Georgia is a developing country, classified as "very high" on the Human Development Index. Economic reforms since independence have led to higher levels of economic freedom and ease of doing business, as well as reductions in corruption indicators, poverty, and unemployment. It was one of the first countries in the world to legalize cannabis, becoming the only former-socialist state to do so. The country is a member of international organizations across both Europe and Asia, such as the Council of Europe, the Organization of the Black Sea Economic Cooperation, the Organization for Security and Co-operation in Europe, Eurocontrol, the European Bank for Reconstruction and Development, the Association Trio, and the GUAM Organization for Democracy and Economic Development.
Since 2014, Georgia is part of the European Union's Free Trade Area, with the EU continuing to be the country's largest trading partner, accounting for over a quarter of Georgia's total trade turnover.
Georgia has a sizable hydroelectric capacity, a factor that has become an increasingly important component of its energy supplies and policies. The country's topography and abundance of hydro resources give it serious potential to dominate hydroelectric markets in the Caucasus region.
Tourism in Georgia (country) is one of the fastest growing sectors of the local economy, which has high potential for further development. During recent years the number of visitors to Georgia increased significantly contributing to the growth of other tourism related sectors.
The central bank is the National Bank of Georgia (NBG). It sets monetary policy, issues licenses, and supervises the activities of banking institutions and currency exchange offices.
Only 6 taxes exist in Georgia with law tax rates: Income Tax (personal income tax) 20%; Profit Tax (corporate tax) – 15%; Value Added Tax – 18%; Excise – varies; Property Tax up to 1% of the self-assessed value of property; Customs Tax – 0%; 5%; 12%.
Government’s key economic strategy includes improvement of the investment climate, development of small and medium sized enterprises (SMEs) and minimization/lifting of barriers for business operations. Registration of a business is possible in one-two days. In addition, state privatization policy contributes to foreign and local investments and a larger role of the private sector.
Legislation governing foreign investment establishes favorable conditions, but not preferential treatment, for foreign investors. In conducting investment and entrepreneurial activity, foreign investors enjoy the same rights and guarantees as those granted to Georgian natural persons and legal entities. Legal basis for both foreign and local investments and guarantees of their protection are ensured by various normative acts - the Constitution, international treaties and two special laws “On Promotion and Guarantees of Investment Activity” and “On State Support of Investments”. State support of investments is provided through the Enterprise Georgia, which is in charge of facilitating the investment process. Enterprise Georgia is the moderator between foreign investors and the Government of Georgia. Enterprise Georgia is supporting investors throughout the investment process free of charge and assists investors in having the efficient means of communication with Government bodies. It has two main structural components – “Enterprise Georgia – Export” and “Enterprise Georgia – Investments”, which has the priority and that is why, the institute of Commercial Attachés has started functioning.
One of the interesting directions of Enterprise Georgia is Film in Georgia. It offers 20-25% cash rebate on qualified expenses incurred in Georgia. Georgian and foreign producers interested in creating audio visual products on the territory of Georgia can use 20-25% of the money back.
One of the actions, for getting the abovementioned service, is to submit an independent assurance service report by audit company within two years of receiving the certificate.
The National Intellectual Property Centre of Georgia “Sakpatenti” is a governmental agency – a legal entity of public law that determines the policy in the field of intellectual property. Under Georgian legislation, the patent is a monopoly right granted by the state to the inventor or his successor on the basis of which the patent holder may prohibit any person from using his/her invention or utility model protected by the patent. A patent certificate issued by the Sakpatenti confirms the granting of such monopoly rights to an individual or legal entity. The validity term of a patented invention is 20 years from the filing an application with the Sakpatenti. In case of utility mode, such term is 10 years. A trademark as well as a design are subject to registration at Sakpatenti. Such registration entitles the holder to prohibit unauthorized use of his/her trademark or design. The validity term of the registration is 10 years with possibility of its further extension.
Georgia is a civil law country. The court system in Georgia has three branches: Courts of First Instance (District or City Courts), Appellate Courts and the Supreme Court. First Instance Courts have jurisdiction over all civil, criminal and administrative cases. Decisions from First Instance Courts may be appealed to the Appellate Courts, and from there to the Supreme Court.
The Constitutional Court of Georgia is the sole organ of constitutional jurisdiction of Georgia.
