How Georgia Became a Trusted Destination for Business and Investment. Bloomberg publishes an article about the country.
“Situated on the ancient Silk Road between East and West, this nation in the South Caucasus has spent several years revitalizing its historic trading position through extensive economic reforms that have slashed bureaucracy and made Georgia one of the easiest places in the world to do business.
Ease of doing business in Georgia is founded on a liberal tax system and labor code. According to the World Bank, its total business tax and contribution rate is just 9.9% of profits - the world’s third-lowest rate - with retained and reinvested profits being exempt from tax. There is no social security tax and personal income tax is set at a flat 20%.
Registering a company can take as little as one day. Nowhere in the world, other than New Zealand, can match Georgia’s regulatory performance for starting a business, according to the World Bank.
S&P’s recent BB rating, prompted by Georgia’s GDP growth of 10.4% in 2021, noted the potential for 4%–5.5% annual growth “for 2022 and 2023.” The country sits at the heart of a market of 2.3 billion consumers, thanks to a network of free trade agreements (FTAs) that connect it to the EU, China (including Hong Kong, China), the UK, EFTA countries, CIS, Turkey, and several other countries. Its strategic location makes it a business-friendly gateway to Central Asia and a transit point between Europe and the East.
This advantageous position has generated clear investment opportunities in the logistics sector, boosted by the Baku-Tbilisi-Kars (BTK) rail project that links Turkey and the European rail network to the Caspian Sea. Georgia provides a route into Europe for landlocked Central Asian countries trading minerals, machinery and transport equipment. The first train carrying goods from Turkey to China began operating on the new BTK railway in December 2021”, - reads the article.