The National Agency of Public Registry (NAPR) handles company registration in Georgia. The founding agreement should clearly state for each founder what contribution they undertake to make, its value, and when it is due. For a cash contribution, the amount and currency must be stated; payment is made to the company’s bank account. For a contribution in kind, the asset contributed, its agreed value, and its allocation to the relevant founder must be identifiable. If the actual value of a contribution in kind is lower than its agreed value, the difference must be made up in cash. Under a General Partnership, Limited Partnership, Limited Liability Company, or Cooperative, the agreement may also provide for work or services as a contribution. In contrast, work and services cannot constitute a contribution in kind for a Joint Stock Company. The rules on subscribed capital and payment for issued shares must also be observed for this form of company: upon registration, at least 25 percent of the value of each issued share must be paid in cash; the remainder must be paid within the agreed period, which may not exceed five years. Contributions, ownership interests, and, where applicable, share details must be stated consistently in the founding agreement, the articles of association, and the registry data.
Contribution Details in the Founding Agreement for Company Registration in Georgia
Contribution details in the founding agreement assign each founder’s agreed contribution and the resulting ownership interest in the company in Georgia. The type, value, due date, and allocation of contributions must be consistent with the legal form and the other incorporation documents.
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