Georgia is a country in Eastern Europe. Set on the coast of the Black Sea, it lies to the south of Russia, and to the north of Turkey, Armenia, and Azerbaijan. Tbilisi is the capital and largest city of Georgia, lying in its eastern region, acting as a major transit route for various trade and energy projects. World Bank Group (WBG), in their recent report on ‘Measuring Regulatory Quality and Efficiency’, ranks Georgia as the 4th country in the Europe and Asian Region in terms of ease of doing business.
Georgia’s economy is powered by the 80% of GDP contribution from its capital city Tbilisi. It has several trade and energy projects which have a lot of opportunities for business in Georgia. Owing to its great topography and climate, agriculture and tourism industries have a promising future in the country. Hydroelectric energy production business has grown tremendously in the past recent years in Georgia - due to the presence of over 26,000 rivers in the territory to harness.
Why Georgia is Ranked High on Doing Business
Georgia’s business-friendly approach to governance has made it a popular destination for foreign direct investment. The combination of streamlined regulations, minimal bureaucratic red tape, a flat tax regime, low cost of labor and other production inputs makes it a lucrative business destination, especially for those seeking to make investments in the service industry. Here are some points as to why company formation in Georgia is beneficial:
- Georgia has no minimum capital requirement for registering a business and no restrictions on the purchase of land by non-citizens
- Georgia’s GDP has grown by 4.5% in 2017 and 5% in 2018. Both numbers are significantly higher than the global projection
- Georgia occupies a very strategic location on the world map, linking Asia and Europe, and has cordial relations with the European Union (EU), US, China, Turkey, and Iran
- Georgia has over 50 double taxation avoidance treaties with different countries including the UK, Singapore, Germany, India and China
- Large-scale improvements over the past 12 years have not made the authorities complacent
- Company registration in Georgia is simple, involves few steps, and can be completed in a week
- The economy of Georgia is liberal, and the government promotes business incorporation and FDI
Incentives in Starting a Business in Georgia
Business entrepreneurs and small business owners have a great deal to gain by starting their venture in Georgia. This exquisite country has one of the best business conditions and provides a great place to open a business. The government provides many incentives for entrepreneurs and small businesses, which encourages foreign companies to establish their operations in Georgia. Incentives that businesses receive in Georgia are:
- Tax Relief for small business, allowing for faster depreciation on equipment deduction where businesses can choose to claim the expense in year 1 as opposed to over several years
- Angel investor tax credits encouraging early investment in start-up companies
In a Nutshell
Doing your business in Georgia is certainly a very lucrative proposition, replete with a business-friendly environment. With the support of Business Setup Worldwide, you can take your business to a whole new level of success. The incredible business environment, business-friendly laws, and other cost benefits gets Georgia among the top 10 countries of ease of doing business. Contact us if you wish to start a business in Georgia – we’ll be glad to assist.