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As business enterprises look for ways and means to expand their operations, achieve growth and increase profitability, they also need to leverage various channels of growth including establishing their businesses in a foreign land. For this can offer tremendous advantages such as access to financial resources, low cost and skilled workforce as well as an improved quality of life. The global expansion of businesses certainly opens up new channels of sustainable growth and profitability. However, deciding upon the location can be a tricky affair as it requires a sound knowledge of the investment climate, tax regulations, governance, infrastructure, policy matters, and other factors.

Thus, it is crucial to seek professional advice from a consulting agency to take a sensible decision and fulfil your business goals. With a pool of highly skilled labour and the presence of diversified investment sectors along with a perfect combination of moderate regulations and low cost of operations, Georgia has created a ripple among the global investors. Here is a list of factors explaining why Georgia is an ideal place to expand your business globally:

It is all about the most valuable resource- human resource

The most crucial factor in the assessment of a business-friendly location is its people. Without an adequately trained workforce, it is difficult to run operations that can bring in success. In this context, Georgia seems to have surpassed expectations. The country offers a pipeline of young, dynamic and efficient human resource that is multilingual and possesses high academic qualification and professional expertise. Apart from that Georgia has a liberal labour code as evident from its healthy labour freedom index score of 77.3 out of 100. The average salaries of employees are very competitive when compared to other countries in Europe. Thus, the business setup in Georgia has become a lucrative option among investors.

Cross border relation- free trade agreement with the European Union:

A business agreement has been signed between Georgia and EU in 2014 to facilitate cross border business and a free flow of trade. As a result, business interaction has seen a quantum leap between Georgia and several other countries of the EU. Thus, setting up a business in Georgia has become easier due to the prevalence of lesser import and export costs compared to other continents. Georgia has created opportunities for investment in other countries by introducing conducive business regulations.

Low rate of corporate and income tax

As we all know the rising cost of operations is one of the main concerns for any business. Apart from the direct costs of operation (personnel, cost of renting a space etc), the indirect costs are also crucial to impact the productivity and bottom line of the businesses. Georgia has introduced deemed repatriation to modify its income and corporate tax base. In this deemed repatriation process, Georgia has introduced a lower tax regime – a flat income tax rate of 20% and a corporate tax rate of 15%. Apart from that organizations don’t need to pay any profit tax should they plan to reinvest in a business set up in Georgia. Also, the cost of operating a business has become relatively lower than other countries in Europe thanks to the business-friendly tax rates in Georgia.


Georgia has emerged as a business friendly country in the last few decades due to its strategic location, an open market economy, a business favourable tax structure, and a skilled labour pool among others. Any business set up in Georgia would involve a set of activities, which are duly taken care of by Kaukapital Consulting as it goes about ironing out the unanticipated challenges.




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