Want to Set Up a Business in Georgia, Europe? Here Are the Top 4 Industries

Businesses in Georgia are limited to a very few sets of industries, with the primary industry driving the Georgian economy being agriculture. In fact, the agriculture industry is so large that it accounts for almost half the GDP of the country. The country has a strong business environment, with low power generation costs and opportunities for large industrial projects. Considering these factors, Georgia has emerged as a potential market for business industries to expand into the country.

Here are the top industries you can consider if you are planning to set up your business in Georgia:

1. Grapes and Wine
2. Textiles
3. Pharmaceuticals
4. Metal and Machinery

1. Grapes and Wine

Georgia is one of the oldest regions in the world where wine is grown and manufactured. The valleys of the mountains in Georgia help in grape wine cultivation. The industry of wine cultivation and manufacturing is growing rapidly, with an increase in the popularity of Georgian wine around the world, and most of the Georgian wine is exported to neighbouring countries such as Ukraine, Belarus, Kazakhstan, Poland, etc. The industry is growing rapidly, with an estimated 36% increase in the supply of wine production.

2. Textile

Georgia has a rich history of apparel and textile production, with high-quality silk and wool-blended fabric, and most of the fabrics (95%) are exported to Turkey and the EU markets. The Free Trade Agreements between Georgia and other large markets, such as Turkey and Russia, have made it easier for manufacturers to export their goods.

3. Pharmaceuticals

The pharmacy industry has clocked a growth rate compounded annually at 13% during 2010-2014, and the imports and consumption are increasing every year, with a 30% compounded annual growth rate of pharmacy exports from Georgia during 2010-2014. The primary reason many pharmacy companies established their operations in Tbilisi is low utility and labor costs, along with the government’s support, which exempts government businesses from all taxes except Personal Income Tax and offers incentives for new production companies.

4. Metal and Machinery

Metals and other machinery, such as mechanical appliances, are manufactured in Georgia. Most of this equipment is exported from Georgia to other countries. Steel Production in Georgia offers many market opportunities, especially with neighbouring countries that export waste and scrap metal, as well as the copper and manganese mines in Georgia. These existing productions could further be used in manufacturing products such as tin cans and other construction materials, such as wires, cables, etc, or can be used to produce ferroalloys, which can be exported to other countries.

5. International Trading 

Georgia is slowly but steadily evolving into an investment hub due to tax benefits and investment-friendly policies. As an investor, you can open an offshore business in Georgia and start reaping tax-free foreign-sourced returns to grow your portfolio.

Also read: How Business Consultants Help to Start a Company in Georgia?

Markets in these countries have significant potential and are experiencing strong growth, with the government supporting many new production companies. The country doesn't have a minimum wage or any work permits required. To know more about the business opportunities in these markets, contact us and our dedicated specialists from business setup worldwide will assist you further.

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