Starting business in Georgia
The current Georgian legal system aims at providing a corporate environment fit for easy and quick admission of new businesses from all over the world. This is a result of the recent reforms implemented by the Georgian government.
Understanding the need to ease business activities in Georgia, Government has focused on the liberalization of corporate law by establishing minimum standards of protection for third parties, dealing with legal entities, meanwhile setting essential publicity requirements. Georgia has adopted new legislation, including the new law on entrepreneurship, major changes have been made in the sphere of licenses and permits, in labor law and etc.
Consequently, Georgian corporate law envisions a two-fold corporate life for enterprises. On the one hand, as it was already mentioned, corporations are subject to essential publicity requirements such as mandatory registration in the Georgian business registry (NAPR), binding nature of online available data in dealings with third parties etc.
On the other hand, shareholders enjoy a contractual freedom to arrange internal corporate structure in a way completely different from the outward corporate face. Such freedom enables shareholders to bind each other with the undertakings, corporate arrangements and schemes of liability distribution without altering publicly available data on conventional corporate life.
Georgian reforms and liberal legislature adopted by the country has led Georgia to the higher ranking positions on the different indexes, such as the“ease of doing business index”, which is an index created by the World Bank Group, where Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights. Georgia moved from the 98-th position in 2006 to the 8-th position in 2014.