Georgia simplifies closure of business rules

As well as making it easier to start a business, Georgia has also simplified the process to make it easier to close one.

Georgia’s Finance and Economy Ministries have published the country’s Social-Economic Development Strategy Project, entitled Georgia 2020, which will foresee the implementation of the new initiative.

"Closure of a business is very important for increasing the production capacity of the private sector because it facilitates companies to shift from less to more efficient fields of business. Therefore, it promotes the growth and competitiveness of companies,” the strategy project stated.

The documents also read that in order to simplify the administrative procedures related to business activities, the Government must ensure the improved legislation surrounding the closure of businessis enforced.

In addition, in the case of insolvency, in order to satisfy the creditors’ requirements the legislation and enforcement mechanisms will also be improved.