has one of the most competitive markets in its region, which offers numerous incentives for the development of the business environment.
This country has
three industrial zones, created to cater the needs of specific business sectors and they are to be found in Poti, Kutaisi and Tbilisi
One of the main advantages for starting the procedure of company formation in Georgia
in one of its free economic zones
refers to the
tax advantages the investors can receive, as such areas provide specific
tax exemptions, depending on the company’s activities. For example, in the case of company exporting goods, the personal income tax will be the
single tax that will be applied to the company.
Investors who want to expand their
in a foreign country should take into consideration that Georgia
became one of the most
attractive business locations in the European and Central Asian region. World Bank Group (WBG) has recently presented the “
Measuring Regulatory Quality and Efficiency” report, in which Georgia ranked as the 4th economy in the European and Central Asian region in terms of ease of doing business. If you are interested in the business environment in Georgia, our Georgian company formation specialists
can provide you with an in-depth presentation on this matter.
Ease of doing business in Georgia
The WBG report
has revealed that Georgia
is ranked as the 24th economy in the world
in terms of doing business
, in a study that has included 189 countries. The study analyses the last 12 years experienced by Georgia
in terms of doing business
, revealing that the state had the best results in this matter. The output per capita increased by 66% in this period and the density of businesses in Georgia tripled.
The report states that the main reasons for these remarkable results are the government’s reforms aimed at the entrepreneurs’ access on the local business market. Georgia implemented several reforms which improved the process of doing businesses here. The local authorities have implemented a digital filing system and simplified the process of issuing the construction permit which is good to know for foreign investors who want to open a company in Georgia.
The report presented by WBG report established the ease of doing business based upon 10 factors, for which Georgia received the following scores:
• starting a business - Georgia ranked on the 3 place (out of 189 economies);
• dealing with construction permits - 2nd place;
• getting electricity - 6th place;
• registering a property - 2nd place;
• getting credit - 1st place;
• protecting minority investors - 4th place;
• trading across border - 18th place;
• enforcing contracts - 5th place;
• resolving insolvency - 19th place.
Georgia is located in a hot spot, at the crossroads between Western Asia and Eastern Europe, and it is precisely its geographical location that makes it a good place to invest and access the two markets. At the same time, there have been investors who have questioned the country’s ability to regain from political changes and influences brought by its neighbors, especially Russia.