As an alternative to litigation, Georgia allows for third party arbitration. Georgian law also allows foreign companies to include provisions in their contracts (including those with Georgian entities) that allow for arbitration by international arbitration institutions.
Our law firm VLO provides legal services for corporate and private clients in Georgia. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Since 2014, Georgia is part of the European Union's Free Trade Area, with the EU continuing to be the country's largest trading partner, accounting for over a quarter of Georgia's total trade turnover.
Georgia has a sizable hydroelectric capacity, a factor that has become an increasingly important component of its energy supplies and policies. The country's topography and abundance of hydro resources give it serious potential to dominate hydroelectric markets in the Caucasus region.
Tourism in Georgia (country) is one of the fastest growing sectors of the local economy, which has high potential for further development. During recent years the number of visitors to Georgia increased significantly contributing to the growth of other tourism related sectors.
The central bank is the National Bank of Georgia (NBG). It sets monetary policy, issues licenses, and supervises the activities of banking institutions and currency exchange offices.
Only 6 taxes exist in Georgia with law tax rates: Income Tax (personal income tax) 20%; Profit Tax (corporate tax) – 15%; Value Added Tax – 18%; Excise – varies; Property Tax up to 1% of the self-assessed value of property; Customs Tax – 0%; 5%; 12%.
Government’s key economic strategy includes improvement of the investment climate, development of small and medium sized enterprises (SMEs) and minimization/lifting of barriers for business operations. Registration of a business is possible in one-two days. In addition, state privatization policy contributes to foreign and local investments and a larger role of the private sector.
Legislation governing foreign investment establishes favorable conditions, but not preferential treatment, for foreign investors. In conducting investment and entrepreneurial activity, foreign investors enjoy the same rights and guarantees as those granted to Georgian natural persons and legal entities. Legal basis for both foreign and local investments and guarantees of their protection are ensured by various normative acts - the Constitution, international treaties and two special laws “On Promotion and Guarantees of Investment Activity” and “On State Support of Investments”. State support of investments is provided through the Enterprise Georgia, which is in charge of facilitating the investment process. Enterprise Georgia is the moderator between foreign investors and the Government of Georgia. Enterprise Georgia is supporting investors throughout the investment process free of charge and assists investors in having the efficient means of communication with Government bodies. It has two main structural components – “Enterprise Georgia – Export” and “Enterprise Georgia – Investments”, which has the priority and that is why, the institute of Commercial Attachés has started functioning.
One of the interesting directions of Enterprise Georgia is Film in Georgia. It offers 20-25% cash rebate on qualified expenses incurred in Georgia. Georgian and foreign producers interested in creating audio visual products on the territory of Georgia can use 20-25% of the money back.
One of the actions, for getting the abovementioned service, is to submit an independent assurance service report by audit company within two years of receiving the certificate.
The National Intellectual Property Centre of Georgia “Sakpatenti” is a governmental agency – a legal entity of public law that determines the policy in the field of intellectual property. Under Georgian legislation, the patent is a monopoly right granted by the state to the inventor or his successor on the basis of which the patent holder may prohibit any person from using his/her invention or utility model protected by the patent. A patent certificate issued by the Sakpatenti confirms the granting of such monopoly rights to an individual or legal entity. The validity term of a patented invention is 20 years from the filing an application with the Sakpatenti. In case of utility mode, such term is 10 years. A trademark as well as a design are subject to registration at Sakpatenti. Such registration entitles the holder to prohibit unauthorized use of his/her trademark or design. The validity term of the registration is 10 years with possibility of its further extension.
Georgia is a civil law country. The court system in Georgia has three branches: Courts of First Instance (District or City Courts), Appellate Courts and the Supreme Court. First Instance Courts have jurisdiction over all civil, criminal and administrative cases. Decisions from First Instance Courts may be appealed to the Appellate Courts, and from there to the Supreme Court.
The Constitutional Court of Georgia is the sole organ of constitutional jurisdiction of Georgia.
As an alternative to litigation, Georgia allows for third party arbitration. Georgian law also allows foreign companies to include provisions in their contracts (including those with Georgian entities) that allow for arbitration by international arbitration institutions.
Our law firm VLO provides legal services for corporate and private clients in Georgia. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Georgia