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Overview
Georgia has become an attractive destination for cryptocurrency businesses due to its favorable regulatory environment and supportive government policies. The National Bank of Georgia oversees the regulation of crypto activities, ensuring compliance with local laws and international standards. To operate legally, crypto exchanges and related businesses must obtain a license, which involves meeting stringent requirements such as robust anti-money laundering (AML) measures and thorough know-your-customer (KYC) procedures. Additionally, Georgia’s streamlined application process and competitive tax incentives make it an appealing choice for crypto enterprises. The country’s proactive approach to digital innovation and regulatory clarity fosters a stable environment for crypto operations. This combination of regulatory support and business-friendly policies enhances Georgia’s reputation as an emerging hub for cryptocurrency businesses.
Timeframe: 4 – 6 months
Minimum paid up capital: There is no specific minimum share capital requirement for obtaining a crypto license in Georgia. However, companies must demonstrate sufficient financial stability.
Overview
To obtain a cryptocurrency license in Georgia, you first need to establish a company. Setting up in a Free Industrial Zone (FIZ) is recommended for its tax advantages and favorable business conditions. While no mandatory authorized capital is required, a realistic business plan must be provided.
Comprehensive Guide to Company Incorporation
General information
Company structure
- ▪At least one shareholder is required. This can be either an individual or a corporate entity.
- ▪A minimum of one local director is required for a cryptocurrency company in Georgia.
Confidentiality
- ▪Beneficial owners’ details – disclosed to the Authorities
- ▪Shareholders’ details – part of public record
- ▪Directors’ details – part of public record
Taxation
- ▪Corporate Income Tax: Georgia uses an “Estonian model” of taxation, taxing only distributed profits at 15%. Reinvested profits are not taxed.
- ▪Other Taxes: Income from cryptocurrency trading for individuals is exempt from income tax, and the exchange of crypto for national or foreign currency is exempt from VAT.
Accounting requirements
- ▪Filing annual report is obligatory
Secretary – Required
Registered office – A physical office in Georgia is mandatory to comply with regulatory requirements and to provide a base for operations.
The application process for a crypto license involves several steps:
- ▪Company Registration: Incorporate a company in Georgia, either a limited liability company (LLC) or a joint stock company (JSC).
- ▪Document Preparation: Gather and prepare all necessary documents, including business plans, AML/KYC policies, and director/shareholder information.
- ▪License Application: Submit the application to the National Bank of Georgia along with the state fee of 5,000 GEL (approximately 2,000 USD).
- ▪Approval: The review process can take between 2-4 months, during which the regulator may request additional information or documentation.
Key documents required for the application include:
- ▪Company Charter and Articles of Association
- ▪Proof of Identity and No Criminal Record for Directors and Shareholders
- ▪Business Plan and Financial Statements
- ▪AML/KYC Policies
- ▪Proof of Local Office and Lease Agreement
- ▪Source of Funds Confirmation