Georgia: Investing

FDI in Figures

Georgia is one of the Caucasus nations, which has made the greatest effort to liberalize its economy, and it was awarded the 12th place in the world, in the classification of the World Bank's Doing Business 2010 (+3 in relation to the report in 2009).

The country's main investors are the United Arab Emirates, the Netherlands, the United States, Azerbaijan and Turkey.

Foreign direct investments dropped in Georgia in 2009, mainly because of the conflict of South Ossetia against Russia during the summer of 2008. Investments fell 7% during the third quarter of 2010 in relation to the year before. Other than economic and financial difficulties, the political stability plays a primary role in the country's appeal. Investors are flattered with advantageous fiscal and legal offers, Georgia has almost fully liberated its economy and it is one of the most interesting countries in the region.

Why You Should Choose to Invest in Georgia

Strong Points

Georgia's competitive advantages are:
- Its geographical location, which gives it an important geostrategical position since the oil pipelines transporting Caucasian oil to Europe all pass through its territory;
- A low corporte tax rate;
- Simplified company registration procedures;
- The highest literacy rate in the world;
- A government that wants to attract foreign investment, and takes appropriate measures.

Weak Points

The country's main weaknesses are:
- The limited domestic market;
- The instability of its relationship with Russia; and
- The corruption problems that affect the country.

Government Measures to Motivate or Restrict FDI

The Georgian government has established a range of measures in order to develop the country's economy:
- The privatization of public companies;
- The fight against corruption;
- Establishing a principle of non-discrimination between Georgian and foreign businessmen;
- Drastically reducing the procedures for forming a company;
- Reduction of corporate tax; and
- Liberalization of the employment market.

Bilateral Investment Conventions Signed By Georgia

List of signatory countries.

Procedures Relative to Foreign Investment

Freedom of Establishment

Freedom to take holdings is guaranteed.

Acquisition of Holdings

There are no restrictions on acquiring of a company by a foreign national or a foreign company in Georgia. Because of the changes to the Tax Code and Law on Entrepreneurs in 2005 and 2006, aquisition of a company is has been made simple and efficient.

The property, investments and the rights of investors are protected and guaranteed by law in Georgia. Property rights are guaranteed by article 21 of the Georgian Constitution.The law defines simple and well defined mechanisms to make investments, to acquire (or transfer) properties and companies in the country.
According to the constitution of Georgia international treaties have direct legal force in Georgia, which ensures a liberal legislative environment for conducting business and making investments in the country.

Obligation to Declare

The agency for the promotion of foreign investment in the country gives information about the authorizations required to set up business.

Competent Organization For the Declaration

Ministry of Finance

Requests For Specific Authorizations

There are no limits for foreign ownership.

Investment Opportunities

Investment Aid Agency

Agency for the Promotion of Foreign Investment

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Georgia
Globaltenders, Tenders & Projects from Georgia
DgMarket, Tenders Worldwide

Any Comments About This Content? Report It to Us.