Following the entry into force of Georgia’s new “Law on Entrepreneurs,” businesses are facing significant bureaucratic hurdles and inconsistent practices at the National Agency of Public Registry, with some companies reportedly experiencing operational disruptions or delays in maintaining legal status.
According to GLCC legal firm partner Irakli Gaprindashvili, the most serious problems affect companies with foreign legal entities or individuals among their shareholders or directors. He says the registry increasingly demands recently issued (within six months) corporate extracts and documentation, which can be difficult to obtain across different jurisdictions and is not always consistently accepted.
Gaprindashvili adds that the requirements are often applied unevenly, with registry staff frequently rejecting previously submitted documents and creating delays even in routine procedures. While the number of affected cases may not be large overall, he says the impact on individual companies can be severe, including in some cases a suspension of business activity.
He also warns that companies failing to update their data may face liquidation procedures after one year, but argues that key legal and procedural details remain unclear—particularly regarding asset distribution and court involvement. The “Law on Entrepreneurs,” adopted in 2022 to align Georgia’s business framework with European standards, has already led to updates in the registration data of around 414,000 business entities, according to government figures.
