Ministry of Economy and Sustainable Development of Georgia

2020

Ease of Doing Business 2020

Georgia’s Ranking in 2012 – 2020

Ease of Doing Business 2020

Georgia’s Ranking Compared to Other Countries

GEORGIA’S RANKING 2020

In 2020 - 7th place amongst 190 countries

Overall distance to frontier (DTF) – 83.7 score

(improvement by 0.2 points)

THE CYCLE OF REFORMS FOR GEORGIA

The Top Improver since 2003 in EE&CA and

globally - With 51 institutional and regulatory

reforms.

Georgia is featured on the list of 10 top

improvers for three consecutive Doing Business

cycles

129

14

24 23

16

96 7

2012 2013 2014 2015 2016 2017 2018 2019 2020

6451

4847

4541

4037

3433

3228

2322

1918

119

87

63

21

UkraineCroatia

MoldovaArmeniaSlovakia

Czech RepublicPoland

SloveniaAzerbaijan

TurkeyFranceRussia

CanadaGermany

LatviaEstonia

LithuaniaNorway

United KingdomGeorgia

United StatesDenmarkSingapore

New Zealand

Georgia’s Ranking in 10 areas

Ease of Doing Business 2020

Overall distance to frontier (DTF) in 10 areas

Georgia is top 10 countries in following areas

Starting a Business – 2th position

Registering Property – 5th position

Protecting Minority Investors – 7th position

In 2020 Georgia takes the 1st position in region -

Europe & Central Asia (amongst 23 countries)

Georgia takes the 1st position in Europe & central

Asia region (amongst 23 countries) in the following

areas:

Starting a Business

Registering Property

Protecting Minority Investors

Paying Taxes

Overall distance to frontier (DTF)

In 2020 Georgia’s Overall distance to frontier

(DTF) score – 83.7

Region Average (Europe & Central Asia) –

73.06

7

3

88

19

17

45

47

3975

2 21

42

515

714

45

12

64

0

10

20

30

40

50

60

70

80

90

100

Starting aBusiness

Dealing withconstruction

permits

Gettingelectricity

Registeringproperty

Gettingcredit

Protectingminorityinvestors

Payingtaxes

Tradingacross

borders

Enforcingcontracts

Resolvinginsolvency

2012 2020

99.6

81

84.4

92.9

85

84

89.2

90.1

7556.2

90.5

69

71.6

75.8

72.2

61

77.9

87.3

65.555.7

Starting abusiness

Dealing withconstruction

permits

Gettingelectricity

Registeringproperty

Gettingcredit

Protectingminorityinvestors

Payingtaxes

Tradingacross

borders

Enforcingcontracts

Resolvinginsolvency

Ease of Doing Business 2020

Compared to 2019, in 2020 Georgia's DTF has

improved in 6 indicators out of 10:

Starting a Business – 99.6 score

Dealing with Construction Permits – 81

score

Paying taxes – 89.2 score

Getting Electricity – 84.42 score

Trading Across Borders – 90.1 score

Resolving Insolvency – 56.2 score

Compared to 2019, in 2020, Georgia’s position

has improved in the following indicators:

Paying Taxes – 14th position

Dealing with Construction Permits – 21th

position

Georgia’s position in 2019-2020

Ranking Score of Georgia in 2019-2020

2

27

39

412

2

16

43

8

60

2

21

42

5

157

14

45

12

64

Starting aBusiness

Constructionwith Permits

GettingElectricity

RegisteringProperty

GettingCredit

ProtectingMinorityInvestors

Paying Taxes TradingAcrossBorders

EnforcingContracts

ResolvingInsolvency

2019 2020

99.3

4

77.6

1

84.3

8

92.8

6

85

81.

67

89.0

3

90.0

3

76.9

56.0

3

99.6

81

84.4

92.9

85

84

89.2

90.1

75

56.2

Starting aBusiness

Constructionwith Permits

GettingElectricity

RegisteringProperty

GettingCredit

ProtectingMinorityInvestors

Paying Taxes TradingAcrossBorders

EnforcingContracts

ResolvingInsolvency

2019 2020

Dealing with Construction PermitsStarting a Business

In 2020 Georgia has 2nd position In 2020 Georgia has 21st position

Components of Starting a Business Components of Dealing with Construction Permits

Ease of Doing Business 2020

7 7

4 4

10

8

4

2 2

2012 2013 2014 2015 2016 2017 2018 2019 2020

3 2 3

119 8

2927

21

2012 2013 2014 2015 2016 2017 2018 2019 2020

2 2 4.70.01 1 2.1 0.0

Procedures(number)

