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Company Formation Georgia



Invest in Georgia

Updated on Tuesday 22nd September 2020

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Georgia is located at the crossroads between Western Asia and Eastern Europe and this particular geographical position gives the country many advantages for: import and export activities, international business, foreign business investments etc. The country is a prime spot for investors who want to have an easy transit between two important markets - the European and the Asian ones.
A stable economic environment and a liberal trade regime can be added to the list of advantages this country offers for foreign investors who want to invest in Georgia. Our company formation agents in Georgia can give you the best reasons why you should invest in Georgia and they can also tell you everything there is to know about the environment for investments in the country.
Foreigners who want to invest in Georgia will find abundant investment opportunities and an economic climate that welcomes and supports foreign entrepreneurs. The country began to introduce democratic and economic reforms after the Revolution of 2003 and since then the country has been building a favorable investment climate.
Georgia prides itself with a low taxation regime, ease of doing business, low corruption levels and investment opportunities in numerous business areas. Our company registration agents in Georgia can help you set up a new company in the country.

Opportunities for investing in Georgia

Historically, Georgia has been involved in trade since ancient times. The country’s strategic location gives Georgia an enormous advantage and has shaped its foreign relations and the way in which the country opened itself to foreign investments. Georgia has been involved in commerce since ancient times and import and export activities are still an important part of the country’s economy. Moreover, Georgians are looking towards expanding and improving their road, air sea and railway infrastructure. Georgia has a standard VAT rate of 18%, but certain types of activities are exempted from the payment of this tax.  
The liberal trade regimes concluded by Georgia make it even easier to establish trade businesses in this country. Georgia has a free trade agreement with Turkey and the Commonwealth of Independent States (CIS), as well as general systems of preference with countries like the USA, Canada, Switzerland or Japan. Also, Georgia is a member of the World Trade Organization since 2000.
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Agriculture is a key business sector in the country with multiple opportunities for investments. Wine is the most important agricultural export but others like honey or hazelnuts are becoming more successful. Georgia has good natural resources and micro-climatic zones that are suitable for growing a wide range of fruits and vegetables.
The manufacturing sector is very well developed in the food and beverages sector and the metal products sector. Georgia has Free Industrial Zones that offer special tax exemptions for companies that want to invest in Georgia.
Tourism is another business sector that hold valuable potential for development. The country has beautiful mountain and sea resorts, ski slopes, national parks and numerous spring mineral waters (another important produce of Georgia). Our experts can help you open a travel agency or invest in other areas in this fast growing business sector.

Which are the competitive advantages of Georgia in terms of investments? 

Investors who want to invest in Georgia and open a company in Georgia can benefit from the strategical location of the country, which connects Asian markets with the ones of Europe. In its region, Georgia represents one of the most relevant investment destination as the local authorities have implemented numerous regulations in order to attract foreign direct investments (FDI). Some of the main reasons for investing in Georgia are the following: 
  • local and foreign investors can benefit from a low corporate tax and a simple procedure for the registration of a business;
  • Georgia has the highest literacy rate at a global level, which is very important when hiring employees;
  • suitable policies aiming at attracting more foreign direct investments in this country, following the principle of non-discrimination;
  • most of the FDI in Georgia is carried in the fields of finance, transportation, tourism and infrastructure.

The investment climate in Georgia 

Georgia is very well ranked in terms of economic freedom, ease of doing business and corruption. According to the data provided by the 2018 edition of the World’s Bank Doing Business Report, Georgia stands out as one of the main destinations for foreign investments as it is now the 9th country at a global level on the easiness of doing business. 
This marks a significant improvement compared to the previous year, when the country ranked as the 16th main business destination regarding this index. Our team of consultants in company registration in Georgia can offer in-depth advice on the legislation addressed to foreign investors who want to invest in Georgia.
Georgia encourages foreign trade and the establishment of foreign companies and, for this purpose, the number of taxes has decreased over the years, amounting today to only a few basic taxes for businesses. Our company formation agents in Georgia can give you detailed information about the taxation regime and also about the double tax treaties Georgia has signed with more than 20 countries.
Investors have the option to choose from the available company types. Our company registration agents can help you know more about the advantages of each legal entity and how it is incorporated. Georgia also has a highly skilled workforce.

