Closing and Starting Anew After Doing Business in Georgia

The business closure process initially depends on the legal form of the business and its financial situation. A company may be subject to a corporate liquidation procedure, while ending the activities of a natural person involves different registry and tax steps. If insolvency exists or is foreseeable, it must be assessed whether a rehabilitation or insolvency procedure is required instead of voluntary closure. For a company, liquidation begins with a valid resolution to dissolve, an application to the registry, and, where applicable, the appointment of a liquidator. The company’s assets and outstanding business matters are then recorded, ongoing contracts are terminated, receivables are collected, and saleable assets are sold. Bookkeeping and financial reporting continue until the formal conclusion. Creditors must be able to submit their claims so that their legal basis, amount, due date, and security can be reviewed. Claims are satisfied according to their legally applicable priority. If the available liquidation assets are unlikely to cover all obligations, payments must be controlled and possible insolvency consequences reassessed. The closing accounts, final report, distribution of remaining assets, and evidence of completion form the basis for deregistration. Tax returns, VAT status, bank accounts, and business access credentials require separate closing steps. Accounting records, tax receipts, and liquidation files may need to be retained even after deregistration; any subsequent claims must be assessed on the basis of the specific grounds for liability. A new business venture should not simply repeat the earlier plan. Demand, pricing, costs, liquidity, financing, customer dependence, contracts, organization, and personal strain should be reviewed using the available records. Each identified cause of the business closure should lead to a verifiable change in the new plan. Before starting a new business, outstanding taxes, debts, guarantees, legal disputes, and other obligations must be clarified. The new business idea requires current market tests and conservative cash-flow planning that includes repayments and personal expenses. The legal form, tax account, bookkeeping, permits, and internal controls should then be set up to suit the new venture.