Economy Profile Georgia

Ease of Doing Business in Georgia

Ease of Doing Business in Georgia

Rankings on Doing Business topics – Georgia

Rankings on Doing Business topics Georgia

Topic Scores

Topic Scores

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally start and formally operate a company (number)

  • Preregistration (for example, name verification or reservation, notarization)

  • Registration in the economy’s largest business city

  • Postregistration (for example, social security registration, company seal)

  • Obtaining approval from spouse to start a business or to leave the home to register the company

  • Obtaining any gender specific document for company registration and operation or national identification card

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day (2 procedures cannot start on the same day)

  • Procedures fully completed online are recorded as ½ day

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

  • No professional fees unless services required by law or commonly used in practice

Paid-in minimum capital (% of income per capita)

  • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

Starting a Business – Georgia

Starting a Business in Georgia

Figure – Starting a Business in Georgia – Score

Starting a Business in Georgia

Figure – Starting a Business in Georgia and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

Starting a Business in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Figure – Starting a Business in Georgia – Procedure, Time and Cost

Starting a Business in Georgia – Procedure

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Starting a Business in Georgia – Procedure, Time and Cost

1 Pay registration fee, register the company with the Entrepreneurial Register, obtain an identification number and certificate of state and tax registration, and register for VAT

The following documents need to be submitted for LLC registration:

  1. Certified Application for Registration;

  2. Certified Memorandum of Association;

  3. Certified consent of the owner of premises to use the address as legal address.

Payment of the registration fee can be done at the same place where the documents are submitted. Alternatively, founders can provide the document evidencing the payment of the registration fees.

The application must be signed by all founding partners of the company. The information contained in the application may be included in the charter of the company or partners' agreement (in this case no separate application shall be required). The application, charter/partners agreement, and consent of the owner of premises need to be executed before a public notary or at the registry (in that case, a certification fee applies). In addition, though not specifically required by law, in accordance with the registration instruction, the applicant must submit a document confirming lawful occupation of the premises to be used as a legal address of the company (lease agreement) and the written consent of the appointed director (manager) to serve on this position. A signature sample may also be accepted instead of the said consent.

Submission of application for registration may be carried out by one of the founding partners of the Company (in which case the documents must be preliminary certified by notary), the appointed director or by a person appointed by the partner (or partners) by virtue of a duly issued and certified power of attorney. In such cases as well, all documents to be submitted to the registration agency must be preliminary certified by notary.

According to the amendment on registration of a company NAPR requires companies to provide e-mail and alternative address, which differs from company's legal address, in order to simplify formal contact with the company (e.g.: for Revenue Service, administrative agencies, Courts, creditors, etc.). This regulation is mandatory upon initial registration of a company, as well as for registration of changes in constituent documents.

Georgian legislation provides for a possibility to open a bank account while registering the company at NAPR.

According to Article 157 of the Tax Code of Georgia, “A person/entity, which carries out an economic activity and the total amount of VAT taxable transactions carried out in any continuous period up to 12 calendar months exceeds GEL 100 000”, shall apply for a VAT registration to Revenue Service under Ministry of Finance of Georgia. A company can also perform voluntary registration.

Starting from February 27, 2018, together with the application with the request to register the company, company representative with the same application is able to request the voluntary registration of the company as a VAT taxpayer without visiting the Revenue Service territorial service center. Updated form of registration application to be filled out at the NAPR contains section where the company may indicate that it wishes to be registered as a VAT payer voluntarily immediately upon registration of the company. In such case, NAPR electronically delivers to the Revenue Service the application to register company as a VAT taxpayer. Together with the completion of business registration procedure, the company is registered as a VAT taxpayer. The company representative receives the notification on voluntary registering as an VAT taxpayer through mobile phone message, according to the contact information provided in the application.

While completing company registration proceedings, the National Agency of Public Registry (NAPR) sends to the Revenue Service request (application) on registration of company as a VAT payer. Company registration by the NAPR should be completed in one business day (when applying for regular proceedings) or on the same day (when expedited procedure is used). NAPR is obligated to transfer applicant’s request on VAT registration to the Revenue Service immediately upon receipt of the application. The Revenue Service registers the respective company as a VAT payer immediately upon receipt of the information, i.e. on the same day. Confirmation/certificate of VAT registration may be obtained online via the web-site: www.rs.ge.

In specific cases, information on economic activities of an entity, amendments to such activities and termination of economic activities must be registered in the Registry of Economic Activities. Registration of the following economic activities is mandatory:

  1. activities related to production, initial production, processing, distribution of food/animal food, animal and vegetable (plant) products, veterinary specimen, pesticide or agricultural chemicals, as well as service in the fields of veterinary and protection of plants;

  2. activities related to employment or assistance in employment outside Georgia set out under the Law of Georgia on Labor Migration;

  3. activities of organizations carrying out aesthetic and cosmetic activities.

Person is entitled to carry out economic activities subject to mandatory registration only after registration of such activities with the Registry of Economic Activities. Entities may also register economic activities voluntarily. Term for registration of economic activities is 1 year, expiration of which will result in invalidation of decision on registration of such activities unless extension of the term is requested by an interested party. For the purposes of registration, an applicant files application with the Registry of Economic Activities under the NAPR at the Hall of Justice or any offices of the NAPR. Application must include types of economic activities and place of activities. Note that by July 27, 2018 Decree No. 381 the Government of Georgia adopted a broad list of hazardous, severe, harmful and dangerous activities that are also subject to mandatory registration with the Registry of the Economic Activities under the same procedures that are

1 day GEL 100 (regular

registration) or GEL 200 (expedited registration) + GEL 1 (bank charges) + GEL 5 for certification per document

Takes place simultaneously with previous procedure.

