Corporate Transparency is a fundamental principle of modern business involving the availability of information about a company's structure, financial status, and ownership to interested parties. In Georgia, amidst harmonization with EU directives, transparency standards have significantly tightened. This includes not only financial reporting but also the disclosure of Beneficial Owners, clarity of governance structure, and non-financial reporting. Maintaining transparency is essential for banking relationships, attracting investors, and complying with state regulations (e.g., Anti-Money Laundering). A company that hides information or has an opaque structure risks its reputation and may face sanctions from regulators.
What does the Corporate Transparency service cover?
Our service ensures full company compliance with transparency requirements:
- Beneficial Owner Registration: Identifying real owners and submitting relevant declarations to the Public Registry and banks in compliance with AML legislation.
- Reporting Preparation: Preparing and submitting financial and management reports to the Service for Accounting, Reporting and Auditing Supervision (SARAS).
- Corporate Structuring: Simplifying holding structures and creating a transparent governance system for investors.
- Public Disclosure: Ensuring mandatory information (e.g., charter, meeting minutes) is posted on websites and public sources.
- Investor Relations: Preparing transparent investment memorandums and reports.
Common Scenarios and Needs
Transparency issues arise when: Bank Compliance: A bank requests detailed information about the Ultimate Beneficial Owner (UBO) to open an account. SARAS Reporting: A company must submit audited reports by October, otherwise facing fines. Foreign Investor: An investor requests Due Diligence and wants to see a clean corporate history. State Tender: Participation requires proof that the company is not under offshore influence.
Georgian Legislation and Regulations
Transparency is regulated by the Law of Georgia on Entrepreneurs (publicity of registration), the Law on Accounting, Reporting and Auditing (financial transparency), and the Law on Facilitating the Prevention of Money Laundering and Terrorism Financing (disclosure of beneficiaries). Publishing reports on the SARAS portal is mandatory for certain categories of enterprises. Non-compliance leads to substantial fines and, in some cases, deregistration.
Step-by-Step Process
The process begins with determining the company category (size), which defines the scope of reporting obligations. Lawyers and financial experts prepare the package: financial statements, management report, and audit opinion. Then, these documents are uploaded to the relevant portal (Reportal.ge). Concurrently, registry data is updated to reflect the company's actual governance structure.
Why Legal.ge?
Transparency is not a bureaucratic burden; it is the currency of trust. Legal.ge connects you with corporate lawyers who know SARAS and Registry requirements. We will help make your business transparent and attractive to partners without unnecessary risks. Manage your business openly with Legal.ge.
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