Investors looking to start a company in Georgia can choose to set up a joint stock company if they intend to perform large business operations. Opening a joint stock company in Georgia offers several advantages, including the ability to raise funds from the public through stock exchanges, limited liability for shareholders, and growth opportunities for businesses.
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Requirements for opening a joint stock company in Georgia
A joint stock company in Georgia is similar to a limited liability company, allowing single-shareholder establishment and no restrictions on the number or nationality of directors or shareholders. These are not personally liable for company’s debts and can be individuals or legal entities.
Joint stock companies are commonly used for raising funds from the public, especially on stock exchanges, and are mandatory for commercial banks and insurance companies.
You do not need to meet a certain minimum share capital to open a joint stock company in Georgia. Instead, the authorized capital is divided into shares, and the founders have the flexibility to determine the minimum nominal value of the authorized capital.
If the company has less than 50 shareholders, you need to maintain an internal record of shareholder information. If there are more than 50 shareholders, an external entity must handle this record. In both cases, we recommend reaching out to our accountants in Georgia for expertise.
A supervisory board is mandatory for joint stock companies traded on stock exchanges, licensed by the National Bank of Georgia, or having over 100 shareholders.
If you need to set up a business in Georgia and are interested in choosing a joint stock company, you can contact our specialists for more details regarding the requirements.
Company incorporation process for joint stock companies
You can incorporate your company in Georgia either in person or through a representative who will handle the process on your behalf through a power of attorney. The incorporation takes place at the National Agency of Public Registry, where you will submit the necessary documents.
Some of the necessary documents you need to submit to open a joint stock company in Georgia include: the application form, your identification document (passport or residence card), a signed company charter, an address proof, and proof of payment for the registration fee. You can contact us if you need a company’s registered office address, including a virtual office.
The registration certificate is initially issued in Georgian, but you can request an English translation for an additional fee.
An important thing to keep in mind is that when you open a joint stock company in Georgia, the names of the shareholders do not appear on the certificate of the commercial register.
Advantages of opening a joint stock company in Georgia
Opening a joint stock company in Georgia offers several advantages, including:
- Easy way to attract investments and raise capital by issuing shares to the general public;
- Shareholders are not personally liable for the company’s debts and obligations, limiting their financial risk to the amount invested in shares;
- Being a publicly listed company can build trust among customers, partners, and investors;
- The incorporation and registration are very fast (usually one day) and easy. You can reach out to our specialists in company formation in Georgia for this process.
Additionally, investing and opening a company in Georgia is a great idea considering these statistics about the country’s economic status:
- In 2022, Georgia’s GDP was evaluated at over 24 billion dollars;
- In 2021, Georgia’s exports were valued at over 5 billion dollars;
- Agriculture remains an important field in Georgia, reaching 516.90 million GEL in the first quarter of 2023.
If you are looking for guidance in setting up a joint stock company in Georgia, as well as other business structures that might interest you, feel free to contact us.