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Civil Law in Georgia - Legal Services for Companies and Individuals

Civil Law in Georgia

Updated on Wednesday 03rd January 2024

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Civil Law in Georgia
 
In 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. When offering legal services, our lawyers in Georgia follow the rules and regulations deriving from this law.  
 
 
 Quick Facts  
Content of the Civil Law in Georgia It presents laws that govern civil matters, including the rights and obligations of individuals and entities in non-criminal legal matters, as established and defined by the Civil Code.

Civil rights at birth

A Georgian person's civil rights are established from birth and cannot be taken away during her/his lifetime.

Legal rights of natural individuals

- property ownership and inheritance,

- choice of residence,

- change of name,

- personal and professional reputation protection, etc.

Establishment of legal entities Both locals and foreigners can open a company in Georgia to achieve specific objectives.
Activities of legal entities

A legal entity may only engage in activities that are explicitly prescribed in the statutory documents.

Rights of legal entities

- acquiring and disposing of properties in line with their purposes,

- engaging in commercial and contractual relations with third parties,

- completing various transactions,

- pursuing legal action against other companies or natural persons, etc.

Property ownership

Both natural persons and companies have the legal right to own various types of real estate and register them with the National Land Register.

Transfer of ownership

It must be documented through contracts.

Contract types in Georgia

- sale-purchase agreements,

- lease agreements,

- rental contracts,

- franchise contracts,

- concession contracts, etc.

Aspects of the Law of Inheritance

- hereditary succession,

- legal heirs, disinheritance,

- opening of the estate,

- revendication,

- property rights,

- wills and testaments, etc.

Family Law - main issues

- solemnization and termination of marriage,

- marital rights and duties,

- voidness of marriage,

- parental rights,

- adoption,

- guardianship, etc.

Aspects of the Intellectual Property Law

- inventions,

- trademarks,

- geographically distinctive designations,

- tradenames,

- trade secrets in Georgia, etc.

Structure of the Civil Code

- Book One (private law system),

- Book Two (Property Law),

- Book Three (Law of Obligations),

- Book Four (Family Law/ Intellectual Property Law),

- Book Five (Law of Inheritance)

Development of Georgian Civil Code

from 1992 to 1997

Assistance Our lawyers can explain you more about the Civil Law in Georgia and can assist in more legal matters, such as company incorporation in Georgia.
Definition of civil attorney

A legal professional who specializes in representing clients in non-criminal legal matters.

Criteria for becoming a civil lawyer in Georgia

 - have a law degree,

- pass the Georgian Bar Exam,

- at least one year of legal professional experience or internship

Validity of contracts in Georgia

Under the Georgian Civil Code, contracts can be concluded in writing or orally to be considered valid.

Validity of laws

Laws and regulations must be officially published on Matsne (the official legal publication of the government) before taking effect.

Legal capacity

Legal capacity begins at 18 years or upon marriage before 18.

Right to obtain personal data (YES/NO)

YES, the Civil Law in Georgia allows you to access and obtain copies of personal data, except those restricted by law.

Name for non-commercial legal entity

- must clearly show its non-commercial nature,

- be unique,

- not contain misleading symbols, not use another entity's name

Registration for non-commercial legal entity

Non-commercial entities and foreign branches or representative offices must register in the Non-Entrepreneurial Legal Entity Register, overseen by the National Agency of Public Registry.

Our lawyers in Georgia can help with registration.

Non-registered unions (associations) - characteristics

- no legal entity,

- members decide their structure,

- common assets shared,

- can be represented by a member

Purpose of Civil Code in Georgia

To govern personal, family, and property matters based on the idea that everyone is equal.

Definition of property

Things and intangible items that can be owned, used, and managed by individuals and organizations, unless prohibited by law or moral standards.

Divorces in Georgia

Spouses must go through legal proceedings for divorce in disputes, while other divorces can be done at a civil registration authority.

Heirs in the case of no will

- spouses,

- children

Heirs in the case of will

Only individuals named in the deceased person's will as beneficiaries.

Services provided by our law firm in Georgia

- legal advice,

- contract drafting,

- divorces,

- litigation,

- real estate transactions,

- debt collection,

- resolving employee disputes, etc.

