Civil Law in Georgia
Civil Law in Georgia
Updated on Tuesday 21st February 2023
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Until 1995, the small European state was known as the Republic of Georgia, however, in that year, in its Constitution the name was changed into Georgia. Apart from the Constitution, The Civil Code is one of the most important laws to provide for the fundamental rights and obligations of the persons who live here.
Civil legislation in Georgia is given by the Civil Code, which provides general provisions regarding the scope of this law, the manner in which the provisions of the Code may enter into force, as well as regulations regarding natural persons living in Georgia. Also, the Civil Code prescribes the general definition concerning legal entities registered in Georgia, on matters related to the legal capacity of such entities and the domicile of the company.
The legislation also provides the legal framework concerning the registration of a foundation and our team of lawyers in Georgia can advise on these regulations. Investors and natural persons can receive professional assistance on the above mentioned aspects, as well as information on the property legislation prescribed under the Georgian Civil Code.
As per the rules regulating property matters and foreigners, it must be noted that all categories of foreigners can buy a property in Georgia if they provide the necessary documentation and have the necessary budget for the purchase.
One can also buy land, but agricultural land is no longer available for sale to foreign residents following a modification of the law brought in 2017.
Below, our lawyers in Georgia explain the main provisions of the Civil Law. We can also help in a wide range of civil law matters, including litigation on cases that need to be tried under the Civil Code of Procedure.
The main provisions of the Georgian Civil Code
The following concepts are provided for in the Civil Law of Georgia:
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the right to property under the form of real estate and other assets in Georgia;
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family-related matters, such as marriage registration, but also divorce procedures;
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the private relations between natural persons with a main focus on equality;
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civil proceedings in case of litigation which fall under the jurisdiction of Georgian courts.
The Civil Code also contains provisions with respect to companies engaging in various contractual relations. The Contact Law is one of the important sub-divisions of the Civil Code.
Our law firm in Georgia can guide natural persons and companies in various actions which fall under the incidence of the Civil Law. Such actions can include, drafting and reviewing of civil contracts, legal advice on family matters and others.
Rights of natural persons under the Civil Law in Georgia
The first chapters of the Civil Code refer to the rights of persons born or moving to Georgia and legally residing here. According to these provisions, a person’s rights and duties start at their birth when they are capacitated to acquire and exercise their civil rights. Then, natural persons are also allowed to own properties and to inherit various assets. One of the most important laws deriving from the Civil Code is the Inheritance Law.
Another important right under the Civil Code is for a person to choose his or her place of residence in Georgia.
Our attorneys in Georgia can offer more information on the rights of persons living in this country.
Georgian regulations concerning natural persons
Chapter One of the Georgian Civil Code prescribes definitions regarding the legal understanding of the term “natural person”. According to the Article 11.1, a person in Georgia will obtain civil rights prescribed by the Georgian legislation at the moment of birth, and he or she can’t be deprived of such rights during his or her lifetime. Article 12 offers the legal framework concerning the legal capacity of a natural person, who may obtain his or her full rights (and exercise them) at the age of majority which, in Georgia, is attained at the age of 18 years.
Civil Code regulations in Georgia for legal entities
Local and foreign businessmen who want to open a company in Georgia may set up a legal entity in this country under the Article 24 of the Civil Code, which states that a legal person is set up with the purpose of accomplishing a certain objective. The company’s objectives have to be stated in the statutory documents and the respective legal entity may engage only in the activities that are prescribed in the respective documents (Article 25). Our team of lawyers in Georgia may provide further information on the articles of association and memorandum of a legal entity incorporated here.
Even if the Law on Enterprises is the main act providing for the incorporation of companies in Georgia, the Civil Code also establishes a few aspects related to the rights once such entities are created. Both private and public companies have the following rights according to the law:
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to acquire properties and dispose of them in accordance with their purposes;
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to enter commercial and contractual relations with third-parties;
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complete various transactions;
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to sue other companies or natural persons.
You can also rely on us if you want to open a business in Georgia. Our lawyers are at your service in various cities in the country, among which the capital, Tbilisi.
Ownership rights under the Civil Law
The second book of the Civil Code provides for the right to owning various types of real estate. Both natural persons and companies in Georgia can acquire residential, commercial building and/or land plots and register them with the National Land Register.
Under the law, ownership rights over real estate and other holdings can be passed on or sold to other parties, in accordance with the Civil Law or other applicable regulations. The transfer of ownership must be documented with contracts.
Contracts in Georgia fall under the Law of Obligation which is covered by the third chapter. There are various types of contracts that can be concluded between parties in Georgia, based on the transaction they are subject to.
In order to enter an agreement, both parties must consent to the content of the contract. Under the Georgian Civil Code, contracts can be concluded in writing (the most common form) or in an oral form.
The most common types of contracts in Georgia are:
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sale-purchase agreements;
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lease agreements;
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rental contracts;
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franchise contracts;
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concession contracts.
The Civil Law contain extensive provisions on contracts and if you need specific information on any of the agreement presented above, you can ask our lawyers in Georgia.
For more information on the Civil Code and assistance in any matter related to it, please refer to our Georgian lawyers.
Economy of Georgia
According to a report published by the European Bank for Reconstruction and Development (EBRD):
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the first half of 2019 brought an economic increase of 4.7% on a yearly basis;
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export of goods registered one of the highest growths of 12.4% in the first 8 months of last year;
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tourism also increased with a growth of 5.9% in international visitors coming to the country;
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2020 is expected to deliver a 4.5% increase in the country’s real Gross Domestic Product.
A legal entity in Georgia can have only one domicile and, if other business addresses are available, they will be considered the domicile of the company’s branch offices. Natural persons and legal entities are invited to contact our law firm in Georgia for legal advice on the Georgian Civil Code.
