Starting and Running a Business in the Republic of Georgia, Batumi

[msmob]

Saw your comment, in the journal, Maxx

Added sometime along the lines of, " Are you [ govt. proposal ] mad ?"

[BillyB]

That's the thing about living in foreign countries. Rules can change often and life gets more difficult. I like the stability of the USA. Maxx, as long as you pay taxes on $2000 a month, they really don't care if you're making $2000 a month.

[Trenchcoat]

http://georgiatoday.ge/news/22189/Foreigners-Seeking-to-Work-from-Georgia-must-be-Waged-at-Least-%24-2%2C000-Per-Month



The monthly gross income of Georgia is $403. An expat or a prospective expat wanting to work in Georgia... and pay taxes must earn 5 times as much.

I would say they are trying it on and unrealistic. They could well scare away foreign investors/businesspeople. To date the GD have a dubious reputation, I hear they are corrupt in the usual post FSU fashion of allowing investment then trying to claim anything that ends up with any worth being associated with it, so much like Ukraine in that way. However with the Election coming up in late October under a new PR system you might be lucky and avoid that stuff.

[Maxx2]

Saw your comment, in the journal, Maxx

Added sometime along the lines of, " Are you [ govt. proposal ] mad ?"

Looks like you're going to have to pay at least $2K a month for every non Georgian employee or partner you have living in Georgia. That 360 day visa thing is going to be used as the enforcement. Hopefully as Trenchcoat said the elections might make the difference. I don't follow Georgian politics much so I can't understand what the chances are there. I expect chaos at the borders from expats trying to get back in. When word spreads early next year I don't know what is going to happen. They did this once before about September 2014 to about May 2015 requiring the 90 day in 90 day out rule. They had to change it back on account of all the trouble it caused foreign businessmen. But we are living in different times after covid lockdowns and travel restrictions. 

[goldenstone]

http://georgiatoday.ge/news/22189/Foreigners-Seeking-to-Work-from-Georgia-must-be-Waged-at-Least-%24-2%2C000-Per-Month



The monthly gross income of Georgia is $403. An expat or a prospective expat wanting to work in Georgia... and pay taxes must earn 5 times as much.

This seems way too much. Countries in central america oftentimes just ask for 1000usd income. With 2000 usd remote income I can live in a lot / most places actually.
Also the 100k usd real estate investment is way too high. GE would fare better in doing the Montenegro approach, which now seems an equally attractive place.

That's the thing about living in foreign countries. Rules can change often and life gets more difficult. I like the stability of the USA. Maxx, as long as you pay taxes on $2000 a month, they really don't care if you're making $2000 a month.

I would hope so. If you can get permanent residency somehow, it is worth to do it as it further shields you from the random changes which are often not going in a good direction, with some exceptions of couse.

[Maxx2]

I got a new business partner, Larissa. Partnership is certainly with risks I know. Frankly I doubt I could do this without her help. And she has saved me considerable amount of money with her connections and good deals on furniture et cetera. Frankly up till now I've been a great resource to those that have been "helping" me. Like an hour ago one of my friends offering to sell me a kilo of honey for 30 Lari when a kilo of honey goes for 25 Lari. Or getting the lights for the steps that would have cost me 120 Lari but now 20 Lari.


At this exact moment I am getting the rental agreement printed with the revision of adding her name on it.


Then getting it registered with the city at the next available opening at the government center with is a week from today. Then a visit to the tax office. We need to get a separate bank account but unfortunately the banks are closed in Batumi on account some of the people working at the bank have tested positive for covid.

[BillyB]

I got a new business partner, Larissa.

At this exact moment I am getting the rental agreement printed with the revision of adding her name on it.

What is the contingency plan if somebody wants to quit the business? Get something in writing so that your partner can't dissolve the business when quitting. She or you shouldn't be able to demand your share of the assets and must allow the other partner to pay off the partner who wants to leave over a few years for their share. Also, you supplied the money and Larissa supplies labor and connections so you will need to define what her value is to the business. If you both can't agree what is fair, somebody is going to be disgruntled.

[Maxx2]

What is the contingency plan if somebody wants to quit the business? Get something in writing so that your partner can't dissolve the business when quitting. She or you shouldn't be able to demand your share of the assets and must allow the other partner to pay off the partner who wants to leave over a few years for their share. Also, you supplied the money and Larissa supplies labor and connections so you will need to define what her value is to the business. If you both can't agree what is fair, somebody is going to be disgruntled.

My feet are getting really cold about taking on a partner. Details later.

[Maxx2]

This Wednesday Larissa, her friend Coree and I are going to Tbilisi by train 2nd class. Round trip for three people about $50. We are going to check out the competition. No Mexican restaurants in Batumi, but a few in Tbilisi. Before then we are going to check in with the Department of Revenue. Try to get a tax ID number. It is required by Glovo delivery "service".


Larissa is frankly anti-American and despises me. She said to me "You are a typical American." It was not meant as a compliment. Friday, it is likely, I will give her final pay and ask her to turn in her key. "A house divided cannot stand."

[Confederate]

This Wednesday Larissa, her friend Coree and I are going to Tbilisi by train 2nd class. Round trip for three people about $50. We are going to check out the competition. No Mexican restaurants in Batumi, but a few in Tbilisi. Before then we are going to check in with the Department of Revenue. Try to get a tax ID number. It is required by Glovo delivery "service".