 

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 and other matters regulating the life of a business form, including its dissolution. 

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:
 
  1. the right to property under the form of real estate and other assets in Georgia;
  2. family-related matters, such as marriage registration, but also divorce procedures;
  3. the private relations between natural persons with a main focus on equality;
  4. 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 Contract 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. Our civil lawyer in Georgia can assist foreigners and residents who are entitled to inheritance in this country.  
 
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.
 

How can our civil lawyer in Georgia help individuals? 

 
Foreigners who want to move to Georgia can address our law firm for in-depth legal assistance on the immigration formalities that they have to follow when relocating here. Such procedures vary based on 2 main pillars: 
 
  1. the duration of the stay (short-term and long-term stays);
  2. the nationality of the foreigner.  
 
There are different requirements that apply based on the nationality due to the fact that Georgia has signed certain agreements with partner states that can grant the right to arrive here without applying for a visa, while for other nationalities, visa formalities are in force regardless of the duration of the stay.  
 
Considering these, our law firm in Georgia can advise foreigners on the legal pathway they should follow, which can also differ on the grounds of the arrival (employment, study, family reunification, humanitarian grounds, etc.). 
 
If you want to relocate here on a long-term basis or even permanent, our civil lawyer in Georgia can help you apply for a residence permit and can also provide legal representation in the process of purchasing a property. 
 
Properties in Georgia can be sold in 3 stages of development, which, of course, can influence the overall price: 
 
  1. black frame (the property is just built, it contains the walls, the floors, the ceiling, windows and sometimes, it can also include plumbing and electricity);
  2. white frame (the property is sold containing plastered walls, electricity, plumbing, painted walls);
  3. green frame (the property provides all the necessary facilities so that the owners can move in). 
 
We invite you to contact our civil lawyer in Georgia to learn more about the exact characteristics of the 3 types of properties, so that you can be sure you are making a right investment when buying a property. 
 
We also invite you to address us if you need legal representation in any property issue, such as for the sale of a property, the division of real estate assets during a divorce, or the division of real estate following the regulations of will signed as per the rules of the Inheritance Law. 
 

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:
 
  • to acquire properties and dispose of them in accordance with their purposes;
  • to enter commercial and contractual relations with third-parties;
  • complete various transactions;
  • 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 we mention the capital, Tbilisi.
 

How can our civil lawyer in Georgia help investors set up a business? 

 
One of the most common legal services we provide to foreigners is legal representation in the process of registering a legal entity. The procedure to open a company here is simple compared to the requirements of other states, but legal representation is still required, considering that there are language barriers. 
 
Our civil lawyer in Georgia can assist with the advice on choosing the most suitable legal entity regulated by the Civil Code (as per the needs of the businessmen) and will also perform the steps for the registration of the company. 
 
You can rely on our attorney in the process of gathering the necessary paperwork (the documentation for company formation is extensive and it requires the personal documents of the investors, forms, permits, licenses, statutory documents, tax identification and others). 
 
The legal entity of choice must have a corporate bank account set up at a local commercial bank, and our Georgian law firm can complete this procedure as well, if you grant us the power of attorney
 
Companies also need an official business address registered in Georgia and for this, you can rely on us for signing a rental contract for a commercial property (an office, factory, etc.) or you can book our services for the sale of a commercial property
 
Please mind that if you do not require a standard office space (which can be the case when having a large business, with many workers), you can also select the services of a virtual office, which provides the basics so that you can carry out your activity. Our civil lawyer in Georgia can offer more details. 
 
 

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:
 
  • sale-purchase agreements;
  • lease agreements;
  • rental contracts;
  • franchise contracts;
  • 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):
 
  • the first half of 2019 brought an economic increase of 4.7% on a yearly basis;
  • export of goods registered one of the highest growths of 12.4% in the first 8 months of the year;
  • tourism also increased with a growth of 5.9% in international visitors coming to the country;
  • in 2020, the economy shrank as a consequence of the Covid-19 measures, but it recovered in 2021; 
  • in 2023 (the period of January – May 2023), the economic growth (measured on a year-to-year basis) stood at 7.5%. 
 
 
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.