Giorgi Tsertsvadze, an Associate Professor of the Law Faculty of TSU, a Manager and a Partner of the juridical company G&T Consulting about the legal environment for starting business in Georgia.
Legislation, regulating the establishment and farther functioning of a company, has been changed several times in Georgia. Especially noteworthy is the reform, carried out in 2008, which has fundamentally altered the Law on Entrepreneurs. Today, the Law functions in the same pattern. However, as it is already known to the juridical community, in the beginning of 2014, a commission was created, the function of which was the regulation of the Law on Companies in Georgia. The commission includes such professional lawyers as Prof. Lado Chaturia, Prof. Giorgi Jugeli, Prof. Irakli Burduli… Their legislative project had already been discussed by the Ministry of Justice. Soon, it will be presented to the Parliament. I have talked to the project authors and, as a theorist and practicing lawyer in the Business Law, I am absolutely gratified with the results. It will be a maximally effective Law, byusing of which small businesses will be registered without an excessive bureaucratic barrier. Both business management and operations will be simplified too. Joint-stock company regulations will be ascertained in detail. Current Law on Entrepreneurs, unfortunately, doesn’t cover all areas (courtand registration directions). The gaps, existed in the current Law, often leads to the heterogeneous decisions. However, the entrepreneur registration system doesn’t have problems in terms of efficiency of Ltd. company registration. Though, if a foreign investor gets involved, complications may arise. Entrepreneurial Registration Office has to review their documentations and adapt them to the Georgian registration regulations. Unfortunately, in such situations, a number of gaps and mistakes are revealed, for which the entire Registration Office cannot be blamed. The Law doesn’t have answers to all questions. Therefore, it is extremely important to operate the new Law on Entrepreneurs as soon as possible.
