Georgia has a very flexible and comprehensive legislation that creates business friendly environment and maintains healthy investment climate
On June 27, 2014 the Association agreement that intends the Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and the EU was signed. According to the requirements of Association agreement, Georgian legislation is on an ongoing process of harmonization with the EU legislation in order to integrate Georgian regulations with the EU standards. This process will result in Georgia becoming an indivisible part of European Union common market.
The guides of important issues are provides below.
Georgia is 6th country globally in Ease of Starting Business according to the World Bank Ease of Doing Business rank. Starting business in Georgia is very simple, 1-2 days and 100-200 GEL is needed for company registration.
The rules regarding the establishment, registration, reorganization and liquidation of a company can be found in the Law of Georgia on Entrepreneurs, which sets an exhaustive list of enterprises that can be established in Georgia.
The number and time for getting licenses and permits in Georgia is one of the lowest in Europe. Every company is entitled to choose a field of activity at its own discretion and run a business without limitation, unless such an activity is directly prohibited by the law or a permit or license is required to perform the activity. Information about licenses and permits applicable in Georgia, the rule of their issuance, the issuing bodies and the amount of license/permit fees is outlined in the document "Investor's Handbook - General Review of Current Licenses and Permits applicable in Georgia".
A construction permit is a special permit which authorizes its holder to carry out a new construction, reconstruction or demolition in accordance with the terms contained therein. Any natural person, legal entity or partnership that plans to carry out any of the above activities must obtain the permit. For the purposes of issuing the permit, buildings and structures are divided into 5 classes. All procedures to get the permit can be completed within 50-60 days. The guide "How to Obtain a Construction Permit" sums up the procedures required to get the permit.
Any natural person, legal entity or other organizational unit prescribed under law, who plans to engage in the activities that are subject to mandatory ecological expertise must apply to the Ministry of Environment and Natural Resources Protection of Georgia and obtain an Environmental Impact Permit to perform such activities. Duration of procedures depends on complexity of project (the permit is required for the construction/operation of hydropower plants, steel factories, chemical factories etc.) and it may take 80-90 days. The guide "How to Obtain an Environmental Impact Permit" summarizes procedures and requirements necessary for the issuing of the permit.
Investment-related issues are currently regulated in Georgia by two laws; these are: the Law of Georgia on State Promotion and Guarantees of Investments dated 12 November 1996 and the Law of Georgia on State Promotion of Investments dated 30 June 2006. These legislative acts stipulate the concept of an investment, legal guaranties for protection of investments and the rights and obligations of investors.
In Georgia ownership rights are protected by the Constitution of Georgia. Having paid taxes and duties, an investor is entitled to convert the income/profit from his investment and other funds in a banking institution of Georgia at the market exchange rate and repatriate them abroad without limitation.
Georgia has signed Bilateral Investment Treaties (BIT’s) with 32 countries and is member of ICSID Convention since 1992.
Export from Georgia is definitely easy and comfortable. Georgia has Free Trade Agreements with all CIS countries and Turkey, as well as Deep and Comprehensive Free Trade Agreement with the European Union. Therefore Georgia has access to approximately 900 million population without customs/import tariffs. In order to benefit from Preferential Trade Regimes and export goods without customs duty, the Certificate of Origin is required. The Certificate of Origin is issued by the following authorities: The Ministry of Economy and Sustainable Development of Georgia, Revenue Service of Georgia, Georgian Chamber of Commerce and industry, and Wine Agency. The document "Certificate of Origin" is a brief guideline about procedures of issuing and applying for certificates of origin.
Tax and customs department is under an umbrella of State Revenue Service of the Ministry of Finance of Georgia. There is a network of modern Customs Clearance Terminals and Cargo inspection/Cross-Dock modern equipment and facilities around Georgia. Administration is transparent, fast and efficient. Average time for customs clearance is just 15 minutes.
According to the Georgian legislation, privatization means the acquisition of State/Municipal property by individuals and legal entities (including foreign individuals and foreign companies) in accordance with the rules stipulated by the legislation.
The rights related to privatization of state property, transfer with the right of use of state property and managing the companies established with government shareholdings is the prerogative of LEPL The National Agency of State Property.
This brochure addresses the legislative framework regulating the privatization process. The Law on State Property and the Law on Municipal Property are the basic acts that lay down the rules and procedures of privatization
Georgian labor code provides very flexible conditions for employment.
|The country doesn’t have minimum wage regulations and compensation for labor depends on the agreement with the employer.|
Taxes to be paid based on the salary
|There is only one tax called personal income tax, which is flat 20%. Georgia doesn’t have the Social Tax.|
Standard working hours and overtime
|The Labor Code specifies the maximum duration of working time per week, which should not exceed 40 hours or 48 working hours for specific sectors (list of sectors is defined by the Government of Georgia). However, this provision is not unconditionally binding, as the employer is authorized to set out different working hours in a labor contract which will include overtime working hours and payment of overtime. Also it is possible to arrange working process in different shifts. However the employer must take into consideration that the duration of the rest time between working days may not be less than 12 hours. Payment of overtime hours must be more than usual working hours and exact payment is defined by the employment contract.|
|Employee is authorized to take 24 days as paid holidays and 15 days as unpaid holidays. Additionally, there are 15 official day offs/holidays (Religious, National celebrations and the New Year days) in a year.|
Termination of labor relation
|According to Labor Code, if the employer terminates the contract, it must send written notice to employee at least 1 month earlier and pay at least 1 month salary. Also Employer is entitled to give a 3-day prior written notice to the employee, but in this given situation employer must pay at least two months’ salary/compensation within 30 calendar days of the contract termination.|