The forms of business organization under Georgian law are:
LIMITED LIABILITY COMPANY (LLC/LTD)
A limited liability company is a company whose liability to creditors is limited to all its assets. The capital of a limited liability company is divided into shares, that are transferable. The partners of an enterprise exercise their management powers through a general meeting of partners, unless otherwise provided for by the Charter.
LIMITED PARTNERSHIP (LP)
A limited partnership is a company where several persons carry out entrepreneurial activity under one common company name, where the liability of one or several partners to creditors of the partnership is limited to payment of a fixed guarantee amount – limited partners (komandits) and the liability of other partners is not limited – general partners (komplementars). General partners (komplementars) are jointly and severally liable to creditors with all their assets. A partner of a limited partnership may be a natural as well as a legal person.
JOINT STOCK COMPANY (JSC)
A joint-stock company is a company whose capital is divided into shares of a certain class and quantity as determined by the Charter of the company. A share is an intangible registered security that evidences the obligations of a joint-stock company to a partner (shareholder) and the rights of the shareholder in the joint-stock company. The Charter of a joint-stock company may determine a value below which the values of shares may not be set for the initial issuance of the shares for a given class (par value). The liability of a joint-stock company to its creditors shall be limited to all of its assets. The shareholder of a joint-stock company shall not be liable for the obligations of the joint stock company. When founding a joint-stock company, the capital can be determined in any amount.
Cooperative is a company based on the labour activity of its members or established for developing the business and increasing the income of the members. The
objective of a cooperative is the satisfaction of interests of the members. A cooperative is not aiming primarily at gaining profit.
General partnership is a company where several persons (partners) conduct entrepreneurial activity jointly, under one common company name, and are jointly and severally liable with all their assets to the creditors as joint debtors.
An individual entrepreneur is a physical person, who will acquire its’ status of entrepreneur only upon registration in the Registry of Entrepreneurs and Non-entrepreneurial (Non-commercial) Legal Persons (‘the Entrepreneurial Registry’)
BRANCH OFFICE (BO)
A foreign enterprise may establish a branch office that shall not a legal person. The registration of the branch office (permanent establishment) of a foreign enterprise shall be performed by the registration authority according to the legal address of that branch office. The registration authority shall be obliged to register the branch office (permanent establishment) of a foreign enterprise upon submission of the documents laid down by the legislation of Georgia.
ACCOUNTING SYSTEM IN GEORGIA
Georgia is a country with low tax rates and transparent tax system. The tax and customs legislation is included in the Tax Code and the supervisory authority for tax collection is the Georgia Revenue Service.
Taxation in Georgia is territorial: Only income received from Georgia sources is taxed. There following types of taxes imposed by Georgian legislation: