Georgia’s strategic location is an asset for any investor. Same work as a bridge between Europe and Asia, Georgia offers direct access to European, GCC and CIS markets. That the reason same i.e. Georgia is also known as a gateway between Europe and Asia which provide benefits to investors in the manufacturing sector. Labour, energy cost is available at competitive rates in Georgia. Georgia has been rated as the world’s one of the best countries for doing business on the basis of its business requirements, pro-business and corruption free government, and stable banking sector. Georgia is also well known for a corruption-free environment for serving the region, as well as numerous preferential/free trade agreements. Georgia is open for foreign direct investment (FDI) with the most investment friendly environment; same treat its local and foreign investors equally.
Georgia manufacturing contributes 11% of its GDP same also a major contributor in generating 5% of employment. As Georgia has a big amount of water resources, the access to water is easy and cheap. Other utility prices such as energy and gas are low also. The food and non-metallic mineral products industries provide the largest industrial base in Georgia. On the other hand chemicals and food are the fastest growing sectors in Georgia. Free Industrial Zones established in Georgia has come up with new opportunities to produce and export goods with a minimal tax burden – in the Free Industrial Zone (FIZs), businesses are exempted from all tax charges except Personal Income Tax.
Other format availability to work in Georgia:
- 100% state-owned investment fund;
- Operating fields: Energy, Hospitality & Real Estate, Manufacturing, Agribusiness;
- Finances up to 49% of the equity in new investment projects.
Manufacturing in Georgia:
Mission: Supporting of manufacture and agriculture industries.
- Subsidies for loan interest payment;
- Free lands/buildings for factory construction.
Free Industrial Zones (FIZs):
- Four Free Industrial Zones (FIZs) operate in Poti (sea port), Kutaisi (second largest city) and Tbilisi (capital city);
- If a company produces goods for export in Free Industrial Zones (FIZs), it is exempt from all taxes except;
- Personal Income Tax (20%), which is paid from employees’ salaries.
Georgian Co-Investment Fund (GCF):
- USD 6 billion private equity fund;
- Investment sectors: Energy & Infrastructure, Hospitality & Real Estate, Manufacturing, Agriculture, Logistics;
- Minimum Project Size: USD 5 Million;
- Georgian Co-Investment Fund (GCF) equity stake in projects: 25%-75%.