Georgia’s strategic location is an asset to any investor wanting to form a company in Georgia. The country boasts of low tariffs, streamlined border clearance procedures and preferential trade regimes with partners like EU and the USA. Georgia’s foreign trade has been growing rapidly since 2003 as a result of aggressive policy reforms to make it easier and less expensive to trade across borders. Due to such a pro-business environment anyone would want to invest in Georgia.
There are many ways through which an investor can enter the Georgian market, one of which is incorporating a company in Georgia. The country offers various types of business entities, Limited Liability Partnership being the preferred one. A Georgia Limited Partnership is a type of business entity in which two or more people, called partners, carry on as a co-owner of a business for making profits. There are two types of limited partnership:
The partners in LLP do not participate in the management activities. They may not object to the actions taken by other partners with a personal liability within the routine operations. All the profits and losses generated in the financial year that exceed an established amount are to be distributed on a pro-rata basis among the partners, unless otherwise stipulated by the company charter.
Georgia LLP has fewer requirements when compared to other business entities. Limited partners in the LLP participate in the business and share the profits without personal liability for the LLP's financial obligations, unlike general partners. Limited partners only have right to demand their due profit if their share in the capital is less than the agreed amount due to incurred losses or settlements. Once the business objectives have been decided and the partners have been named, the process of forming an LLP in Georgia becomes relatively straightforward. Follow the steps mentioned below for your partnership registration:
You must first decide a name for your LLP. The name must not resemble with the name of an existing company in Georgia. However, it must include the words “Limited Liability Partnership” or an abbreviation “LLP”.
The company charter or the Article of Association (AoA) must include the following information about the partners:
This information must be signed by every partner and notarized in Georgia.
After this, you must also register to get the tax registration number, open a bank account, and obtain other permits necessary for your business activity.
If you are looking forward to setting up your business in Georgia, do contact us for legal assistance. We at Business Setup Worldwide are here to help you set up an LLP in Georgia. Our advisors in Georgia have years of experience in this field and can make the complete process hassle-free.