{"id":133226,"date":"2026-04-07T12:07:21","date_gmt":"2026-04-07T12:07:21","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=133226"},"modified":"2026-04-07T12:07:21","modified_gmt":"2026-04-07T12:07:21","slug":"georgia-doing-business-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/georgia-doing-business-in\/","title":{"rendered":"Georgia: Doing Business In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-133226","comparative_guide","type-comparative_guide","status-publish","hentry","guides-doing-business-in","jurisdictions-georgia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Andersen in Georgia<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/logo-1080x1080-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Andersen in Georgia<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/09\/logo-1080x1080-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Doing Business In laws and regulations applicable in Georgia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the system of law in your jurisdiction based on civil law, common law or something else?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The legal system of Georgia is based on the civil law tradition. The primary sources of law are statutory acts adopted by Parliament, subordinate normative acts, and international treaties ratified by Georgia. Judicial precedents do not constitute binding sources of law in the formal sense; however, decisions of the Supreme Court of Georgia play an important interpretative and persuasive role in ensuring uniformity of judicial practice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the different types of vehicle \/ legal forms through which people carry on business in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Georgian legislation, business activities may be carried out through the following legal forms:<\/p>\n<p>i. Limited Liability Company (LLC);<\/p>\n<p>ii. Joint Stock Company (JSC);<\/p>\n<p>iii. General Partnership (GP);<\/p>\n<p>iv. Limited Partnership (LP);<\/p>\n<p>v. Branch of a foreign company;<\/p>\n<p>vi. Individual entrepreneur.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can non-domestic entities carry on business directly in your jurisdiction, i.e., without having to incorporate or register an entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign entities may conduct business in Georgia:<\/p>\n<p>i. Through a registered branch, or<\/p>\n<p>ii. Without establishing a permanent presence, provided that their activities do not constitute a \u201cpermanent establishment\u201d under the Tax Code of Georgia.<\/p>\n<p>Where activities are continuous and revenue-generating within Georgia, registration of a branch or subsidiary is generally required for tax and regulatory compliance purposes.<\/p>\n<p>Consequently, while the legal framework permits a degree of flexibility, practical considerations often necessitate formal registration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any capital requirements to consider when establishing different entity types?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia has adopted a highly liberal corporate regime.<\/p>\n<p>i. LLC: No statutory minimum share capital requirement.<\/p>\n<p>ii. JSC: Minimum capital requirement of GEL 100,000.<\/p>\n<p>iii. Partnerships: No statutory minimum capital requirement.<\/p>\n<p>Contributions to capital may be made in cash or in kind, although non-cash contributions must be appropriately valued and documented in accordance with the law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the different types of vehicle established in your jurisdiction? And which is the most common entity \/ branch for investors to utilise?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All business entities are registered with the National Agency of Public Registry under the Ministry of Justice of Georgia. The incorporation process requires submission of foundational documentation, including the charter, details of directors and shareholders, and confirmation of a registered legal address. Notably, the registration procedure is efficient and typically completed within one to four business days, depending on whether the interested party pursues to submit application on accelerated basis.<\/p>\n<p>Given this streamlined process, coupled with the absence of minimum capital requirements and governance flexibility, the Limited Liability Company remains the most common vehicle utilized by investors. Nevertheless, branches of foreign companies are also frequently used where the investor prefers not to establish a separate legal entity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the entity operated and managed, i.e., directors, officers or others? And how do they make decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The management structure of an entity depends on its legal form. The Limited Liability Companies are authorized to have either a single-tier or a two-tier governance system. However, the mostly utilized structure is a single-tier system, where management authority is vested in one or more directors who represent the company externally and are responsible for its day-to-day operations. The supreme governing body is the General Meeting of Shareholders, which adopts resolutions on fundamental matters.<\/p>\n<p>In the case of a Joint Stock Company, the law allows for either a single-tier or a two-tier governance system. The latter typically involves a Supervisory Board overseeing a Management Board. This structure is more common in larger enterprises and regulated sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there general requirements or restrictions relating to the appointment of (a) authorised representatives \/ directors or (b) shareholders, such as a requirement for a certain number, or local residency or nationality?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A recently adopted law on labor migration requires the foreign shareholders\/directors to obtain a relevant residence permit in order to carry out activities within Georgian entities.