For investors

“Doing business 2016”

The State Investment Agency conducted a research with the “Doing business” methodology of the World Bank Group. The research evaluates the ease of doing business based on 10 indicators in 190 countries. This methodology is one of the leading product of knowledge in private sector development sphere. It motivates countries around the world to regulatory reforms.

A focus of methodology are legal regulatory of small and medium enterprises with 10 areas of their lifecycle:

  1. Starting a business;

  2. Dealing with Construction Permits;

  3. Getting Electricity;

  4. Registering Property;

  5. Getting Credit;

  6. Protecting Minority Investors;

  7. Paying Taxes;

  8. Trading Across Borders;

  9. Enforcing Contracts;

  10. Resolving Insolvency.

The Republic of Abkhazia takes 139 place among 190 countries in Doing Business Rankings leaving behind Bolivia (150), Algeria (157), Haiti (181) and Angola (182).

Doing Business Rankings was formed for the Republic of Abkhazia based on 10 indicators and estimated for Sukhum – the capital of the country.

The best indicators for Abkhazia are:

Enforcing Contracts – 3rd place

Registering Property – 71st place

Dealing with Construction Permits – 72nd place

Medium indicators:

Getting Electricity – 74th place

Starting a business – 84th place

Paying Taxes – 122nd place

The compactness of the territory allows state administration bodies to performe important improvements almost in all rankings’ indicators in short period of time.

25 steps to improve conditions for priority sectors and clusters’ development

The Ministry of Economics together with the State Investment Agency developed a research which became the basis for 25 steps of improvement and development conditions for priority sectors of the economy.


Step 1
To form the “Development Corporation” of the Republic of Abkhazia which is a special institute for developing and implementing economic programs. A team of skilled and competent specialists needs to be hired to organize effective work.
Step 2
To form a list of priority sectors for the investors planning to invest to Abkhazia based on formed Development Corporation.
Step 3
To prepare customized incentives’ system for investors, including tax, land and infrastructural incentives. To organize decision-making procedure in the Government of the Republic of Abkhazia of contribution of pointed incentives.
Step 4
To form program of economy development and the pool of instruments for export boosting. To prepare a start of program for support of local exporters in the manufacture sphere. Moreover, to negotiate with the Russian Federation on custom duties simplification for exporters form Abkhazia and on preparation of the regime similar to Eurasian Economic Community.
Step 5
To develop “Republican investment map” – a special list of priority projects with foreign investors’ participation and to prepare all-in-one support (“concierge service”) for investors.
Step 6
To form republican guarantee fund. To form and to launch a special program of guarantee support for entrepreneurs that involves providing state guarantees for loans on acquisition of basic assets (equipment and facilities).


Step 7
To form a republican lease fund. To prepare and to start special program of basic assets leasing (equipment and facilities).
Step 8
To form a list of key professions in priority sectors and to prepare targeted preparation specialist training on the basis of world leading universities. To prepare and implement the state program of special grants allowing a compensation of education payment on priority professions assuming return to Abkhazia after graduation.
Step 9
To prepare and implement a program on development of entrepreneurs competences in strategic and financial sphere in association with the leading foreign experts and the leading local banks.
Step 10
To prepare a conception and master plan of republican business-incubator in association with the leading foreign experts.
Step 11
To implement essential simplification of starting a business procedure by cost-cutting and cut of the procedures number and by moving some of them to digital format.
Step 12
To develop a procedure and a three-year plan of 100% legalization of existing practice of informal ownership of land plots and real property. To implement legal confirmation of ownership rights through establishing total cadaster and its publication on internet the results in the form of full digital cadaster map.


Step 13
To develop a revision and cut of oversight functions, double cut of the staff of regulatory and supervisory authorities, introduction of risk-oriented approach, including a work on the basis of check lists. To provide a publication of the results of inspections in 3 days after it occures for transparency of inner reporting of inspection results.
Step 14
To provide effective litigations on enforcing contracts and minimization of time and financial expenses on adjudication of commercial disputes in court of the first instance, including filing and handing a claim, judicial consideration and acceptance of judgement and execution of judgement.
Step 15
To form the Republican investment panel – a special separated investment proceedings for immediate and qualitative disputes adjudication with the involvement of big investors.
Step 16
To prepare and accept an unified Internal Revenue Code to regulate the tax management, reduction of number of taxes, reports and payments, formation of effective special tax regime for small business and also form and provide within a 3 -year period an 100% transition to digital return acceptance.
Step 17
To form a list of ineffective taxes and to prepare to provide their full cancelation in 2017-2019.
Step 18
To prepare and implement a program of tax office development for dealing with tax crimes, a program of competences development, a program of integration of modern technologies and creation of special consultancy service for business on tax management and tax payment process. To create in the system of tax office a special service for financial monitoring for dealing with tax crimes, to establish effective data exchange on the outcomes of e-payments and other statutory payments (taxes, pension and social taxes and customs payments) for identifying tax crimes and companies, working in the shade.


Step 19
To boost an integration of cash-free payment system for entrepreneurship for 3 years. To cancel tax payment for small and medium entrepreneurs, for those who integrate cash-free payment system. To conduct an educational work on explaining the advantages of such systems (cuts of cost on encashment, and increase in revenue by the increase of average receipt amount) and simplification of getting cash-free terminals.
Step 20
To develop tax and financial amnesty by legalization of incomes through the tax payments and writing off previous tax accruals.
Step 21
To put in statutory declaring of incomes of leading government officials and stiffening of law enforcement practice in cases with corruption.
Step 22
To prepare and accept a 3-year plan of gradual 100% transition to e-payment in government sector and business, including taxes, state purchases, salaries in all organizations and enterprises with the participation of state or under its control, stimulate cash-free payments.
Step 23
To prepare and implement a Road Map for improvement efficiency of state management.
Step 24
To develop a complex scheme of territory planning and Master Plans for cities including transport development plan and energy infrastructure.


Step 25
To develop and implement a Road Map for improvement efficiency of law-enforcement authorities.