When it comes to establishing a business entity, Joint Stock Companies (JSCs) provide a flexible and advantageous option in Georgia. In a Joint Stock Company, the charter capital is divided into shares, which represent the ownership interests of the shareholders. This article will delve into the concept of a JSC in Georgia, highlighting its characteristics, formation process, and the benefits it offers to entrepreneurs. We will also discuss the requirements, including the number of shareholders and the involvement of Georgian nationals in the company.
Understanding JOint stock companies (jscs):
A Joint Stock Company (JSC) is a legal entity where the charter capital is divided into shares of equal nominal value. These shares serve as securities, certifying the ownership rights of shareholders over the assets of the company. The liability of a JSC is limited to its total assets, thereby providing a separation between the company’s obligations and the shareholders’ personal assets. Shareholders, as a result, are not personally liable for the debts and obligations of the JSC.
Advantages of joint stock companies in Georgia?
- No minimum start-up capital requirement: In most cases, incorporating a JSC in Georgia does not mandate a specific amount of initial capital. This facilitates the establishment of businesses, making it accessible to a wide range of entrepreneurs.
- Non-resident ownership and management: A notable advantage of JSCs in Georgia is that they can be fully owned and managed by non-residents. There are no requirements for Georgian shareholders or directors, providing flexibility and ease of operation for international entrepreneurs.
process of establishing a joint stock company in georgia:
There are two proposed methods for establishing a JSC in Georgia: personal visitation or utilizing a Power of Attorney (POA) for remote formation. Let’s explore both approaches:
personal visit to georgia:
- Collaborate with a professional service provider who will assist in drafting the necessary documents;
- Accompany the service provider to submit the documents for registration of the JSC;
- The company will typically be registered on the next business day after submission;
- After registration, the service provider will assist in opening bank accounts for the company, including internet banking facilities.
formation through a power of attorney (POA):
- Provide a notarized and apostilled (or legalized) Power of Attorney (POA) to a trusted service provider;
- The service provider will prepare the required documents and submit them for registration on behalf of the client;
- The JSC will generally be registered on the next business day after submission.
- Once the company is registered, the director of the Georgian company will issue a new notarized and apostilled/legalized Power of Attorney for opening bank accounts;
- Upon receiving the original POA, the service provider will proceed with the process of opening bank accounts, including internet banking facilities, for the JSC.
Conclusion: Joint Stock Companies (JSCs) provide entrepreneurs with a flexible and advantageous legal structure for conducting business in Georgia. The ability to divide the charter capital into shares, limited liability protection, and the absence of strict requirements for Georgian shareholders or directors make JSCs an appealing choice. By understanding the formation process and the options available, entrepreneurs can confidently establish their JSCs in Georgia and enjoy the benefits of this business structure.