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Establish a Branch in Georgia / Branch Office in Tbilisi Georgia

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Establish a Branch Office in Tbilisi Georgia

Georgia is one of those countries where starting a business for non-residents has been made simple. To start 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 Business Register Georgia LLC can give you detailed information on all of the available types of companies.

What is brunch? 

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? 

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.

For more details you may contact our agents‘ Business register Georgia lawyers in Georgia.

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