Open Cooperative (CO) In Georgia

Open cooperative (co) in Georgia: Cooperative is a company incorporated with the objective to develop common business and increase the profits of its members. The objective of the cooperative is to accomplish the interests of its members. A cooperative is not primarily aimed at gaining profit. The cooperative is liable against the creditors only with its own property.

Open Cooperative (CO) In Georgia

A Georgian Cooperative is a legal entity. Its liability to creditors is limited to its assets.

Usually in Georgia, you will find agricultural cooperatives.

Only Georgian citizens can establish and become members of a cooperative. Citizens of foreign countries can be associated members of a cooperative, without holding its shares.

A member of an agricultural cooperative

1. Members of the agricultural cooperative are shareholders of associate members.

2. A member of the agricultural cooperative may be an 18-year or older citizen of Georgia, and/or another agricultural cooperative who is directly involved in agricultural activity and who owns shares;

3. The number of members of an agricultural cooperative in settlements to which the Law of Georgia on the Development of High Mountain Regions applies shall not be less than 3, and in the rest of Georgian territory – less than 5.

4. An associated member of the agricultural cooperative may be a physical person (including citizens of foreign countries) having attained the age of 18 and/or a legal person (including a legal person registered abroad), who, by this Law, has contributed to an associated member.

5. If the requirement under the third paragraph of this article is not met, a reasonable time not to exceed six months shall be given to an agricultural cooperative to rectify the violation.

For more details about setting up a company in Georgia, you may contact our Company Formation Georgia lawyers in Georgia.