Integrating a foreign partner can be difficult when you are used to making decisions alone in a company. These concerns may be related to a cultural interpretation problem or a language issue. Despite a good command of a foreign language, it is always easier to express oneself in one's mother tongue, especially when business pressure is at its peak.
As a preventive measure, it is advisable to prepare for the arrival of foreign investors from a legal accounting and practical point of view.
The choice of a business strategy is fundamental from a legal point of view. For example, if your activity comes from your capital and you market its production. Then it is not advisable to bring an investor into the company that owns the funds because the new shareholder would also become the owner of your capital. In the long run, this can be detrimental to your company. To avoid a potential issue, you should set up a trading company to market the production from your capital. A foreign investor can enter the trading company without jeopardising your rights to your assets. To function, the trading company would have an exclusive right to distribute the products of your capital. De facto, the situation draws a clear work plan between the companies, one to produce, the other to market products.
This pattern may not be suitable for everyone, especially if you need to reinvest in your production facilities or have other needs. In these cases, it is better to opt for another strategy, which we can develop with you.
When integrating a partner, the question of the company's status arises. The LLC is a frequent status for a company, especially in Georgia. This status has the advantage of being flexible and easy to manage from an administrative and management point of view.
However, when a new shareholder comes, it is necessary to value your company, transform this value into capital and register this capital. This change will require a modification in the company's articles of association. The entrepreneur may also opt to convert his LLC into a JSC, a structure more suitable for shareholder movement. The JSC requires a minimum of official reports on the company's activity and accounts that the entrepreneur share with all the partners.
Bringing in a foreign partner requires transparents processes and fairness, which is not required when you are the sole owner.
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