Expanding business operations into new territories is an exciting opportunity for growth. In Georgia, establishing a Branch Office (BO) offers a viable option for companies seeking to establish a presence in the country. This article will delve into the concept of a Branch Office, its characteristics, the process of incorporation, and the required documents for registration. Additionally, we will discuss the liability implications for the founder and the possibility of conducting the incorporation procedure remotely through a Power of Attorney.
understanding branch office in georgia:
A Branch Office is a sub-unit of a business entity that operates as an extension of the head office. It is not a separate legal entity, meaning that the liability of the founder is not limited to the assets of the branch itself. The founder is financially liable for the obligations and debts incurred by the branch. While a Branch Office does not possess separate legal status, it allows companies to establish a physical presence and conduct business activities in Georgia.
incorporation process for a branch office
establishing a branch office in georgia involves the following steps:
preparation of documents:
- Obtain a decision from the head office of the company regarding the establishment of a Branch Office in Georgia. The decision should be signed by the director or authorized representative of the head office;
- Obtain a decision from the shareholder(s) of the company regarding the establishment of a Branch Office in Georgia;
- Secure the consent of the appointed director of the Branch Office;
- Prepare a Power of Attorney in favor of a trusted representative or service provider for signing and submitting the necessary documents for Branch registration. The Power of Attorney should be signed by the director of the head office.
- Submit the required documents to the registering authorities in Georgia. This can be done through a trusted representative or service provider;
- The incorporation process typically takes around two business days after the original documents have been received.
required documents for branch office registration:
To establish a Branch Office in Georgia, the following documents must be submitted to the registering authorities:
- Decision of the head office regarding the establishment of the Branch Office, signed by the director or authorized representative.
- Decision of the shareholder(s) regarding the establishment of the Branch Office.
- Consent of the appointed director of the Branch Office.
- Power of Attorney in favor of the representative or service provider responsible for signing and submitting the necessary documents.
- Passport copy of the director of the Branch Office.
- Complete set of corporate documents of the head office, including information such as company name, address, date of registration, registration number, details of the director, shareholder(s), and Ultimate Beneficial Owner(s) (UBO(s)).
All documents mentioned above should be properly apostilled or legalized, depending on the country of issuance.
Conclusion: Establishing a Branch Office in Georgia provides companies with the opportunity to expand their operations and establish a physical presence in the country. While a Branch Office is not a separate legal entity, it allows companies to conduct business activities under the financial liability of the founder. By following the incorporation process and submitting the required documents, companies can successfully establish a Branch Office in Georgia and tap into the country’s dynamic business environment.