In recent years, Georgia has improved transparency and efficiency in government administration and has begun to pursue high-level officials in public- and private-sectors for corruption-related offences. The country’s corruption progress is reflected in reports by international observers and public opinion surveys, which indicate the government’s success in reducing corruption. However, countries doing business in Georgia still face a number of obstacles, including deficiencies in the judiciary, enforcement of property rights and high-level corruption cases. This profile provides companies with a detailed analysis of the corruption level across various sectors, applicable corruption legislation and international agreements and more. Companies doing business in Georgia should be aware of the following developments:

• Georgia has carried out many efforts to improve the country's business environment, including cutting the number and rates of taxes, improving tax and fiscal administration, streamlining licensing requirements, and deregulating and simplifying customs and border formalities. In addition, several surveys reveal that the demand for bribes has declined when companies interact with licensing, registry and tax authorities.
• Georgia has been widely praised for being able to cut back on red tape in relation to setting up and running a company; starting a company in Georgia is now relatively simple.
• Recently, Georgia has established the Business Ombudsman both to provide information to companies doing business in the country and to handle complaints against the government.
• Under former President Saakashvili, cases of smuggling, tax evasion, bribery and abuse of power were severely punished.

Despite positive reforms, Georgia faces a number of continuing corruption challenges, including:

• Companies should be aware that due to deficiencies in the court system, such as the questionable competence level and impartiality of court rulings in foreign-domestic disputes, companies are safer if they include in their contracts a provision for the international arbitration of disputes.
• The government’s anti-corruption efforts have mostly been centred on low- and mid-level corruption rather than on high-level corruption. As a result, the country is still struggling with problems of high-level corruption and embezzlement.
• The judicial system and legislature are lagging behind and suffering from excessive interference from the government, leading to ineffective implementation of the law and lack of accountability. 

Detailed descriptions of the level of corruption in a number of sectors are outlined in the profile's Corruption Levels. For a more detailed analysis of government, media and civil society anti-corruption activities, visit the Public Anti-Corruption Initiatives and Private Anti-Corruption Initiatives chapters.