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georgia_general_information گرجستان در یک نگاه (درباره گرجستان)

Georgia at a glance (About Georgia)

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General Studies on Georgia


1.1 Geography of Georgia

Georgia is located in the South Caucasus with the local name "Sakartolo" and covers an area of ​​69,700 square kilometers. The Georgian capital is Tbilisi and the country is divided into 9 districts (Gori, Emereti, Kakheti, Kumo Kartli, Metskheta-Matiani, Racha-Lechkhumi and Kumo Cianti), 65 districts, 5 independent towns of the regions (minus Abkhazia and Tskhinvali). The major cities by population are given in Table 1.

It is bounded on the north by Russia, on the east by the Republic of Azerbaijan, on the south by Armenia and Turkey, and on the west by the Black Sea. Much of the land is rugged and mountainous, with the highest point being the 5069-meter-high Shakara Mountain.

Table 1 Important Cities of Georgia by Population *

Category City Name

Name of the area

population

1

Tbilisi Tbilisi

700 158 1

2

Kutaisi Imereti

000 507

3

Rustavi Kvemo Kartli

300 432

4

Batumi Adjara

300 346

5

Zugdidi + Abkhazian immigrants Samegreto-Zemo Svaneti

800 320

6

Telavi Kakheti

700 314

7

Gori Shida Kartli

300 259

8

Tori Samtskhe-Javakheti

900 155

9

Ozurgeti Guria  110 500

10

Mtsketa Mtsketa-Mtianeti 200 93

 

Georgia at a glance (About Georgia)

1.2 - Social status and anthropology

 
The following are remarkable about the culture and social customs of the Georgian people:

    Georgian culture has been influenced by all of these cultures due to numerous wars and hostilities by powerful regional governments, including Russia, Iran, Rome and Ottoman Empire.
    About 75% of Georgians are Orthodox Christian, 11% are Muslim, 8% are Armenian and 6% are other extremists. As seen in social and business venues, the people of the country adhere to religious practices.
    The second most common language in Georgia is Russian. Almost all people are able to speak Russian.
    Individuals who are able to speak English in Georgia are more limited to business owners and to a select group of educated people. In recent years, the replacement of English instead of Russian has accelerated, but don't expect to be able to use English in offices, on the street (and sometimes even in hotels).
    It is possible to use Turkish (Azerbaijani) and Armenian languages ​​depending on the case but is not widespread.
    The literacy rate in Georgia is 99%.
    The author's experiences show that Georgians are less sensitive to time than most southern CIS countries.
    In terms of adherence to the agreements, Georgians were generally known for adhering to their agreements and contracts, but it seems unlikely in recent years that adherence to contractual obligations and the ability to abide by the agreements will be reduced.
    Georgians are open-minded in their trade negotiations, yet warm and emotional. They simply express their negative or positive attitude towards a proposal or behavior. This behavior should not be viewed as their hostile position in the negotiations.

 

1.3 Ease of Business in Georgia


Deciding to enter any new market as an investor requires knowledge of certain indicators. One of these indicators is "ease of doing business". This index is calculated by studying laws and regulations, by expert experts including government executives, lawyers, management consultants, accountants and experts from 183 economies across the world, who generally play the role of legislator and regulator.

The Business Ease Index is calculated by examining regulations that directly affect business activity rather than general conditions such as proximity to large markets, infrastructure quality, inflation, or crime rates. The rankings of each country's business ease index are derived from the average of the following 10 sub-indices:


Starting or Starting a Business (Procedures, Time, Cost and Minimum Capital to Start a Business),
Getting a construction permit (procedures, duration, and cost of building a warehouse),
Worker Recruitment (Difficulty of Employment, Flexibility of Working Hours, Difficulty of Labor Redundancy Index [Ease of Dismissal], Difficulty of Employment Index, Dismissal Costs)
Asset registration (procedures, timing and cost of commercial property registration),
Investment protection (indicators related to the scope of business information disclosure, the scope of manager's legal responsibility and the ease of litigation of shareholders),
Tax payment (variety of taxes payable, hours spent per year adjusting tax return and total tax payable as a share of gross profit),
Foreign trade (number of documents, cost and time required for export or import),
Contract (Procedures, Time and Cost of Contract),
Liquidation of a business (Recovery rate index as a function of time, cost, and other factors such as borrowing rate and probability of business standing)


For example, according to the Business Activity Report 2010, Australia ranks third after New Zealand and Canada in the Business Startup Index. In Australia, 2 procedures are needed to start a business that takes an average of 2 days to complete. Its administrative cost is 0.8% of GDP per capita. There is no limit to minimum investment. Conversely, in Guinea-Bissau, which has the worst (183 out of 183) business environment in terms of the same index, the formalities for establishing a business take 213 days. Its administrative cost is 323% of gross national income, and the minimum capital required to establish a business is 1006.6% of gross national income.

