Legislation Related to Commercial Activities in Georgia
Legislation Related to Commercial Activities in GeorgiaUpdated on Tuesday 21st February 2023
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Commercial activities in Georgia are regulated by a set of laws. Although most of the countries have a Commercial Code, which provides a comprehensive image on the commercial activities that can be carried out in the respective jurisdiction, Georgia does not have a similar document.
Businessmen who are interested in opening a company in Georgia will need to study the regulations of various legislative acts and codes, which establish the manner in which a company must be registered, the types of commercial activities allowed in the country, the legal entities investors can choose from, the taxation of such companies and many others. Our team of lawyers in Georgia can offer an in-depth presentation on the commercial legislation.
The Tax Code in Georgia
The Georgian Tax Code provides a regulatory framework on the taxation system applicable on the country’s national territory. It describes the types of taxes available in Georgia (applicable at a national and regional level) imposed to both natural persons and legal entities. Our team of attorneys in Georgia can provide advice on the provisions related to the taxation of companies.
Foreign investors interested in opening a business in Georgia should know that businesses registered here will be imposed with the following taxes, depending on the legal entity of the company (for example, sole traders are liable to personal income tax, as they can’t be imposed with the corporate tax) and its main activities: personal income tax, corporate income tax, value added tax (VAT), excise tax and the import tax.
According to the Article 6.5 of the Tax Code, the above mentioned taxes are applicable at a national level. Georgia also imposes the property tax at a regional level. Our lawyers in Georgia can offer advice on the taxation system available here.
You can address to our team of lawyers if you want to buy land in Georgia. Our attorneys can offer information on the main requirements you must respect as a foreigner.
It is important to know that foreigners can easily acquire land, but the law imposes restrictions when it comes to the purchase of agricultural land (since 2017, foreigners can’t own or buy land designed for agricultural purposes).
Other rules of law in Georgia
Commercial activities are also regulated by the Law on Entrepreneurs, as well as the Law on Insolvency. Foreigners who want to start the procedure of company registration in Georgia will need to follow the regulations of the Company Law. We invite businessmen to contact our lawyers in Georgia for more information on the commercial legislation.