In the modern globalized economy, the service sector increasingly transcends national borders. An International Service Agreement is a crucial legal document regulating the relationship between a client and a service provider located in different jurisdictions. With the development of the IT sector, consulting businesses, and outsourcing in Georgia, Georgian companies and individual entrepreneurs are frequently providing services to foreign clients or, conversely, receiving services from foreign partners. Such relationships require specific legal regulation because they involve intangible resources, deadlines, and quality standards, which are often subject to subjective evaluation, rather than physical goods.
Legal.ge offers access to qualified lawyers specializing in international service agreements. The service involves a comprehensive approach, ranging from deal structuring to the analysis of tax aspects. Specialists ensure:
- Precise Definition of Scope of Work: To avoid "Scope Creep" (uncontrolled growth of tasks) and disputes over the volume of work performed.
- Transfer of Intellectual Property (IP) Rights: Especially in IT and creative fields, it is vital to specify who owns the created product or code.
- Confidentiality and Data Protection: Ensuring compliance with GDPR and Georgian personal data protection legislation.
- Compensation and Tax Obligations: Addressing issues of VAT, reverse charge, and double taxation avoidance.
- Termination Conditions: Mechanisms for early termination of the contract and associated financial consequences.
International service agreements are essential in many fields. For example, a Tbilisi-based software development company signs a contract with a US startup to build an application. Here, determining the moment of copyright transfer (upon payment or upon creation) is critical. Another example is a Georgian marketing agency serving a European brand; defining Key Performance Indicators (KPIs) and reporting rules is crucial. It is also common to hire foreign consultants for Georgian companies to improve management, where the agreement must protect the company's trade secrets.
The legal framework is based on the "Civil Code of Georgia" (sections on mandate and service contracts) and norms of private international law. For service agreements, the "Tax Code of Georgia" is of decisive importance, as determining the Place of Supply directly affects VAT applicability. Additionally, if the service involves processing personal data, compliance with the "Law on Personal Data Protection" is mandatory. Lawyers also take into account "Double Taxation Avoidance Treaties" existing between parties' countries, which provides financial benefits to the client.
The process begins with studying the specifics of the client's business. The lawyer clarifies what type of service is involved and where it is physically performed. Subsequently, a draft agreement (Master Service Agreement - MSA or Service Level Agreement - SLA) is prepared, detailing the rights of the parties. Special attention is paid to the settlement currency, payment deadlines, and allocation of bank commissions. The lawyer also ensures that the contract is enforceable in both countries and does not contradict mandatory legal norms.
On Legal.ge, you will find specialists who understand modern business models (SaaS, Freelancing, Outsourcing) and can create flexible yet robust legal structures. Lawyers selected through our platform will help you ensure that your service export or import is carried out smoothly, minimizing legal risks and maximizing tax efficiency.
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