Although the appearance of lower and simpler rules often means higher rank, this is not always the case. Protecting the rights of lenders and investors, for example, requires more regulation and enforcement.

A look at Georgia shows that the index has been improving in recent years. We have looked at the index from two angles: the trend of Georgia's ease of doing business over the last 5 years, and the comparison between different countries in the world in 2012. The ratings of these ratings vary slightly by different institutions. For example, the Business Activity Index (DBI) announced by Business Environment Snapshots for Georgia in 2011 was 12 and the ranking posted by Doing Business website was 17. Both of these websites are affiliated in some way with the World Bank (WB) and the International Finance Corporation (IFC). The reason for this difference is the inclusion or omission of some sub-indicators (eg, hiring a worker and getting a power outlet). Table 2 shows the ratings of Georgia's ease of doing busines

 

Table 2 Ratings of Georgia Business Ease of Rating

Rating index Business Activity Rank 2012 Business Activity Rating 2011 Change rank
Business Establishment

7

8

1

Getting a construction license

4

6

2

Getting a Power Branch

89

91

2

Land Registry

1

2

2

Get a loan

8

21

13

Investor support

17

21

4

paying tax

42

62

20

Foreign trade

54

34

20-

Contract

41

40

1-

Fixing the financial shortage

109

111

2

 

See Table 3 to get a measure of business climate indicators in Georgia and other economies.

 

Table 3 Comparison of Some Indicators of Georgia Business Ease with Average of Regional Economies

Index

OECD

Eastern Europe and Central Asia Georgia
Procedures (number)

5

6

2

Duration (days)

12

16

2

Cost (% of income per capita)

7/4

3/8

3/4

Minimum paid up capital (% of income per capita)

1/14

10

0

Table 4 Indicators of Business Ease in Georgia

Row procedure

Duration of execution

Related costs

1

Paying the registration fee at the Entrepreneurship Registration Office and getting a government registration and tax number and tax registration 1 day GEL 100

(Registrar) Or

GEL 200

(Quick registration) +

+ GEL 1

(Banking fees)

2

Opening a bank account day 1 no fee

 

1.4 Georgia's political space

Georgia's independence from the Soviet Union coincided with the start of disputes with Abkhazia and Ossetia. These wars ended with foreign intervention in the year 94, but it is natural that post-war conditions and economics could open the door to economic corruption. This led to the victory of the Rose Revolution in 2003 with the slogan of restoring transversal integrity, reducing corruption and improving the economic situation. In parallel with the victory of this revolution, international credit organizations such as the IMF, the World Bank and the Eastern European Development Bank came to Georgia and improved the economic situation there relatively. From this period onwards, there were numerous political trends in Georgia. It should not be forgotten that most of the country's financial resources are also under the influence of politically influential.

 1.5 Legal space in Georgia


In Georgia, as in other countries that are recovering from war and transitioning from a war economy to a stable economy, the legal environment for economic activity is mixed with change, trial and error. But as the years of war go by, the stability of the laws will gradually dominate Georgia's economic climate. It should not be forgotten that the laws governing the economic activity of foreign nationals in different countries are subject to the economic status of that country. Thus, in countries that are rich and rich due to their mineral resources, energy resources and other natural resources, the law of investment by providing tax and customs rebates as well as by releasing the foreign party to transfer their profits abroad, To encourage investment in their home country and to prevent a complete transfer of ownership of immovable property by a foreign investor. In rich countries, they also generally impede the transfer of all legal entity shares to foreign nationals, such that there is always an individual or individuals of the nationality of the investee country on the board of directors of the investor's legal personality. In poor countries, the mechanisms are the opposite, as taxes and other taxes are important sources of government revenue and so the government cannot afford to ignore them. In simpler terms, the government provides legal space for transferring 100% ownership to a foreign investor to encourage a foreign investor, and even transfers the plot of land without a local partner in the name of the investor, but does not provide much tax deductions to the foreign investor. . Although Georgia is practically classified as a second group, over the past two years the Georgian government has tried to add some tax deductions to its attractions to investors, the results of which are actually visible.

