Unlawful entrepreneurial activity — what Article 192 provides
Article 192 of the Criminal Code of Georgia regulates liability for unlawful entrepreneurial activity. Under the law, the offence is entrepreneurial activity without registration, a permit or a licence, or in violation of the permit or licence conditions, which has caused significant damage or has been accompanied by the receipt of income in a large amount. The necessary element of this norm is therefore twofold: a formal defect — the absence of registration, a permit or a licence, or a violation of the conditions — and a consequence: significant damage or income in a large amount.
The composition of this norm covers a broad spectrum: any entrepreneurial activity exercised without formal grounds or in violation of them may be classified under this article, provided that the element of the consequence also exists.
The punishment under both parts
An act provided for by the first part is punishable by a fine, or by house arrest for a term of six months to two years, or by imprisonment for a term of one to three years. The second part — the same act committed by a group, more than once, or by a person convicted of such a crime — is punishable by a fine or by imprisonment for a term of three to five years. Under the note to the law, for the acts provided for by this article a legal person is punishable by a fine, by deprivation of the right to carry out an activity, or by liquidation and a fine.
Directions of the defence
The defence verifies: whether a registration, permit or licence existed and within what limits; whether the activity in fact exceeded those limits; and whether the element of the consequence exists — significant damage or income in a large amount. If a formal ground existed or the consequence was not established, no offence under this article has been committed — this circumstance is often the central question of the case.
The assessment of the amount of the damage and of the income depends on expert conclusions, and their detailed review is necessary. The rules of procedure and the time limits are established by other acts of procedural legislation. Our team offers consultations on charges connected with entrepreneurial activity. Contact us — we will assess the situation and build a defence strategy.
The practical application of this norm often concerns forms of activity that formally remain outside registered structures: payments, loans, services or trade. In such cases it is decisive whether the activity exceeded the limits of the formal grounds and whether it reached the consequence provided for by law. If the person acted within an existing registration or permit, or the element of the consequence was not established, no offence under this article has been committed.
The assessment of the amounts of the income and the damage rests on the accounting expert examination — its detailed review is necessary. Our team offers consultations on business-related charges at every stage — contact us.
For a business, such a charge is a double challenge: together with sanctions it also raises the question of the continuation of the activity. A lawyer therefore works both on the classification and on protecting the business processes during the course of the case. The timely request and analysis of the formal grounds at the very first stage often changes the direction of the case. If a charge has already been brought, the complete study of the evidence and the detailed review of the expert conclusions are decisive. Contact us — our team is ready to begin work on your case today.
We know that such a charge directly affects both the financial and the reputational stability of a business, and we therefore analyse every case completely — from the formal grounds to the expert conclusions. Contact us today.
Charges of loansharking and unlawful entrepreneurial activity often lie on the boundary where entrepreneurial risk turns into a criminal offence. That boundary is drawn by the elements established by law — the formal grounds and the consequence — and their exact analysis determines whether the act was a crime. Our lawyers have many years of experience with business cases and analyse every case completely. Contact us — we will assess your situation and build a defence strategy.