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Types of Companies in Georgia

Updated on Monday 18th April 2016

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types_of_companies_in_georgia.jpgThere are many forms a business can take in Georgia, but the most popular one is the limited liability company. Along with this, an investor may choose to open a joint stock company or can create a partnership (general or limited).

Incorporation of a limited liability company

A limited liability company is formed by at least one shareholder and maximum 50. The capital is divided into shares and each shareholder has the rights limited by the value of his shares. The members are not personally liable for the company’s debts.

As a single inconvenient, a member of a limited liability company can’t leave the company.

The number of directors is not limited; a company of this type can be managed by several directors. All daily decisions are taken by the director or by a board of directors and the major decisions are taken by the general meeting of the shareholders. If a director is causing damages to the shareholders, than he is personally liable for the losses.

No minimal share capital is required for this type of company; however an authorized capital is necessary before starting the business. The members are free to choose an amount for the capital.

The registration of a limited liability company in Georgia doesn’t take longer than two days.

Formation of a joint stock company

A joint stock company in Georgia is usually a company that has its shares registered at the Georgian Stock Exchange. It can be registered by one founder and as a major characteristic is that the shareholders are not personally liable for the company’s debts.

There is no minimum share capital, but it must have an authorized capital, decided by the shareholders. It is  not necessary to pay the contribution at the time of registration. Also the contributions in kind are possible. If the number of shareholders exceeds 50 members, they have to be registered by an independent register, if not, the evidence is kept by the company itself.

All the major decisions are taken by the general meeting of the shareholders, but every daily decision is taken by a director or a board of directors.

A supervisory board is appointed if the shares are registered at the stock market, if the number of shareholders exceeds 100 members or if it is licensed by the Financial Monitoring Agency. The minimum number of members of the supervisory board is four and the maximum number is 21.

Other types of companies in Georgia

A general partnership is based on an agreement between two or more partners, performing business under the same name, personally liable for the debts and incomes of the partnership. All the partners may take management decisions.

A limited partnership is formed by two or more persons with different roles in a company: there is a general partner (who’s liability is unlimited) and there is the silent partner (who’s liability is limited in the extend of his contribution). Only the general partners are entitled to take any management decisions.

If you need assistance for choosing the type of company you will open, you may contact our agents in company formation in Georgia.

We invite you to watch a short video about the types of companies you can open in Georgia:

Comments

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