New Law of Georgia on Entrepreneurs to come into force on January 1, 2021
Once approved the new law will regulate issues related to the conflict of interest of business managers, the obligation of good faith, the fulfillment of obligations of the entrepreneurial community, reorganisation and liquidation of the company. Photo: Nino Alavidze/Agenda.ge.
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The government of Georgia has approved the Law on Entrepreneurs, that soon will be sent to the Parliament of Georgia and if approved will come into force on January 1, 2021, announces the Ministry of Justice of Georgia.
The new law...has been developed to improve the business climate and aims to improve the legal framework, regulate internal corporate relations and, while promoting entrepreneurial freedom, increase transparency in this area. Also, the purpose of the bill is to bring Georgian legislation closer to European standards, to fulfill the requirements of the Association Agreement between the EU and Georgia", reads the press-release published by the Ministry of Justice.
Once approved the new law will regulate issues related to the conflict of interest of business managers, the obligation of good faith, the fulfilment of obligations of the entrepreneurial community, reorganisation and liquidation of the company.
The bill introduces rules that will allow business parties to better regulate corporate relations, and in cases of non-regulation of a separate issue, there will be a normative basis to overcome difficulties that the parties face as well as the court to properly resolve the disputes.
The Georgian Prime Minister’s spokesman Irakli Chikovani has stated today that small and medium-size business owners (SMEs) who have leased municipality-owned areas for their business activities have been made exempt from lease payments for three months in all municipalities of Georgia.
What support can business expect?
The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.
The Georgian Economy Ministry is offering natural resources for privatisation in addition to other state-owned assets offered through the “100 investment projects for business” program, said Georgian Prime Minister Giorgi Gakharia at a government meeting earlier today.
Georgian Prime Minister Giorgi Gakharia announced earlier today how the government intends to help businesses and agriculture during the COVID-19 crisis.