The Legal Framework for Reorganizing an Entrepreneurial Company
Merger structuring in Georgia is one of the forms of reorganization of an entrepreneurial company. The law distinguishes three forms of reorganization: transformation of a company; merger of companies — by absorption or by combination; and division of a company — by split up or by spin off. The decision on reorganization is subject to the notification rules established for liquidation, which means that publication and the informing of parties are an integral part of the process. The correctly chosen form determines the final picture of taxes, the transfer of liabilities, and the rights of partners.