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

  • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates

  • Submitting all required notifications and receiving all necessary inspections

  • Obtaining utility connections for water and sewerage

  • Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

Building quality control index (0-15)

  • Quality of building regulations (0-2)

  • Quality control before construction (0-1)

  • Quality control during construction (0-3)

  • Quality control after construction (0-3)

  • Liability and insurance regimes (0-2)

  • Professional certifications (0-4)

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

  • Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.

  • Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

  • Will be used for general storage activities, such as storage of books or stationery.

  • Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.

  • Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.

  • Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

  • Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.

  • Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.

  • Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits – Georgia

Dealing with Construction Permits

Figure – Dealing with Construction Permits in Georgia – Score

Dealing with Construction Permits in Georgia – Score

Figure – Dealing with Construction Permits in Georgia and comparator economies – Ranking and Score

DB 2020 Dealing with Construction Permits Score

Dealing with Construction Permits in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Georgia – Procedure, Time and Cost

Dealing with Construction Permits in Georgia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Figure – Dealing with Construction Permits in Georgia and comparator economies – Measure of Quality

Dealing with Construction Permits in Georgia and comparator economies – Measure of Quality

Details – Dealing with Construction Permits in Georgia – Procedure, Time and Cost

1 Obtain topographic study of the land plot

Agency : Private licensed company

A topographic study of the land plot is obtained by BuildCo prior to developing the architectural plans of the warehouse.

2 Obtain technical conditions for water and sewage

Agency : Georgian Water and Power

BuildCo obtains technical conditions for water and sewage connection in order to design the project. Technical conditions are not requested at the time of requesting a building permit, but they are an essential component of the project design phase.

4 days GEL 700

3 days no charge

3 Request and obtain terms of construction from Tbilisi Architecture at the Tbilisi Hall

Agency : Tbilisi Architecture at the Tbilisi Hall

The applicant requests terms of construction from the Tbilisi City Hall, which acts as preliminary permission to build on the land plot and to design the project. Within 5 days of when the application is submitted Tbilisi Hall provides general instructions of what type of building the applicant may construct, how much of the land the project may occupy on the land plot, and how the landscape is to be utilized. This information is needed in order to complete the architectural design of the project.

5 days no charge

4 Request and obtain design approval from Tbilisi Architecture at the Tbilisi Hall

Agency : Tbilisi Architecture at the Tbilisi Hall

5 Request and obtain building permit from Tbilisi Architecture

Agency : Tbilisi Architecture

The cost is determined by the project value. According to Tbilisi Government Resolution No 2-21, as of February 28, 2008, the fee has been increased to GEL 1.00 per sq. m. and only the ground floor space is counted. Thus, the breakdown in the case considered here is 1300.6/2 x GEL 1.00 = GEL 650.30.

10 days

GEL 650

According to GOG Resolution No. 57 as of March 24 2009, construction projects are classified into risk-based categories. Depending on the complexity of each category, different types of procedures are to be followed by applicants. The first category is the lowest risk, and the fifth is the most complex one. The Doing Business case study warehouse falls under category III, which does not require project expertise and entails a simplified process of approval that also excludes

the need for approval of Architectural-Construction Design.

Once the architectural design is complete, based on the terms of construction provided, the applicant submits a request for approval to the Tbilisi Architecture at Tbilisi Hall. City Hall then has 15 days to grant its approval. When this approval is obtained, BuildCo may submit all the documents to obtain a building permit.

15 days no charge

6 Receive an inspection during construction from the Tbilisi Supervisory Service Agency

Agency : Tbilisi Supervisory Service Agency

The Tbilisi Supervisory Service Agency will conduct inspections twice a year or at its discretion to check whether there are any deviation from the approved project.

1 day no charge

7 Notify Tbilisi Supervisory Agency of the completion of construction works

Agency : Tbilisi Supervisory Service Agency

When construction works are complete, BuildCo notifies Tbilisi Supervisory Service Agency that the site is ready for a final inspection.

1 day no charge

8 Receive final inspection from the Tbilisi Supervisory Service Agency

Agency : Tbilisi Supervisory Service Agency

The Tbilisi Supervisory Service Agency will conduct a final inspection after the completion of construction.

1 day no charge

9 Request and receive connection to water and sewage service

Agency : Georgian Water and Power

Having obtained the conditions from the water authority, BuildCo starts building the water and sewage pipes to the main water pipeline. Once there is a connection to the main pipeline, the inspector from private water company (Georgian Water and Power) comes to confirm the connection and sign the protocol.

10 Request and obtain exploitation of building construction from Tbilisi Supervisory Service Agency

Agency : Tbilisi Supervisory Service Agency

11 Register the building with the National Public Registry

Agency : National Public Registry

The company must submit the document obtained in the previous procedure and the exploitation permit. The time line is faster under the Georgian Law on Registration of Rights on Immovable Property (December 28, 2005).

1 day

GEL 150

After the completion of construction and prior to registration at the Public Registry, BuildCo submits a request to the Department of Supervision of Tbilisi for a decision on completion/occupancy permission. The list of documents required for the submission are approved by the Resolution of Government of Georgia № 57 on March 24, 2009 "On the Procedures and Conditions of Issuance of Construction Permits", Article 96, Paragraph 3.

