Georgia

Why trade or invest in Georgia?

Georgia is located in the wrinkled Alpine zone, in subtropical zones of northern periphery between the 41° 07 and 43° 35 latitudes and West 40° 05 and 46° 44 longitudes. The border length is 1970 km, 315 km of which (16%) is coastline. The country is bounded by the Russian Federation to the north, by Azerbaijan to the east, by Armenia and Turkey from the south, and by the Black Sea to the west.

Georgia's main economic activities include cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals in small-scale industries. The country imports nearly all its needed supplies of natural gas and oil products. It has sizeable hydropower capacity that now provides most of its energy needs.

Over the last few years Georgian economy has been one of the fastest in the FSU. Since 2003's Rose Revolution, the new Government of Georgia implemented broad and comprehensive reforms, that touched every aspect of the country’s life. Economic reforms were addressed to liberalization of the economy and provision of sustainable economic growth, based on the private sector development. Establishment of an attractive business environment led to significant inflow of Foreign Direct Investment in the country, facilitating high economic growth rates.

In 2013, Georgia ranked in the top ten countries internationally in the Emerging Market Energy Security Growth Prosperity Index, according to an article published by CISTRAN Finance news. The index identifies emerging nations that have strong growth potential based on energy reserves and GDP.

Stable economic development, liberal and free market oriented economic policy, 6 taxes only and reduced tax rates, reduced number of licenses and permissions, dramatically simplified administrative procedures, preferential trade regimes with foreign countries, advantageous geographic location, well developed, integrated and multimodal transport infrastructure, educated, skilled and competitive workforce presents a solid ground for successful business in Georgia.

Since January, 2011 the new Tax Code came into force. It unifies the old Tax and Customs Codes. The new Tax Code increased confidence towards the Georgian tax system and enhanced trust in the Georgian tax authorities, by improving communication between taxpayers and the tax authorities, by protecting the taxpayers’ rights, by making administration more efficient, and by harmonizing the Georgian laws with the best international tax practices and EU directives.

Tourism is one of the fastest growing sectors of the Georgian economy, which has high potential for further development.

Georgia is one of the key members in international TRACECA programme due to its important geographical and political location. Since it is situated right in between of Europe and Asia, the country is supposed to become a busy transitional hub of a modern Silk Road in the near future. On March 11 of 2015, Georgian media declared that the Chinese and Georgian companies have reached an agreement in Beijing concerning the developing of the deep-water port at Anaklia, which existence is crucial for the TRACECA route.

Some particularities of the Georgian legal system you should know

In Georgia, in the hierarchy of norms, an international treaty takes the next highest rank after the Constitution, as per Article 6 II. It enters into force in compliance with Article 65 of the Constitution (in some cases after being ratified by Parliament). Thus it is not necessary to adopt a special normative act on the enactment of its provisions.

After the Constitution and international treaties come laws. There is a difference between “ordinary” and organic laws. Article 66 of the Constitution states that the consent of the majority of Members of Parliament is needed for the adoption of an organic law. Organic laws are on a higher rank than ordinary laws and are adopted for the implementation of a particular requirement of the Constitution.

Georgian law, like Romano-Germanic law, is divided into public and private law-order. Public law comprises constitutional, administrative and criminal laws as well as customs, taxation and procedure legislation. Traditionally civil and company law fell within the scope of private law. Today such a division has retained its practical importance for the classification of legal acts and the identification of the course of justice.

Georgia adopted a new law of on Legal Status of Alien and Stateless Persons that went into effect on 1 September 2014.  The list of countries whose citizens have the right of visa-free entry to Georgia is no longer provided in the new law, it is determined in the separate ordinance of the Government of Georgia.  The visa-free list was re-approved on 9 June 2015.

In February 2015 Georgia launched an e-VISA portal allowing citizens of countries that are required to obtain a visa to do so online without a visit to the Georgian diplomatic mission or consulate.

Whom we work for

A-LAW Georgia desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, migration law, liability law and debts recovery (bankruptcy, administrative fines).

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products exported from or imported into Georgia have been assessed through A-Law dedicated team.