Georgia’s economy has experienced rapid expansion over the previous decade, and it shows no signs of slowing down in the next years. To keep the trend going, the government of the country is implementing many initiatives, including the simplification of the taxation system, the reduction and simplification of investment and business ecosystem rules and regulations, the development of transportation and energy infrastructure, and the facilitation of property registration.
Tourism, agribusiness, logistics, and wine production are the mainstays of the country’s economy. Georgia has an open economy that welcomes entrepreneurs from all over the world to set up shop in this culturally and environmentally diverse country. Georgia is working with the World Bank to fulfill the government’s goal for the country, which is outlined in the ‘Georgia 2020’ program.
Types of Business Entities in Georgia
Before you start your firm, you should learn about the many types of business entities that are permitted in Georgia so that you may easily complete the Georgia company registration procedure.
Limited Liability Company (LLC)
This is the most common type of company entity registered in Georgia. Each partner’s responsibility is limited to the amount of share capital he or she has contributed to the business. In Georgia, an LLC’s shareholders and directors do not have to be naturalized Georgians, but all of their information must be made public.
Re-domiciliation is not permitted, but there is no use in looking for it in Georgia because the country’s tax laws are highly advantageous. Every year, all LLCs must present their financial statements. An LLC can have 100 percent foreign ownership.
Limited Partnership (LP)
A group of people who bands together under one name to engage in diverse entrepreneurial endeavors can be referred to as a Limited Partnership. Partners can be natural persons, legal entities, or a combination of both. If specified in the business charter, profits and losses above the previously stated sum are allocated proportionally among the partners.
Limited Partnership Georgia has two types of partners.
Commandites
These are the silent partners who are only liable for the capital invested at the start and subsequently according to the liability plan. They are not personally accountable for the partnership’s debts. Limited partners are another term for them.
Complementars
These are the members who are individually responsible for the partnership’s debts. General partners are another term for them.
General Partnership (GP)
A group of Georgian residents can band together and carry out an autonomous entrepreneurial activity under one name, and when this happens, it is referred to as General Partnership. All of the partners are limited partners, which means they are jointly liable in front of creditors.
Every GP partner in Georgia has the opportunity to inspect the firm’s accounting and bookkeeping documents. If one of the partners decides to quit, the other partners’ shares are distributed according to the company’s charter and the surviving partners must release the retiring partner from any company obligations. In the event of the company’s collapse, an outgoing partner receives the sum owed to him.
Joint Stock Company (JSC)
These are usually the types of businesses where the members pool their money. The company’s charter specifies the permitted capital, which is divided into shares, and the par value of each issued share is the same.
JSC has two types of shares which are ordinary and preferred. A member’s liability to creditors is limited to the shares issued to the member and the member’s liability does not extend to his personal property, regardless of the severity of losses caused.
Cooperative (CO)
Corporations are mostly founded to promote a single commercial activity and greatly increase the profits of their members
A cooperative must first register with the Public Registry. The property of this corporate entity is accountable to creditors.
A cooperative can be joined by anyone. All one needs to do is submit a thorough application stating their desire to join.
The cooperative’s founders decide how many shares each member receives. It is not required that each member receive only one share.
Individual Enterprise (IE)
Unlike the JSC, it is not a separate legal body, it works similarly to a sole proprietorship.
It was created to support entrepreneurial activities and the entrepreneur bears full responsibility for his or her legal obligations to creditors.
Foreign citizens can register for a sole proprietorship in Georgia by completing an application, presenting their information, and paying the requisite price.
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Guide on company registration in Georgia
Breakdown of Georgia company registration fees and expenses
