Best New Business Formation Lawyers in Tbilisi

About New Business Formation Law in Tbilisi, Georgia:

The process of forming a new business in Tbilisi, Georgia is regulated by Georgian Law, particularly by the Civil Code, the Law on Entrepreneurship and the Tax Code. Georgia offers a variety of business structures, such as Limited Liability Companies, Joint Stock Companies, and Sole Proprietorships. The government has initiated business-friendly practices, making the registration process simple and straightforward. However, it is important to understand the law to avoid potential legal and financial pitfalls.

Why You May Need a Lawyer:

Engaging a lawyer can be crucial in navigating the complexities of business formation, ensuring compliance with local laws, and mitigating potential legal issues. Situations where you might need a lawyer include understanding tax obligations, drafting and reviewing contracts, protecting intellectual property rights, and resolving disputes. Additionally, legal assistance can be vital if your business has international aspects, such as foreign partners or investors.

Local Laws Overview:

It's important to comprehend core aspects of local laws for business formation in Tbilisi. These laws stipulate that minimum capital is not required for establishing a Limited Liability Company. A Joint Stock Company, however, requires minimum capital of GEL 30,000 (~$10,000). Importantly, Georgian law offers full protection to investors, both local and foreign, ensuring they receive identical treatment. Moreover, there is no restriction on profit repatriation, whilst taxation is relatively low and straightforward.

Frequently Asked Questions:

What is the process of business registration in Tbilisi?

Businesses can be registered online, at Public Service Halls, or at Community Centres across the country. Online registration requires a digital signature.

Are there special considerations for foreign investors?

Foreign investors are given the same rights and protections as local investors, and there are no restrictions on foreign ownership or profit repatriation.

How long does the business registration process take?

The registration process is typically completed within one day, but the acquisition of permits may extend this period.

What are the tax obligations for businesses in Tbilisi?

Businesses are subject to several taxes, including Corporate Income Tax, Value Added Tax (VAT), and Property Tax. The tax code, however, is considered business-friendly with relatively low rates.

Can a business in Tbilisi be wholly foreign-owned?

Yes, foreign individuals and companies can own 100% of businesses in Georgia.

Additional Resources:

For additional information and guidance on business formation, the National Agency of Public Registry and Revenue Service under Ministry of Finance of Georgia are valuable resources. They offer comprehensive details on business law, registration process, and taxes. Additionally, the Entrepreneurship Development Agency provides support for startups and SMEs, while the Georgian Chamber of Commerce and Industry offers services to assist businesses in various sectors.

Next Steps:

If you require legal assistance with your business formation, it would be beneficial to consult with an experienced local attorney specializing in commercial law. They can provide guidance throughout the process, identify potential legal risks, and ensure compliance with Georgian law. Additionally, it can be wise to reach out to the agencies and organizations mentioned above for practical advice and support.