    After transferring 100% of the project to a foreign investor, it is also permissible to allow the definitive transfer of all commercial, residential, and sports land to a real foreign legal investor. At the same time, the law also permits the transfer of agricultural land to Georgian legal entities whose 100% shareholders are aliens.
    A foreign investor can even buy or establish monetary-credit institutions such as banks,
    Complete transfer of investment income abroad is free,
    Notwithstanding this immovable property transfer tax, the income tax and the value added tax shall be levied from the foreign investor and local nationals in the same manner and manner except in the Free Trade Areas and Public Warehouses, which shall be explained further in this leaflet.

Georgia's important rules in terms of space analysis for the issuance of engineering and contracting services are as follows:

    Investment Status Development Act,
    Customs law,
    The law of free zones,
    Bank Law and Insurance, and
    tax laws.

2 access

Exporters of technical and engineering services and contractors, by their type and nature of activity, are required to be in direct contact with the target market and to dispatch on-site, in addition to personal, occasional, on-site alternatives, managers, experts, inspectors and supervisors. . Therefore, "access" to such technical and engineering services as well as to investment finds such an important position that it can (even in some cases) overshadow the other elements of market study alone.

 

2.1 Ground Access


Due to the enormous importance of land transport in providing the necessary materials for investment as well as the export of technical and engineering services, land access surveillance is of paramount importance. Georgia and Iran do not have a common land border and therefore must be accessed through one The countries that share both Iran and Georgia traveled there. The closest route between the three countries (Turkey, Azerbaijan and Armenia) is via the Republic of Armenia and the Republic of Azerbaijan, but due to the need for a visa to cross the territory of the Republic of Azerbaijan (as well as the Republic of Armenia) on the one hand and no need for a visa to pass through Turkish soil currently transports most of the land freight as well as road travelers via the Turkish route. This corridor itself has 2 paths. Closer to Ardahan Damal Road after crossing Bazargan border and crossing Doghobazid cities, Igdir, Kars, Ardahan, Hanak, Damal, Pusov, Gumush Kawak, Interbashi Amin Bahi, Wali (Damal Yulo, Blue Line) We will reach the "Turk Gazo" between Georgia and Turkey. The name of the border crossing on the Georgian side is "Vale (or Vale)". The distance from Bazargan border to Turku Gazo border is 390 km. The above road, especially after Ardahan, is under repair and under construction at some point. It is more than 250 kilometers from the Chahar Band Road, but near the Georgian border, mountainous and impassable. On the other hand, it should be remembered that this route (especially after Ardahan) is extremely poor on road signs and other safety factors such as Garderel and New Jersey and is therefore not recommended in the winter season. And we will reach the towns of Akhalchikha, Bourjoum, Khashuri and Gori, which is also mountainous in terms of traffic, but much safer in terms of traffic and guard traffic and New Jersey than the Turkish route.

This route is long for traveling to Black Sea ports (Batumi and Puti) and is not economical given the high gasoline prices in Turkey and Georgia. Therefore, it is advisable for land travel as well as land transport to (or from) the above ports in Georgia after "Kars" to Shavushat, Artvin, Borchka, Hupa, Kamal Pasha, Batak (Red Stripe), and continue after crossing. He left the Sarpi border in Georgia to the above ports (Figure 1 map). He points out that according to the bus drivers, the Tbilisi route through the Vale border had no insurance coverage for the buses and the buses were always through the Sarpi border (the second land route in this report)

 

Figure 1 Route of Bazargan, Doogobazid, Aqdir, Kars, Ardahan, Shawshat, Artvin, Borchka, Hupa, Kamal Pasha, Batangi (Red Stripe), and Bazargan, Doogobazizid, Aeghdir, Kars, Binzak, Hanumak, Hanumak, Hanak Amin Bahi, Wali (blue marker)

 

They travel. However, objective observations indicate that the export of Iranian goods to Tbilisi mainly transits the Vale border. For those traveling to Georgia from Ardebil, Gilan or other northern provinces, the best route can be the rail route through the Republic of Azerbaijan. At the time of this report, there were not a few people traveling to Georgia via land.


