Business Representations without Legal Person

Abstract

The present article describes the gaps and imperfections existing in the current Tax legislation of Georgia which hinder the developmentof business and creates obstacles for the establishment and function of business representations. Development of the business depends onvarious factors, and one of them is legal environment. For this very reason, by providing the concrete example, according to the legislativenorms the collisions and norms are analyzed which discourage the creation and operation of the business representation that are relevantand essential for Georgia. The case study represented in the article is based upon the factual situation and provides us with the relevantpicture regarding the various problematic factors that a business can face. These factors are created due to the legislative mazes whichon the one hand, suggest at some point, very easy steps and approaches and on the other hand, are full of controversies. The legislativeregulations are essential for business representations and should not be ignored in order to avoid any violation of the law. Legal systemhas always been very strict in respect to any type of violation and according to the legal doctrine, if a person is ignorant of the relevantlaw it does not imply that he shall be free from the responsibility.