V.  Marketing U.S. Products and Services

-- Distribution and Sales Channels, and use of
Agencies/Distributors

Several GOG ministries and organizations, including the Ministry
of Trade, Ministry of Agriculture and Food Industry, and Tourism
Department, have commodity distribution and sales functions.  The
leading trade organization is the Georgian Cooperative Union.

There are no yellow pages, companies' catalogs or well- organized
commercial centers (agencies) providing information on local
distributors and sellers.   However, U.S. companies may contact
the USDOC Commercial Service in Tbilisi at the U.S. Embassy, the
Georgian Trade Representative in the United States in New York,
the Committee of Foreign Economic Relations, and the Georgian
Chamber of Commerce and Industry to inquire concerning
distributors or sellers in Georgia.

-- Franchising

Franchising has not been developed in Georgia yet.

-- Steps to Establishing an Office, Joint Ventures/ Licensing

A company/person planning to establish an office in Georgia must
apply for registration with the local district government -
"Gamgeoba."  The type of documents to be attached to the
application depends upon the type of entity to be established
(e.g. branch of a foreign company, joint venture company, etc.).
The "Gamgeoba," upon receiving all required documents, will
notify the applicant of the date of the "Gamgeoba" special
commission meeting in which the application will be considered.
If the application is approved, "Gamgeoba" grants a temporary
registration certificate to allow for preparation of the firm's
seal and letterhead, opening of a bank account, and investment
required by the firm's charter or agreement with the local
partner.  In the case of joint ventures, the required initial
investment is 50 percent of corporate capital; the other 50
percent may be transferred within the next two years.  After
these procedures are completed, the business will be officially
registered.  If a foreign firm finds the registration procedure
complicated or time-consuming, there are special registration-
service companies in Georgia that can be reached through the
"Gamgeoba."

Licenses are required for several business activities, such as
mining, banking, health care, sale of medicines, and
communications.  (Note: the list of businesses requiring a
license is subject to amendment.  End note.).  Licenses can be
obtained from appropriate GOG ministries.

-- Advertising and Trade Promotion

The most popular and effective advertising channels in Georgia
are TV and newspapers.  Television channel #1 has the largest
audience.  TV channels #2 and Ibervisia are also very popular,
especially among the young and mid-age population.  However,
Ibervisia reaches only the Tbilisi region.  There are few other
cable and satellite channels with limited audiences.


The three most popular daily newspapers in Georgia are
"Sakartvelos Respublika," "Svobodnaya Gruzia" (in Russian), and
"Tbilisi".  Among businessmen, popular newspapers are also
"Bank," "Business Courier," and "Privatization News".

Also available for purposes of trade promotion: exhibition,
marketing, and special sales facilities (e.g. universal shops)
located in Tbilisi, Batumi, Kutaisi and other cities.  Foreign
companies usually organize their trade promotion events through
the Georgian Chamber of Commerce and Industry.