Those who want to open a company in Georgia in the financial sector can have numerous opportunities on a developing market. Investors who plan to open a financial company in Georgia can register it as a banking institution, insurance company, forex business, etc.
There are also other types of financial companies that can be set up here, such as the foreign exchange bureau, which should meet a set of criteria during the incorporation procedures. Our team of representatives in company registration in Georgia can provide further information on the incorporation of any financial legal entity.
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Licensing authority in Georgia
Foreign investors who are interested in starting the process of company incorporation in Georgia for a financial company need to complete the registration formalities by addressing certain institutions.
The National Bank of Georgia is the main licensing authority for financial businesses. It’s important to note that this institution is also in charge of the issuance of licenses for non-banking financial companies.
Types of companies that need a financial license in Georgia
Investors who start a business in Georgia as a financial company will need a financial license for the following types of activities:
- commercial banks;
- banks that provide digital banking services (they need to apply for a digital banking license);
- forex companies (licensing obligations are imposed starting with 2018);
- non-banking institutions, such as microfinance organizations, currency exchange units, credit unions, etc.
Minimum licensing requirements in Georgia
For legal entities that operate as financial institutions, some of the basic licensing requirements that must be met are the following:
- abide by the rules of Article 48 of the Organic Law of Georgia on the National Bank of Georgia;
- subscribe a minimum share capital of GEL 50 million;
- pay a license fee of GEL 200,000 as per the regulations of the Law of Georgia on License and Permission Fees;
- submit the proper paperwork and wait up to 90 days for the review of the National Bank of Georgia.
*Kindly note that these licensing requirements are different in accordance to the company’s activity and the above should only be taken as reference.
Please know that the capital threshold may vary based on the type of financial company investors want to set up. While for some entities, such as commercial banks, the capital is established at minimum GEL 50 million, forex businesses must have a capital of minimum GEL 500,000 in order to have the right to carry their operations.
Given that each type of financial or non-financial entity can have its own particularities, we recommended you address our consultants in company incorporation in Georgia, who can offer professional advice on the specific activity you may be interested in.
We also advise you to address our accountants in Georgia, as once your company starts operating, it will have various reporting obligations that must be completed by accounting professionals.
Setting up a foreign exchange bureau in Georgia
One of the manners through which foreign investors can start the procedure of company formation in Georgia as a financial business is by opening a foreign exchange bureau.
The registration is performed following the regulations provided by the Organic Law of Georgia, which falls under the authority of the National Bank. In this case, it is necessary to file an application form with the National Bank of Georgia with seven days prior to starting the business activities, in which the investors confirm that the company meets the minimum requirements, such as:
- the space in which the activities will be carried out should have a minimum surface of four square meters;
- providing a device which can identify fake currency;
- owning a computer which operates the required software.
Our team of company formation agents in Georgia can offer further assistance on this subject, including on the issuance of business permits that will be requested for this type of activity.
Registering an international financial company in Georgia
Businessmen are also allowed to set up an international financial company, provided that certain requirements are met. The procedure on company registration in Georgia for an international financial business requires the legal entity to be set up in any Georgian region, with the exception of the free industrial zones of the country.
It is important to know that international financial companies can benefit from an exemption on the corporate income tax for specific types of profits, which can be detailed by our representatives.
Businessmen are invited to address to our team of consultants in company formation in Georgia for more information on the types of financial companies that can be registered in this jurisdiction.
We invite you to address to our team of consultants for in-depth advice on how to set up a company in Georgia in the financial sector. You can also rely on our team for legal representation regarding the incorporation of a legal entity operating in any other industry. Our team will offer tailored assistance based on the industry of choice, the company type, the size of the business, etc.