About Business Law in Tbilisi, Georgia
This is a bridging area of law dealing with the establishment, licensing, taxation, and regulation of enterprises within the Republic of Georgia. Business law in Tbilisi, the capital, covers all aspects of trade from the creation of a legal entity to the dissolution of a business. It impacts foreign investments, ventures, partnerships, corporations, and sole traders. The Georgian law is seen as pro-business, with less bureaucracy and regulation compared to other jurisdictions.
Why You May Need a Lawyer
Having a lawyer is paramount when setting up a company, entering a partnership, merging with a company, investing in real estate, or dealing with any commercial disputes. A good understanding of Georgian laws and regulations, language proficiency, and local knowledge can be essential for success. Lawyers can help with contracts, tax issues, labour laws, business disputes, and can represent your interests in a court.
Local Laws Overview
The Georgian legal system is based on civil law principles and does not have a concept of legal precedents, unlike the Common Law system. Therefore, detailed contractual arrangements are of utmost importance. The local business law covers partnership, corporation, sole proprietorship, and cooperative. The most common form of business, especially for foreign investors, is the limited liability partnership. Georgia offers a favourable tax environment for businesses with a flat tax rate, and several tax-free zones exist in the country.
Frequently Asked Questions
How easy is it to start a business in Tbilisi, Georgia?
Georgia stands as one of the easiest places to conduct business globally. The process is straightforward, and a company can be set up in approximately two to three working days following the submission of all necessary documents.
Is it possible for foreigners to own a company in Georgia?
Yes, majority foreign ownership is allowed in Georgia. A foreigner can be the sole owner of a business in Tbilisi.
What taxes are applicable for businesses in Tbilisi, Georgia?
Georgia has a favorable taxation environment. The main taxes for businesses are income tax (20%), value added tax (18%), and property tax (up to 1%).
Does Georgia have a double taxation agreement with other countries?
Yes, Georgia has double taxation treaties with over 50 countries to avoid double taxation of profits earned abroad by their residents.
Can a company registered in Tbilisi do business in other regions of Georgia?
Yes, a company that is registered in Tbilisi, or any part of Georgia, can conduct business in all other regions of the country.
Additional Resources
The National Agency of Public Registry maintains the registry of businesses. The Revenue Service of the Ministry of Finance is responsible for the operation of tax-related services in the country. The Georgian Chamber of Commerce and Industry provides business-related consultations and services. Enterprise Georgia acts as a mediator between the business sector and the government.
Next Steps
For those in need of legal help, it is recommended to contact a local business law firm or consultancy. A lawyer can provide up-to-date advice, guide you through your legal obligations, outline potential risks, and protect your interests. There are numerous legal firms in Tbilisi specialising in business law. It is always a good practice to seek a profoundly established firm with a proven track record in business law.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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