In the interconnected world of today, businesses have their tasks cut out. They can use advanced technologies to boost production, improve efficiency, and deliver outcomes that meet their objectives. However, they have to deal with the fact that they are not alone in thinking and implementing the same. Yes, competition is stiff and a slew of factors seems to be buffetting their very survival let alone expansion. Also, high taxes and tariffs have supposedly stymied many a business. In a globalized economy where maintaining cost advantage as far as production, distribution, and delivery are concerned, companies are looking for ways and means to remain competitive.
One of the ways global businesses can hold steady in the turbulent waters of competition is through outsourcing or diversification. Outsourcing or diversifying a part of your business to a location with cost advantage can help your business to not only keep afloat but expand and grow beyond its traditional sphere of influence. And when it comes to choosing a location with a favourable business environment, you can be spoilt for choice thanks to the surfeit of information. The best course of action would be to cut through the clutter and see how the location fares when it comes to meeting certain parameters. This is where Georgia, the former Soviet Republic, and now a forward looking country that has made a remarkable departure from its chequered past, can be considered. However, to set up a company in Georgia, you need to analyze the following parameters.
Location: The strategic location of Georgia as a gateway between Asia and Europe makes it a hub around which the bulk of the international trade plies. Moreover, the location puts Georgia into a favourable time zone that suits the business hours prevalent in Europe, Asia, and Northern America.
Validated by international agencies: Georgia has scored high rankings from credible international agencies. For example, in 2016, the World Bank gave it a thumbs up in the parameter of ease of doing business. In the survey, Georgia was found to have trumped countries like Switzerland, the Netherlands etc., countries traditionally considered to have a business friendly environment. Moreover, the ratings of Georgia in meeting parameters such as starting a business, access to credit, and registration of property are high as well – 6th, 7th, and 3rd respectively.
Favourable tax rates: Even as you cannot escape the spectre of taxes – income tax, corporate tax etc., you can consider Georgia for its favourable tax regime. For example, the country has a flat 20% income tax rate, a 15% corporate tax, a 1% property tax, and a 5% dividend tax. Moreover, if your business is in a free or virtual zone in Georgia, there is an exemption on paying corporate tax on foreign sourced incomes. Thus, all the more reason why you should look at a business set up in Georgia.
With competition becoming tough with each passing day, businesses are hard put to decide whether to relocate/outsource/diversify to a location with a cost advantage. And Georgia, with its business friendly environment and favourable ratings, is definitely a place to be considered.