2.2 Telecommunications and Internet

The use of telecommunications facilities has become one of the most pressing needs of human societies and has a vital place in business. Therefore, having real and objective information about the target market telecommunication facilities has a great part to accelerate the exchange of information and thus the success of the business flows. Accordingly, we needed to provide a brief description of Georgia's telecommunications facilities.
2.2.1 Fixed telephone network

The fixed telephone network in Georgia is well-known, but objective observations suggest that people prefer to use cell phones. On the other hand, all government offices and most private offices are equipped with a fax machine, but due to the limitations of the system such as higher cost and lower security, e-mail is preferred over fax.
2.2.2 Mobile network

There are several mobile phone operators in Georgia that each have advantages and disadvantages, such that even native people usually have two or even three subscriptions from different operators in order to take full advantage of them. In this section, three major operators are presented and a brief description of the advantages and disadvantages of each from the perspective of an Iranian economic activist:

1. Online: It is one of the famous operators which is very popular due to the low tariffs, contact with Iran and also the ease of contact with Iranian activists residing in Georgia. But because of the lack of 3G system it cannot be used for data transfer, internet or GPS. Also, this operator is not roaming in Iran and therefore, those wishing to control their bank account in Georgia cannot receive SMS of their banking transactions in Georgia.

2. Magti: One of the oldest mobile phone operators in Georgia. The external call tariff of this operator is more expensive than "Offline" but since it is the only roaming operator in Iran, all Iranian economic operators who have accounts in Georgia and are willing to receive remittance messages as well as those who alternate in Iran and Georgia reside, usually using this operator.

3. Geocell: It is the most expensive operator in terms of tariffs but due to its wide coverage network, 3G system and many other locales are very popular. So when getting advice on buying a cell phone line, Geocell is one of the locals' suggestions.

2.2.3 Internet

In Georgia, the Internet has a significant influence on people's daily lives. Almost all rental homes with water, electricity and gas must have high speed internet, even though they do not have a landline. It is possible to subscribe to multiple ISPs in most major cities with wireless and wireless internet access. The author's research suggests that there is little difference between the price, speed, and quality of different IPS services. Some of the public services are currently being provided over the Internet, and the government intends to develop them. For example, all documents filed in notaries, such as legal representation, transfer documents, etc., can all be intercepted through the Internet. The official suffix for Georgia is ge.

3 Economic Studies


3.1 Georgia's credit risk assessment from the perspective of international organizations

To have a good prognosis of Georgia's credit risk environment, it needs to be queried from several sources. The rules are the best references to export guarantee agencies that integrate

Country risk analysis institutions such as Standard & Poor's, Fitch's and Modi's provide detailed information along with other information and components. Georgia's credit risk has been Ba2.

 
3.2 Georgian national currency equals US dollar

The Georgian currency is called the Lari. At the time of this report, the US dollar is approximately $ 2.60.

 

 

 
3.3 State of Georgia's Gold and Foreign Currency Reserves

Georgia's foreign currency and gold reserves totaled $ 3.317 billion in 2013.

3.4 Georgia's Total Import and Export of Goods and Services

  Georgia's total exports of goods in 2018 amounted to $ 3362.1 million, while imports amounted to $ 9122.3 million.

 


3.5 Statistical survey of Georgia's import of technical and engineering services

Given that there is no comprehensive system such as HS in the international trade of technical and engineering services, precise extraction of engineering and technical services cannot be imagined. EBOPS is the most reliable statistical classification engineer for technical and engineering services as well as investment that can determine the minimum amount of civil engineering services that can benefit from project financing information. Given that a significant portion of Georgia's large projects are funded by the World Bank and the Eastern European Development Bank, the statistics presented in the diagram below can be an index of service import statistics for large projects, and certainly service import statistics for small and medium-sized projects cannot be provided. Searched the following calculations. So the actual statistics will be much higher than the figures shown below (Reference: ITC World Trade Center).

 

Another way is to obtain a more accurate picture of the market for technical, engineering, project, and investment "Investigation of Goods Supervisors" such as cement using econometric estimates. For this purpose two cement and electrical conductors were examined and it was found that:

    Georgia imported $ 534 million worth of cement from Turkey and Italy in 2010, up 10% from a year earlier.
    Georgia imported $ 2188 million worth of "air conductors" from Turkey, the Czech Republic, Ukraine and Belarus in 2010, a 16% increase from the previous year (ITC reference).

The result is that technical and engineering services purchasing statistics as well as commodity-based goods are showing an acceptable trend. Alongside these positive data on creating opportunities for the technical and engineering services market, there are also warning points that are strategically relevant. The threats are: the presence of new countries in the Georgian technical services market (such as Egypt) and the presence of countries that have already imported technical and engineering services from Iran (such as the Republic of Azerbaijan). This confirms the need for a fresh and immediate review, analysis of competitors and the choice of penetration and competition strategies in the Georgian service market.
3.6 Stability of Tax Laws in Georgia in Recent Years:

The following table shows the tax rate of Georgia.

