Three Structural Doors of Expansion
Choosing a strategy for the international expansion of a Georgian operator begins with three structural doors: a branch, a subsidiary and a share deal. Article 15 of the Law on Entrepreneurs provides: an entrepreneur may establish a branch, and that branch is not a legal entity. The branch of an entrepreneur registered in Georgia is not registered, while the branch of an entrepreneur registered abroad is registered in the Georgian registry with defined data — including the branch’s firm name, its legal address and the scope of the head’s representative authority.
The essence of a branch is simple: it is the entrepreneur’s continuation at another point, without a separate subject. In going abroad this means that the Georgian operator acts in its own name and under its own responsibility on the foreign market — which is fast, but leaves the risk entirely on the parent structure and creates no structural barrier against local law.