<\/p>\n<p>Moreover, certain regulated industries\u2014such as banking, insurance, and financial services\u2014may impose additional qualification or approval requirements on directors and significant shareholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Apart from the creation of an entity or establishment, what other possibilities are there for expanding business operations in your jurisdiction? Can one work with trade \/commercial agents, resellers and are there any specific rules to be observed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Beyond incorporation or branch registration, business operations in Georgia may be expanded through contractual arrangements, including commercial agency, distribution, franchising, and reseller agreements. These relationships are primarily governed by the Civil Code of Georgia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance codes or equivalent for privately owned companies or groups of companies? If so, please provide a summary of the main provisions and how they apply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no mandatory corporate governance code applicable to privately held companies. Nevertheless, the Law on Entrepreneurs establishes core fiduciary duties for directors, including the duty of care and the duty of loyalty. Directors are required to act in good faith and in the best interests of the company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the options available when looking to provide the entity with working capital? i.e., capital injection, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>LLCs may obtain working capital through various mechanisms. These include capital increases through additional shareholder contributions, shareholder loans, third-party financing (including bank loans), and reinvestment of retained earnings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the processes for returning proceeds from entities? i.e., dividends, returns of capital, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Proceeds may be returned to shareholders primarily through dividend distributions, provided that the company has distributable profits and satisfies solvency requirements. Alternatively, returns may occur through capital reduction mechanisms or repayment of shareholder loans.<\/p>\n<p>Dividend distributions are subject to corporate income tax under the Estonian model, as taxation is triggered at the point of distribution. Directors must ensure that distributions do not endanger the company\u2019s solvency, as unlawful distributions may result in liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are specific voting requirements \/ percentages required for specific decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Voting thresholds are determined by statute and supplemented by the company\u2019s charter. As a general rule, ordinary resolutions are adopted by a simple majority of votes cast. However, amendments to the charter, reorganization, or liquidation require a qualified majority, in the amount of three-quarters of the votes.<\/p>\n<p>The charter may impose stricter requirements, including supermajority or unanimous consent for specifically designated reserved matters. This contractual flexibility enables shareholders to tailor decision-making structures to their investment arrangements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are shareholders authorised to issue binding instructions to the management? Are these rules the same for all entities? What are the consequences and limitations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Shareholders of LLCs may adopt resolutions that are binding upon directors, provided that such instructions do not contravene mandatory law or require directors to breach their fiduciary duties. Importantly, directors remain personally responsible for unlawful acts, even if performed pursuant to shareholder instructions.<\/p>\n<p>In Joint Stock Companies, particularly those with a two-tier governance system, the allocation of authority is more structured, and the ability of shareholders to intervene directly in management may be comparatively limited.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the core employment law protection rules in your country (e.g., discrimination, minimum wage, dismissal etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Employment relationships in Georgia are regulated by the Labour Code of Georgia, which establishes fundamental protections for employees. These include the prohibition of discrimination, guarantees of equal treatment, regulation of working hours, and entitlement to paid annual leave of no less than 24 working days.<\/p>\n<p>Furthermore, the law provides protections relating to maternity and parental leave, occupational health and safety, and freedom of association.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">On what basis can an employee be dismissed in your country, what process must be followed and what are the associated costs? Does this differ for collective dismissals and if so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employment relationship may only be terminated on grounds which are listed in the Labor Code of Georgia, such grounds include economic redundancy, employee misconduct, incompetence, long-term incapacity, or mutual agreement of the parties. However, dismissal must comply with procedural requirements, including written notice and observance of statutory notice periods, unless compensation in lieu of notice is provided. In certain cases, severance pay is required. Collective dismissals entail additional procedural obligations, including prior notification and consultation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a system of employee representation \/ participation (e.g., works councils, co-determined supervisory boards, trade unions etc.)