Europe and Central Asia are home to two of the world’s top 20 best places to do business – Georgia and North Macedonia, with Georgia ranking 1st in the region.
The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
Over the last decade, Georgia has undertaken a series of progressive reforms including anti-corruption efforts, reforms of labor and tax codes. With a high number of business regulation reforms, Georgia has also been positively praised for its healthcare, public administration, and judicial reforms. According to the World Bank’s doing business 2019, Georgia’s updated rank for Ease of Doing Business is 6th, with EODB (Ease of Doing Business) score of 83.28.
DB measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business. Find Georgia’s rank in each field as follows:
- Starting a business – 2
- Dealing with construction permits – 27
- Getting electricity – 39
- Registering property – 4
- Getting credit – 12
- Protecting minority investors – 2
- Paying taxes – 16
- Trading across borders – 43
- Enforcing contracts – 8
- Resolving insolvency – 60
Fiscal and monetary policies are focused on low deficits, low inflation, and a floating real exchange rate. However, the latter has been affected by regional developments including sanctions on Russia and other external factors such as a stronger dollar and weaker regional economies. Public debt and budget deficits remain under control.
Several important reforms in recent years
Reforms have significantly improved and simplified business startups in the country
- Georgia made it easier to start a business by cutting or simplifying post-registration procedures (tax registration, social security registration, licensing).
- Georgia made it easier to pay taxes by introducing new or significantly revised tax laws, simplifying tax compliance processes, and decreasing the number of tax filings or payments.
- Georgia made it easier to enforce contracts by expanding court automation through the introduction of electronic payments and processes, automatic assignment of cases to judges, and publishing judgments.
Georgia reduced its relative gap to the best regulatory performance on starting a business, most in 2017-2018. Previously, entrepreneurs had to make a separate visit to the Revenue Service for value-added tax registration after company registration. Georgia also enhanced its existing one-stop-shop for business incorporation, allowing entrepreneurs to start a company through a single procedure.