ABOUT GEORGIA

Amongst all the countries in the Caucasus region, Georgia, officially the Republic of Georgia, is a transcontinental country located at the crossroads of Eastern Europe and Western Asia. It is bordered by the Black Sea to the west, offering strategic maritime access. Georgia is renowned for its diverse landscapes, including the majestic Caucasus mountains, Black Sea coastline, and fertile valleys, alongside a rich history, ancient culture, and unique winemaking traditions. The capital of Georgia is Tbilisi, which is its largest and most populous city, serving as the country’s main economic, cultural, and political hub. According to the World Bank, Georgia is classified as an Upper Middle-Income Economy, having achieved significant economic growth and reforms in recent decades, with a clear path towards deeper integration with the European Union. The currency of Georgia is the Georgian Lari (GEL), and the value of 1 Indian Rupee is approximately 0.033 Georgian Lari (or 1 GEL is approximately 30.30 INR) as of today’s exchange rates (June 2025). The population of Georgia is estimated to be around 3.7 million in 2024. Its neighbouring countries are Russia to the north and northeast, Azerbaijan to the southeast, Armenia to the south, and Turkey to the southwest. The official language of the country is Georgian, written in its unique script, with English and Russian also spoken, especially in business and tourist areas. The majority of the Georgian population practices Eastern Orthodox Christianity (Georgian Orthodox Church), with smaller communities of Muslim, Armenian Apostolic, and Roman Catholic faiths. Currently, Georgia has three major international airports: Tbilisi International Airport (TBS), Kutaisi International Airport (KUT), and Batumi International Airport (BUS), facilitating excellent global connectivity. As Georgia borders the Black Sea, it has several key commercial seaports, including Poti, Batumi, and Kulevi, which are crucial for facilitating international trade and serve as important transit hubs for goods moving between Europe, Central Asia, and the Caucasus.

The corporate income tax rate in Georgia is generally 15%. However, Georgia operates an “Estonian model” of corporate taxation, meaning that corporate income tax is only paid on distributed profits (e.g., dividends). Reinvested profits are not subject to corporate income tax, effectively making the rate 0% on reinvested earnings. Additionally, Georgia offers significant tax incentives, including special tax regimes for Free Industrial Zones (FIZs), which offer exemptions from profit tax, VAT, property tax, and customs duties for manufacturing and trading activities within these zones. The “Virtual Zone” status for IT companies and “International Company Status” for certain IT and BPO firms also offer preferential tax rates (e.g., 5% corporate tax and 0% dividend tax). Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Georgia is known for its remarkable ease and speed, consistently ranking high globally for its streamlined registration process. The Invest in Georgia agency, under the Ministry of Economy and Sustainable Development, is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Georgia can form various company types, such as a Limited Liability Company (LLC), a Joint Stock Company (JSC), or a Branch Office. A Limited Liability Company (LLC) is the most common and flexible form, allowing 100% foreign ownership with no minimum share capital requirement, making it an ideal choice for most foreign entrepreneurs.

In case an investor is planning to establish an LLC in Georgia or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Georgia and we will also guide you about how to follow the procedure while formulating your company in Georgia.

Types of Business which can be started in Georgia:

• Tourism & Hospitality: A rapidly growing sector, leveraging Georgia’s diverse attractions (mountains, Black Sea, historical sites, wine regions). Opportunities are immense in developing hotels, resorts, guesthouses, specialized tourism (adventure, medical, wine tourism), and related services.
• Logistics & Transport: Georgia’s strategic location on the East-West Middle Corridor (connecting China to Europe) makes it a critical transit hub. Opportunities exist in developing logistics centers, warehousing, multimodal transport solutions, port development (e.g., Anaklia Deep Sea Port), and freight forwarding.
• Agriculture & Food Processing: With fertile land and diverse climate, Georgia excels in producing wine, hazelnuts, tea, fruits, and vegetables. Opportunities lie in modernizing farming techniques, organic agriculture, and especially in value-added food processing for both domestic consumption and export.
• Energy (Hydro & Renewables): Georgia has vast hydropower potential and growing interest in solar and wind energy. Opportunities exist in developing new hydroelectric power plants, solar and wind farms, and improving energy infrastructure to become an energy exporter.
• Information Technology (IT) & Business Process Outsourcing (BPO): With a skilled, young workforce and favorable tax regimes (like Virtual Zone and International Company Status), Georgia is emerging as an attractive destination for IT services, software development, BPO, and shared service centers.
• Manufacturing: Opportunities in light manufacturing, including textiles, building materials, and consumer goods, are growing, often within Free Industrial Zones that offer significant tax benefits and competitive labor costs for export-oriented production.
• Real Estate & Construction: Driven by tourism, foreign investment, and infrastructure development, there is significant demand for residential, commercial, and hospitality property development and construction services.
• Healthcare & Education: Investment opportunities exist in modernizing healthcare facilities, specialized clinics, and developing private educational institutions to meet growing demand.