Who are the main foreign investors in Georgia? 

Georgia attracts foreign investors from a wide range of countries but, as a general rule, most of the foreign direct investments are concluded by countries such as the United Kingdom, Azerbaijan and China (at the level of the first quarter of 2018, these were the main investors). Our team of specialists in company registration in Georgia can offer advice on the tax agreements available for the investors who are tax residents of these countries. 
The country receives numerous investments from businessmen residing in countries such as: Turkey, the Netherlands, Luxembourg, Panama, Czech Republic and the United States of America. It is also important to know that foreign companies can easily purchase other companies in this country, following the changes brought to the Law of Entrepreneurs; investors are invited to contact our team of specialists in company formation in Georgia for more details on this matter and if they need professional help for investing in Georgia.

Investments legislation in Georgia

The most important laws that govern foreign investments in Georgia are: the Law on Entrepreneurs, the Law on Licenses and Permits, the Law on Supervision on Entrepreneurship, the Civil Code, the General Administrative Code, the Law on Bankruptcy, the Labor Code, the Free Trade and Competition Act. 
Foreign individuals and foreign companies have no restrictions when it comes to owning capital of Georgian companies; the ownership may be up to 100%. However, certain restrictions for investments apply in sectors like defense and security.
Georgia offers incentives for businesses that are located in its free industrial zones (FIZ) and also for entities established in the form of an International Financial Company, International Enterprise or Free Warehouse Enterprise. 
The Georgian National Investment Agency is the Georgian authority responsible for assisting foreign investors. Our company incorporation agents in Georgia are ready to answer any questions related to specific issues about legal matters and the company incorporation procedure. You can also rely on our specialists for advice on the VAT registration procedure.

Winter tourism in Georgia

Winter tourism in Georgia has an immense potential for development and for producing important revenues. This is partly due to the country’s beautiful landscape and partly due to the fact the winder holiday packages are more costly than those offered during the summertime. Georgia has a number of mountain resorts that can benefit from foreign investments in order to become more renewed.
Winter tourism in Georgia is very profitable when considering the packages offered for foreign tourists. Those who come to ski in the country often choose Georgia as an alternative to the more expensive resorts in the Alps. But travel agency operators are still making important profits in Georgia even if the costs are not aligned with those in other popular winter destinations. During the winter, the estimated costs for a two week vacation will equal those of a month (or more) vacation in Georgia.
Tourism in Georgia ca be easily improved by making the right investments in infrastructure. Economy specialists believe that it is the consumption that counts, not the actual number of foreigners transiting the country. If foreign tourists like what they are offered in Georgia, they will spend more and the tourism sector will be more profitable. This is the reason why, experts believe, it is very important to invest in Georgia in good infrastructure and attractive options for tourists.
The winter season in Georgia starts in December for many resorts. The Goderdzi winter resort has announced that it will open its gates on December 5th. It will be followed by other resorts like Gudauri and Bakuriani who will open starting with December 13th. 
Georgia is able to provide the winter sports enthusiast with a variety of activities. The slopes in Goderdzi amount to some 8 km of slopes with various difficulty levels. The mountains are covered with snow for approximately 5 months and the resorts welcome their visitor with various accommodation options.
For more information about how to invest in Georgia and particularities you can contact our company registration agents in Georgia

Meet us in Tbilisi

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Call us now at +995 595 11 88 22 to set up an appointment with Valeri Bendianishvili, one of our specialists in company formation in Tbilisi, Georgia. Alternatively you can incorporate your company without traveling to Georgia.

As a Business Setup Georgia LLC  client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Georgia.


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