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Georgia: +995 551 317 330Ukraine: +38 044 300 25 81

en

Law Firm

What you need to know about the adoption of the New Law in Georgia 2023

Significant changes have taken place in the legislation of Georgia, which testify to the dynamic development of the economy and the desire of the state to establish a predictable regulatory framework to ensure stability. As a developing country, Georgia has excellent business tools and new laws aim to improve corporate, labor and tax laws. Today we will talk about important changes in these areas and assess their potential impact on the business.
>> In accordance with the amendments to the Law on Entrepreneurs that came in 2021, 21 amendments were made to regulate the creation and operation of joint stock companies (JSC) and limited liability companies (LLC) in Georgia.
💁‍♀️ What are the requirements of the Law?
🟢 One of the main requirements introduced by the new legislation is the mandatory creation of authorized capital (AC) for a JSC in the amount of at least 100,000 Georgian lari (about $27,000) by the end of 2023. In addition, LLCs can now issue shares of a certain class and type, which gives more flexibility in managing the company and attracting investors.🟢 Another important change is that the registration of a manager of a certain percentage of participation in the company is now possible. This allows shareholders to control the activities of the company and ensure more efficient management.
In addition, all companies in Georgia are required to bring their constituent documents in line with the new legislation and re-register before the end of 2023. This includes changing the name, address and other information about the company, as well as reviewing the Articles of Association, the Criminal Code and other documents related to the organization and functioning of the company.
🔴 Violation of the requirements of the new legislation may result in fines, revocation of the license or even liquidation of the company.
Recommendation
👉 Timely bring your constituent documents and the functioning of the company in line with the new requirements of the law.If your company was registered before January 1, 2022, you can contact us for advice.

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