---
title: "DAO Legal Structure"
url: "https://legal.ge/en/service/technology-and-digital-law-en/dao-legal-structure-en"
field: "Technology & Digital Law"
description: "DAO legal structure in Georgia: forms of entrepreneurs, statutory autonomy, registration and the LLC as a wrapper. Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-14"
publisher: "legal.ge"
---

# DAO Legal Structure

> Source: legal.ge, https://legal.ge/en/service/technology-and-digital-law-en/dao-legal-structure-en

## 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.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/technology-and-digital-law-en/dao-legal-structure-en

### Is there a separate form for a decentralized organization?

No — an existing form must be chosen and registered; the most common wrapper is the limited liability company (Article 123).

### When does the organization acquire legal existence?

An entrepreneur is deemed created from the moment of registration in the register; registration is mandatory and covers state and tax registration (Article 8).

### Can a statute set different rules?

Yes — by dispositive freedom, save for imperative norms; the statute also fills matters the law does not exhaustively regulate (Article 1).

### Why is the LLC a popular wrapper?

Its capital is divided into shares, the partners' liability is limited, the company answers to creditors with all its property but not for its partners' debts (Article 123).