Is your business braving the odds while operating in your host country? The odds can be in the form of an avalanche of taxes, stiff competition, and a labyrinth of rules and protocols? In the world of business, risk taking has become a cliched term. However, risks can go both ways – take your business to the heights you have not bargained for or drag it down to the pits wherein it becomes very difficult to recover. Does this mean you should not bite the bullet of taking risks?
The global business environment can be leveraged to your benefit provided you move to a place where there are less of headwinds and more of tailwinds. Georgia, one of the fast developing regions in the world, offers tailwinds for businesses thanks to a slew of positives.
What makes Georgia an attractive investment destination?
- Strategic location between Asia and Europe
- Prevalence of business friendly policies
- Availability of skilled human resource
- Tax incentives to lure businesses
- Attractive tourist destinations
- Robust infrastructure
- Credible ratings by international agencies
- Favourable trade treaties signed with leading trade blocs
- Presence of free zones to help businesses flourish
Although located on the fringes of Europe, Georgia has a lot to offer whether making it a home or to set up an offshore company. It is better to look at some indices before deciding to move/relocate your business.
# Ease of doing business: No business can operate let alone prosper in an environment where there are a plethora of rules, protocols or headwinds. Businesses want a stable environment where the rule of law and consistent policies ensure a level playing field. This is where Georgia scores big as validated by the World Bank in its doing business survey in 2016. It is surprising that the country had outperformed Switzerland, Poland, and the Netherlands, countries traditionally known as economic powerhouses. The other metrics where Georgia fell in the top bracket were starting a business (6th), property registration (3rd), and credit access (7th).
# Income tax rates: High tax rates are one of the reasons for people to feel stifled and move out. Georgia levies a flat 20% rate on income tax, the best one in the OECD region save that of Hungary. The country has a total of six taxes that are even lower. For example, a 15 percent corporate tax, five percent dividend tax, and just one percent property tax. The best part is that Georgia does not levy any taxes on income earned from abroad. This alone makes setting up an offshore company in Georgia a rewarding proposition.
# Absence of red tape: This is one of the reasons why Georgia scores high on the ease of doing business index. Should you want to set up a business, you need to follow only two procedures. These are the submission of application form along with the requisite documents and opening a bank account. Isn’t this something to marvel at, especially when countries say one thing to attract investments but do not help much at the ground level.
The positive business environment provided by Georgia to set up an offshore company can help your business enjoy the much needed level playing field. In the competitive global business environment where inputs costs are rising in contrast to a shrinking customer base, setting up a company in Georgia can be your best bet.