---
title: "State Aid Compliance"
url: "https://legal.ge/en/service/corporate-and-commercial-law-en/state-aid-compliance-en"
field: "Corporate & Commercial Law"
description: "State aid compliance in Georgia: prohibition, exceptions, agency agreement, the 30-working-day conclusion and court challenge. Legal.ge."
reviewed: "2026-02-11"
updated: "2026-10-14"
publisher: "legal.ge"
---

# State Aid Compliance

> Source: legal.ge, https://legal.ge/en/service/corporate-and-commercial-law-en/state-aid-compliance-en

State aid — from tax relief to loans and guarantees — acts directly on market competition, and that is precisely why the Law on Competition subjects its grant to special control. The architecture of this page follows the statute itself: prohibition first, then exceptions, the agreement procedure, and the right to challenge granted aid.

## The Rule: What Is Prohibited

Article 12 sets the general rule: prohibited is state aid in any form, to an economic agent or to a particular kind of activity, which impedes competition or creates a threat of its impediment. The concept of aid is broad: exemption from, reduction of or deferral of tax, write-off of debt, restructuring, loans on favourable terms, transfer of assets, monetary assistance, guarantees of profit and other benefits.

Article 3 defines the players: an economic agent is a person who, regardless of residency, carries out entrepreneurial activity, while the grantor of state aid is an organ of the state, of an autonomous republic or of a municipality — and also a non-commercial legal entity, a public-law legal entity, an enterprise in which the state’s participating share exceeds 50 per cent, or an intermediary economic agent acting in the state’s name.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/corporate-and-commercial-law-en/state-aid-compliance-en

### Which state aid is prohibited?

Aid in any form that impedes competition or creates a threat of impediment — save for the exceptions established by law.

### Which aid needs no agreement?

Social, force majeure, environmental, obligation-driven, de minimis aid and major government-decided projects.

### What is the agreement procedure?

The granting authority submits an application on purpose, form, amount and recipient with substantiation; the agency concludes within 30 working days, extendable to 3 months.

### Who may challenge aid?

A person directly damaged by the granted aid — in court, on grounds of significant restriction of competition or procedural violation.