Belong

Tax title

15 %

Corporate profit Tax

 

18 %

Value Added Tax

 

0%, 5%, 12%

Custom Tax-Import

 

1 %

Property Tax

 

20 %

Personal Income Tax

 

 

3.7 The Georgian banking system


In Georgia, the National Bank of Georgia is in charge of the central bank (such as printing banknotes, setting rates and the like). In addition to the classical banking network, there are organizations in the country called "micro finance credit organizations" that perform operations such as granting some facilities and some credits as well as some remittances. But interviews with a number of business stakeholders in Georgia suggest that some of these institutions may be subject to money laundering, so it is strongly recommended that Iranian activists refrain from cooperating with them.

 In the field studies of the Georgian banking network, it was found that most of the experts and employees of this banking network do not have reliable and reliable information on foreign exchange and credit transactions and transactions, such as finding a qualified banking expert on issues such as letters of credit or guarantees during field studies. Banking has virtually failed. It was interesting that a bank PR manager was referring to the Babylon Glossary on the computer to know the meaning of LC!

In the Georgian banking network there are no defined non-cash payment instruments, so concepts such as checks and brochures are meaningless. Bank commission rates are relatively high, with the annual interest rate on local currency (Lari) accounts at 4% and the annual interest rate on long-term accounts up to 13%.

Field studies indicate that the bulk of foreign exchange activity is carried out solely through bank supervision in Tbilisi. These banks usually tend to have simple non-refundable letter of credit. These banks refuse to accept transferable LCs, segregated LCs, PAs and many more, but in some cases issue LCs and L / Cs.

Regarding the guarantees required for the Georgian domestic market, some local banks have both the possibility of issuing mutual guarantees and the possibility of issuing their own guarantees. Minimum Guarantee Fees for Local Employers Provided with Cash in Local Accounts (Depending on Cash to Ratio) 0.3% (Three-Tenths Percent) per Month and 2% (Two%) for Off-Site Guarantees In the month that comes with the expiration of the warranty, the figure becomes significant, for example, the fee for an 18-month domestic guarantee in Georgia will be about 5.4%. The commission rate of counterfeiting varies depending on the size of the issuing bank's credit and the amount of the guarantee and its beneficiaries and many other factors, but according to Georgian banking experts, the overwhelming majority of cases are more likely to make the internal guarantee a cheaper direct deposit.

The following banks are active in Georgia:

1- Bank of Georgia (Local name of Succulent Bank) www.bog.ge

2- ProCredit Bank www.procreditbank.ge

2- ProCredit Bank www.procreditbank.ge

3. VTB Bank www.vtb.ge

4- Cardbank www.cartubank.ge

5- BTC Bank www.btcbank.bank

3.8 Investigate the fluctuations in land prices

Given the current rules in Georgia, there is no definite transfer of 100% of any land to foreigners (except agricultural land), and given the risk and inflation rate today many people buy land from all over Europe. Georgia is watching. On the other hand, the rising price of housing units is a fact that cannot be denied in the form of $ 750 per square meter in Tbilisi (Appendix 5), which was previously impossible. As a result of the aforementioned, the excessive macroeconomic factors have led to an increase in land prices, which in turn may affect future inflation and other economic factors. Of course, there have been discussions about restrictions on the purchase of land by foreign nationals (since the beginning of 2012), with serious doubts as to its accuracy and probability, and are likely to be widespread by real estate consultants. But it has added to the lust for foreigners' thirst for land acquisition.

 

3.9 Statistical Investigation of Investment in Georgia


Given that foreign investment statistics and country risk ratings are always correlated, the statistics presented in capitalist countries have been found to be biased. Therefore, the statistics of independent international authorities play an important role in the validation of data and economic analysis. Reliable and reliable statistical data in internationally recognized systems (such as the World Bank and World Trade Center) are limited to 2007-2008 only. Because Georgia's Investment Law (literally) was signed on June 30, 2006, the 2009 and 2010 information, on the other hand, has not yet been classified. The International Trade Center notes that field evidence indicates an increase in foreign investment in 2010. The analysis states that the economic situation and revenues of the Georgian government require that most of its civil engineering and engineering projects be defined in partnerships with the private sector such as BOT, BLT, EPCF and the like. Hence, with the onset of the military crisis between Georgia and Russia (Abkhazia and South Ossetia) many foreign investors were expelled from the region. And it was early 2010, when foreign investment in the country increased again by the beginning of 2011. Evidence also suggests that a number of buildings have been added around the city and a number of construction workshops that have been closed on the previous trip have recently started operating. The relative boom caused by the increased investment activity in the city is also evident, with the land price doubling in the past 7 months, the traffic load increasing sharply, and with some local furniture activists saying that demand for furniture has increased. The past year has increased dramatically. The Georgian government has provided some specific programs during the recent period of investment growth, some of which are as follows:


