Country's impressive progress in improving business climate has been well documented in a number of international indices. Georgia is considered as a politically stable, corruption-free investment destination with low business costs.
Georgia is situated at the crossroads between Western Asia and Eastern Europe. This particular geographical position gives the country many advantages for import and export activities, international business and foreign business investments. The country’s strategic location gives Georgia an enormous advantage and has shaped its foreign relations and the way in which the country opened itself to foreign investments
Georgia has trade relations with many countries worldwide
Georgia’s liberal trade regimes provide investors with a favorable opportunity to not only access the country’s 3.7 m residents, but the wider region’s markets, as a direct result of the absence of customs and import tariffs. To date, Georgia has signed FTAs with CIS countries that include Ukraine, Belarus, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan, as well as its neighbors, Turkey, Azerbaijan and Armenia.
The Association Agreement (“AA”) with EU was signed and ratified in 2014, including Deep and Comprehensive Free Trade Agreement (“DCFTA”). Additionally on 27th of June 2016 Georgia signed FTA with EFTA countries, giving Georgian products duty free access to markets of Iceland, Liechtenstein, Norway and Switzerland.
General Schemes of Preference for Georgia with the US, Canada, and Japan have also been applied for, with the result being lower tariffs on 3,400 goods exported from Georgia.
February 2016 marked the start of negotiations between Georgia and Peoples Republic of China on free trade agreement. Considering high political interest from both sides, agreement will be reached very soon.
Additionally, Georgia is a member of the World Trade Organization (WTO) since 2000.
In terms of border control, all foreign travelers to Georgia enjoy highly accessible and service-oriented customs policies and administrative protocol. There is almost no custom duty, with 90 % of goods being exempt from import tariffs, with no quantitative restrictions. The average time for customs clearance is currently about 15 minutes – one of the fastest and most efficient in the CIS.
Georgia is ranked 16 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Georgia improved to 9 in 2017 from 16 in 2016.
From 2003 forward, the World Bank has recognized Georgia as one of the world’s fastest reforming economies and as a leader in fighting corruption. Free market country has made sweeping economic reforms since 2003. Georgia is also among the top 10 global improvers for implementing reforms to their business regulations
According to Transparency International Georgia ranks 44th in least corrupt nations out of 175 countries. By 2004 Georgia was 133 with regards of corruption and in 2016 there was an all time improvement with the indicator as it became 44th in ranking.
- Over the course of the last years, Georgia implemented five reforms in the following areas: Getting Electricity, Registering Property, Protecting Minority Investors, Trading Across Borders and Paying Taxes. With regards of investors, the economy strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, also by clarifying ownership and control structures
Georgia has a very flexible and comprehensive legislation that creates business friendly environment and maintains healthy investment climate. Taxation is simple, low, efficient and fair. Tax and customs legislation is unified under one tax code and the collection of taxes and supervision of the tax environment is provided by Georgia Revenue Service.
From the beginning of 2017 the new Corporate Tax Policy – “Estonian Model” went into force in Georgia. It means that only those profits that are distributed or paid out as fringe benefits will be taxable. Therefore, if a company reinvests its profit in whole, it will be freed from tax charges.
This new reform makes business climate and investing environment even more attractive in the country. Apart from reduced payments, smaller range of taxable activities will give investors and business owners great advantage of taking more control over their business issues.
The country has got young, talented, skilled students and young generation who are multilingual and who mostly have knowledge of not only Georgian and English but also Russian language.