15 days no charge

Takes place simultaneously with previous procedure.

Details – Dealing with Construction Permits in Georgia – Measure of Quality

Dealing with Construction Permits in Georgia Measure of Quality

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to obtain an electricity connection (number)

  • Submitting all relevant documents and obtaining all necessary clearances and permits

  • Completing all required notifications and receiving all necessary inspections

  • Obtaining external installation works and possibly purchasing material for these works

  • Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

  • Is at least 1 calendar day

  • Each procedure starts on a separate day

  • Does not include time spent gathering information

  • Reflects the time spent in practice, with little follow-up and no prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

  • Value added tax excluded

The reliability of supply and transparency of tariffs index (0-8)

  • Duration and frequency of power outages (0–3)

  • Tools to monitor power outages (0–1)

  • Tools to restore power supply (0–1)

  • Regulatory monitoring of utilities’ performance (0–1)

  • Financial deterrents limiting outages (0–1)

  • Transparency and accessibility of tariffs (0–1)

To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used.

The warehouse:

  • Is owned by a local entrepreneur and is used for storage of goods.

  • Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.

  • Is a new construction and is being connected to electricity for the first time.

  • Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:

  • Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).

  • Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.

  • Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base.

The monthly consumption:

  • It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.

  • If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.

  • Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity.

Getting Electricity – Georgia

Getting Electricity - Georgia

Figure – Getting Electricity in Georgia – Score

Figure – Getting Electricity in Georgia – Score

Figure – Getting Electricity in Georgia and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

Getting Electricity in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Georgia – Procedure, Time and Cost

Getting Electricity in Georgia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures

reflected here, see the summary below.

Figure – Getting Electricity in Georgia and comparator economies – Measure of Quality

Getting Electricity in Georgia and comparator economies – Measure of Quality

Details – Getting Electricity in Georgia – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Submit application to Telasi and await site inspection

Agency : Telasi

The application for an electricity connection can be submitted online or in person. It includes the applicant's bank account details in order for the Utility company to pay the 50% fine if the prescribed time is not met. The applicant also submits a document certifying property rights or lending rights for the space/buildings where applicant’s electrical installation is located is attached to the application; and a receipt of payment of the 50% of the connection fee.

Five days after the application has been submitted, Telasi visits the premises during which the preliminary specifications of the connection are discussed.

5 calendar days GEL 7,627

2 Receive site inspection by Telasi and await technical conditions

Agency : Telasi

After the application is submitted, Telasi carries out an external review of the site in order to prepare the technical conditions. Someone from the applicant’s party is required to be present during the site inspection.

After the inspection, the 50% of the connection fee has to be paid if it has been suggested that the connection is to be 380/220 V. Following the inspection, the technical conditions related to the external connection – and a project design which outlines in detail specifications of the connection

– are issued. The connection contract is also signed.

The Technical conditions generally include instructions for construction of a new substation; lining of high-voltage and low-voltage cables; in a case of reconstruction works – participation of the customer in the required works.

11 calendar days GEL 0

3 Await completion of external works, meter installation and electricity supply by Telasi

Agency : Telasi

After the technical conditions are issued and the remaining 50% of the connection fee has been paid, the external connection works can be completed by Telasi.

Before Telasi can start the works, they need to receive a number of permits: from water agency (Водоканал), telephone agency, Mayor’s office and other institutions depending on the whether the connection passes any roads, etc.

Takes place simultaneously with previous procedure.

55 calendar days GEL 7,627

Details – Getting Electricity in Georgia – Measure of Quality

Getting Electricity in Georgia – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally transfer title on immovable property (number)

  • Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property transfer taxes)

  • Registration procedures in the economy's largest business city.

  • Postregistration procedures (for example, filling title with municipality)

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day – though procedures that can be fully completed online are an exception to this rule

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of property value)

  • Official costs only (such as administrative fees, duties and taxes).

  • Value Added Tax, Capital Gains Tax and illicit payments are excluded

Quality of land administration index (0-30)

  • Reliability of infrastructure index (0-8)

  • Transparency of information index (0–6)

  • Geographic coverage index (0–8)

  • Land dispute resolution index (0–8)

  • Equal access to property rights index (-2–0)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

  • Are limited liability companies (or the legal equivalent).

  • Are located in the periurban (that is, on the outskirts of the city but still within its official limits) area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Are 100% domestically and privately owned.

  • Perform general commercial activities.

The property (fully owned by the seller):

  • Has a value of 50 times income per capita, which equals the sale price.

  • Is fully owned by the seller.

  • Has no mortgages attached and has been under the same ownership for the past 10 years.

  • Is registered in the land registry or cadastre, or both, and is free of title disputes.

  • Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.

  • Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.

  • Will not be subject to renovations or additional construction following the purchase.

  • Has no trees, natural water sources, natural reserves or historical monuments of any kind.

  • Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.

  • Has no occupants, and no other party holds a legal interest in it.

