Forming and registering a charitable organization in Georgia is a two-stage process that involves establishing a Non-Entrepreneurial (Non-Commercial) Legal Entity (NNLE) and subsequently obtaining special tax status for it. This service is particularly important for those who wish to benefit from tax exemptions provided by the Tax Code and conduct large-scale charitable activities. The status of "Charitable Organization" is not just a name; it is an official legal status granted by the Revenue Service of the Ministry of Finance of Georgia, which imposes a high level of transparency obligation on the organization, in exchange for exemption from certain taxes.
A correct legal strategy at the establishment stage determines how easily the organization will be able to obtain this status in the future. The charter, scope of activity, and management system must be in full compliance with the law's requirements.
What does the Charitable Organization Formation service cover?
Specialists on Legal.ge offer full support focused not only on registration but also on obtaining future status:
- Organizational structure planning: Selecting a governance model that meets the standards of a charitable organization (e.g., having an independent board).
- NNLE Registration: Completing mandatory procedures at the Public Registry, drafting the charter, and submitting documents.
- Preparation for Charitable Status: Consultation on the criteria the organization must meet to receive the status (e.g., 1-year activity history, proportion of funds spent on charitable goals).
- Setting up annual reporting systems: Advice on maintaining financial and programmatic reporting, which is essential for obtaining and maintaining the status.
- Representation at the Revenue Service: Preparing and submitting the application for status (at the appropriate time).
When is this service needed? (Practical scenarios)
This service is relevant in the following situations:
- Systemic Charity: When an organization plans long-term projects (e.g., a network of soup kitchens) and needs tax breaks to reduce costs.
- Attracting Donors: Large corporate donors often prefer organizations with official status, as it guarantees credibility for them.
- Social Enterprise Elements: When an organization plans auxiliary economic activities (e.g., selling handmade items) and wants to fully reinvest profits into charity with tax efficiency.
- International Grants: Some international foundations require local "Charity" status for partnership.
Georgian Legislation and Regulations
The main regulator of the process is the Tax Code of Georgia (Chapter V - Charitable Organization). According to the Code, status is granted to an organization created for charitable activities, registered for at least 1 year, and meeting activity criteria. The legal form of NNLE is regulated by the Civil Code of Georgia. Also important are the Orders of the Minister of Finance of Georgia, which clarify the procedural details of granting and revoking status.
The process with a Legal.ge specialist
The specialist will initially help you register the NNLE, which is a standard procedure. However, the main value a Legal.ge lawyer offers is long-term planning. The lawyer will explain how to maintain documentation during the first year so that you can obtain charitable organization status without problems after 12 months. This includes maintaining beneficiary lists, correct classification of expenses, and transparent reporting. The specialist will guide you through this complex bureaucratic maze.
Why choose Legal.ge?
Obtaining and maintaining charitable organization status requires specific knowledge, without which an organization may face high tax risks. Legal.ge connects you with qualified lawyers experienced in tax law and the NGO sector. With our help, you will create a sustainable organization focused on results rather than bureaucratic problems.
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