Startup formation and structuring is a fundamental step that determines the future success of a technological or innovative business. Unlike traditional businesses, a startup needs a flexible structure designed for rapid growth, receiving investments, and issuing stock options. Registering a company in Georgia is simple, but creating the right corporate architecture is complex. Founders must decide from the outset on issues such as intellectual property assignment, equity distribution (Vesting), tax status (e.g., "Virtual Zone Person" or "International Company"), and governance powers. An improperly structured startup may not be attractive to investors or may face legal barriers when entering the international market.
What Does Startup Formation & Structuring Service Cover?
Specialists on Legal.ge offer comprehensive legal support at the initial stage of creating a startup. This service includes:
- Choosing a Legal Form: Consulting on which form (LLC, JSC) is optimal for your business model and future plans.
- Preparing Registration Documents: Drafting a charter tailored not only to standard requirements but also to the startup's specifics (e.g., board of directors structure).
- Executing a Founders' Agreement: A document regulating relationships between founders, equity vesting (gaining ownership over time), and exit strategies.
- Intellectual Property (IP) Transfer: Ensuring that code, design, or business plans created by founders belong to the company and not to individuals.
- Tax Regime Optimization: Assisting in obtaining special tax statuses (Small Business, Virtual Zone, International Company).
Real-World Scenarios When You Need This Service
Proper structuring is critical in the following cases:
- Starting a Tech Startup: When creating an IT product and planning its export, "Virtual Zone Person" or "International Company" status significantly reduces taxes.
- Founding with a Foreign Partner: If one of the founders is a foreign citizen, additional regulations must be considered, and bilingual documentation prepared.
- Preparing for Investment: Professional investors do not put money into "messy" companies. They demand a clean IP history and a transparent corporate structure.
- IP Protection: If your startup's main value is software, it is essential to execute proper agreements with developers and founders regarding IP transfer from the very beginning.
Georgian Legal Framework and Regulations
Startup formation is regulated by the Law of Georgia on Entrepreneurs, which defines the rules for company registration and management. For special tax regimes, the Tax Code of Georgia and relevant government decrees (e.g., on Virtual Zones) are relevant. Intellectual property issues are regulated by the Law of Georgia on Copyright and Related Rights and the Patent Law of Georgia. A professional lawyer will help you navigate this labyrinth of laws and choose the most favorable legal form for your business.
Service Process
The startup formation process on Legal.ge is simple and effective:
- Consultation: Discussing your business idea, goals, and partner structure.
- Structure Design: The lawyer selects the optimal legal form and tax regime for you.
- Document Preparation: Drafting the charter, founders' agreement, and other founding documents.
- Registration: Submitting documents to the Public Registry and registering the company.
- Next Steps: Assisting with opening a bank account and preparing first contracts (employment, service).
Why Choose Legal.ge?
On Legal.ge, you will find lawyers who understand the specifics of startups. Our experts do not offer just a template service; they create an individual legal architecture that will be scalable as your business grows. Start your business on a solid legal foundation with Legal.ge.
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