A legal entity performing business activities on the Georgian territory will need to obtain a business license in Georgia issued by the relevant authorities, depending on the specific activities of the respective company.
During the procedure of company formation in Georgia, investors have to verify what types of permits are necessary to conduct certain operations, as prescribed by the local legislation. This law imposes such documents for approximately 30 business activities.
Our team of specialists in company formation in Georgia can offer in-depth assistance on legislation regulating this corporate matter. Our consultants can help clients acquire a trade license in Georgia.
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Legislation on permits and licenses in Georgia
The legislation referring to special permits and licenses in Georgia was modified in 2005, when the local authorities created a new legal framework for the types of permits and the manner in which they can be obtained by businessmen, simplifying the former procedure.
The 2005 Law of Georgia on Licenses and Permits reduced the number of required permits by 84% and, at the moment, there are only 86 licenses and 50 permits available for businesses registered here. Businessmen who want to open a company in Georgia should know that most of the Georgian permits and licenses are generally prescribed for the following situations:
- safety and health protection;
- security of living conditions;
- protection of state and public interest.
The Georgian legislation on the matter provides extensive framework on the business activities that do require business permits and our team of representatives in company registration in Georgia can offer advice on the documents that have to be submitted with the local institutions.
If you want to open a company in Georgia, you can rely on our team of consultants not only for the process of obtaining special permits and licenses, but for any other part that can be important when starting a business activity.
Procedure for obtaining a business license in Georgia
In order to further improve the business environment in Georgia, the local government established new rules for the issuance of permits, under the one-stop-shop principle.
Through this, the institution that should provide a business license in Georgia can collect information on the company from other relevant agencies. The issuing institution has to provide an administrative act on granting the respective document in a period of 30 days after the requesting company sent the application form.
Categories of licenses in Georgia
There are several categories of licenses stipulated by the law (Article 3, Law of Georgia on Licenses and Permits). A license defines the right granted to a third party to develop a specific business operation. It also implies that the party holding the license meets the basic conditions imposed by the law in order to safely carry out that activity.
Investors who want to obtain a business license in Georgia can apply for certain types of licenses. According to Article 3 of the above-mentioned law, one can apply for a general or special license (the latter is granted for specific activities).
The same Article defines 2 important terms – the license to use and the license to operate, which have different meaning. The first refers to the right granted by the Georgian authorities to a third party to use national resources, while the latter defines the right to develop a certain activity.
Thus, when applying for a business license in Georgia, it is compulsory to correctly identify the type of license one needs to obtain. For this, our consultants remain at your service.
Is there a law regulating fees charged for a trade license Georgia?
Yes, those who want to start a business in Georgia and who must apply for licenses and permits should observe the law concerning the fees applicable for these documents. The legislation concerning this matter is given by the Law of Georgia on License and Permit Fees.
In the list below, our consultants in company incorporation in Georgia have prepared a short presentation on the main stipulations of the law:
- Article 3 of the law stipulates that fees are imposed solely for the activities mentioned in the Law of Georgia on Licenses and Permits;
- Article 4 mentions that the amount due is established under the Law of Georgia on Licenses and Permits Fees;
- Article 6 stipulates the current fees charged for the issuance of licenses necessary for specific activities (for instance, GEL 500 for life insurance, insurance or banking, GEL 700 for brokerage activities, GEL 100 for urban planning, etc.);
- Article 7 refers to the fees imposed for the issuance of permits (for example – GEL 500 for the environmental impact permit, GEL 1,000 to GEL 24,000 charged for the issuance of a construction permit for special facilities, GEL 15,000 for organizers of lotteries, etc.).
We can also help you in the process of selecting the services of a virtual office or we can provide legal representation to investors who want to purchase a ready-made company. Businessmen can also address us for accounting and tax formalities imposed to corporate entities. These services can be completed with the assistance of our accountants in Georgia.
Please contact our team of consultants in company formation in Georgia for tailored advice on a specific business permit a legal entity may need (such as a trade license in Georgia).