First steps after registration of LLC for foreign entrepreneurs in Georgia, business development in Georgia

3. Checking the license and its necessity

Companies engaged in certain types of activities require a license to carry out work. When transferring a branch of an existing company to Georgia, you can specify the validity of the existing license.

It is mandatory to have licenses in Georgia for organizations engaged in:

• gambling;
• communication;
• medicine;
• energy resources;
• ensuring security;
• construction.

In the absence of a license, the owner of the company will be fined, and if major damage is caused, criminal liability will be imposed. Therefore, it is important to study the Law of Georgia “On Licenses and Permits” before registering an LLC or immediately after, in order to avoid trouble.

4. Definition of the authority of the head

Foreign entrepreneurs in Georgia they often open their own business without moving. In this case, you need to appoint an experienced employee from among the local residents as the director or head of the company. He will control the conduct of business directly while in Georgia, and provide reports to the owner of the LLC.

Such powers are prescribed in the company's Charter and registered with the relevant authority. Confirmation of the employment relationship is considered to be the first transfer of salary.

5. Accounting

In Georgia, all business is managed electronically. The taxpayer's personal account displays all financial transactions of the company, its expenses and income. The owner of the company needs to regularly check and download accounting reports to avoid penalties for tax evasion.

Accounting statements involve the maintenance of the following documents:

• primary documentation on the provision of certain services;
• tax returns;
• income and expenses of the company;
• audit results;
• deductions of salaries to employees.

It is not necessary to hire a separate specialist to collect data. Some foreign entrepreneurs independently maintain accounting records without resorting to the services of specialists. However, in order to avoid mistakes, it is recommended to hire a competent accountant familiar with Georgian legislation, or use outsourcing services.

6. Hiring staff

Georgian legislation is loyal to foreign organizations operating in Georgia. However, in order to receive various benefits and grants, you need to confirm the presence of the company in the country (substance).

The main criterion for presence is employees from among local residents. At the same time, violations in labor relations often occur. In Georgia, a written contract is not a prerequisite for confirming the status of an employee, such confirmation is considered payroll.

Nevertheless, a written contract will help to avoid misunderstandings between employees and the employer. The mandatory terms of the contract are:

• title of the position;
• employee rights and obligations;
• production conditions and payment;
• bonuses and premiums, insurance conditions;
• bank details of both parties.

9. Trademark registration

For business owners in Georgia, aimed at a long and fruitful work of the company, it is worth registering the trademark of the organization. This will protect not only the company's brand, but also intellectual property. Unscrupulous competitors exist everywhere, so this step will help secure the business.

To register a trademark, a business owner in Georgia needs to write an application to Sakpatent. After the examination and consideration of the application, as well as after payment of the state fee, the entrepreneur receives a notification of the successful registration of the trademark.

These are just the first steps after registering an LLC for foreign entrepreneurs in Georgia. The next item will be the search and rental of premises, establishing contacts with contractors, conducting advertising campaigns. Read about it in other articles on our website.

Madloba Directory wishes you successful business development in Georgia!