Annual Reporting Compliance is a critical obligation for all business entities in Georgia. Under the "Law on Accounting, Reporting and Auditing," companies are required to prepare and submit financial statements to the Service for Accounting, Reporting and Auditing Supervision (SARAS). This obligation applies not only to large corporations but also to small and medium-sized enterprises (SMEs), albeit with differing standards. Failure to submit or incorrect submission results in significant monetary fines and reputational damage (deterioration of company status in public registries). Besides financial data, large companies are also required to submit a "Management Report," which includes non-financial information. Specialists on Legal.ge help you comply with these complex regulatory requirements so that your business remains transparent and law-abiding.
What Does Annual Reporting Compliance Service Cover?
This service goes beyond simple accounting and includes full legal and regulatory support. Experts on Legal.ge offer:
- Determining Entity Category: The law divides companies into 4 categories based on size. Identifying the correct category is critical as it determines the reporting standard (IFRS for SMEs vs. full IFRS).
- Preparing Management Reports: Drafting mandatory non-financial reports for Category I and II entities (business model, risks, environmental issues).
- Liaising with Auditors: Legal support during the external audit process, answering auditor queries, and preparing Representation Letters.
- Submission to SARAS: Timely and correctly formatted uploading of reports to the Reportal.ge portal.
- Corporate Approval: Preparing minutes of partners'/shareholders' meetings approving the reports before submission.
Real-World Scenarios When You Need This Service
Reporting compliance is essential when:
- October Deadline: Companies must submit the previous year's report by October 1st each year. Delay results in automatic fines.
- Category Change: If a company grows and moves to a higher category, it becomes obligated to conduct a financial statement audit.
- Public Tenders: Participation in state procurement often requires SARAS-verified reports to prove financial sustainability.
- Bank Loans: Banks rely on officially published reports when assessing creditworthiness.
Georgian Legal Framework and Regulations
The main regulatory act is the Law of Georgia on Accounting, Reporting and Auditing. The law establishes the obligation to use International Financial Reporting Standards (IFRS) and defines submission deadlines and forms. Also relevant are regulations from the National Bank of Georgia for financial institutions and the Law on Entrepreneurs, which requires annual results to be approved by the partners' meeting. SARAS is the body that monitors compliance and imposes fines for violations. A professional consultant ensures your company does not end up on a "blacklist."
Service Process
The compliance service on Legal.ge includes:
- Status Assessment: Determining the category based on company size (revenue, assets, employees).
- Document Collection: Consolidating financial and non-financial information.
- Report Preparation: Writing the text part of the Management Report and formatting the financial part.
- Quality Control: Checking documents for compliance with legal requirements.
- Upload: Submitting the final version to Reportal.ge.
Why Choose Legal.ge?
Annual reporting is not just numbers; it is the face of the company in the public space. Incorrectly filled documents can lead to fines and investor distrust. Specialists on Legal.ge combine legal and financial knowledge to ensure your reporting is fully compliant and accurate. We take responsibility for the technical and legal side of the process.
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