About Georgia Free Zone Financial Licenses


The Republic of Georgia Free Industrial Zone (hereinafter “the FIZ”) is a Free Zone License provided in the Tax Code of Georgia where business-friendly regulations and favorable tax & customs regime apply. The FIZ is earmarked for economic activities and the companies operating therein are subject to a special regime, which is extremely favorable from a legal, financial and commercial point of view.

Favorable Tax Regime:

The major advantage of FIZ which attracts business investments in Georgia and makes the jurisdiction appealing for doing business is the favorable tax and customs framework, which is as follows:

  • FIZ incorporated entities are exempt from Property Tax;
  • FIZ incorporated entities are exempt from Corporate Tax;
  • Interest and Dividend paid by a FIZ company is not taxed and is not included in the taxable income base of the receiver;
  • No VAT applies to the transactions carried out with foreign entities;
  • No foreign exchange controls, trade barriers of quotas;
  • No restrictions on capital repatriation;
  • No income tax applicable;

 

Georgian Benefits

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; but kept their own local laws in order to protect the domestic financial industry to avoid over-regulation
  • Georgia is a not yet 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 Free Zone Authority
  • Due its location Georgia is geo-strategically 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 marketplace, that allows even to serve offshore clients
  • Minimum Requirements in office issues, directors and staff (you will 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 Financial or Commercial Free Zone Licensed Company

General Information

  • A company providing any kind of financial service to their customers can obtain the Free Zone Certificate for the dedicated business
    field.
  • No restrictions whatsoever for dealing with customers in other countries
  • FZE Companies are fully-exempt from the corporate tax which is 15% in the Republic of Georgia
  • It is not mandatory to hold any kind of additional license from the National Bank of Georgia (their Central Bank) provided that its operations are conducted internationally and not within the Republic of Georgia

Simplified Licensing / Permitting Regime

It is allowed for the FIZ company to obtain the Financial Service License within a free zone, including the financial and/or banking license, and conduct their business activities under the license, by taking advantage of the above-mentioned tax and regulatory exemptions.

Possible Activities for FZE Companies (examples)

  • Crypto Crowdfunding
  • Portfolio Structuring Services to Foreigners
  • Crowdfunding in General
  • Offshore Asset Management FIAT / Crypto
  • Offshore Crypto currency exchange
  • Import and Export
  • Private Wealth Management
  • Private Banking Business
  • Investment Advice to Foreigners
  • Issuing DebitCards via Mastercard / VISA Card through Principal Members
  • Offshore Binary Options
  • Offshore FX
  • Offshore Crypto Trading
  • Software Development
  • ICO launches

WHAT PERSONAL DOCUMENTS ARE REQUIRED?*

(1) Notarized passport copy with Apostille (passport must still be valid for at least 6 months) - in original
(2) Power of Attorney (POA) undersigned in witness of a Notary Public with Apostille - you will receive from us via email draft copy
(3) Due Diligence Questionnaire and brief business description - you will receive from via email

If you are residing in a country that is not member of the Hague Apostille Convention, an over-legalization of the Supreme Court or Ministry of Foreign Affairs or other similar court is usually required, plus an additional legalisation by the Georgian Embassy in the country of residence.

STEP 1: DOCUMENTS SET-UP

Submit a simple high resolution passport scan and the Due Diligence Questionnaire to us. Our Georgian lawyer will prepare the Power of Attorney (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 our legal partner in Georgia that we will provide you.

STEP 2: COMPANY INCORPORATION & DOCUMENTS SET-UP

The company formation takes usually two (2) days until all filed documents are available and the company is entered into the Free Zone Register. The legal partner in the Republic of Georgia that works via this Power of Attorney, is responsible for the bank account opening and corporate setup.

Also the preparations of business description in Georgian language, setup of application forms and all relevant information in order to become an International Financial Company IFC will take place simultaneously.

STEP 3: ISSUING OF FREE ZONE LICENSE AND BUSINESS LICENSE

The Free Zone Management is granting, after obtaining the Certificate of Incorporation, the Free Zone License and another business license that reflects your financial or commercial business activity.

STEP 4: BANK ACCOUNT OPENING FOR THE COMPANY

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 including the translations into English. Since banks in Georgia require a local person residing in Georgia as contact person, our legal partners also provide the correspondence service and support assistance with the bank in English and Georgian language. Compliance issues or requests should be solved easier and more efficiently.

PRICING AND SERVICE FEES

We handle a) the incorporation (*) in the Free Zone b) the virtual office in the Free Zone c) the financial license in the Free Zone d) the corporate bank account opening (including shipping the digipass, one visa credit card and the online banking details to the client).

(*) These Georgian Free Zone Companies do not require any paid-in capital

Free Services

Introduction Card Processing / Bitcoin (BTC) processing - free of charge
Payment Provider Introduction / SEPA Zone - free of charge
Accounting - not required
Translation of Licensing Certificates - included

On-going costs

Annually €2,500.00 for Registered Office address services
License Fee is €7,000.00 up from the 3rd year, first two years are exempted of any licensing fees
Nominee Shareholder (if required) €5,500.00 per year
Nominee Director (if required) €5,500 per year

Capital Requirements / Authorized Capital of the company

Authorized/paid-in capital - not applicable
Securities Deposit / Capital Requirements - not applicable
Tax liability - not applicable

 


Bank Accounts in Georgia

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 provider in Europe to do these transfer executions via their platform to special conditions up from ca. 3,00 EUR Europe wide.

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.

Debit Card Processing and BTC connection

Fully regulated payment providers let you process payments from customers by credit or debit card. In addition the wallets can also process Bitcoin and other major digital currencies. We guarantee an account opening, since all affiliated payment provider are personally known to us and tight connections to compliance and management ease the on-boarding process.