Obtaining a Financial License in Georgia

More and more entrepreneurs are considering Georgia as a platform for developing a business in the financial services sector. From payment processing to investment management. This trend is explained by a favorable tax climate, simplified administration, access to international markets, and other advantages.

However, for legal activity in this industry, companies need a special license. The procedure for obtaining it is regulated by the National Bank of Georgia (NBG) and requires meeting a number of requirements.

It is important to study the aspects of obtaining a financial license in Georgia. Do you want the process to go smoothly and without delays? Obtain the support of professional lawyers from AA Lawrange. We guarantee assistance at all stages and a fast start in a promising jurisdiction.

Advantages of Obtaining a Financial License in Georgia

The country has created favorable conditions for companies wishing to provide financial services legally. This is facilitated by an open economy, transparent legislation, and several other benefits:

1. Tax attractiveness. The taxation model in Georgia provides for corporate tax at a rate of 15% only upon profit distribution. That is, you can reinvest profits without additional fiscal costs. There are also preferential regimes for companies registered in free industrial zones.
2. Ease of administration, clear regulation. The National Bank of Georgia has established a transparent and predictable licensing system. The process of obtaining a permit is clearly regulated. Requirements are achievable for foreign investors.
3. International market orientation. Georgia does not restrict foreign entrepreneurs from owning financial companies. It is also worth noting the tolerance for currency operations. This allows working with foreign clients without significant barriers.
4. Positive reputation. Regulation of the financial sector is built according to international FATF and Moneyval standards. This strengthens the trust of partners, clients, and banks, which is important when entering the global arena.
5. Geographical advantage. Georgia is located at the crossroads of Europe and Asia, which allows serving clients from different regions.
6. Support for innovation. Digital banking and fintech initiatives are actively developing in the country. The region is especially attractive for modern projects.

A financial license in Georgia allows you to operate legally in the country and enjoy all the advantages of the jurisdiction for scaling.

Main Types of Financial Licenses in Georgia

When planning to launch a financial business in Georgia, it is important to understand which specific permit you need. The law distinguishes several types of licenses, each corresponding to a particular type of activity.

Broker License

Allows companies to provide intermediary services in the securities market, including assisting clients in accessing international exchanges.

Investment License

Required for organizations engaged in asset management or establishing investment funds. The license confirms the right to attract and allocate investor capital, as well as to professionally manage investment projects in accordance with NBG requirements.

Banking License

Issued to companies planning to provide traditional banking services, such as accepting payments, placing deposits, lending, etc. This type of license requires significant charter capital, strict compliance with corporate governance standards, and financial stability.

When a Financial Activity License is Required in Georgia

Licensing is mandatory for companies planning to provide professional financial services, such as working with client funds, investments, or banking operations.

A license is required if the legal entity:

• accepts funds from clients and manages them;
• issues loans, places deposits, conducts settlements on behalf of clients;
• performs securities transactions, provides access to international exchanges;
• creates financial infrastructure (brokerage company, investment fund, payment service, bank);
• provides services in fintech (electronic money, digital wallets, etc.).

However, working with virtual currency requires obtaining a crypto license in Georgia, not a standard financial permit.

If you do not plan to work directly with client funds, e.g., you only provide consulting or technical services, licensing is not required.

Features of Financial Sector Legislation in Georgia

Financial legislation in Georgia is based on the principles of transparency, stability, and openness to foreign investors. Regulation is carried out in accordance with international standards, making the jurisdiction convenient for doing business.

Legal foundations for financial companies in Georgia include:

1. Regulatory authority – National Bank of Georgia (NBG). Its main function is to control the country’s financial sector. It handles licensing, supervises, and monitors the activities of all market participants.
2. Law “On Financial Market Activities.” This is the main regulatory document for all financial companies. It defines the types of activities, licensing procedures, requirements for financial stability, and rules for protecting clients’ interests.
3. Law of Georgia “On the Securities Market.” Regulates the work of brokerage companies. In particular, Article 23 establishes that this activity can only be carried out based on the relevant license. Rights and obligations of brokers are also specified here.
4. Compliance with international standards. The financial sector in Georgia operates according to FATF, Moneyval, and Basel Committee recommendations. This means companies must comply with AML/CFT standards and KYC principles when working with clients.
5. Reporting and auditing. All financial companies in Georgia must document the source of charter capital. Regular reporting to the NBG and passing audits are also mandatory.

By obtaining a financial license in Georgia, you can be confident that you will operate in a country with a reliable legal framework. Experts from AA Lawrange will help you start operations in this jurisdiction quickly.

Requirements for Applicants to Obtain a Financial License in Georgia

To obtain a financial license in Georgia, a company must meet a number of criteria. NBG establishes these and strictly monitors compliance.

Minimum Charter Capital

The size of the charter capital depends on the type of license. For example, for microfinance organizations, it may be about 1 million GEL. For investment and brokerage companies, requirements are higher – from 500 thousand GEL. The strictest conditions apply to banks, which must deposit 50 million GEL or more.

Reminder: the source of funds must be documented, and money must come only from verified accounts.

To deposit the required amount, the organization will need to open an account in Georgia.

Requirements for the Director and Shareholders

Directors and key shareholders undergo mandatory verification by the National Bank of Georgia. The main requirements include:

• possession of sufficient professional qualifications and experience in the financial sector;
• absence of criminal records, administrative, or disciplinary violations in the financial field;
• confirmation of the legality of participation in the capital and absence of nominal owners.