1. In order to preserve the appearance of the city as well as to improve the appearance of old buildings (especially on important streets such as Rostovili, Chachavadzeh, Pegin and Vake), the local government has renovated some of the government buildings, including offices, residential complexes, etc. Delivers to investors. In some cases, the complete demolition and construction of a new building will be left to investors (Appendix 3).

2. The Georgian Government has designated one of the Black Sea ports of Anaklia as a tourist area and has now launched several companies from various countries (such as Turkey, Egypt and other countries) (Annex 4). .

3. Sections of government and governing bodies are to be transferred from Tbilisi to Kutaisi, where the transfer of the parliament has been finalized. This has also made the city the focus of foreign-based companies in Georgia and the market for services is moving.

4. Georgia is a rugged, mountainous country, and this feature has highlighted the problem of road and land communication as one of its most important challenges. In a way, as certified by history, the way forward is one of the most effective means of encouraging public opinion and gathering electoral votes. Given that the 2012 parliamentary elections will be held, this area could be considered an important market for road sector activists.

 

3.10 Investment Facilities and Discounts


As highlighted in the legal section of the first section of the report, Georgia's Investment Law, like other tax laws on investment income, has provided taxpayers with small tax deductions, but instead provides other facilities such as transfers and ownership to the investor. External. In this way, the foreign investor is allowed to transfer 100% ownership of the immovable property. But under Article 9 of the Georgian Foreign Investment Development Act, adopted on June 30, 2006 if the investment amounts to more than 8 million GEL (about 56 billion Iranian rials at the time of this report), or if the investment in the mountainous area of ​​Georgia exceeds 2 million GEL (approx. 16 billion Iranian rials at the time of writing of the report) The government is providing the foreign investor with a certificate of "highly significant investment" that includes significant tax rebates and customs exemptions. On the other hand, it should be noted that all political risks of foreign investment in Georgia, together with the risks of nationalization and local court ruling against an Iranian investor, are covered by the Iran Export Guarantee Fund, but this does not cover commercial and economic investment risks.

 

3.11 Indicators of Economic Freedom


Investigating the changes in economic freedom as an indicator of the openness of the private sector can provide useful information to private sector investors. Figure 9 shows the trend of liberalization of the Georgian economy in the last four years.

Georgia's economic freedom rating stands at 69.4, bringing the country's economy to 34th in 2012. Georgia's overall score on this index is down one point from last year. In the meantime, the index of corruption, government spending, business freedom, and monetary freedom have also declined. In the European region, Georgia ranks 16th out of 43 countries and is higher than the world average on this index.

Georgia has fallen into the category of "mostly free" in the past two years, but has fallen to "relatively free" this year (2012). However, the Georgian economy is doing well in some key policies. Significant reforms have been implemented to improve the effectiveness of regulations, free market policies and low tax rates. Despite the severe contraction caused by the Russian occupation and the global economic downturn, the Georgian economy has shown high elasticity as a whole.

The institutional weakness in the two areas demands greater commitment to reform. Georgia's ranking in the area of ​​administrative corruption and property rights protection is still below the global average, and partial reforms have not yet made a significant improvement. In addition, public spending as part of the GDP has been growing and budget deficits have been negative.