? Are there entities which are exempt from the corresponding regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia does not provide for a mandatory works council system comparable to those found in certain European jurisdictions. Nevertheless, employees have the right to form and join trade unions, and collective bargaining is recognized and protected.<\/p>\n<p>There is no statutory requirement for employee participation in supervisory boards of standard LLCs. Accordingly, employee representation mechanisms exist primarily through trade union structures rather than through corporate governance participation models.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system governing anti-bribery or anti-corruption or similar? Does this system extend to nondomestic constellations, i.e., have extraterritorial reach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia has a comprehensive anti-bribery and anti-corruption framework primarily regulated by the Criminal Code of Georgia and the Law on Conflict of Interest and Corruption in Public Institutions. Active and passive bribery, trading in influence, abuse of official authority, and related corruption offences are criminalised. Liability may extend to legal entities where offences are committed in their interest or on their behalf.<\/p>\n<p>Although Georgian criminal jurisdiction is predominantly territorial, it may extend extraterritorially in certain circumstances. Georgian citizens and legal entities may incur liability for offences committed abroad where dual criminality exists, and jurisdiction may also be asserted where Georgian state interests are affected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the laws relating to economic crime? If such laws exist, is there an obligation to report economic crimes to the relevant authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Economic crimes are primarily regulated by the Criminal Code of Georgia and include fraud, embezzlement, misappropriation, tax evasion, fraudulent bankruptcy, falsification of accounting documents and insider trading (in regulated sectors). Corporate criminal liability is recognised, and sanctions may include fines, confiscation of property, suspension of activities, or liquidation in severe cases.<\/p>\n<p>There is no general obligation imposed on private persons to report all economic crimes. However, sector-specific legislation, particularly in the financial sector, establishes mandatory reporting obligations with respect to suspicious transactions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is money laundering and terrorist financing regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Money laundering and terrorist financing are regulated by the Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism, together with relevant provisions of the Criminal Code. The framework is aligned with international standards, including the recommendations of the Financial Action Task Force (FATF).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there rules regulating compliance in the supply chain (for example comparable to the UK Modern Slavery Act, the Dutch wet kinderarbeid, the French loi de vigilance)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia does not currently have legislation directly comparable to the UK Modern Slavery Act, the Dutch Wet Kinderarbeid, or the French Loi de Vigilance. However, forced labour, human trafficking, and child labour are criminalised, and general labour law protections apply across sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe the requirements to prepare, audit, approve and disclose annual accounts \/ annual financial statements in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Georgian legislation, companies are categorised according to size, and reporting obligations vary accordingly. Large and medium-sized enterprises are generally required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS), while small and micro entities may apply simplified standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any corporate \/ company secretarial annual compliance requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian law does not impose extensive company secretarial formalities comparable to some common law jurisdictions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for annual meetings of shareholders, or other stakeholders, to be held? If so, what matters need to be considered and approved at the annual shareholder meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Joint Stock Companies are required to hold an annual general meeting to approve annual financial statements and address other statutory matters. In the case of Limited Liability Companies, the law is more flexible; however, annual approval of financial statements is customary and often required by the company\u2019s charter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any reporting \/ notification \/ disclosure requirements on beneficial ownership \/ ultimate beneficial owners (UBO) of entities? If yes, please briefly describe these requirements.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Beneficial ownership transparency requirements arise primarily under anti-money laundering legislation. Reporting entities are required to identify and verify the ultimate beneficial owners (UBOs) of their clients when establishing business relationships and conducting transactions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What main taxes are businesses subject to in your jurisdiction, and on what are they levied (usually profits), and at what rate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principal taxes applicable to businesses in Georgia include corporate income tax, value-added tax (VAT), and payroll-related taxes. Corporate income tax is levied at a rate of 15% under the Estonian model, meaning taxation occurs upon distribution of profits rather than on accrued earnings. Consequently, reinvested profits are not immediately taxed.