The Parliament of Georgia is reviewing a draft law on grants and related legislative changes, proposed by the ruling Georgian Dream party, which would tighten regulations on foreign funding and restrict political activity by business entities.
Under the new legislation, legal entities engaged in entrepreneurial activity would be prohibited from participating in public political activity. A first violation would result in a fine of 20,000 GEL, while repeated offenses could lead to criminal liability, including up to three years of imprisonment.
Archil Gorduladze, the bill’s author, explained that the law targets legal entities (excluding individuals and sole proprietors) and aims to ensure that political engagement is the domain of political parties, while business entities focus on commerce. Political activity by a company - including actions by its director, founder, or any employee in the company’s name - would be considered a violation.
Responsibility applies both to the legal entity and the individual responsible for the violation. Penalties include fines, 100–200 hours of community service, or imprisonment of up to three years for first-time offenses. Repeated violations could carry up to four years’ imprisonment, fines, or 300 hours of community service. In addition, the company could be fined or liquidated. The proposed changes are part of amendments to the Criminal Code of Georgia.
