Invest in Georgia (2024)

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.

Astable economic environmentand aliberal trade regimecan be added to the list ofadvantages this country offers for foreign investors who want to invest in Georgia. Ourcompany formation agents in Georgiacan give you the best reasons why you shouldinvest in Georgiaand they can also tell you everything there is to know about the environment for investments in the country.

Foreigners who want toinvest in Georgiawill find abundant investment opportunities and an economic climate that welcomes and supportsforeign entrepreneurs. The country began to introduce democratic and economic reforms after the Revolution of 2003 and since then the country has been building afavorable investment climate.

Georgia prides itself with alow taxation regime,ease of doing business,low corruption levelsandinvestment opportunitiesin numerous business areas. Ourcompany registration agents in Georgiacan 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’sstrategic locationgives 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 astandard VAT rateof 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 tradebusinesses 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.

Agricultureis a key business sector in the country with multiple opportunities for investments.Wineis the most important agricultural export but others likehoneyor 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.

Themanufacturing sectoris very well developed in the food and beverages sector and the metal products sector. Georgia hasFree Industrial Zonesthat offer special tax exemptions for companies that want toinvest in Georgia.

Tourismis 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 youopen a travel agencyor invest in other areas in this fast growing business sector.

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

Investors who want toinvest in Georgiaandopen a company in Georgiacan benefit from thestrategical locationof the country, whichconnects Asian markets with the ones of Europe. In its region,Georgiarepresents one of the most relevantinvestment destinationas the local authorities have implemented numerous regulations in order toattract foreign direct investments (FDI). Some of the main reasons forinvesting in Georgiaare the following:

• • local and foreign investors can benefit from alow corporate taxand asimple procedurefor theregistration of a business;
• • Georgiahas thehighest literacy rate at a global level, which is very important whenhiring employees;
• • suitable policiesaiming at attracting moreforeign direct investmentsin this country, following theprinciple of non-discrimination;
• • most of theFDI in Georgiais carried in the fields offinance, transportation, tourism andinfrastructure.

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 the2018 editionof theWorld’s Bank Doing Business Report,Georgiastands out as one of the main destinations forforeign investmentsas it is now the9th country at a global levelon theeasiness of doing business.

This marks a significant improvement compared to the previous year, when the country ranked as the16th main business destinationregarding this index.Our team of consultants in company registration in Georgiacan offer in-depth advice on the legislation addressed toforeign investorswho want toinvest 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. Ourcompany formation agents in Georgiacan 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 highlyskilled workforce.

Who are the main foreign investors in Georgia?

Georgiaattractsforeign investorsfrom a wide range of countries but, as a general rule, most of theforeign direct investmentsare concluded by countries such as theUnited Kingdom, Azerbaijan and China(at the level of thefirst quarter of 2018, these were themain investors).Our team of specialists in company registration in Georgiacan offer advice on thetax agreementsavailable for theinvestorswho aretax residentsof these countries.

The country receives numerousinvestmentsfrom 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 thatforeign companiescan easilypurchase other companiesin this country, following the changes brought to theLaw of Entrepreneurs; investors are invited tocontactour team of specialists in company formation in Georgiafor more details on this matter and if they need professional help forinvesting in Georgia.

Investments legislation in Georgia

The most important laws that governforeign investments in Georgiaare: 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. Ourcompany incorporation agents in Georgiaare 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 theVAT registration procedure.

Winter tourism in Georgia

Winter tourism in Georgiahas 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 ofmountain resortsthat can benefit fromforeign investmentsin order to become more renewed.

Winter tourism in Georgiais 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. Buttravel agencyoperators 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 Georgiaca 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 toinvest in Georgia ingood infrastructure and attractive options for tourists.

The winter season in Georgia starts in December for many resorts. TheGoderdzi winter resorthas 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 toinvest in Georgiaand particularities you cancontact our company registration agents in Georgia.

There are many reasons tostart a company in Georgia. For a more complex presentation on the business environment available here,our consultantsremain at your service.

Georgiais also one of the countries that has one of the most suitable markets for doing business – it is on the 6th place at a global level for the ease of doing business, after countries such as New Zealand or Singapore.

We invite you to contact us if you want tostart a business in Georgia. You can obtain tailored assistance and our specialists can provide all the necessary support you may need, in accordance with the field in which you will develop your activity.

Our team will present the main rules of law available for your sector, the tax obligations and advantages, any business incentives, etc.