Time(days)

Cost(% of income per

capita)

Min. capital(% 0f income per

capita)

2012 2020

13

90

0.611

63

0.39

Procedures(number)

Time(days)

Cost(% of

warehouse value)

Building qualitycontrol index

(0-15)

2012 2020

Registering Property

In 2020 Georgia has 5th position

Getting Electricity

In 2020 Georgia has 42nd position

Components of Getting Electricity Components of Registering Property

Ease of Doing Business 2020

88

54

36

7062

3930

39 42

2012 2013 2014 2015 2016 2017 2018 2019 2020

1 1 1

3

4

5 5

4

5

2012 2013 2014 2015 2016 2017 2018 2019 2020

596

751.3

371

145

5

Procedures(number)

Time(days)

Cost(% of income

per capita)

Reliability of supplyand transparency of

tariff index (0-8)

2012 2020

1 1 0.11 1 0.0

21.5

Procedures(number)

Time(days)

Cost(% of

property value)

Quality of the landadministrationindex (0-30)

2012 2020

Protecting Minority InvestorsGetting Credit

In 2020 Georgia has 15th position In 2020 Georgia has 7th position

Components of Protecting Minority Investors Components of Getting Credit

Ease of Doing Business 2020

0

29.6

9 80

100

Strength of legal

rights index…

Depth of creditinformation index (0-8)

Credit registrycoverage

(% of adults)

Credit bureau coverage

(% of adults)

2012 2020

9

67

9

6

9

5

76

Extent of disclosure

index(0-10)

Extent ofdirector liability index(0-10)

Ease ofshareholdersuits index

(0-10)

Extent ofshareholder

rightsindex(0-6)

Extent ofownership and

control index (0-7)

Extent ofcorporate

transparencyindex(0-7)

2012 2020

17 16

43

2022

7

2 2

7

2012 2013 2014 2015 2016 2017 2018 2019 2020

9

3

56

7 7

12 12

15

2012 2013 2014 2015 2016 2017 2018 2019 2020

Trading Across BordersPaying Taxes

In 2020 Georgia has 14th position In 2020 Georgia has 45th position

Components of Trading Across Borders Components of Paying Taxes

Ease of Doing Business 2020

4532

22

40 3522 22

16 14

2012 2013 2014 2015 2016 2017 2018 2019 2020

47 45

31

78

6254

62

43 45

2012 2013 2014 2015 2016 2017 2018 2019 2020

5

448387

5

216

9.9

85.9

Payments(number per year)

Time(hours per year)

Total taxrate

(% of profit)

Postfiling index (0-100)

2012 2020

6

112

2 0 15

396

2

189

Time to export:Border

compliance(hours)

Cost to export:Border

compliance(USD)

Time to export:Documentarycompliance

(hours)

Cost to export:Documentarycompliance

(USD)

Time to import:Border

compliance(hours)

Cost to import:Border

compliance(USD)

Time to import:Documentarycompliance

(hours)

Cost to import:Documentarycompliance

(USD)

2012 2020

Enforcing Contracts Resolving Insolvency

In 2020 Georgia has 64th position In 2020 Georgia has 12th position

Components of Enforcing Contracts Components of Resolving Insolvency

Ease of Doing Business 2020

285

25

285

25 12

Time (days) Cost(% of claim)

Quality of judicialprocesses index (0-18)

2012 2020

2 3.5

37.2

02

10

0

11

Time (years) Recovery rate(cents on the

dollar)

Cost (% of estate) Outcome (0 aspiecemeal sale and

1 as goingconcern)

Strength ofinsolvency

framework index (0-16)

2012 2020

75

92

130

105 101 106

57 60 64

2012 2013 2014 2015 2016 2017 2018 2019 2020

39

33

2318 17 16

7 812

2012 2013 2014 2015 2016 2017 2018 2019 2020

Georgia implemented 51 reforms in 2006-2020

Ease of Doing Business 2020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Starting a

Business

√ √ √ √ √ √

Dealing with

Construction

Permits

√ √ √ √ √ √

Getting Electricity √ √ √

Registering

Property

√ √ √

Getting Credit √ √ √ √ √ √ √ √

Protecting

Minority Investors

√ √ √ √ √ √

Paying Taxes √ √ √ √ √

Trading across

Borders

√ √ √ √

Enforcing

Contracts

√ √ √ √ √

Resolving

Insolvency

√ √ √ √

Employing

Workers

√