Additionally, the director must reside in Georgia and be able to manage the company operationally. That is, physical presence in the country is important.

Business Reputation and Source of Funds

The next aspect that the NBG pays attention to is the business reputation of all beneficiaries and founders. The license applicant must confirm the legality of the source of funds. For this, it is possible to provide:

• bank statements;
• tax declarations;
• other documents (on the sale of property, dividends, business income, etc.)

Moreover, the level of transparency of the corporate structure, business history, and absence of links to sanctioned jurisdictions are evaluated.

Presence of a Physical Office in Georgia

Company registration in Georgia requires a legal address and an actual office in the country. This confirms that the firm genuinely operates on the territory of the state, and is not registered merely formally.

List of Documents for Obtaining a Financial License in Georgia

Licensing in the country requires preparation of a large number of documents. The NBG will review the application only if a complete, properly prepared package is provided:

• License application of the prescribed form. It must be signed by an authorized company representative.
• Founding documents. These include the charter, the decision to establish the company, and the certificate of legal entity registration.
• Information about shareholders and beneficiaries. Their passport details, ownership shares, and ownership structure.
• Confirmation of charter capital payment. A bank statement showing the transfer of funds to the company’s account must be provided.
• Financial business plan for 3–5 years. It must include a description of activities, risk management strategy, income/expense forecast, liquidity assessment, and financial stability evaluation of the company.
• Internal policies, procedures, and regulations. Primarily, this is the AML/CFT policy. Documents on risk management, corporate governance, accounting, reporting, and client data storage must also be provided.

Information about the auditor or a contract with an auditing company, as well as certificates from the tax authorities confirming no debt, must also be prepared. The list is quite extensive. Lawyers from AA Lawrange assist with preparation and submission of documents to ensure licensing proceeds quickly and smoothly.

Procedure for Obtaining a Financial License in Georgia

Although this process is strictly regulated by the National Bank, its stages are clearly defined. The steps include:

Preparation of documents

At this stage, the entrepreneur gathers a complete set of documents. It is important that they are error-free; otherwise, delays or even rejection may occur.

Submission of the application to the National Bank of Georgia (NBG)

The application in the prescribed form and all documents are submitted to the NBG for official review.

Verification and consideration of the application

The regulator evaluates the company’s compliance with legislation. Financial stability, the qualifications of directors, and internal procedures are also reviewed. If necessary, the NBG may request additional information.

Obtaining the decision and registration of the license

After the review, the bank issues a decision on granting or denying the license. If approved, the company receives the license and is entered into the register of financial institutions in Georgia.

Tax and Regulatory Features

Financial activity in Georgia is accompanied by a number of tax and regulatory requirements that must be considered when planning a business. Key points include:

1. Corporate taxation. Corporate tax is levied at a rate of 15%, but only on profit distribution. The VAT rate is 18%, but banking, insurance, and investment services are exempt from this tax. For other potential fees, consult a specialist —  they may vary depending on the type of activity.
2. Benefits for free industrial zones. Companies registered in special territories may enjoy certain advantages, including exemption from corporate profit tax and other benefits.
3. Regulatory requirements. Enterprises must comply with rules on risk management, internal control, reporting, and AML/CFT policy. The NBG regularly conducts inspections and requires reporting within set deadlines.
4. Reporting and audit. Financial institutions must maintain transparent accounting, submit reports, and cooperate with accredited auditors.
5. Client protection and capital. To obtain a license and operate in Georgia, a financial company must meet minimum charter capital, liquidity, and client interest protection requirements.

These jurisdictional features allow entrepreneurs to develop financial activity safely and efficiently.

Licensing Timelines and Costs

The cost of obtaining a financial license in Georgia cannot be called universal. Likewise, the duration of the procedure cannot be specified for all cases. These indicators depend on several factors:

1. completeness and accuracy of the document package. Comments on the application and the need for translation/notarization may lead to additional costs and delay decision-making;
2. complexity of the company structure and type of activity. The procedure is more complex for companies with many shareholders, foreign owners, or special activities. For example, for a banking license, the NBG sets a review period of up to 6 months, extendable to a year;
3. minimum requirements for capital and office. Total costs are affected by capital formation, office setup, and hiring qualified personnel;
4. presence of additional regulator requirements. If the NBG requests extra information, timelines will increase;
5. type of license. For example, a microbank license may take up to six months, while a brokerage license may be obtained faster — around 30 days.

For clarification of timelines and costs for your company, contact experts at AA Lawrange. They will consider all nuances and provide accurate estimates for your specific business.

Professional Legal Support from Lawrange

Lawyers of AA Lawrange are ready to provide full support for establishing your business in Georgia. We are familiar with all licensing nuances in the jurisdiction. Additionally, with us, you will receive other benefits:

• extensive experience in comprehensive support for international business. For over 10 years, we have assisted our clients on their path to success;
• personalized solutions for each client. No template scenarios — we work according to your specific needs;
• comprehensive support in all matters related to conducting financial activities in Georgia.

Contact our representative and experience all the advantages of professional support at the new stage of your business development.

Conclusions

A financial license in Georgia is the key to legal and safe operations in the country. It provides access to a market with transparent regulation, a favorable tax system, and opportunities for business scaling.

Obtain support from AA Lawrange professionals for an easy start with minimal financial and time costs!

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