Registering Property – Georgia

Registering Property - Georgia

Figure – Registering Property in Georgia – Score

Figure – Registering Property in Georgia – Score

Figure – Registering Property in Georgia and comparator economies – Ranking and Score

DB 2020 Registering Property Score

Registering Property in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Georgia – Procedure, Time and Cost

Figure – Registering Property in Georgia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Registering Property in Georgia – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Register the purchaser’s title with the district Public Registry

Agency : National Agency of Public Registry

The sale purchase agreement is not required to be notarized, as of the amended Civil Code of March 2007, clause 183. The extract can be obtained by following ways:

a) online, b) visit to the Registry and get it there, or c) in case of registering property via authorized entities (banks, notaries or real estate companies) extract can be received on the spot.

The new online registry of property was launched in 2007-2008. Online business registry was launched in 2010. Above-mentioned registers are unified under the Georgian National Agency of Public Registry – NAPR (www.napr.gov.ge), which is widely used. Registration fees may be paid at any commercial bank in Georgia. If registration is completed at the NAPR, the payment can be done with the bank representative, who is always presented at every NAPR office. Registration can be also conducted by an authorized user (all banks), notaries, real estate companies). In this case, registration fee is applied on the spot. Online payment of registration fee is also possible, when the application is filed online.

All properties in Tbilisi have been systematically transferred into the electronic database. All the system operations are fully computerized, including Old Bureau of Technical Inventory files that have been scanned. The NAPR may conduct registration process and issue an Ownership Certificate (extract) on the same day of submission of documents, in 1 business day and in 4 business days (ordinary registration procedure).

The documentation shall include:

  1. Sale and Purchase agreement

  2. Identification documents of the authorized presentative of the parties and if they are not directors of the relevant limited liability companies – their respective POAs or other documents on the basis of which these individuals are granted authority to act on behalf of the parties.

  3. Receipt confirming payment of Public Registry registration fee.

It is also possible to submit the transaction at one of the 500 authorized users. These can be banks, notaries or real estate companies. These entities can verify the transaction and submit the purchase and sale agreement to the National Agency of Public Registry. The employees dealing with these transactions received a training provided by the National Agency of Public Registry and a memorandum is signed between the National Agency of Public Registry and the entity. The most commonly used authorized users are banks.

The authorized entity receiving the application will verify the identity of the buyer and seller, or authorized party, as well as the ownership of the property. Once the information is submitted though a specific software, the National Agency of Public Registry employee will verify again the ownership and the existence of the individuals (in the Civil registry database that they can access electronically) and process the transfer. Another software is used at this stage.

Georgian legislation provides for the possibility of accelerated proceedings, therefore if the buyer wishes to register property transfer on the same day of submission of all necessary documents, the fee is respectively GEL 200. If registration is carried out on the day following the day of submission, the fee totals to GEL 150. GEL 50 is a fee paid for ordinary registration procedures, which take 4 business days following the submission of all required documents to the Public Registry. The payment is done at any commercial bank.

There is also an option available to apply for an extract electronically via the Georgian National Agency of Public Registry (NAPR) website with fees being as follows: 1 working day – 10 GEL and at the day of application – 40 GEL.

The 2% immovable property transfer tax has been abolished. A new Tax Code specifies “Income Tax” for physical persons and “Profit Tax” for legal entities in case of property sale, only if sale of property takes place within 2 years after its purchase and equals to 20% (for physical persons) and 15% (for legal entities) of the difference between purchase and sale price. These are capital gains taxes. If the sale of property takes place after 2 years since its purchase, physical persons are exempted from paying "Income Tax".

Takes place simultaneously with previous procedure.

1 day GEL 169.49; (Expedited procedure: Super fast procedure (1 calendar day) – GEL 200 (including VAT (18%));

1 business day (1-2 calendar days)- 150 GEL (including VAT (18%));

Regular procedure (4 business days) is 50 GEL (including VAT (18%)).

There is also an option available to apply for an extract electronically via the Georgian National Agency of Public Registry (NAPR) website with fees being as follows: 1 working day – 10 GEL (including VAT (18%) and at the day of application – 40 GEL (including VAT (18%).)

Details – Registering Property in Georgia – Measure of Quality

Registering Property in Georgia Measure of Quality Registering Property in Georgia Measure of Quality Registering Property in Georgia Measure of Quality

Do unmarried men and unmarried women have equal ownership rights to property?

Yes

Do married men and married women have equal ownership rights to property? Yes 0.0

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Strength of legal rights index (0–12)

  • Rights of borrowers and lenders through collateral laws (0-10)

  • Protection of secured creditors’ rights through bankruptcy laws (0-2)

Depth of credit information index (0–8)

  • Scope and accessibility of credit information distributed by credit bureaus and credit registries (0-8)

Credit bureau coverage (% of adults)

  • Number of individuals and firms listed in largest credit bureau as a percentage of adult population

Credit registry coverage (% of adults)

  • Number of individuals and firms listed in credit registry as a percentage of adult population

Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary secured transactions system exists. Then two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced according to the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a secured lender, BizBank.

In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

  • ABC is a domestic limited liability company (or its legal equivalent).

  • ABC has up to 50 employees.

  • ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Getting Credit – Georgia

Getting Credit - Georgia

Figure – Getting Credit in Georgia – Score

Getting Credit in Georgia – Score

Figure – Getting Credit in Georgia and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

Getting Credit in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Georgia and comparator economies

Legal Rights in Georgia and comparator economies

Details – Legal Rights in Georgia

Details – Legal Rights in Georgia

Figure – Credit Information in Georgia and comparator economies

Credit Information in Georgia and comparator economies

Details – Credit Information in Georgia

Details – Credit Information in Georgia

Coverage

Credit bureau

Credit registry

Number of individuals

2,617,131

0

Number of firms

95,831

0

Total

2,712,962

0

Percentage of adult population

100.0

0.0

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Extent of disclosure index (0–10)

  • Disclosure, review, and approval requirements for related-party transactions

  • Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for prejudicial related-party transactions; Available legal remedies (damages, disgorgement of profits, disqualification

    from managerial position(s) for one year or more, rescission of the transaction)

  • Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and allocation of legal expenses

  • Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of shareholder suits indices

  • Extent of shareholder rights index (0-6): Shareholders’ rights and role in major corporate decisions

  • Extent of ownership and control index (0-7): Governance safeguards protecting shareholders from undue board control and entrenchment

  • Extent of corporate transparency index (0-7): Corporate transparency on ownership stakes, compensation, audits and financial prospects

  • Extent of shareholder governance index (0–20): Sum of the extent of shareholders rights, extent of ownership and control and extent of corporate transparency indices

  • Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.

The business (Buyer):

  • Is a publicly traded corporation listed on the economy’s most important stock exchange.

  • Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not specifically required by law.

  • Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members.

  • Has not adopted bylaws or articles of association that go beyond the minimum requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory.

  • Is a manufacturing company with its own distribution network.

The transaction involves the following details:

  • Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to Buyer’s five-member board.

  • Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.

  • Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.

  • The proposed transaction is part of the company’s principal activity and is not outside the authority of the company.

  • Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently.

  • The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and directors that approved the transaction.

Protecting Minority Investors – Georgia

Protecting Minority Investors Georgia

Figure – Protecting Minority in Georgia – Score

Figure – Protecting Minority in Georgia – Score

Figure – Protecting Minority Investors in Georgia and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

Protecting Minority Investors in Georgia and comparator economies

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.

Figure – Protecting Minority Investors in Georgia and comparator economies – Measure of Quality

Protecting Minority Investors in Georgia and comparator economies – Measure of Quality

Details – Protecting Minority Investors in Georgia – Measure of Quality

Protecting Minority Investors in Georgia Measure of Quality Protecting Minority Investors in Georgia Measure of Quality

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure

Tax payments for a manufacturing company in 2018 (number per year adjusted for electronic and joint filing and payment)

  • Total number of taxes and contributions paid or withheld, including consumption taxes (value added tax, sales tax or goods and service tax)

  • Method and frequency of filing and payment

Time required to comply with 3 major taxes (hours per year)

  • Collecting information, computing tax payable

  • Preparing separate tax accounting books, if required

  • Completing tax return, filing with agencies

  • Arranging payment or withholding

Total tax and contribution rate (% of commercial profits)

  • Profit or corporate income tax

  • Social contributions, labor taxes paid by employer

  • Property and property transfer taxes

  • Dividend, capital gains, financial transactions taxes

  • Waste collection, vehicle, road and other taxes

Postfiling Index

  • Time to comply with VAT refund (hours)

  • Time to obtain VAT refund (weeks)

  • Time to comply with a corporate income tax correction (hours)

  • Time to complete a corporate income tax correction (weeks)

Using a case scenario, Doing Business records taxes and mandatory contributions a medium size company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax laws, time taken to comply with the requirements of postfiling processes and time waiting.

To make data comparable across economies, several assumptions are used:

  • TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government.

The VAT refund process:

In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018.

The corporate income tax audit process:

An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period.

Paying Taxes – Georgia

Paying Taxes - Georgia

Figure – Paying Taxes in Georgia – Score

Figure – Paying Taxes in Georgia – Score

Figure – Paying Taxes in Georgia and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

Paying Taxes in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Georgia and comparator economies – Measure of Quality

Figure – Paying Taxes in Georgia and comparator economies – Measure of Quality

Details – Paying Taxes in Georgia

Paying Taxes in Georgia

Details – Paying Taxes in Georgia – Tax by Type

Paying Taxes in Georgia Tax by Type

Details – Paying Taxes in Georgia – Measure of Quality

Paying Taxes in Georgia Measure of Quality

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction.

N/A = Not applicable.

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Documentary compliance

  • Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy

  • Obtaining, preparing and submitting documents required by destination economy and any transit economies

  • Covers all documents required by law and in practice, including electronic submissions of information

Border compliance

  • Customs clearance and inspections

  • Inspections by other agencies (if applied to more than 20% of shipments)

  • Handling and inspections that take place at the economy’s port or border

Domestic transport

  • Loading or unloading of the shipment at the warehouse or port/border

  • Transport between warehouse and port/border

  • Traffic delays and road police checks while shipment is en route

To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions:

Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours.

Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and are informed about exchange rates.

<4>Assumptions of the case study:
  • For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy.

  • It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000.

  • The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport or land border crossing.

  • All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process.

  • A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy.

  • Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

Trading across Borders – Georgia

Trading across Borders - Georgia

Figure – Trading across Borders in Georgia – Score

Figure – Trading across Borders in Georgia – Score

Figure – Trading across Borders in Georgia and comparator economies – Ranking and Score

DB 2020 Trading Across Borders Score

Trading across Borders in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Georgia – Time and Cost

Trading across Borders in Georgia – Time and Cost

Details – Trading across Borders in Georgia

Trading across Borders in Georgia

Details – Trading across Borders in Georgia – Components of Border Compliance

Time to Complete (hours)

Associated Costs (USD)

Export: Clearance and inspections required by customs authorities

1.0

100.0

Export: Clearance and inspections required by agencies other than customs

0.0

0.0

Export: Port or border handling

5.0

12.0

Import: Clearance and inspections required by customs authorities

5.8

150.0

Import: Clearance and inspections required by agencies other than customs

0.0

0.0

Import: Port or border handling

15.0

246.4

Details – Trading across Borders in Georgia – Trade Documents

Details – Trading across Borders in Georgia – Trade Documents

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to enforce a contract through the courts (calendar days)

  • Time to file and serve the case

  • Time for trial and to obtain the judgment

  • Time to enforce the judgment

Cost required to enforce a contract through the courts (% of claim value)

  • Average attorney fees

  • Court costs

  • Enforcement costs

Quality of judicial processes index (0-18)

  • Court structure and proceedings (-1-5)

  • Case management (0-6)

  • Court automation (0-4)

  • Alternative dispute resolution (0-3)

The dispute in the case study involves the breach of a sales contract between two domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the case are used:

  • The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of adequate quality.

  • The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater.

  • The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater.

  • The Seller requests the pretrial attachment of the defendant’s movable assets to secure the claim.

  • The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate.

  • The judge decides in favor of the seller; there is no appeal.

  • The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

Enforcing Contracts – Georgia

Enforcing Contracts - Georgia

Figure – Enforcing Contracts in Georgia – Score

Figure – Enforcing Contracts in Georgia – Score

Figure – Enforcing Contracts in Georgia and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

Enforcing Contracts in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Georgia – Time and Cost

Enforcing Contracts in Georgia – Time and Cost

Figure – Enforcing Contracts in Georgia and comparator economies – Measure of Quality

Enforcing Contracts in Georgia and comparator economies – Measure of Quality

Details – Enforcing Contracts in Georgia

Indicator

Quality of the judicial processes index (0-18) (DB16 methodology)

Time (days)

285

Filing and service

35

Trial and judgment

100

Enforcement of judgment

150

Cost (% of claim value)

25.0

Attorney fees

18

Court fees

5

Enforcement fees

2

Procedures (number)

Quality of judicial processes index (0-18)

12.0

Court structure and proceedings (-1-5)

3.5

Case management (0-6)

3.5

Court automation (0-4)

2.5

Alternative dispute resolution (0-3)

2.5

Details – Enforcing Contracts in Georgia – Measure of Quality

Answer

Score

Court structure and proceedings (0-5) (DB16 methodology)

Quality of judicial processes index (0-18)

12.0

Court structure and proceedings (-1-5)

3.5

1. Is there a court or division of a court dedicated solely to hearing commercial cases?

No

0.0

2. Small claims court

1.5

2.a. Is there a small claims court or a fast-track procedure for small claims?

Yes

2.b. If yes, is self-representation allowed?

Yes

3. Is pretrial attachment available?

Yes

1.0

4. Are new cases assigned randomly to judges?

Yes, automatic

1.0

5. Does a woman's testimony carry the same evidentiary weight in court as a man's?

Yes

0.0

Case management (0-6)

3.5

1. Time standards

0.0

1.a. Are there laws setting overall time standards for key court events in a civil case?

Yes

1.b. If yes, are the time standards set for at least three court events?

No

1.c. Are these time standards respected in more than 50% of cases?

Yes

2. Adjournments

0.5

2.a. Does the law regulate the maximum number of adjournments that can be granted?

No

2.b. Are adjournments limited to unforeseen and exceptional circumstances?

Yes

2.c. If rules on adjournments exist, are they respected in more than 50% of cases?

Yes

3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?

No

0.0

4. Is a pretrial conference among the case management techniques used before the competent court?

Yes

1.0

5. Are there any electronic case management tools in place within the competent court for use by judges?

Yes

1.0

6. Are there any electronic case management tools in place within the competent court for use by lawyers?

Yes

1.0

Court automation (0-4)

2.5

1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?

Yes

1.0

2. Is it possible to carry out service of process electronically for claims filed before the competent court?

Yes

1.0

3. Can court fees be paid electronically within the competent court?

No

0.0

4. Publication of judgments

0.5

4.a Are judgments rendered in commercial cases at all levels made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

No

4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

Yes

Alternative dispute resolution (0-3)

2.5

1. Arbitration

1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects?

Yes

1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— that cannot be submitted to arbitration?

No

1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes

2. Mediation/Conciliation 1.0

2.a. Is voluntary mediation or conciliation available? Yes

2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or No section of the applicable code of civil procedure encompassing substantially all their aspects (for

2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or

conciliation is successful, a refund of court filing fees, income tax credits or the like)?

Yes

example, definition, aim and scope of application, designation of mediator/conciliator, initiation of the process, principles governing the process, enforcement)?

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to recover debt (years)

  • Measured in calendar years

  • Appeals and requests for extension are included

Cost required to recover debt (% of debtor’s estate)

  • Measured as percentage of estate value

  • Court fees

  • Fees of insolvency administrators

  • Lawyers’ fees

  • Assessors’ and auctioneers’ fees

Other related fees

To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:

  • A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.

  • The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.

  • The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise.

In addition, Doing Business evaluates the quality of legal framework applicable to judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered.

