Ease of Doing Business in Georgia
Georgia has implemented various reforms to improve its business environment and ease of doing business. According to the World Bank’s Ease of Doing Business report, Georgia ranked 7th globally in 2021, making it one of the most business-friendly countries in the world which enhances the ease of doing business in Georgia.
The Georgian government has simplified the business registration process, allowing businesses to register online within a day. It has also simplified tax procedures and reduced the number of taxes, resulting in a flat tax rate of 20% for individuals and businesses. Additionally, Georgia has a relatively low level of corruption and a well-functioning judiciary system and It’s One of the Important ease of doing business in Georgia.
The government has also invested in developing a robust digital infrastructure, including e-government services and electronic signature systems, making it easier to conduct business operations remotely. Furthermore, Georgia has a flexible labor market, with few restrictions on hiring and firing, making it easier for businesses to manage their workforce.
Ease of doing business in Georgia has been ranked 6th out of 190 countries in the 2019 Doing Business Report by the World Bank. In comparison to the previous year, Georgia has improved its ranking by three positions in business environment rankings. In 2018, the country received a score of 82.8, which increased to 83.28 in 2019.
Overall, Georgia’s favorable features of its business environment have attracted significant foreign investment and have contributed to the country’s economic growth and development.
What are the reasons for the ease of doing business in Georgia?
There are many reasons why Georgia has become a country that attracts investors. Let’s take a closer look at some of the key factors that make it ease of doing business in Georgia:
- Simplifying regulations: Georgia has made reforms to simplify the laws and regulations related to doing business in the country. These reforms include improving the efficiency of customs clearance, reducing the need for permits and simplifying tax procedures to make it easier to do business in Georgia.
- Ease of starting a business: Another reason for the ease of doing business in Georgia is the ease of opening a business. According to World Bank estimates, registering most businesses in Georgia only takes two days and two steps. Also, online registration is available and the cost is relatively affordable. In addition, the Georgian government supports newly established companies through financial aid.
- Low taxes: Georgia has the lowest tax rate compared to other countries. The fixed income tax rate of this country is 20% and the corporate tax rate is 15%. Low taxation in Georgia is one of the reasons that makes it easy to do business in this country.
- Low level of corruption: The issue of corruption has always been a major concern all over the world. Many governments have tried to solve this problem, but the process of this problem has not changed. Georgia has also made many efforts to increase the transparency of corruption in this country, so that the overall trend is upward. This general trend is due to the existence of an efficient judicial system that has reduced the level of corruption.
- Having a suitable geographical location: Georgia has a suitable geographical location. Due to its location at the intersection of two continents, Europe and Asia, this country has become a favorable and suitable place for investment. Besides, due to this convenient location, Georgia has strong relations with its neighbors. All these are reasons for the ease of doing business in Georgia.
- Access to skilled labor force: It can be said with confidence that Georgia has a relatively good labor force. Because most of the people in this country are educated and have high proficiency in English. This is the reason for the ease of doing business in Georgia.
- Supporting small businesses: It was said earlier that the Georgian government supports newly established companies by providing financial assistance. Additionally, small companies in Georgia will benefit from government support. In addition to financial aid, these supports include training, guidance and encouraging entrepreneurship in the country.
- Creation of digital infrastructure: Another support of the Georgian government is the creation of strong digital infrastructure. These are digital infrastructures such as e-signature systems and e-government services. The existence of these infrastructures makes remote transactions easier for businesses.
As a result, despite such reasons, Georgia provides a very attractive environment for companies that wish to establish business and invest in this region. In fact, the government of this country is considered one of the best places to do ease of doing business in Georgia due to its simple procedures, low corruption and taxes, convenient location, talented workforce and support for small companies.