Legal affairs
If you are looking to invest in Georgia, it is better to understand and know the legal affairs of this country. In recent years, Georgia has made many efforts to create a suitable business environment for investors. Also, the government of Georgia has placed countless investment opportunities in various sectors for the easy access of investors. However, it is better for people to be fully informed about the considerations and legal affairs of Georgia before making their desired investment in order to facilitate their investment process. In the following, we will learn more about the legal affairs of this country:
Introduction of the legal system in Georgia
Georgia’s legal system is based on civil law, which means that the legal system is based on written laws. In fact, the Georgian legal system is similar to the French legal system and is based on it. And this is the reason why the laws and especially their written form are emphasized. In this system, there are different types of legal matters that are necessary to know for investment.
Types of legal affairs in Georgia in investment
Legal affairs in Georgia are very diverse. If you want to invest in Georgia, then knowing these legal affairs is necessary. Types of legal affairs include the following:
Corporate Law
Corporate law is one of the most important and necessary legal affairs in Georgia. This law is for investors to be familiar with the legal structure of establishing a business entity such as a joint-stock company or a limited liability company and also be able to understand it. In addition, through this law, investors can learn about corporate governance laws such as the rights and duties of managers, shareholders and other stakeholders.
Tax law
Another important legal affairs of investing in Georgia is the tax law. This tax law includes corporate income tax, value added tax and personal income tax and investors should fully understand it. Investors should also be aware of the many tax exemptions such as exemptions and deductions to be able to access them.
Labor Law
Labor law is another vital and necessary legal affairs that is very efficient for investing in Georgia. In fact, investors should be aware of the requirements for hiring and firing employees, and the laws regarding wages, hours of work, and employee benefits. In addition to the above, through this law, investors become aware of the labor standards and regulations in the country.
Intellectual property law
Georgia has an important and strong law called Intellectual Property Law. This law is intended to protect intellectual property law, including patents, trademarks, and copyrights. Therefore, investors should be aware of this law so that they can take necessary precautions to protect their intellectual property when investing.
Gambling Law
As you probably know, gambling is one of the most popular pastimes of people these days. Thus, the gambling business is one of those businesses that attracts many tourists in Georgia every year. So, this business needs legal, accounting and tax support. As a result, the Gambling Act has been created to protect people who invest in this sector. This law is one of the strictest legal affairs in Georgia.
Protecting the rights of investors
The constitution and legal framework of the country protect people who have invested in different parts of this country. Actually, through this law, the government of Georgia takes basic measures to protect the interests of investors. This is the reason why this country is a member of the International Center for Settlement of Investment Disputes (ICSID).
Legal requirements for investing in Georgia
In any investment, there are legal requirements that must be considered. Investing in Georgia has certain legal conditions and requirements that include various things. You can see these items below:
Company registration
Foreign investors to invest in Georgia must register a corporate entity in the National Public Registration Agency. Also, definitive registration requires sending the necessary documents and paying the registration fee.
Signing the investment contract
Foreign investors may be required to sign an investment agreement with the Georgian government. Signing such a contract is, in fact, a guarantee and trust for the assets of foreign investors. Further, this agreement includes provisions for the protection of property rights, restitution of profits and dispute resolution.
Obtain licensing and permits
As an investor in Georgia, if you want to start your company, you may need to get licensing and permits from various government agencies. Of course, you should be careful that each of the licensing and permits depends on the type of business and different industries.
Compliance with rules and regulations
All investors who intend to continue operating in Georgia must comply with all laws and regulations related to this country as explained earlier, including the company law, tax law, labor law and intellectual property laws. Besides, investors should be aware of the changes that happen in the legal framework and adjust their operations accordingly.
Dispute Resolution
It is always possible for contractual disputes, intellectual property violations or asset expropriation to occur between investors and their Georgian competitors or even the government. Thus, in such a situation, investors can solve their problems through Georgia’s dispute resolution laws. These rules provide for a variety of conflict resolution processes, including mediation, arbitration, and litigation. Moreover, this country provides international treaties and agreements that provide double protection for investors.
Reduce corruption
Corruption exists in Georgia as in many other countries and it becomes a problem. Furthermore, bribery and corruption in general harm investors and their assets. In such a situation, Georgia has adopted anti-corruption measures such as establishing anti-corruption laws and establishing anti-corruption institutions. However, investors should be cautious and take precautions to reduce their risk of corruption.
Georgia’s efforts to create capital-friendly policies
- Georgia has a simplified tax code.
- It has improved contract execution processes.
- It has created a one-step mechanism for company registration.
- It has signed various bilateral investment agreements with other countries, which give investors more legal guarantees.
- By prioritizing legal matters, it has created an environment that attracts investment and contributes to the growth and stability of the country’s economy.
Last word
As a result, investing in Georgia can be a profitable opportunity for both foreign and domestic investors, but before any type of investment in Georgia, it is important to understand the legal landscape. In fact, Georgia offers a promising investment environment with a business-friendly legal system, investment laws and regulations, investor protection and favorable tax policies. You only need to master the legal issues related to your business and implement the legal requirements that you will need for investment.