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Thinking of medical production but not sure which country suits your needs? This blog might be a perfect match for you then. Here you will discover something new and interesting. Have you ever heard of Georgia? The country in the middle of Europe and Asia? World Bank’s top country for easiness of doing business? The country which has free trade agreements with the EU, Turkey, Hong Kong, and many other countries and allows you access all these markets tax-free? It is a legit country not yet another offshore jurisdiction. If not, you are going to hear something interesting in this blog. Some of the benefits of incorporating a Pharmaceutical production unit in Georgia.
Why start a production business in Georgia?
Not only Biopharma production, in general production in Georgia provides numerous benefits. The production sector is highly supported by the government. There are numerous manufacturing sectors and opportunities to start a business at the moment. There is a separate blog written by us, overviewing the manufacturing business sector in Georgia, you can refer to that for a more comprehensive understanding of the market, here is only the shortcut:
- Easy startup procedure
- Law Tax Regime
- Easy to import and export
- Law labor and utility costs
- Strategic location
- Free trade agreements with numerous countries open global export potential.
Georgian Biofarma Sector Overview
Pharmaceutical and Life Science Sector growing at a strong pace in Georgia and neighboring countries. Import of Pharmaceutical Products in the Caucasus amounted to 6.7 bln USD between 2016-2019, while Export of Pharmaceutical Products from Georgia amounted to only 0.6 bln USD. Besides, 70 Manufacturers and 1,367 Pharmaceutical Products are produced in Georgia, and over 13,000 employees in the sector. Over the last 5 years, the export of pharmaceuticals from Georgia has been increasing at 21 % CAGR.
Whilst Biofarma, medical production is the most saturated sector in Georgia, you can still find here some young talents. During the last five years, almost 28000 students graduated from science and welfare graduate studies. Now, to be highly transparent, you might have problems finding highly skilled professionals, since, again, Biofarma production is still a baby sector. On the other hand, being in a baby sector means big potential for development.
Free Trade Agreement with Numerous Countries
Georgia is the only country in the region with Free Trade Agreements with the European Union, EFTA, Turkey, Ukraine, China (including Hong- Kong), and CIS providing excellent opportunities for exporting products from Georgia to 2.3 billion consumer markets without Customs Duty, according to the national investment promotion agency.
The best Taxation country for Medical Production Business
Business and tax friendliness is one major benefit. For a simplified taxation, guide refer to this post. One major benefit is that Reinvested profit is free from profit tax, personal Income Tax is one of the lowest in the world, at 20%. 80% of goods are free from import tariffs in Georgia. Most importantly, NO EXPORT TAX applies. Georgia also offers four Free Industrial Zones (FIZ) – where a company producing goods for export is exempt from all taxes except (personal
Major Operators – Competition overview for Biofarma Sector
Some of the major companies operating in the Biofarma sector in the market are listed below. There are not many. Even the local market is not yet saturated. Medical production in Georgia gives you the opportunity to access and satisfy internal as well as global demand.
1. BioChimPharm – product portfolio includes solutions used for treatment and prevention of diseases caused by harmful (pathogenic) bacteria. The company mainly operates in two, Human and Animal Health, industries producing therapeutic OTCs (over-the-counter drugs) and dietary supplements.
2. CLEANTECH LTD – Incorporated in 2003, busy with the production of professional disinfectants, detergents, and hygiene products. Products are sold both in Georgia and abroad (Azerbaijan, Armenia). In addition, the company imports products of the world’s leading brands in the production of professional detergents and hygiene products, such as Diversey , Duni, Bayer, Eermop and IPC.
3. Biosyo – company kicked off in 2018 with the government’s strong support. It is Georgian natural skin and hair care: shampoos, soaps, and creams. Our product-based aloe vera and does not contain any chemical supplements.
Major Benefits for incorporating Pharmaceutical production business in Georgia
Low Utility Costs
The vast majority of power is generated via hydro and wind power plants, leading to greener and cheaper energy. 1 kWh of high voltage electricity costs about 7 USD cents.
Easiness of Starting a production business and doing Business
Again, the easiness of starting procedure. The startup procedure takes less than three months. This includes incorporating and acquiring a relevant license. All depending on the procedure it may take less time frame too. Three months is absolutely the maximum time that you will need to start producing Pharmaceuticals. Easiness of Doing Business, in particular, simple import and export procedures, lack of beurocracy is another benefit for Biopharma production. If you think about where to incorporate the Biopharma production unit, this is probably one of the most important factors to take into account. How easily you can import raw materials and how easily you can export. remember, all the above-described benefits of starting a manufacturing business in Georgia applies to medical production too.
High quality of data accepted and validated by FDA inspection. Apart from that, Georgian Products approved by EMA, CIS, and MENA regulatory bodies
Manufacturing Support Programs
Georgia offers a number of incentives and co-investment opportunities to companies interested in developing manufacturing facilities in Georgia. FDI Grant program offers cashback for costs incurred for staff training and infrastructure upgrade. “Produce in Georgia” program is devised to support Industrial manufacturing through a variety of financial and technical support mechanisms, including co-financing of the interest rates on the commercial loans, Collateral Guarantee co-financing, and transfer of state property (both land and building) into the private ownership for a symbolic price of GEL 1.
Looking for incorporating a business in Georgia?
Make sure you contact us for the comprehensive, most convenient, faster, and most importantly reasonable services. Make your best choice when it comes to incorporating a business in Georgia. We offer you the simple company registration procedure in Georgia. Our incorporation or company formation agents will not only help you to incorporate your Georgian LLC, but also will advise and guide you through the whole business operation journey. Doing business is easier with us, local professionals.