The public registry is not exhausted by the registry of rights to immovables: it unites the registries of rights to movable things and intangible assets, of public-law restrictions, of tax pledges and mortgages, of entrepreneurs and non-commercial legal persons, the address registry and the registry of economic activities, and the legislation also provides for a factoring registry. This page explains how each of them operates, what is registered in them, what duties applicants bear, and which rules are decisive for your rights.
The Registry of Rights to Movable Things and Intangible Assets
The following are registered in this registry: pledge; leasing; bank guarantee; only that financial pledge whose object is a credit claim in the case determined by the law on financial pledge, assignment and derivatives; and the coverage assets provided by the law on bonds secured by mortgage. For the right of pledge to arise, its registration in the public registry is necessary, while a pledge of the partners' shares in a limited liability company or a limited partnership is registered in the registry of entrepreneurs and non-commercial legal persons.
The declarant, for his part, bears a duty of notification: the creditor or debtor who submitted the application for registration of a right, a change in it or its termination on the basis of a notice is obliged to inform the other party about the registration within one week from the registration. This term is a guarantee of the parties' informedness, and its breach in practice increases the risk of questionable transactions.
The Registry of Public-Law Restrictions
The registry of public-law restrictions records data on the creation, change and termination of seizure, restrictions on the disposal of a right and prohibitions, and likewise prohibitions on registration, imposed by courts or other administrative organs in the manner established by law, on a thing or an intangible asset. Registration of a public-law restriction excludes the registration of any other right or obligation, or of the abandonment of ownership, on that thing or intangible asset, unless the registration document provides otherwise.
Taking its content into account, this restriction does not extend to cases where the person interested in the registration is the heir of the owner or of the holder of the right, where the registration document is an act of a court (arbitration) that has entered into legal force, where the document was issued before the registration of the seizure or prohibition (in which case the seizure or restriction is declared invalidated), where the identifying data of the subject or object change as a result of registration, where cancellation of ownership leaves the thing without an owner, where the thing has been disposed of by an enforcement institution, or where termination of a registered right is requested that is not connected with the restriction and whose cancellation does not contradict it. If the legal act on the restriction directly indicates a prohibition of termination, or if that right or obligation is itself the object of the restriction, this exception no longer operates.
The Registry of Tax Pledges and Mortgages
A right of tax pledge or mortgage is registered on a thing, except a mechanical vehicle, and on an intangible asset. Such registration is impermissible if, at the moment of the registration of the request, that thing or asset is in the ownership of another person. If the transaction submitted for registration was concluded on a legally flawless thing and, before the registration of ownership, the thing became burdened with a tax pledge or mortgage, registration of the new owner's ownership is impermissible, except where the new owner's prior written consent to receiving the burdened thing exists. And where the property has been disposed of by an enforcement institution on the basis of a request of the tax organ, the registered tax pledge or mortgage applied to secure that request is terminated.
The Registry of Entrepreneurs and Non-Commercial Legal Persons
This registry registers data on the creation, change and termination of the subjects determined by the Civil Code and the law on entrepreneurs, as well as on obligations connected with the shares of partners in limited liability and limited partnerships, including data on the status of a special plaintiff. The grounds for registration and the procedure of the registry are established by those same laws, and additional conditions by the instruction approved by the Minister of Justice. A subject is deemed created, its data changed and its registration terminated from the moment the decision on registration enters into force.
The reflection of a change of data includes information on the commencement of the dissolution, liquidation or reorganisation of an enterprise, insolvency proceedings, the commencement or termination of a bankruptcy or rehabilitation regime, the appointment of a liquidator, rehabilitation supervisor or bankruptcy manager, and changes to the founding agreement, and likewise reflects circumstances provided by individual laws — for example, the appointment or dismissal of the administrator or liquidator of a programme under the law on mortgage-secured bonds, the liquidation of a sub-fund of an investment company and the liquidation of a branch of a securitisation company. Where the founding agreement or charter is amended, a consolidated text must be submitted together with the text of the amendment. The firm name, in turn, may not use words indicating the status of an organisation managing property rights on a collective basis, except for an accredited organisation.
As a result of registration the registering organ prepares an extract, which is prepared in Georgian and, at the request of an interested person, also in English, although where an English extract is prepared a Georgian one is also mandatory. The electronic copies of documents submitted for registration are placed on the electronic portal and are available to any person without payment of a fee. A subject is registered at the address declared by it; written correspondence, after being sent to the registered address, is deemed officially sent. The registering organ creates an electronic address for the subject together with its registration, which operates until the cancellation of the subject; for a non-commercial legal person registered before 1 January 2022, it is created upon request or upon a change of the registered data. The subject itself is responsible for the accuracy of the information placed on the portal — the agency does not verify the content of information other than registered data.
The Address Registry
The basis for creating the data of the address registry is both documentation submitted by interested persons and documentation kept at organs concerning the naming and numbering of geographical objects. The registering organ is also entitled, on its own initiative, to carry out the numbering of geographical objects, apartments or other objects on the territory of Georgia. The basis for taking a decision on numbering is documentation confirming ownership or use of immovable property, while numbering of an object that is not named in the manner established by legislation is impermissible. Where an incomplete or incorrect address exists in a document, the agency ensures its clarification and takes a corresponding decision. The procedure of the registry and additional conditions are determined by the instruction.
The Registry of Economic Activities
This registry contains data on the economic activities of subjects, changes in them and their termination, as well as on the place (address) of the activity. Registration of an economic activity is voluntary, except in cases provided by legislation; where registration is mandatory, the subject is granted the right to carry out the corresponding activity only after a decision on registration has been taken. Where the basis of such registration is a decision of an administrative organ, the registering organ supplies it, through automated means, with information about the request and documents submitted, and the expiry of the period established for the administrative organ to take its decision is deemed a positive decision and a ground for satisfying the request. An activity is deemed registered, the data changed and the registration terminated from the moment the corresponding decision enters into force.
Pay attention to the term: the term of registration of an economic activity is one year from the moment of registration, and the expiry of this term causes the decision on registration to lose force unless the interested person submits a request for extension of the term. If your activity is subject to mandatory registration, monitoring the terms is in your own interest.
The Factoring Registry
Registration in the factoring registry takes place only through an electronic application submitted by the factor. The registry records data on the creation, termination and change of the factor's ownership of receivables arising from a document confirming the existence of a claim against the debtor, or from a part of it, as determined by the law on factoring, as well as additional information determined by the instruction — including the number of the confirming document, the total amount of receivables provided for by it and that amount used within one factoring on which ownership arises for the factor.
Factoring enters into force from the moment the addressee of the request declares consent in electronic form, and the form of the declaration of consent is determined by the instruction. The registry also reflects the names of the factor and of the addressee of the request and the date of coverage of the receivable. The factor is obliged, immediately upon full coverage of the receivable by the debtor and no later than the next working day, to request registration of the termination of the ownership right on that receivable. The agency, for its part, checks before registration whether the information is repeated, in order to exclude simultaneous registration of ownership by several factors on the same receivable.