Business Reforms in Georgia
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Getting Electricity: Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages.
Registering Property: Georgia improved the quality of land administration by increasing coverage of all maps for privately held land plots in the main business city.
Protecting Minority Investors: Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions and by clarifying ownership and control structures.
Paying Taxes: Georgia made paying taxes easier by abolishing additional annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns.
Trading across Borders: Georgia made export and import documentary compliance faster by improving its electronic document processing system, as well as, introduced an advanced electronic document submission option.
Dealing with Construction Permits: Georgia made dealing with construction permits easier by reducing the time needed for issuing building permits.
Enforcing Contracts: Georgia made enforcing contracts easier by introducing an electronic filing system for court users.
Labor Market Regulation: Georgia reduced the maximum duration of fixed-term contracts and introduced a notice period for redundancy dismissals.
Getting Credit: Georgia improved its credit information system by implementing a new law on personal data protection.
Getting Electricity: Georgia made getting electricity easier by simplifying the process of connecting new customers to the distribution network and reducing connection fees.
Getting Credit: Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security interest to extend to the products, proceeds and replacement of collateral.
Paying Taxes: Georgia made paying taxes easier for companies by enhancing the use of electronic systems and providing more services to taxpayers.
Trading across Borders: Georgia reduced the time to export and import by creating customs clearance zones.
Enforcing Contracts: Georgia made enforcing contracts easier by simplifying and speeding up the proceedings for commercial disputes.
Resolving Insolvency: Georgia expedited the process of resolving insolvency by establishing or tightening time limits for all insolvency-related procedures, including auctions.
Starting a Business: Georgia simplified business start-up by eliminating the requirement to visit a bank to pay the registration fees.
Getting Credit: Georgia expanded access to credit by amending its civil code to broaden the range of assets that can be used as collateral.
Protecting Minority Investors: Georgia strengthened investor protections by introducing requirements relating to the approval of transactions between interested parties.
Paying Taxes: Georgia made paying taxes easier for firms by simplifying the reporting for value added tax and introducing electronic filing and payment of taxes.
Getting Credit: Georgia improved access to credit by implementing a central collateral registry with an electronic database accessible online.
Protecting Minority Investors: Georgia strengthened investor protections by allowing greater access to corporate information during the trial.
Enforcing Contracts: Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing private enforcement officers and modernizing its dispute resolution system.
Resolving Insolvency: Georgia improved insolvency proceedings by streamlining the regulation of auction sales.
Dealing with Construction Permits: Georgia made dealing with construction permits easier by simplifying the process of obtaining confirmation from utilities, introducing a risk-based approval process for building permits and setting new time limits for issuance of the occupancy certificate.
Trading across Borders: Georgia reduced the cost of trade and simplified the documentation requirements for exporting and importing.
Starting a Business: Georgia made starting a business easier by eliminating the minimum capital requirement, abolishing the requirements for a company seal and company charter and making the use of notaries optional.
Registering Property: Georgia made registering property easier by eliminating the requirement for several documents and simplifying and reducing the registration fees.
Getting Credit: Georgia strengthened its secured transactions system by allowing parties to agree to out-of-court enforcement of the creditor’s security right when signing the agreement, began distributing full information at the private credit bureau, and started guaranteeing borrowers’ right to inspect their own data.
Paying Taxes: Georgia made paying taxes less costly for companies by reducing the corporate income tax rate and abolishing the social tax.
Starting a Business: Georgia made starting a business easier by making tax authorities responsible for state and tax registration and eliminating the paid-in minimum capital requirement.
Dealing with Construction Permits: Georgia made dealing with construction permits easier by implementing a one-stop shop for utility connections, simplifying the procedures for obtaining an occupancy permit and eliminating the requirement for several documents.
Registering Property: Georgia made transferring property easier by eliminating the notarization requirement for the sale agreement and reducing the time required to obtain an entrepreneurial registry excerpt of the seller’s/purchaser’s registration from the district court.
Getting Credit: Georgia’s private credit bureau—which already collected credit data from 17 of the country’s 18 banks along with microfinance institutions, cell phone and electricity companies, and the courts—began also collecting data from retailers, utilities and trade creditors.
Protecting Minority Investors: Georgia strengthened investor protections by amending its securities law to enhance approval and disclosure requirements for related-party transactions.
Resolving Insolvency: Georgia enhanced its insolvency process through a new insolvency law introducing both reorganization and liquidation proceedings, tightening time limits for the completion of each stage of the bankruptcy process and instituting provisions for regulating the appointment of bankruptcy trustees.