Georgia has become the go-to destination for global business enterprises, whether it is about setting up a subsidiary, creating an offshore account, or setting up a business venture from scratch. As part of the CIS group of countries, the growth story of Georgia is something to be envied. It has succeeded in pulling itself out of the worldwide trend of economic stagnation and recorded positive growth rates of 5% and above. This economic transformation has been acknowledged by credible global agencies like the World Bank, the International Monetary Fund, the European Union and others.
Why Georgia scored a hit while many others floundered?
Georgia has had a chequered history as far as its economic and political stability is concerned. It has picked up steam in the last decade or so by undertaking a number of positive measures. These included driving policy initiatives, creating infrastructure, signing of trade treaties, carrying out structural reforms, and setting up of investment friendly zones among others. Furthermore, its strategic location as the gateway to both Asia and Europe is viewed positively by the global business community. According to the community, Georgia’s geographical proximity to countries like Turkey, Russia, and EU has made it a favourite trading hub. The other reasons for Georgia becoming a favourite business destination are mentioned below.
- A stable polity where market driven economic policies are pursued across the spectrum.
- A capitalist economy where investors are shown the red carpet with numerous incentives.
- An economic landscape that discourages crony capitalism and encourages fair competition – well appreciated by global agencies such as the World Bank and Transparency International.
- A time zone that fits perfectly into the business ecosystem of other countries.
- A skilled workforce available at reasonable pay rates.
- A sound infrastructure comprising roads, ports, power, and internet facilitating economic activity.
Georgia has a number of sectors for businesses to invest, manufacture, and export. These include infrastructure, banking and finance, power, mining, real estate, tourism, information technology, insurance and many more. The set of procedures to be followed to facilitate a business set up in Georgia is as under.
- Get your business registered and obtain a certificate of incorporation and article of association through the Federal Agency of Public Registry.
- Submit information about the board of directors and shareholders of your business.
- Open a corporate bank account and pay the registration fees.
- Share information about the bank account with the Federal Agency of Public Registry and tax authorities.
- Obtain a VAT registration.
To set up a business in Georgia, especially in the free industrial zones shall be highly beneficial with a multitude of incentives. These include tax holidays, non interference of the local authorities, ready to use infrastructure, no customs duties, and the repatriation of capital to the country of origin among others.
Georgia’s advantage for setting up businesses in many sectors gets a fillip as the country has been identified as a tax haven. In other words, Georgia has not signed any treaty with other countries to share financial information about businesses operating within its territory. Thus, businesses are not likely to be hounded by the tax authorities in their home countries whilst they continue to generate revenues for their shareholders.