Doing business in Georgia

Georgia is a shining example of free-market efficiency and transparency. A business is formed in one day, and forms and applications for a startup are handled concurrently. Contracts are safe, and any number of administrative responsibilities related with running a company may be managed simply. Even getting into the nation is simple. Citizens of 98 countries may enter Georgia without a visa for up to a year, making it ideal for foreign enterprises looking to move and develop operations.

A slew of other variables, like low taxes and ease of doing business, combine to establish Georgia as an oasis of stability in the area. According to the World Justice Project, Georgia has the strongest rule of law of any country in Eastern Europe or Central Asia. According to Numbeo’s Safety Index, Georgia was the safest nation in Europe in 2020 and remains one of the safest in the world today.

Registering an IE in Georgia is the pinnacle of ease of doing business in Georgia. Typically, only one form of tax – 1% of your income – is payable, and only one sort of declaration – 5-6 fields – must be completed each month. There is no need for visits or meetings because all communications are handled through the portal.

It’s no surprise that Georgia ranks seventh out of 190 nations in the World Bank’s Ease of Doing Business Index. Georgia is also making strides toward full EU membership, with over 150 EU-compliant laws already in effect.

Foreign direct investment has increased in recent years as corporations have recognized this unique mix of characteristics, totaling US$6.8 billion from 2016 to 2020. Over that period, the percentage of reinvestment has surpassed 44 percent, indicating that once in Georgia, businesses enjoy it and wish to expand.

Most importantly, the level of taxation is low. Corporate earnings can be taxed at 0% or 15%, with no tax responsibility on retained profit. Significant tax breaks are available for the IT and Small Business sectors, and Georgia has treaties in place with 57 other countries to avoid double taxation. According to the World Bank, the country has the third-lowest effective tax rate as a proportion of earnings in the world, at 9.9 percent.

Taxation stakes and more details are given below: (For more details visit Business taxes in Georgia)

• Corporate profit tax – 15%, not payable until dividends are distributed. (1% of revenue for Small Business Companies)
• VAT – 18%
• Income tax – 20% (Lower stakes for rental or other specific types of income apply)
• Import tax – 0%, 5% or 12% (Goods originated in partner countries, such as EU, CIS or even China could be exempt from this tax)
• Property tax – 1%
• Presence of Free Zones – Specifically designated areas where there are no coporate, income, VAT or property taxes
• Ability to be granted Virtual Zone certificate – for IT companies, further driving tax to be levied to 5%
• Further government support programs available

Furthermore, the government provides incentives for companies to relocate, as evidenced by particular government measures aiming towards further increasing attractiveness of doing business in Georgia.

Since the country’s independence, successive Georgian governments have worked to make the country as business-friendly as feasible. And they had succeeded. Some of the pillars demonstrating the ease of doing business in here are:

• Easy to register and conduct business – According Doing Business survey, Georgia ranks #7 in ease of doing business, and #2 in launching a new one.
• Companies may be registered and opened remotely, without requiring a physical presence.
• No requirements of authorized capital, which can be set to 0.
• Easy access to banking services for foreigners with Ability to access international payment systems. And, what’s also important – these services cost barely anything.
• Residence permit for investment – Real estate worth of 100,000$ should be enough.
• Georgia does not participate in the automatic exchange of tax information according to the CRS standard
• Convenient accounting and reporting
• Existing double taxation treaties with 57 countries.
• Free access to major markets (EU, Chinese and CIS among them)

Tbilisi, the Caucuses’ cultural center, provides a plethora of culinary and leisure options, most of them entrenched in the mix of civilizations that have nurtured Georgia’s distinctive past.

Popular contemporary cuisine, such as cheese-stuffed bread, fish cooked in pomegranate sauce, and meat skewers marinated in a variety of herbs and spices, is easily complemented with wine, which is frequently handmade and aged in clay jugs. The handmade packaging pays homage to Georgia’s distinctive viniculture legacy as the world’s first winemaking location.

Other commodities made their way into Georgia as winemaking flourished throughout the years. Today, Georgian restaurants and large parties frequently offer khinkali, artistically coiled dumplings loaded with pork or beef that the Mongols brought from China.

A distinct European cuisine laced with Asian influences adapted to local conditions over the years. A wine with an unrivaled heritage. Sauces that are as complex as taxes. Georgia brings it all together, delivering both ease of conducting business and a prosperous lifestyle.