Foreign Direct Investment (FDI): Secure Capital Allocation in Georgia
Foreign Direct Investment (FDI) is a major driving force of the Georgian economy. Georgia is attractive to foreign investors due to opportunities in energy, real estate, tourism, manufacturing, and agriculture. However, investing large capital always involves legal risks, bureaucratic procedures, and regulatory requirements. FDI services imply full legal protection of the investor's interests—from investment planning to implementation and subsequent operation. This includes interacting with government agencies (e.g., "Enterprise Georgia"), signing investment agreements, legalizing land plots, and obtaining licenses. Qualified legal support is the guarantee that the investment will be protected by Georgian legislation and international treaties.
What Does This Service Cover?
Foreign Direct Investment services cover all stages of an investment project:
- Investment Structuring: Selecting the optimal corporate form and tax structure for the investment.
- Due Diligence: Detailed checking of the target asset (land, building, company) for legal cleanliness to exclude liens and liabilities.
- State Support Programs: Assistance in participating in state programs (e.g., "Host in Georgia", "Film in Georgia"), attracting grants and cheap loans.
- Memorandums of Understanding (MOU): Negotiating and signing investment agreements with the Ministry of Economy or municipalities.
- Asset Acquisition: Preparing and registering purchase agreements for real estate or business shares.
- Regulatory Compliance: Obtaining environmental permits, construction permits, and operating licenses.
Common Scenarios When You Need This Service
FDI services are essential when implementing large projects:
- Real Estate Development: A foreign investor buys land to build a hotel or residential complex.
- Energy Projects: Construction of hydro, solar, or wind power plants, which requires signing a guaranteed purchase agreement (PPA) with the state.
- Manufacturing Setup: Opening a factory focused on exports that requires logistical and customs support.
- Agricultural Land Acquisition: Purchasing agricultural land is restricted for foreigners, so developing a legal investment plan and obtaining government permission is necessary.
Georgian Legal Framework
Investment protection is ensured by the Law of Georgia on Promotion and Guarantees of Investment Activity, which grants investors the right to freely repatriate profits and protects against nationalization. Land issues are regulated by the Law on Ownership of Agricultural Land. In energy projects, the Law on Public-Private Partnerships is used. Corporate issues fall under the Law on Entrepreneurs.
Process of Service Delivery
The process begins with a legal feasibility study of the project. Lawyers check the asset, prepare a risk report, and propose the best structure to the investor. The next stage is negotiations with the seller or the state. After signing agreements, lawyers ensure obtaining all necessary permits to start the project. They remain involved until the project completion to protect the investor's interests.
Why Legal.ge?
Investing in a foreign market always carries risks. Legal.ge is your local partner protecting your capital. Lawyers on our platform have years of experience legally accompanying multi-million investment projects. We will help you overcome bureaucratic barriers so you can focus on business development. Make a secure investment in Georgia with Legal.ge.
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