Georgian investment law is based on the Law of Georgia on Investment Activity and Promotion and Guarantees. Under Georgian legislation, foreign investor is a foreign citizen, an individual having no citizenship of Georgia nor permanently residing in Georgia, also a Georgian citizen having no permanent residence in Georgia or legal entity registered outside of Georgia.

 The following fields of activity cannot be subject to investment:

- Creation, manufacture and sale of nuclear, bacteriological and chemical weapons;

- Construction of testing facilities for nuclear, bacteriological and chemical weapons;

- Importing nuclear and toxic waste from foreign countries;

- Conducting scientific studies related to human cloning;

- Producing narcotic drugs and cultivation of plants having drug use purposes;

- Activities related to certain dangerous categories of liquid gas for communal use purposes.

There are three type of collective investment: Mutual Funds, Qualifying Investors Fund and Equity Funds.

(1) Mutual Fund is composed of monetary valuables transferred from investors for management and assets generated from the management without acquiring legal personality.

(2) Qualifying Investment Fund is a mutual fund established for the higher thresholds of financial power. It shall not be composed of more than fifty investors having minimum capital of GEL 500,000.00.

(3) Equity Fund is a joint stock company investing accumulated financial resources in financial instruments and undertaken related financial operations. Equity Fund can be Ventured Capital or Private Capital fund. The former is investing in start up businesses (of less than 2 years experience) and/or ideas, while the purpose of the latter is to acquire controlling power in existing companies and restructure them. The number of investors in both funds is limited to fifty investors.