A branch in Georgia is the preferred business form for entrepreneurs who want to expand an already existing company. This entity has certain characteristics that make it easier to incorporate, but also make it dependent on the parent company.
If you want to invest in Georgia and open a company there, our Georgian company formation agents
can give you detailed information about all of the available types of companies
Basic information about a branch in Georgia
A branch office is essentially an extension of the parent company abroad. This type of company is a sub-unit and it is not a separate Georgian legal entity. This also means that the parent company is liable for the debts and obligations of the Georgian branch.
The branch certainly has a number of advantages and one of the most important ones is the effective control the foreign parent company has over the Georgian headquarters. This can ensure that the company’s policies are implemented correctly and according to the standards of the parent company. Another advantage can be found in the lower incorporation costs. Because the branch is not a separate legal entity in Georgia, the incorporation procedure will generally be less expensive than in the case of any other company and the branch will be operational in a shorter amount of time.
Our company incorporation agents in Georgia can also talk to you about the disadvantages of opening a branch, mainly the liability that falls onto the parent company. If the branch experiences financial difficulties or file for bankruptcy, the parent company abroad must be aware that these financial liabilities fall under its obligations towards the branch.
Registration requirements for a branch in Georgia
A branch in Georgia
must be registered at the National Agency of Public Registry belonging to the Ministry of Justice. For this purpose, the following documents must be submitted when applying for registration
- the parent company’s decision to open a branch in Georgia;
- the original articles of association of the foreign company;
- a document containing the names of the authorized representatives for the branch and corporate details about the parent company;
- identification details for the appointed director of the branch;
- a receipt proving that the registration fee has been paid.
In some cases, a power of attorney empowering the director of the branch may be needed together with the aforementioned documents. Additionally, we can help you notarize and translate any documents. Our company formation experts in Georgia can help you draw up a power of attorney and submit any other documents needed for the incorporation of the branch.