 

3.12 Customs Regulations, Agreements and Discounts

Customs as a port of entry and export for each country, has a prominent role in business, and familiarity with the rules and procedures of the target market is a prerequisite for the success of any large or small business. Unfortunately, a complete written source containing customs rules, regulations, and regulations is not available in your Georgian bookstores. So information on this

 

Compare rankings, 2012

 

Country trends

 

 

Country

Global middleware

Regional middleware

Free markets

4/69

5/59

7/84

1/66

0

20

40

60

80

100

 

68

69

70

71

72

 

Non-free

Often non-free

Somewhat free

Frequently free

Free

0-49.9

50-59.9

60-69.9

70-79.9

80-89.9

Figure 9, The process of economic liberalization [Heritage Institute and Dow Jones Corporation]


The extract is mainly extracted from the report submitted by the Chief Customs Officer of LiloTelephis (Ms. Nino Sharashenizadeh) to Dr. Ali Reza Beigi, Honorable Governor of East Azerbaijan:

There are 4 large and 5 small customs complexes active in Georgia. Georgian goods pass through two green or red routes in customs. The bulk of goods imported into Georgia pass through the green corridor, but if the goods are suspected or the importer has negative customs clearance in Georgia, the goods in question will be directed to the red corridor. In 2011, about 5% of imported goods were directed to the red corridor. The clearance process on the green corridor takes between 15 and 20 minutes. Georgian importers who have a positive track record in Georgian customs benefit from additional discounts such as non-inspection clearance and customs clearance up to one week after the final clearance. Importers who do not have a track record can also ship their goods directly from the border to their warehouse where customs clearance is carried out by mobile customs carriers, with all the necessary facilities, including network-connected computers, printers. , Provides hologram stickers and other equipment. But if the goods are directed to the red corridor, there is much more scrutiny. From an export point of view, exporters who do not have a negative track record in the Georgian customs can carry out the customs formalities of their export goods in their warehouse and send them directly to the border port. Customs formalities of fast-food goods (such as meat, dairy, fruit, etc.) are generally carried out in the exporter's warehouse. The Georgian Customs provide the two groups of exporters with the Seal and Bandolol Customs, to clear the exported goods in the exporter's warehouse.

Georgia, despite its membership in the WTO, has an agreement with some countries on a customs facilitation agreement. Information on World Trade Center websites indicates that Georgia has some preferences and customs agreements with some CIS countries, as well as Turkey, but numerous studies do not show such discounts for non-strategic goods (Table 7).

 

 

3.13 Registration of Company in Georgia and Issues

According to the custom of many countries, for a foreigner to work in a country, a legal entity (company) needs to be registered in the host country. Registering a company in Georgia is very easy and simple compared to other marginal markets in Iran (Iraq, Azerbaijan, Turkmenistan, UAE and others) and requires significantly less time and cost. So that the company registration process is practically 2 days with a cost of up to $ 500. Company managers can also apply for a 24 hour stay by depositing 4,000 lari (about $ 2,300).

 

Table 7 List of goods subject to discounts and customs preferences in Georgia

Namkala / CodeManagement System Tariff regime

Avg

Portland cement, white cement and non-abnormal cements

252321

Countries of the world

12%

CIS tariff rebates

0 %

Tariff discounts for Turkey

0%

Cast iron and steel profiles and pipes

730300

Other countries in the world

0%

There is no mutual benefit agreement with any country

Construction polyethylene pipes

391731

Other countries in the world

0 %

There is no mutual benefit agreement with any country

Such relatively easy conditions are generally due to the Georgian government's attempt to increase the number of registered companies, to show the growing business situation in the country and to obtain credit resources from international monetary and financial institutions.

This, of course, also has the opposite point, and given the negative impact of the growth of corporate dissolution statistics in calculating the business situation in a country, the Georgian government, by creating legal and regulatory barriers to corporate dissolution, has effectively liquidated a company in a very process. It has become costly and time consuming which has discouraged many from liquidating the company. Finally, individuals or companies who (for any reason) no longer wish to continue their business simply deactivate (rather than liquidate) the company with a private meeting. This has greatly increased the number of passive companies in Georgia, which does not seem to matter. But it has been repeatedly found that the names and trademarks of these passive companies have been misused for some purpose, and that the Iranians have also been the victims.

 

3.14 Other Economic Components of Georgia

Table 8 presents Georgia's supplementary economic indicators (cia.gov reference).

