Entrepreneurs operating in the Georgian market, it's time to mark your calendars and start taking action! Recent legislative changes to the Entrepreneur Law will change the business landscape. By April 1, 2025, all registered businesses (except sole proprietorships and nonprofits) must update their registration information. Let's look at what these changes mean for your business and how you can keep up to date.
What's at Stake Under Georgia's New Entrepreneur Law?
Ignoring compliance deadlines is a risky game, one that can lead to significant business disruption. Here's what's at stake:
Limited authorisation: Your ability to represent, manage, and conduct business may be significantly limited.
Banking and financial restrictions: Expect restrictions on bank account transactions and credit availability.
Tax involvement: Your ability to participate in tax transactions may be frozen.
Compliance Steps
Review and update: Evaluate current registration information for compliance with the new law.
Shareholder Resolution: Make sure the compliance resolution is documented and approved by your shareholders.
Submission to the National Agency: Submit the necessary changes to the National Public Registry Agency to avoid last-minute problems.
Consequences of non-compliance
Failure to meet deadlines is not just limited to business disruptions. It leads to registration suspension and potential ‘defective’ status, which has more serious consequences such as registration cancellation. This status severely limits your ability to operate and deal publicly.
Start the compliance process today!
Deadline: 1 April 2025
For businesses registered in Georgia before 1 January 2022, time is running out. Extending the deadline to 1 April 2025 gives you the opportunity to bring your business registration details in line with the new requirements. It's not just a bureaucratic tick box, it's a strategic move that will ensure the smooth running of your business.
Moving forward
While the new changes introduce stricter compliance requirements, they provide an opportunity to streamline and strengthen your operations. Use your compliance registration platform to receive timely updates and keep your business on the right page. Let's accept these changes not only as a legal necessity, but also as a stepping stone to more solid business practices in Georgia.
Ready to make sure the future of your business is safe?
Don't wait for the deadline to creep up on you! Start the compliance process today to ensure your business thrives without interruption. Need help navigating these changes?
Contact our team of dedicated experts for personalised guidance and professional assistance.
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