Foreign investments are crucially important issue for the development of the Georgian economy and it represents one of the top priorities of our country. As Georgia is a developing country, the economic market still needs to be assimilated in numerous different directions.
Georgia is a front-runner amongst the countries where financing in varying businesses is appealing for foreign investors. This statement is proved by the World Bank ranking of ease doing business, and according to which, in 2019 Georgia ranks 6th after countries such as New Zealand, Singapore, Denmark, Hong Kong, and South Korea.
Searching for a new economic market and an optimal environment for investment is a great challenge for foreign shareholders as investing in a new county is connected to financial risks and different legal frames.
Entering a new economic market and starting a new business is quite a challenging process since probability of success depends on a number of factors, such as a preliminary study of a target market, analysis of the legislative, drafting a business plan tailored to the local reality, having relations with state authorities, tax, legal support, etc.
A proven way to fulfill the aforementioned is to cooperate with the consulting group, which has an in-depth knowledge of the target market and can assist in the whole process.
"Loialte" experienced team provides investment management and full support in the process, in particular:
Research and analysis of the market – when deciding to invest in a foreign country, it is important to be familiar with the social, economic, political and legal basis of this country, as well as legal framework, regulations and the country’s strategy for foreign investments and investors. Also, it is prominent to acquire information about local market requirements, trends, and behavior of the target audience. Thorough research and analysis of the market include obtaining, consolidating and analyzing the above-mentioned information, which is a precondition for making the right decisions and successful investments.
Feasibility study and risk analysis – The feasibility study stage allows evaluation of the probability of a particular project or a plan, namely: if this project is acceptable or not, and if we acquire human, technical or financial resources to carry out this project in a way that will result in achieving the financial target profitability.
Drafting a business plan tailored to local reality – we will prepare a comprehensive business plan that includes all the details related to doing business. An important part of the business plan is to have the right strategy of entering the market, as well as short and long term business development. Also, critical issues will be discussed in details, such as:
- Analysis of competitors;
- Marketing strategy;
- Financial modeling and short & long term forecasting;
- Risk Management;
Support in the merger and acquisition process – merger and acquisition are a difficult and often long-term process, that require the involvement of professional lawyers, tax specialists and more importantly, engagement of the managers with relevant experience. “Loialte” provides engagement throughout the process with optimal cost.
Due diligence – due diligence includes having full expertise in legal, financial and tax matters before entering into a specific contractual relationship. Our experienced team will carry out the due diligence process and present a professional conclusion that will enable you to make the right decisions.
Professional support/outsourcing services – after going through the preparatory phase for investing, it is important to have a well-run operating system so that your business can grow and deliver results in the medium to long term. "Loialte "offers comprehensive services in the following areas:
- Drafting investment agreements;
- Legal support in the negotiation process;
- Corporate legal consulting;
- Establishing an enterprise / branch registration;
- Contract drafting and revision;
- Labor law;
- Real estate law;
- Immigration law;
- Legal compliance with local and international regulations;
- Representation with administrative bodies;
- Support in investment disputes;
- Individual and corporate tax planning;
- Tax consulting;
- Optimizing taxes;
- Support in tax disputes;
- Representation with tax authorities;
- Immediate notification about the amendments of Tax legislation;
- Involvement in formation of new products.
Full support in accounting and financial management
- Accounting outsourcing;
- Chief Accountant outsourcing;
- Financial Manager outsourcing;
- Financial Department outsourcing;
- Financial analytics;
- Complete reporting with management and third parties (Government Bodies, Financial Institutions).
- Tax audit;
- Financial audit;
- Legal audit;
- Compliance audit;
- IT audit;
- Labor security audit;
- Support in sale;
- Searching the human resources;
- Planning and implementing marketing activities;
- IT (informational technologies);
Evaluating Service – While processing business transaction it is often necessary to evaluate and determine real estate, movable property or business in general and determine its value. “Loialte” professional team will value tangible, intangible, immovable and movable assets.
Representation with state authorities – Communication in the right way and complete delivery of requested information on time with public authorities/regulators is critically important for the timely implementation of business operations. Our team is staffed by professionals with extensive experience working in public and private structures, therefore, they know how to communicate with state bodies.
Representation with financial institutes - In Georgia, the main source of financing are commercial banks, which are regulated by the Central Bank of Georgia. In addition to financing, banking services are important for any financial transaction that requires the existence and disposal of a bank account. “Loialte” provides financial services that will be performed by former bankers who have a solid understanding of the specifics of working with banks, in both credit and operating ways.
Support in local, public or private tenders – In many cases foreign investors are interested in tenders announced either by public or private companies. Winning the tender often depend on the proper formulation of the tender documentation and submission of the deadline. “Loialte” provides full tender service with professional lawyers and tax specialists.
Full representation in the target country (conducting operational activities on behalf of the client) – We provide complete outsourcing of business operations, which means managing the business on behalf of the investor, with determined budget and targets. As our team has knowledge and experience in managing both Startup projects and large businesses, these services provide you with an opportunity to do business in another country remotely with low risks and the right human resources.
Training sessions – "Loialte Prof." is the educational side of our company which combines over 50 different types of trainings. In terms of the variety and the number of training sessions per month, "Loialte Prof." is the largest training center that provides all formats of corporate training throughout Georgia.
According to the official data of the National Statistics Office of Georgia, in the 2nd quarter of 2019, foreign direct investment fields were the following:
- Energy - 34%
- Processing industry - 20.5%
- Hotels & Restaurants - 15.0%
- Transport - 14.2%
- Real-estate -12.2%
- Other – 4.1%