Table 8 Supplementary Economic Indicators of Georgia

Indicator title

Announced last year

Level

Ranked Worldwide

Real growth track

2010

4/6%

46

Purchasing power

2010

44/22billion dollars

121

work force

2007

1918000 People

123

Unemployment rate

2009

4/16%

153

Guinness Index

2009

8/40

58

investment

2010

4/15% frome GDP

132

Taxes

2010

2/28% frome GDP

98

The inflation rate

2010

1/7

179

Electricity Generation

2008

292/8bilion kWh

96

 Export of electrical energy

2008

675milion  kWh

 

Import of electrical energy 

2008

117Million  kWh

 

Oil production

2010

984Barrels a day

103

 

3.15 Important Tips on Investing in Georgia


As stated in the Banking Investigations section of this report, in Georgia non-banking banking instruments (such as Bravat, Czech, speculative and the like) have not been defined in their general and well-known meaning and hence have posed many problems to Iranian businessmen for many years. Are familiar with these trading tools, has provided. Powerful individuals and nongovernmental organizations each have a number of satellite companies that do their business for many reasons (such as taxation) through these multiple satellite companies. It is no secret that these small companies usually fail in the accreditation process, and therefore tools such as transaction capital insurance (as ECAs do) cannot guarantee the return of the issuer's capital. Adding to all these problems is the local government's decision to "define the bulk of development projects in the form of investment, including BOT, BLT, EPCF and the like", forcing the Iranian exporter to cooperate with the private sector. Finally, the Iranian exporter, in order to ensure the return of its capital, initially faces a confusing collapse and ultimately does not raise the volume of the transaction to a reasonable level due to the risk aversion. The bottom line is that the volume of transactions by most competitors has increased, but the volume of transactions by Iranian merchants is not growing at all. It remains small in scope. Bee was investigated on the ground of the project site and other ways, each of which was screened for various reasons such as lack of necessary performance guarantees, lack of generality, high cost, and the like. The only way to manage risks fairly optimally is "contracting at notaries". In this case, and if the other party fails to fulfill its obligations and the problems and obligations are not resolved amicably, further action can be taken, such as referral to arbitration or legal authorities. An important point in this approach is to ensure that the counterparty is financially capable.

3.16 Business Environment and Problems


From the perspective of national-level strategies, the first steps for Iranian companies to be present in international markets, in principle, must be very precise and accountable and somehow supervised by professional organizations. In other words, how the first Iranian economic activist in each market operates can be both problematic and highly problematic for later activists. Field studies indicate that the first Iranian presence in the Georgian market is greater than the native of Fereidoun Shahr in Isfahan, ancestors of Georgians who had been relocated by King Abbas I to Georgia from Fereidun Shahr. Of course, there are people coming from Azerbaijan and Ardabil provinces. The number of deployed Iranians (both resident and non-resident) has increased in recent months, with field observations showing that more than 10 Iranian real estate agents have been established in Tbilisi over the past three months, according to Iranian activists. The number of Persian leaflets in the city has increased dramatically, especially in the streets of Rostovili, Chachavadza and some other places. Considering the in-person talks and on the streets of the city, it was found that the majority of these Georgian-based Iranians were between the ages of 20 and 35 and were involved in various fields such as computer, meat products, fast food, tourism services, restaurant services. And real estate consultants. However, all of these business groups are in parallel trying to get real estate brokers and even make phone deals with buyers inside Iran, which can be considered a danger because these people are subject to the legal and legal issues of the Georgian aristocracy. They do not and after the expense of the last time or transaction there is no deal or if the transaction is done causing great damage to the Iranian side.

 

3.17 Mining and mineral resources


Mines and the use of mineral resources in Georgia have not grown significantly. There is only one major mining company in Georgia called Madnoli, which is practically part of GeoProMining. The field of activity of this company is the extraction and extraction of ferrous metals (mainly copper and gold).

The most important steel complex of Georgia in the former Soviet era was called "Rustavi", which was renamed after the collapse of the "Georgian Steel Corporation". The company was acquired in 2007 by the British company Times Limited. But due to problems with nationalization and legal issues in the Georgian judiciary, the buyer has not yet been delivered and there is no good prospect of delivering it. It is noteworthy that in 2009 Eurasia Steel Henustan launched a rolling-capacity steel unit. It started 200,000 tonnes a year in the city of Kotaysi, scheduled to be operational by the end of 2011.

3.18 Conclusion

 

 

 

4 Useful Resources

Tender Information Website

  • http://www.gogc.ge/en/tenders
  • http://www.georoad.ge/index.php?que=eng/tenders/international
  • http://water.gov.ge/eng/projects-and-tenders/current
  • http://www.georoad.ge/index.php?que=eng/tenders/current
  • http://www.economy.ge/?category=3&lang=eng

 

Printed sources

  • Trade Guide with Georgia, Iran Trade Promotion Organization, April 2009
  • Investment climate and opportunities in Georgia, Ministry of Economy and Sustainable development of Georgia, May 2011
  • How to establish a bank in Georgia, Ministry of Economy and Sustainable development of Georgia, Feb 2012

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