Setting up an International Financial Company in Georgia


If you do not serve Georgian customers, but wish to offer international financial services -- then an International Financial Company in Georgia is the place to be. Setup within 4 weeks including License from the Ministry of Finance to conduct your business as IFC.

DESCRIPTION

An international financial company is a financial institution that is granted the status of an international financial company. The revenues derived by an international financial company from a source in Georgia as a result of performing financial transactions and/or rendering of financial services must not be higher than 10 percent of its gross income. The company is designed to do and offer business outside Georgia. An international financial company is established outside a free industrial zone.The following shall be exempted from corporate income tax:

• profits of an international financial company from financial transactions and/or financial services and/or the sale of securities derived by a non-Georgian resident;

• profits from the sale of securities derived by an international financial company.

• profit derived by an investment fund from provision of financial instruments and/or from financial transactions and/or financial services, provided an investment fund is an international financial company

• providing financial services to Non-Georgian citizens

Georgian Benefits:

• License issuing authority is the Ministry of Finance of the Republic of Georgia

• Applicants can benefit of some of the most liberal banking and e-money processing laws worldwide, especially in on-boarding foreign customers and payment flows

• Georgia is NOT member of the European Union but adapted certain parts of European regulation and legislation; butkept their own local laws in order to protect the domestic financial industry to avoid over-regulation

• Georgia is a not yet an OECD Member, but filed Membership application

• Georgian banks are the most flexible in customer support, service, fees, compliance issues in the Middle East and Europe

• Banks are connected to the IBAN Network and fully SWIFT Members (no intermediary banks needed for your customers to send you funds!)

• Permission issuing authority is the Ministry of Finance

• Due its location Georgia is geostratically perfect to establish a business and connect East to West

• Georgia is attractive for European or in general worldwide incorporators and license obtainers.

• Georgia benefits of an excellent reputation as a modern financial market place, that allows to serve offshore & overseas clients

• Minimum requirements concerning offices, directors & staff (you'll benefit of very low on-going costs)

• Customers of your entity will enjoy a maximum of privacy - no regulated or automated data exchange of account holder data

Georgian banks allow third party funding for such a company, even for investment or asset management or FX purposes as long as the funds coming from outside Georgia and will be sent back to overseas

 

GENERAL INFORMATION

• A company providing any kind of financial service to their customers can obtain the certificate of International Finance Company
• Financial services are defined by the Ministry as any product or service directly or indirectly related to the means of settlement (finances or other kinds of assets);
• It is mandatory that the foreign sourced income exceed 90% of the total income of IFC, otherwise the certificate will not be given or will be revoked later on;
• The above-mentioned rule means that the IFC can still have less than 10% of the total income from inside of Georgia - they should be mainly operating internationally;
• IFC is fully exempt from the corporate tax which is 15% in Georgia;
• It is not mandatory to hold any kind of additional license from the NBG provided that the operations are conducted internationally and not on the territory of Georgia;
• If the IFC wishes to simultaneously conduct its operations (less than 10%) on the territory of Georgia then additional license requirements might apply as per the applicable Georgian regulations;
• Already licensed entities from the NBG (Like PSPs or Brokerages) can still apply for the IFC certificate but that would mean they pledge not to receive more than 10% of their total income from the Georgian sources;

Possible activities for a licensed and approved international financial company in Georgia:

• Cryptocurrency Crowdfunding
• Investment Advice to Foreigners
• Portfolio Structuring services to Foreigners
• Issuing Debit Cards via MasterCard / Visa Principal Members
• Crowdfunding in general
• Offshore Binary Options
• Offshore Asset Management (fiat/crypto)
• Offshore FX
• Offshore Cryptocurrency Exchange & Offshore cryptocurrency trading

WHAT PERSONAL DOCUMENTS ARE REQUIRED?*

(1) Notarized Passport copy with Apostille (passport must still be valid for at least another six months) - original

(2) Power of Attorney (POA) undersigned, notarized & Apostilled for our Georgian lawyers to arrange all remotely in your absence - original

(3) Due Diligence Questionnaire & Brief Business Description (Executive Summary) - you'll receive Questionnaire by email

(*) The above (1) & (2) & (3) have to be couriered to our lawyers in Georgia - per our instructions

(*) If you reside in a country that is not signatory of the Hague Apostille Convention, an over-legalization of the Supreme Court or Ministry of Foreign Affairs (or other courts of justice) are usually required

STEP 1: DOCUMENTS SET-UP

Submit a simple high resolution passport scan and the Due Diligence Questionnaire to info@georgiainternationalfinanciallicenses.com. Our Georgian lawyer will prepare the POA. With this document and your passport you visit your local Notary Public and let them certify as True Copies of the Originals. Courier then all originals to the address of your legal partner in Georgia that we will provide you.