Larissa is frankly anti-American and despises me. She said to me "You are a typical American." It was not meant as a compliment. Friday, it is likely, I will give her final pay and ask her to turn in her key. "A house divided cannot stand."

A wise decision based on latest information. Perhaps have someone you really trust witness this?

[msmob]

Oh Maxx,

One minute you build folks up as irreplaceable, the next they are 'out'....

There may be a pattern here?

What the 'eck triggered this about turn?

I have a partner in Cyprus who is a true friend. Politically, ( expecially, on things Russia and on America) we are polls apart...but I would trust him with my life.

Biz partners do not have to be socially and politically compatible, surely?

Your told us Larissa saved you a lot and you could not have managed without her.


Now, it SEEMS like you have used her?

[Maxx2]

Do I want to legally bind myself to a woman that makes me wonder every morning what kind of mood will she be in? I know it is not wise to post here details about that. Today is her day off. I am relieved.


 

[msmob]

Ah Maxx,


I have not had  female biz partner.,))

Space is good.

[BC]

Do I want to legally bind myself to a woman that makes me wonder every morning what kind of mood will she be in? I know it is not wise to post here details about that. Today is her day off. I am relieved.

You may already be legally bound by whatever agreements (verbal count) you have now and be in a binding de facto partnership.  Is she an employee you are paying as an employer and can fire her? Or is it some informal type of agreement to work together and see how the project goes?

Think things through and get legal advice when in doubt.  Such can get messy very quickly.

I would simply ask about her moods, let her know it affects you and the business negatively and if there is anything you can do to help.

[msmob]

BC, once more, posts wise words in a more helpful 'tone' ...

[Maxx2]

Or is it some informal type of agreement to work together and see how the project goes?

Think things through and get legal advice when in doubt.  Such can get messy very quickly.

I would simply ask about her moods, let her know it affects you and the business negatively and if there is anything you can do to help.

It was informal. No terms were discussed such as percentages or money. It was an idea she brought up a week ago. There were no witnesses. She said she wanted security in case something happened to me.   


A week ago my lawyer Khatuna came to the business to see if she could help me with a rental agreement. Larissa told her she wouldn't be needed and chased her off. Khatuna was quite offended. Yesterday Larissa got into it with my friend Alex and the day before that with my workman. She angers people very much.


I've talked with her before about her moods. It is useless. She turns on me cutting me down, belittling and insulting me. She wants total control over everything including the menu, what business hours we should have and me.


I texted Khatuna about meeting her tomorrow if possible. Back in March there was another Khatuna that worked in the store next to mine. She had a signed work contract. When it was time to get paid her Russian woman boss told her drop dead and didn't pay her. That is how things are here.

[Hammer2722]

Maxx, do you really need an emotionally un-stable woman making decisions in your business? You'll soon start to find that most of your real friends will start to distance themselves from you more and more. I believe she is using you to get what she wants for herself. This relationship will end very badly for you I think......

[BC]

 She said she wanted security in case something happened to me.   

Not unreasonable for a business partner.

All in all it sounds like she has put a lot of time and effort into the business, and if not a paid employee feels she is risking getting short changed.

I assume she is getting fair compensation for her work?

[BillyB]

Maxx, I wouldn't make anybody a business partner unless they bring a lot of money into my business or I've known them for many years to the point they have proven themselves to be trustworthy,  hard working, and mentally stable.

[Boethius]

You've now had two women you deemed unstable involved in your business. 


Find another partner, one you can trust if you are ill, or away, or whatever.  If Larissa assumed she is going to be a partner, you are going to have to get rid of her.   If I were living in Georgia, I would find a local as a partner, probably someone with some experience in what I'm doing, or someone with business experience.


This post was composed without the aid of google.

[ML]

You shouldn't even be thinking about bringing in a partner, unless that person puts in big money.
Otherwise, it seems most you have encountered there are looking for a way to probably eventually take over your business and assets without any payment, and then push you out.

I heard from wise men when I was a young buck a few years out of college.
The warning:  Having a partner (particularly in a small business) has the same ups and downs as being married.   The moral of the story was that it is just as hard to find a good and compatible business partner as a spouse . . . and the bad breakups probably run 50% or more.

You are already realizing that people there view you as a walking money machine.

Maxx . . . stick with just paying employees.

[fathertime]

Maxx, I wouldn't make anybody a business partner unless they bring a lot of money into my business or I've known them for many years to the point they have proven themselves to be trustworthy,  hard working, and mentally stable.

I agree 4-square with what billyb has said here.   You can use help, but not a partner. 

Fathertime!

[tfcrew]

Maxx . . . stick with just paying employees.

You've now had two women you deemed unstable involved in your business. Find another partner, one you can trust if you are ill, or away, or whatever.  If Larissa assumed she is going to be a partner, you are going to have to get rid of her. 

+1 Yeah...You don't just 'fire' a partner--It is more like going through a messy divorce and the business would suffer. 

[Confederate]

I agree 4-square with what billyb has said here.   You can use help, but not a partner. 

Fathertime!

I second that endorsement.

I have a suspicion her intentions are to steal your business.

[msmob]

Maxx, Maxx, Maxx..

You are getting lots of advice, but what scares me is did you sign a rental agreement with L's name on it?.....

Did you sign anything else, together?


Can she claim she has contributed and try to claim compo?

On this very thread YOU have TOLD US that L is now a partner....(Sept 4th)

Suggest, you call that lawyer...today...the one who L 'sent away'....

Then...get those keys back, get them changed and may be a security camera on entrances that records off site...in case she seeks revenge.