Company Due Diligence in Georgia

Updated on Friday 26th June 2020

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Doing business in Georgia is not limited to registering a new company, as there are other options for investors seeking to have a presence here. Among these options are the creation of joint ventures, mergers and acquisitions, partnerships and entering business-to-business contracts. Foreign investors can also purchase company, among which shelf companies represent a good opportunity to start a business in Georgia.

For all these transactions, company due diligence should be the first action to complete before signing any document or agreeing on any terms. Our lawyers in Georgia offer company due diligence services to those who are about to any of the business ventures mentioned above.

What does the company due diligence process imply in Georgia?

Just like in any other country, local and foreign investors have various tools through which they can verify companies they are about to enter contracts with. Among these, the assistance of a law firm in Georgia that can perform various searches and check legal documents provided by the respective company are some of the most common and employed especially by foreign entrepreneurs who are not acquainted with the legislation here.

If you have any question about a company, you can direct your attention to the legal verification of a business with the help of our Georgian lawyers.

Types of company due diligence services in Georgia

There are various types of investigations that can be performed when it comes to due diligence services related to a company in Georgia. Among these, we mention the following:

commercial due diligence which implies a thorough verification of a company on the market and industry it operates in;
financial due diligence in which the financial standing of a Georgian company is verified;
legal due diligence which targets the verification of the status of a company with the Trade Register;
administrative due diligence which very useful in mergers and acquisitions where various facilities and work-related issues of the business can be verified.

There are also other types of company due diligence procedures that can be completed, and which involve the verification of intellectual property assets, environmental issues, human resources aspects, and even customer database information.

Our law firm in Georgia can verify a company with the Companies Registrar and provide a full report on a business in order for clients to know everything about its legitimacy.

Contract verification as part of the company due diligence procedures

One of the most important aspects to check when entering a deal with a Georgian company is the agreement to be signed. All contracts should be verified, especially when entering large transactions such as mergers and partial or total acquisitions. In some cases, the company due diligence is mandatory, however, there are also cases in which both parties need more information about each other and where our lawyers can perform additional verifications.

It is also useful to know that even employment contracts can be verified as part of the company due diligence procedures. Our lawyers in Georgia can assist those about to enter such agreements with companies.

What are the most common verifications of Georgian companies?

Foreign investors have started to show a growing interest in Georgia a few years ago when the country became very attractive from an economic point of view. Among the most common company due diligence services requested by them are usually connected to the legal, financial and commercial aspects in local businesses.

As mentioned earlier, joint venture agreements and business-to-business contracts are the transactions that can be verified when doing business in Georgia because it is easier to have a local partner than starting a company from scratch in a less known country.

If you are interested in company due diligence solutions, you can discuss with our local law firm.

Economic facts in Georgia

Georgia has a very appealing investment climate according to governmental agency Enterprise Georgia. A recent report indicates that:

the country Gross Domestic Product (GDP) registered a 4.7% growth in 2018, reaching 16,2 billion USD;
Georgia ranked 6^th in the World Bank’s 2019 Doing Business Report;
it also ranked 6^th in the Numbeo’s 2019 Crime Index in terms of safety at international level;
Standard and Poor’s and Moody have provided BB, respectively Ba2 ratings with stable outlooks.

If you are interested in doing business in Georgia and need company due diligence services, do not hesitate to contact our law firm. You can also rely on our lawyers in Georgia if you want to register a business here.