STEP 2: COMPANY INCORPORATION & DOCUMENTS SET-UP

The company formation takes usually 1 week (European standard) until all filed documents are available and the company is entered in the register. The legal partner in Georgia that operates via POA is responsible for the bank account openings and corporate setup.Also the preparations of the business description in Georgian language, the setup of application forms and all relevant information in order to become an International Financial Company IFC will take place parallel.

STEP 3: APPLICATION WITH THE MINISTRY OF FINANCE / REVENUE SERVICES

Your application will be submitted to the Ministry of Finance / Revenue Services. Usually within 3-4 weeks you should receive the license certificate with your unique identifier number that permits to get all activities started.

STEP 4: LICENSE APPROVAL + ACCOUNT OPENINGS FOR THE IFC LICENSED ENTITY IN GEORGIA

Lawyers will pick up the issued license certificates for you. The bank account opening has been successfully terminated and banking documents like debit cards, digipass etc will be sent in sealed envelopes via courier service (FedEx or UPS) to you. The corporate documents are also to be shipped in original to you incl. the translations into English.

We are offering two (2) different International Financial Company Licensing Packages, as follows:

STANDARD PACKAGE: Company, International Financial Company License issued by the Ministry of Finance, Tax Exemption Certificate, Bank Account with one of the major Georgian Banks, legal proceedings, and assistance, legal documentation & assistance for opening the Georgian Bank Account, Annual Fees for the 1st year, Registered Office; Plus, SEPA access via separate European Union (EU) Payment Service Provider (PSP); Merchant Account through licensed Georgian Credit Card Processor (SEPA access & credit card processing is good for all those involved in FX/cryptocurrencies).

PRIVACY PACKAGE: Company, International Financial Company License issued by the Ministry of Finance, Tax Exemption Certificate, Bank Account with one of the major Georgian Banks, legal proceedings, and assistance, legal documentation & assistance for opening the Georgian Bank Account, Annual Fees for the 1st year, Registered Office etc. Also, Georgian Nominee Director & Nominee Shareholder (all their fees paid for the 1st year). Plus, SEPA access via separate European Union (EU) Payment Service Provider (PSP); Merchant Account through licensed Georgian Credit Card Processor (SEPA access & credit card processing is good for all those involved in FX/cryptocurrencies).

No additional capital requirements needed.

Company formation from the distance, Power of Attorney to set-up the company remotely, Power of Attorney to launch the application and correspondence, on-going correspondence with the Ministry of Finance, Registered Office Fee for the first year, shareholder / owner declaration, appointment of director(s), set-up business description, preparations before business license application is launched, launching of the application / on-going support, translation work for all documents (required), translation of foreign personal documents from English into Georgian and Georgian into English.

On-going costs (up from second year)

Nominee Director - if required
Nominee Shareholder - if required
Registered Office Address

Optional Services

Introduction for Co-Branding via MasterCard Member  >> free
Payment Provider Introduction / SEPA Zone  >> free
Accounting  >> if required and not tax excempted, then per hour
Belize company to be nominee shareholder / director  >> 500 EUR only, but will slow down process approx 2 weeks
Translation of Licensing Certificate  >> if required and not tax excempted, then per hour

Capital Requirements / Authorized Capital of the company

Authorized capital - included in our fees
Securities Deposit / Capital Requirements - not applicable
Tax liability - nil

Bank Accounts for your Georgian Payment Services Provider

The Georgian License is priceless. You can open anywhere in Georgia bank accounts for your new company. A SWIFT connected IBAN account in the name of the company as account holders are already included - also Debit Cards for the owners of the company.

If you wish to execute SEPA payments within the European Union we can introduce you to a partner Payment Service Provider in the Czech Republic to do these transfers via their platform from €3,00 per transfer.

 


Some of the most popular operating banks in Georgia. Most of the private banks in Georgia are owned by German or Austrian Banks or Credit Unions.

Payment Service Provider Connections in Asia and SEPA Zone.

Introduction to regulated payment providers that are fully connected to the SEPA System. You will be able to do co-brandings via VISA Hong Kong and receive customers funds via their infrastructure in Asia with great correspondence bank partners as Cathay Pacific Bank and Bank Sinarmas.

Co-Branding Debit Cards / With your own logo or setup onto an existing brand.

We are able to provide you an introduction, if you wish to issue own Debit Cards via a MasterCard Principal Member outside the EU. Worldwide shipping possible (excl. India, sanctioned countries) but permitted to Europe, South America, SEA and Africa, North America incl. USA.

The cards displayed below are only for illustration purposes.