Entrepreneurial Legal Entity/ Bussiness Entity

Georgian legislation distinguishes between several legal forms of entrepreneurial legal entities: a general partnership (GP), a limited partnership (LP), a limited liability company (LLC), a joint-stock company (JSC / corporation), and a cooperative. An entrepreneurial legal entity is a legal entity whose primary goal is to gain material benefits through entrepreneurial activities — this being the main distinguishing feature from a non-entrepreneurial entity.

In the context of social entrepreneurship, the most common legal forms are LLCs and cooperatives. While their underlying structure remains commercial, their activities are oriented toward generating social benefits alongside business objectives, such as employing vulnerable groups, promoting education, or conducting environmental activities.

Entrepreneurial activity is defined as a legitimate, repeated, and independently organised activity carried out with the aim of generating profit. In the context of social entrepreneurship, this activity may be more broadly understood as economic activity that simultaneously produces social benefits.

The legal basis for this organizational form is provided by the Law of Georgia on Entrepreneurs (28/10/1994, N577), the Tax Code of Georgia (26/06/1997, N786), the Instruction on Registration of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities (Order N241 of the Minister of Justice, December 31, 2009), and the Government Resolution on Service Fees and Terms of Services provided by the National Agency of Public Registry (Resolution N509, December 29, 2011).

State Support Measures

Direct financial support is available only in exceptional cases, specifically through a grant component within the state program “Produce in Georgia.” No specific tax relief, discounts on social security contributions, or advantages in public procurement are currently available for entrepreneurial legal entities engaged in social entrepreneurship.

Educational and Informational Support

In the area of social entrepreneurship, technical support in the form of training, consulting, and acceleration programs is provided mainly by the following organizations: the Civil Society Resource Development and Grant-making (CSRDG), the European Foundation, the Civil Society Institute (CSI), the Social Enterprise Alliance (SEA), Impact Hub, Arbeiter-Samariter-Bund, and the Caucasus Environmental Non-Governmental Network (CENN).