The Two Lawful Shapes of a Community Organization
A community organization in Georgia has two lawful shapes: the unregistered union, which is not a legal person, and the registered non-commercial legal person founded on membership. The value of this page lies precisely in the contrast and the choice between them: on the one hand, an informal association of neighbours around a common cause is perfectly lawful; on the other, its capacities and risks differ entirely from those of a registered organization. No separate community-organization statute or registry exists — everything is resolved by the general norms of the Civil Code.
The Unregistered Union — Article 39
Article 39 defines the regime of the unregistered union, and four of its rules are decisive. First: the issues of its organization and structure are determined by the mutual agreement of its members — the union is not a legal person. Second: the members' contributions and the property acquired with them constitute the common property of the union. Third: the union may be represented in court and in out-of-court relations by its members or by persons authorized for that purpose. Fourth — the most important: creditors' claims may be satisfied from the common property of the union, and the persons who acted in its name answer personally as well, as solidary debtors. Personal liability in solidum — that is the price the unregistered form pays for its simplicity. At the same time, acting in the union's name is not governed by default rules alone: the members themselves define the format of representation through their agreement, and it is precisely that agreement which third parties and the court will invoke in a conflict. For an unregistered union, therefore, a written agreement — even a simple one — is the first instrument of risk management.
The Registered Shape — Articles 24 and 29
The second route is registration: a legal person whose purpose is non-commercial activity is registered under the procedure established by the Civil Code (Article 24). The membership-based non-commercial legal person is precisely the form that gives a community organization legal personality, its own property and limited liability. Registration requires a partners' agreement and an application; the founding documentation indicates the purpose of the activity, the rules of admission, withdrawal and expulsion of members, the organ empowered to decide on reorganization or liquidation, and the manner of creating the governing organ with the term of its authority (Article 29).
Governance and Representation — Article 35
Governance of the registered organization means taking decisions in its name, and representation means appearing before third parties. The founder or member is entitled to vest the sole conduct of affairs in one person, or to establish the joint governance or representation of two or more persons; unless the registration documents provide otherwise, the governing authority implies the representative authority as well. The organizational structure is regulated by the charter, which requires due certification; the general rules of the Law on Entrepreneurs extend to the arise and termination of governing and representative authorities.
How to Choose the Shape
The choice depends on function: where the activity is confined to coordinating common interests on a small scale, an unregistered union may suffice — but with active transactions and contracts, personal solidary liability quickly becomes a disproportionate risk. The registered form offers concrete benefits: the organization answers with its own property rather than the members personally, its name becomes usable for contracts, and the structure becomes public and transparent. Beyond that, the registered form gives a community organization access to grants and donors: formal contracting and reporting are built on a legal person, not on a group of private individuals. And the risk of solidary liability — which in the unregistered form attaches to every active member — disappears of itself.
Frequently Asked Questions
Must every community association register?
No. The unregistered union is lawful — but it is not a legal person, and persons acting in its name answer personally and in solidum.
Who owns the union's property?
Property acquired with the members' contributions constitutes the common property of the union.
What does registration require?
A partners' agreement and an application indicating the purpose, membership rules and organs.
What is the governing authority?
Taking decisions in the organization's name; absent a different rule, it includes representation as well.
In practice the dividing line usually appears at the first serious contract: a bank account, a lease, a service agreement or a grant. The unregistered union can hold common property, but every commitment in its name draws the acting members into personal exposure; the registered organization concludes the same contract in its own name and answers with its own assets. For growing community initiatives the transition from one shape to the other is therefore not a formality but a change of liability regime — best planned before the exposure, not after it.
How We Help on Legal.ge
Choosing and registering the form of a community organization requires thinking through structure, property and liability in advance. On Legal.ge you can engage a non-commercial-law specialist who will assess your situation and prepare the complete package. Submit a request on the site and get qualified assistance.