When we imagine a businessman, we imagine a confident, agent 007 type person, one lucky man. But what usually stays behind the curtain is the fact that the road to a successful business isn’t always rainbows and flowers. There are so many tiny details and obstacles that go into work. Especially in the first year, and especially if you’re planning to start your business somewhere you’re not familiar with, for example, in Georgia. Yes, Georgia. It may not be on your mind as a great first option to start your own business, be your own boss and it may seem like it’s not an obvious choice, but hear me out.

Georgia is a country of many opportunities, moreover, its economy is considered to be one of the fastest-growing economies in whole Eastern Europe with the agricultural sector, real estate and hospitality and tourism as the leaders, adding their contributions to the growth of its economy. Yes, each year approximately a million tourists visit Georgia and leave a big chunk of money- around US $313 million. Tourism is a big deal in Georgia, shaping the whole industry dynamics. Lying right on the boundary on Europe and Asia and having a good economic relationship with Azerbaijan, China, and Iraq makes Georgia a very perspective country for various businesses. Here I present a few fields you should think to invest in.

Fresh Fruit and Vegetables Stores.

The agricultural sector is very cost effective and profitable business in Georgia. It does not require special technical skills, just make sure you have an endless source of fresh fruits and vegetables and you’re located in tourism-heavy place. This way your business will skyrocket. Who doesn’t want fresh fruit on a blazing hot day after visiting many interesting sights in Georgia?

Restaurants, Cafes, Bars.

Again, with tourism directing the whole market, restaurants, cafes, and bars become more and more profitable businesses. Note to remember a restaurant business is a very competitive field, so you need to assess every risk before you decide to enter in. But if you’ll be able to transform bars and restaurants into nightclubs with live music and DJ you will get even more profit. Georgia is thought to be the next Berlin, with the raving scene and techno music becoming more and more popular. Considering the fact, that tourists visiting Georgia are often young people exploring an underground culture of Tbilisi, it can be safely said that the nightclub will definitely be a top priority on their bucket list.

Real Estate Industry.

There are many ways to gain profit in the real estate industry. You can buy houses or flats in Georgia and then rent it on Airbnb for foreign tourists, you can invest in constructions or you can become a real estate agent yourself. Either way, the real estate industry is considered one of the most profitable business fields in Georgia.

 

What are The Technical Procedures You Need to Go Through?

  • Opening a new business is becoming easier and faster for foreign investors. Back in the days, the decree on business registration was available only in Georgian and people who sought to open business had to translate it, which took time and money. But with the growing number of investors wanting to invest in the Georgian economy, the government created a template of the decree on business in English. Now, this document is also available in English language and can be found on the webpage of the National Agency of Public Registry of the Ministry of Justice of Georgia. 

Unfortunately, this template is only for Limited Liability Companies, but the Georgian government is planning to translate it for all types to make its business legalization process easier for investors.

  • You need to submit a completed application, a notarized copy of your company charter, and a document proving that you paid the registration fee. It also requires confirming your company’s registered address and the written consent of your company’s appointment director to serve in the mentioned position. After that, just open a bank account in the local bank.
  •  As already mentioned, the registration process goes through the National Agency of Public Registry. If you are an individual entrepreneur will have to pay 20 GEL for registration in one working day and 50 GEL if you want to speed up the process and get the registration document on the same day. For Joint Liability Company; Commandant Society, Limited Liability Company (LLC), Joint Stock Company (corporation) and cooperative registration you will pay for registration 100 GEL in one day and on the same day you will pay 200 GEL.
  • There are several types of companies: Limited Liability Company, Joint Stock Company, Joint Liability Company, Limited Partnership, Cooperative, and Individual Entrepreneur. Choose a suitable type for your company. The most popular in Georgia is Limited Liability Company.

What is The Tax System in Georgia?

There is a corporate tax rate of 15 percent, a flat income tax rate of 20 percent, a 5 percent tax on dividends and interest and a 1 percent tax on property. The big kudos, there is no capital gains tax.

What about Visas?

  •  Business visa- You can receive a business visa if you are able to invest no less than 300,000 GEL. In that case, you will be given permission of the permanent residence.
  •  Diplomatic visa-  If you have a specific business purpose you can request a diplomatic visa, either A5 or A1 type.
  •  C3 visa- Ordinary type visa can be used if you arriving for a short period of time, for business negations.

P.S Are you planning to start a business but don’t know how to hire locals ? Check out this article.