Outcome

  • Whether business continues operating as a going concern or business assets are sold piecemeal

Recovery rate for creditors

  • Measures the cents on the dollar recovered by secured creditors

  • Outcome for the business (survival or not) determines the maximum value that can be recovered

  • Official costs of the insolvency proceedings are deducted

  • Depreciation of furniture is taken into account

  • Present value of debt recovered

Strength of insolvency framework index (0- 16)

  • Sum of the scores of four component indices:

  • Commencement of proceedings index (0-3)

  • Management of debtor’s assets index (0-6)

  • Reorganization proceedings index (0-3)

  • Creditor participation index (0-4)

Resolving Insolvency – Georgia

Resolving Insolvency - Georgia

Figure – Resolving Insolvency in Georgia – Score

Figure – Resolving Insolvency in Georgia – Score

Figure – Resolving Insolvency in Georgia and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

Resolving Insolvency in Georgia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Georgia – Time and Cost

Resolving Insolvency in Georgia – Time and Cost

Figure – Resolving Insolvency in Georgia and comparator economies – Measure of Quality

resolving tnsolvency in georgia and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Georgia and comparator economies – Recovery Rate

Figure – Resolving Insolvency in Georgia and comparator economies – Recovery Rate

Details – Resolving Insolvency in Georgia

BizBank will initiate insolvency proceedings against the Mirage at the Tbilisi City Court, due to the debtor's insolvency or expected insolvency. Afterwards, Court will review the insolvency application and, in the event it complies with all the statutory requirements, rule on the opening of the insolvency proceedings. After dealing with some technical matters, like appointing a trustee and convention of creditors, the Conciliation Council will be established by the representatives of both debtor and creditors. It is exactly the Conciliation Council which after reviewing and close examination of the case who makes one of the following decisions: a) commencement of liquidation proceedings; b) commencement of reorganization or c) termination of the insolvency proceedings. It is unlikely that BizBank as a major creditor will support reorganization because it will seek to return its money as soon as possible. On this ground, the

Conciliation Council will follow its opinion and proceed with liquidation.

According to the Law on Insolvency Proceedings, it should take not more than 225 days to complete liquidation proceedings. However, in practice it takes 2 years to complete the process because statutory deadlines are not always complied with. In particular, it may take a year to convene the first meeting of creditors. As a fist step, BizBank will commence insolvency proceedings with the Tbilisi City Court. The court will review the materials and accept the case for consideration. Once the case is accepted, the National Enforcement Bureau will be appointed as a trustee/supervisor (Article 26 of the Law on Insolvency Proceedings) and the date for the first meeting of the creditors will be set (Article 21 of the Law on Insolvency Proceedings). The trustee will inform the creditors about the opening of the insolvency proceedings by publication.Trustee will assume control over the management of the debtor company, examine its financials and prepare a report on the insolvency of the debtor (Article 26 of the Law on Insolvency Proceedings). Creditors will submit their claims, and then will present them at the first meeting of the creditors. The judge will make a decision whether to accept or reject each claim, which in practice may take significant time (Article 29 of the Law on Insolvency Proceedings). Conciliation Council will be appointed (the debtor and the creditors will each appoint one member and the two will elect the third member) (Article 32 of the Law on Insolvency Proceedings). The Conciliation Council will decide whether to proceed with liquidation or reorganization (Article 33 of the Law on Insolvency Proceedings). Once the decision to liquidate the debtor is made, the creditors will appoint a liquidation manager (Article 37 of the Law on Insolvency Proceedings). Debtor's assets will be sold at an auction organized by the

National Enforcement Bureau.

Outcome piecemeal sale The hotel's assets will be sold at a public auction. At the first auction, the assets must be sold as a whole. If they are not sold at the first auction, the creditors may authorize a piecemeal sale during the second auction and the price will be decreased (Article 38 of the Law on Insolvency Proceedings). It is likely to be difficult to find a buyer for the hotel as a going concern, therefore, the most likely outcome is a piecemeal sale.

Recovery rate

(cents on the dollar)

40.5

Cost (% of estate) 10.0 The total cost of the proceedings would amount to approximately 10% of the value of the hotel. Around 7% of the value will be paid to the National Bureau of Enforcement for their service as a bankruptcy manager and 1% of the value of the estate will be paid to the National Bureau of Enforcement for acting as an auctioneer (Article 9 of the Order No 144 of the Minister of Justice, dated July 30, 2010). Other expenses will include attorneys' fees, which may vary between 1 and 4%.

Details – Resolving Insolvency in Georgia – Measure of Quality

Strength of insolvency framework index (0-16)

11.0

Commencement of proceedings index (0-3)

2.5

What procedures are available to a DEBTOR when commencing insolvency proceedings?

(a) Debtor may file for both liquidation and reorganization

1.0

Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?

(b) Yes, but a creditor may file for liquidation only

0.5

What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value of its assets

(a) Debtor is generally unable to pay its debts as they mature

1.0

Management of debtor's assets index (0-6)

5.5

Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor?

Yes

1.0

Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?

Yes

1.0

Does the insolvency framework allow avoidance of preferential transactions?

Yes

1.0

Does the insolvency framework allow avoidance of undervalued transactions?

Yes

1.0

Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings?

Yes

1.0

Does the insolvency framework assign priority to post-commencement credit?

(a) Yes over all pre- commencement creditors, secured or unsecured

0.5

Reorganization proceedings index (0-3)

0.0

Which creditors vote on the proposed reorganization plan?

