GENERAL BACKGROUND

On March 5th, 2014, the Parliament of Georgia adopted a new Law on Status of Foreigners and Stateless Persons which shall completely replace the current law of December 27th, 2005. The new law is set to enter into force on September 1st, 2014. The Government of Georgia will then adopt numerous acts required to implement the new regulations including among others, new rules on granting and extending visas and residence permits.

Foreigners holding valid visas should not be obligated to re-apply for a new visa until they first exit Georgia. Once they exit however, re-entry will fall under the regulation of the new law. With regard to foreigners holding valid residence cards, they should not be subject to the new requirements until the expiry date of their residence cards. All procedures applicable to granting of residence permits should remain unchanged up to September 1st, 2014.

SUMMARY OF CHANGES

 Entry to Georgia
• The new law has added a temporary ID card to the basis of lawful stay.
• Foreigners not requiring a visa to enter Georgia will be entitled to stay in Georgia for no longer than 90 calendar days. throughout any 180-day period instead of 360 days.
• A list of citizens enjoying visa-free entry is no longer included in the law.
• Visa free stay is allowed for tourism purposes only.
• The new law has changed the rules on detention of foreigners being in breach of visa requirements.

Visa
• Visa categories have changed from diplomatic, service, ordinary, transit and study to diplomatic (category A), special (category B), ordinary (category C), immigration (category D) and transit visas (further divided into subcategories based on the purpose of travel to Georgia).
• The new law divides visas into long-term and short-term categories. Short term visas may be granted with the right of one or multiple entries.
• Visas may be granted at the border in exclusive cases at the decision of the Ministry of Internal Affairs of Georgia; one should apply for a Georgian visa to the diplomatic mission or a consulate of Georgia in the country of his/her citizenship or residence, or in the neighbouring country.
• Additional documents and procedures are required for obtaining a visa.
• The new law has amended the basis for refusal to grant a visa.

 
Residence Permit
• The new law has introduced new types of residence permits, including (a) labour residence permit; (b) education residence permit; (c) family reunion permit; (d) residence permit for a former Georgian citizen; (e) residence permit for stateless persons; (f) special residence permit; (g) permanent residence permit; (h) investment residence permit. Obtaining of each type of the residence permit is possible on the basis of a corresponding type of visa.
• The investment threshold for the purposes of obtaining of a corresponding permit has been increased.
• Application from abroad is no longer possible.

NOTE: The above is a short summary of recent changes. Therefore it does not contain exhaustive information for all scenarios. Requirements for each individual may vary on a case-by-case basis. For any further information please do not hesitate to contact our offices.

BGI Legal has recently advised the joint bookrunners on TBC Bank's IPO and listing on the London Stock Exchange.

TBC Bank JSC, the leading Georgian bank, was admitted to London Stock Exchange on 11 June 2014, with the price of the global depositary receipts (GDRs) listed exceeding GEL 400,000,000. The global offering of total 20,200,000 GDRs included both primary component and secondary shares coming from the existing shareholders.

BGI's team comprised Lasha Gogiberidze, Unana Gogokhia and Sandro Bibilashvili.

Barclays and UBS acted as joint global coordinators and joint bookrunners for the flotation with Renaissance Securities (Cyprus) Limited acting as a bookrunner and Peel Hunt as co-manager.

“Listing of our stock on London Stock Exchange is a recognition that TBC Bank, as a financial institution corresponds to the world's highest standards. Moreover, the IPO allows us to further improve our business processes and ensure that the Bank's corporate governance is aligned with international best practices. What is most important, this is an enormous investment, which will support the development of the Georgian economy and increase investor confidence towards companies operating in Georgia – factors that ultimately contribute to the country's long-term economic development.” stated TBC Banks CEO Vakhtang Butskhrikidze.

Lasha Gogiberidze commented, "BGI Legal was delighted to be involved in this significant listing which will have a positive impact on the development of the Georgian economy."