. Along with other factors such as general improvement in the social, political and economic climate of Georgia, the new streamlined registration procedures have had an important impact on increased registrations.
The types of business structures recognized in Georgia are:
- Branch Office – is the structural sub-unit of a business entity. A foreign business entity is entitled to establish such a branch office, which is registered as a representation, not a legal entity.
- Joint Stock Company (JSC) – is a legal entity. The minimum charter capital is 15,000 GEL. Registration fee for a JSC is 360 GEL.
- Limited Liability Company (LLC) – is a legal entity whose liability to creditors is limited to its property. A single person may establish an LLC. A LLC may not have more than 50 partners (founders). Minimum charter capital is 200 GEL. The Registration fee for an LLC is 160 GEL.
- General Partnership (GP) – Only physical persons are allowed to set up this type of legal entity. Partners (founders) are jointly liable with all their property to creditors. Partner liability is unlimited. The registration fee for a GP is 60 GEL.
- Limited Partnership (LP) – is a legal entity where the liability of some partners (limited partners) to creditors is limited to certain warranty amount, while the liability of the other partners (unlimited partners) is not limited. The registration fee for an LP is 80 GEL.
- Cooperative is a legal entity used mostly in agricultural or labor sectors. Charter capital must be at least 100 GEL. Registration fee is 120 GEL.
- Individual Entrepreneur (IE) – An entrepreneur who is personally liable to creditors. The IE lacks legal personality. Registration is free.