Establish a Branch in Georgia / Branch Office in Tbilisi Georgia
Establish a Branch in Georgia / Branch Office in Tbilisi Georgia: Georgia is one of those countries where starting a business for non-residents has been made simple. To start a new LLC, it takes just 2-3 working days and relatively little bureaucracy. This entity has certain characteristics that make it easier to incorporate, but also make it dependent on the parent company. If you want to invest in Georgia and open a company here, the team of Company Formation Georgia LLC can give you detailed information on all of the available types of companies.
What is branch?
Any foreign legal entity (commercial or non-commercial) without the purpose of incorporating any of the aforementioned separate legal entities under the laws of Georgia, may establish and operate its business through a Branch Office registered in Georgia. The Branch Office is the sub-unit of a business entity and is not considered as a separate legal entity. Therefore, the liability of its founder may not be limited to the assets of the branch itself. The latter denotes that the founder is financially liable for the obligations of the branch.
The branch certainly has a number of advantages and one of the most important is the effective control the foreign parent company has over the Georgian headquarters. This can ensure that the company’s policies are implemented correctly and according to the standards of the parent company. Another advantage can be found in the lower incorporation costs.
A branch office is essentially an extension of the parent company abroad. This type of company is a sub-unit and it is not a separate Georgian legal entity. This also means that the parent company is liable for the debts and obligations of the Georgian branch. If the branch experiences financial difficulties or files for bankruptcy, the parent company abroad must be aware that these financial liabilities fall under its obligations towards the branch.
What is considered to be a branch office in Georgia?
A branch is located and operates beyond the place of registration (jurisdiction) of its founding company.
It does not have the status of a separate legal entity.
A branch acts in accordance with the powers delegated by the founding company.
The establishment of a branch does not require any capital investments.
A branch of a foreign company must be registered at the Public Registry. Registration requires translated and notarized in Georgia documents on the company’s decision and appointment of branch director.
Documents Required and to Open a Branch Office in Georgia
Application form for Branch Office Establishment.
Legal Passport of interested Person. In case the procedure is done remotely, legalized/apostilled Passport with Power of Attorney to act on behalf of interested person.
A copy of your identity document of an Enterprise or a foreign (non-commercial) legal entity under the laws of certified/legalized foundation documentation/registration document Certified in accordance with the data of the founders of the enterprise or non-profit (commercial) legal entity and its leadership;
Authorized person‘s decision to establish a branch Certified in accordance with the legislation, subject to the branch / representative office or the appointment of the head of the executive authority of the person granting the power of attorney;
A decision on the appointment of a head of branch/representation or on granting the authority for representation by proxy, certified in accordance with Georgian legislation;
Consent of a branch Director on the relevant duty.
Registration Steps
Step 1 Company Formation Georgia LLC Legal
Supply head office with the draft registration documents.
Step 2 Head Office
Complete the draft registration documents and send them to Company formation Georgia LLC legal for review
Step 3 Company Formation Georgia LLC Legal
Review and approval of the draft registration documents
Step 4 Head Office
Signing, notarization, and apostille or legalization of the registration documents
Step 5 Company Formation Georgia LLC Legal
Georgian translation, notarization of the registration documents and submission to the Public Registry
Step 6 Company Formation Georgia LLC Legal
Completion of registration by the Public Registry
Furthermore, the investors will also need to open a corporate bank account for the branch office operating in Georgia, which can be set up in the local currency or any other foreign currency. In this situation, the representatives of the parent company need to provide documents that attest to the fact that the beneficial owners hold at least 25% of the capital of the legal entity.
If you want to open a branch in Georgia or you are interested in exploring other available business options, please contact our team of Company Formation Georgia LLC, who can offer consultancy services on any matter related to the registration of a business in this country.