(c) Other

0.0

Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation?

No

0.0

Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally?

No

0.0

Creditor participation index (0-4)

3.0

Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative?

Yes

1.0

Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?

No

0.0

Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative?

Yes

1.0

Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims?

Yes

1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Hiring

(i) whether fixed-term contracts are prohibited for permanent tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum wage;(v) ratio of minimum wage to the average value added per worker.

Working hours

(i) maximum number of working days allowed per week; (ii) premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a weekly rest day and for overtime work; (iv) length of paid annual leave.

Redundancy rules

(i) whether redundancy can be basis for terminating workers; (ii) whether employer needs to notify and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

To make the data comparable across economies, several assumptions about the worker and the business are used.

The worker:

  • Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.

  • Is a full-time employee.

  • Is not a member of the labor union, unless membership is mandatory.

The business:

  • Is a limited liability company (or the equivalent in the economy).

  • Operates a supermarket or grocery store in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Has 60 employees.

  • Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them.

  • Abides by every law and regulation but does not grant workers more benefits than those mandated by law, regulation or (if applicable) collective bargaining agreements.

Redundancy cost

(i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Employing Workers – Georgia

Details – Employing Workers in Georgia

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? No

Maximum length of a single fixed-term contract (months) 30.0

Maximum length of fixed-term contracts, including renewals (months) 30.0

Minimum wage applicable to the worker assumed in the case study (US$/month) 15.7

Ratio of minimum wage to value added per worker 0.0

Maximum length of probationary period (months) 6.0

Working hours

Standard workday 8.0

Maximum number of working days per week 7.0

Premium for night work (% of hourly pay) 0.0

Premium for work on weekly rest day (% of hourly pay) 0.0

Premium for overtime work (% of hourly pay) 0.0

Restrictions on night work? No

Restrictions on weekly holiday? No

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 24.0

Paid annual leave for a worker with 5 years of tenure (working days) 24.0

Paid annual leave for a worker with 10 years of tenure (working days) 24.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 24.0

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party notification if one worker is dismissed? No

Third-party approval if one worker is dismissed? No

Third-party notification if nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? No

Priority rules for redundancies? No

Priority rules for reemployment? No

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.3

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.3

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.3

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.3

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.3

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.3

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.3

Unemployment protection after one year of employment? No

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.3

PEO Georgia

Georgia has emerged as a promising destination for Professional Employer Organization (PEO) services, attracting businesses from around the world. Situated at the crossroads of Europe and Asia, Georgia’s strategic location offers unique access to markets in both regions, making it an appealing hub for international expansion. The country’s business-friendly environment, low tax rates, and simplified regulatory framework have encouraged foreign companies to establish a presence in Georgia. PEO services in Georgia provide a range of benefits to these companies, including assistance with payroll processing, human resources management, and compliance with local labor laws. By partnering with a reputable PEO, businesses can navigate the intricacies of Georgia’s business landscape more efficiently, enabling them to focus on their core operations while tapping into the local talent pool. With its pro-business policies and competitive advantages, Georgia continues to solidify its position as an attractive PEO country for businesses seeking growth opportunities in the Caucasus region and beyond.

PEO services in Georgia have gained traction as an essential resource for businesses looking to expand and operate efficiently in the country’s vibrant market. Georgia’s strategic location at the crossroads of Europe and Asia, coupled with its business-friendly environment and favorable tax policies, attracts numerous international companies seeking growth opportunities. PEO services in Georgia offer a comprehensive suite of solutions, including payroll management, human resources support, employee benefits administration, and regulatory compliance guidance. By partnering with a reliable PEO provider, foreign companies can navigate the intricacies of Georgia’s employment regulations and cultural nuances with ease. This enables businesses to focus on their core operations while enjoying the flexibility and cost-effectiveness of outsourcing HR functions. PEO services in Georgia serve as a gateway for businesses to access a skilled local workforce, streamline administrative processes, and enhance their overall competitiveness in the region’s dynamic market.

Business Reforms in Georgia

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.

=Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2020

Dealing with Construction Permits: Georgia improved its building quality control by increasing public access to information.

DB2019

Starting a Business: Georgia made starting a business easier by allowing voluntary value added tax registration at the time of business incorporation.

Paying Taxes: Georgia made paying taxes easier by levying income tax on distributed profits rather than on taxable profits. At the same time, Georgia made paying taxes more difficult by requiring value added tax to be imposed on advance payments for goods and services.

Enforcing Contracts: Georgia made enforcing contracts easier by introducing random and automatic assignment of cases to judges throughout the courts.

DB2018

Getting Electricity: Georgia made getting electricity more affordable by reducing the connection costs for new customers.

Protecting Minority Investors: Georgia strengthened minority investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties, by increasing shareholder rights and role in major corporate decisions and clarifying ownership and control structures.

Resolving Insolvency: Georgia made resolving insolvency easier by making insolvency proceedings more accessible for debtors and creditors, improving provisions on treatment of contracts during insolvency and granting creditors greater participation in important decisions during the proceedings.

DB2017

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.

DB2016

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.

DB2015

Employing Workers: Georgia reduced the maximum duration of fixed-term contracts and introduced a notice period for redundancy dismissals.

DB2014

Getting Credit: Georgia improved its credit information system by implementing a new law on personal data protection.

DB2013

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.

DB2012

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.

DB2011

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.

DB2010

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.

DB2009

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.

DB2008

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.

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