<\/p>\n<p>VAT is generally levied at a standard rate of 18% on the supply of goods and services within Georgia and on imports. Employers are required to withhold personal income tax at a flat rate of 20% on employee remuneration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular incentive regimes that make your jurisdiction attractive to businesses from a tax perspective (e.g. tax holidays, incentive regimes, employee schemes, or other?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia offers several preferential tax regimes, including Free Industrial Zones (FIZ), where qualifying companies may benefit from exemptions from corporate income tax on certain activities and VAT exemptions on exports.<\/p>\n<p>International Company Status and Virtual Zone Person Status provide favourable tax treatment for companies engaged in specific sectors, particularly information technology and maritime services.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any impediments \/ tax charges that typically apply to the inflow or outflow of capital to and from your jurisdiction (e.g., withholding taxes, exchange controls, capital controls, etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia maintains a liberal regime regarding capital movements and does not impose exchange or capital controls. Funds may be freely transferred into and out of the jurisdiction, subject to standard banking and anti-money laundering requirements.<\/p>\n<p>However, certain cross-border payments, including dividends and interest, may be subject to withholding tax. Applicable rates may be reduced under double taxation treaties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any significant transfer taxes, stamp duties, etc. to be taken into consideration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia does not impose significant stamp duties comparable to those in certain other jurisdictions. There is no general share transfer tax. Transfers of real estate are subject to registration fees, and certain transactions may trigger VAT or capital gains taxation depending on their structure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any public takeover rules?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Public takeover rules apply to Joint Stock Companies whose shares are admitted to trading on a regulated market. Where statutory control thresholds are exceeded, a mandatory tender offer may be required to protect minority shareholders. These rules are governed by securities market legislation and aim to ensure transparency and equal treatment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a merger control regime and is it mandatory \/ how does it broadly work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia has a merger control regime administered by the Georgian National Competition Agency. Certain concentrations must be notified where statutory turnover thresholds are met. Where applicable, notification is mandatory, and implementation prior to clearance is prohibited.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation to negotiate in good faith?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principle of good faith is a foundational doctrine of Georgian civil law. Parties are required to act in good faith during contractual negotiations and performance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do employees benefit from when their employer is being acquired, for example, are there employee and \/ or employee representatives\u2019 information and consultation or co-determination obligations, and what process must be followed? Do these obligations differ depending on whether an asset or share deal is undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the case of mergers or transfers of undertaking, employment relationships generally continue with the successor entity, and employees must be informed accordingly.<\/p>\n<p>Georgian law does not provide for extensive co-determination mechanisms; however, employees must be informed of material changes affecting their employment conditions. Collective dismissals triggered by restructuring must comply with statutory procedural requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any foreign direct investment restrictions, controls or requirements? For example, please detail any limitations, notifications and \/ or approvals required for corporate acquisitions.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia maintains an open investment regime and generally provides national treatment to foreign investors. There is no comprehensive foreign investment screening mechanism applicable across all sectors.<\/p>\n<p>However, acquisitions in regulated sectors such as banking, insurance, telecommunications, energy, and broadcasting may require prior regulatory approval, particularly where significant shareholding thresholds are crossed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any exchange control requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia does not operate exchange control restrictions. Currency conversion and cross-border transfers are freely permitted, subject to compliance with anti-money laundering and banking regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most common ways to wind up \/ liquidate \/ dissolve an entity in your jurisdiction? Please provide a brief explanation of the process.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most common method of dissolving a solvent company is voluntary liquidation initiated by shareholder resolution. Upon adoption of a liquidation decision, a liquidator is appointed and registered with the National Agency of Public Registry. The liquidator is responsible for settling liabilities, collecting receivables, disposing of assets, notifying creditors, and distributing any remaining assets to shareholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">2898<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/133226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=133226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}