Advantages of Starting Business in Georgia:

• Strategic Geographic Location: Positioned as a bridge between Europe and Asia, offering access to markets in the EU, CIS, and the Middle East.
• Liberal & Transparent Business Environment: Consistently ranked among the top countries globally for ease of doing business, with simple regulations and minimal bureaucracy.
• Low & Attractive Tax Regime: Features a 0% corporate tax on reinvested profits and other significant incentives for specific sectors and zones.
• Free Trade Agreements: Extensive network of FTAs, including with the EU (DCFTA), China, Turkey, EFTA, and CIS countries, providing preferential access to vast markets.
• EU Candidate Status: Recent granting of EU candidate status underscores its commitment to reforms and further integration with European standards.
• Low Corruption: Significant progress in combating corruption, contributing to a secure investment environment.
• Competitive Labor Costs: Offers a cost-effective yet skilled workforce.

Business Opportunities for Indians in Georgia:

There are excellent business opportunities in Georgia for new investors who are planning to start their business abroad. Georgia’s open economy, strategic location, and investment-friendly policies make it an attractive destination. Indian investors, with their strengths in pharmaceuticals, IT services, manufacturing, agriculture (especially food processing and winemaking), and infrastructure development, can find significant avenues for investment and partnership. Georgia can also serve as a cost-effective gateway for Indian businesses to access the broader European and CIS markets.

Imports & Exports:

Many goods are imported and exported from Georgia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Georgia to India:

• Fertilizers (particularly mineral or chemical fertilizers)
• Copper ores and concentrates
• Iron and steel products
• Scrap metal
• Wine and alcoholic beverages
• Hazelnut
• Medicinal and aromatic plants

Major items which are imported in Georgia from India:

• Pharmaceutical products
• Cereals (especially rice)
• Machinery and mechanical appliances
• Textile yarns and fabrics
• Organic chemicals
• Articles of apparel and clothing accessories
• Vehicles and parts

Manufacturing:

Opportunities in manufacturing are growing, particularly in Free Industrial Zones (FIZs), which offer significant tax advantages. This includes light manufacturing (e.g., textiles, footwear, building materials), food and beverage processing (e.g., wine, fruit juices, dairy), and potentially automotive components, leveraging competitive labor costs and access to regional markets.

Mining:

The mining sector in Georgia primarily involves copper, gold, manganese, and certain industrial minerals. Opportunities exist in modernizing existing mining operations, improving extraction and processing efficiency, and exploring new deposits, with a focus on environmental sustainability and responsible mining practices.

Major Indian companies which are currently working in Georgia:

While the presence of large-scale Indian corporate manufacturing setups in Georgia might not be as extensive as in some other regions, Indian businesses have a growing presence through trade, partnerships, and specific investments:

• Pharmaceutical Companies: Several Indian pharmaceutical companies maintain a significant market presence through the import and distribution of medicines.
• Agro-processing/Food: Some Indian investors have shown interest or invested in Georgia’s agriculture and food processing sectors.
• IT Services: Indian IT firms may have smaller operations or engage in partnerships within Georgia’s burgeoning tech sector.
• Trade: Various Indian companies are actively involved in bilateral trade, facilitating the import of Georgian products and the export of Indian goods.
• GDP = $30.78 billion (2023 est.)
• GDP Growth = 7.8% (2023 est.), 9.5% (2024 est. by EBRD)
• Ease of doing business rank = 3rd globally in the World Bank’s new Business Readiness (B-READY) index (as of 2024, replacing the former ‘Doing Business’ report).
• GDP per Capita = $8,250 (2023 est.), $9,141 (2024 est.)

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