The Question of a Legal Form for a Decentralized Organization
A decentralized autonomous organization is not singled out in Georgian legislation as a separate legal form — for the law its existence begins when it takes shape in one of the existing forms. Article 2 of the Law of Georgia on Entrepreneurs provides that an entrepreneur is a natural or legal person who has an enterprise, and an enterprise is an organized system for carrying out entrepreneurial activity — entrepreneurial activity being lawful, non-one-time, independent and organized activity carried out for the purpose of making a profit. Where a group project meets these features, it needs a legal form.
The law establishes the list of forms for entrepreneurial activity: an individual entrepreneur or an entrepreneurial society. A society with joint and several liability, a commandite (limited partnership) society, a limited liability company, a joint-stock company and a cooperative are entrepreneurial societies, and an entrepreneurial society is a legal person — an individual entrepreneur is not. For projects built on decentralized structures this means: speaking of an "organization" is legally complete only when legal-person status has been obtained in the appropriate form.