The Silk Road, a Major Business Opportunity for Georgia

Foreign investors interested in setting up a company in Georgia should know that this location shows increasingly positive prospects for economic development. Georgia is one of the top countries in the region in terms of easiness of doing business and it also has one of the lowest taxation regimes at a globally level. Recently, the Georgian Prime Minister announced that one of the country’s major investment project will be the reconstruction of the famous “Silk Road”, which historically speaking, has had a great economic impact on the countries in the region, as it facilitated international trade of goods and products. If you need further information on the project, our Georgian company formation specialists can provide you with assistance on this matter. 

 

 

The Silk Road is known for the fact that it connected the Asian continent with Europe, contributing as such to a simpler way of trading and doing businesses between the two continents. The reconstruction and modernization of the Silk Road is a part of a Chinese initiative, entitled “One Belt, One Road”, which aims at a new way of conducting businesses, beneficial to countries involved in the project. 

 

The Silk Road will cover both land areas and maritime regions. The land area of the Silk Road aims at the following: 

 

• Central Asia;

• West Asia;

• Middle East;

• Europe. 

 

The Silk Road initiative will need the collaboration of more than 60 countries and the main target of the plan is related to a major infrastructure project, by developing a continuous road and a railway network that will connect China and Europe. 

 

 

The project “One Belt, One Road” has been discussed at the World Economic Forum Session, held in Davos, where the Georgian Prime Minister said that the development of the Silk Road will have financial benefits on Georgia and the countries in the region, while developing trade relationships between the two continents. 

 

Foreign investors interested in opening a company in Georgia should know that the Georgian government has invested in several infrastructure projects. As one of the key factors of the Silk Road project is the development of a railway system between Asia and Europe, the Georgian government has already started to invest in the modernization of its railways, alongside with its neighbors, in order to create a “holistic approach” to the Silk Road project. According to the Georgian representative, after the completion of the project, a direct route from China to Europe could be done in 10 or 11 days (by train), which will have a great impact of various economies alongside the Silk Road. 

 

If you need further information on the Silk Road project, please contact our Georgian company formation specialists.