Investment license in Georgia

We propose to consider Georgia for forex companies and investment funds who are willing to operate in Europe.

Georgia – is a suitable jurisdiction for obtaining an international investment license for operating in the EU.

Georgian legislation does not provide obtaining a license for financial instruments or other funds trading. Along with that, the legislation provides licensing for:

– Securities Registrar

– Brokering

– Stock Exchange

– Central Depository

– Specialized Depository

For company financial activities in Georgia, you can register a limited liability company or a joint stock company and obtain a license for brokerage activity.

Capital

The authorized capital of the company that obtains broker license must be no less than 500,000 Georgian Lari (about 233,000 US dollars). Also, according to the National Bank of Georgia, this amount should always be available at the brokerage company.

Legislation

According to paragraph 23 of Securities market Act a brokerage license allows to provide activities associated with handling the equity stake, shares, bonds, certificates, bills, checks and other securities, including maintenance:

a) to consult investors on a subject of investing, including – funds prices, investing in funds, purchase and sale of securities transactions, as well as related foreign currency transactions;

b) implement research related to financial instruments and their emitters, and provide dissemination of the research results, or (and) recommendations on investment strategy;

c) consulting the emitters in on a subject of securities issuance and investments attraction;

g) preparing and implementing the placement of securities on the non-guaranteed basis;

d) receive and transmit client orders in related to securities, close transactions with securities in the clients interest;

e) to manage the clients investment portfolio, including – pension schemes and funds allocated for the securities operations implementation;

g) implement safekeeping of investment funds and (or) customers funds, as well as maintenance of nominal securities holders; open customers cash accounts and securities accounts and perform operations on those accounts;

h) close transactions with securities on their own resources in their best interest;

i) prepare and place the issuer’s securities on the guaranteed basis;

k) provide and loan customers funds, as well as use own funds to purchase securities for customers, to participate in “short sales” in established by the Agency order;

l) implement the purchase and sale of foreign currency;

m) perform other transaction with financial instruments, shares of the business community or other authorities, defined by currant legislation;

Also, Georgian legislation provide a special preferential tax treatment for companies that received an international financial services status.

According to paragraph 23 of the Georgia Internal Revenue Code, an international financial company is a financial institution that is being given a status of an international financial services company and certifying specified status certificate, based on the application of its authorized representative for future calendar years, and in case of state registration of such companies – along with the registration for current and future calendar years.

Incomes received as a result of financial transactions, or (and) providing of financial services from Georgia, should not exceed 10% of total revenue. Exceeding of incomes received as a result of financial transactions, or (and) providing of financial services from Georgia, over 10% of total revenue – is a subject to fines.

International Financial Company is exempt from income tax (gained from the company’s dividends are not taxed). Incomes of such a company not should be formed from a source in Georgia.

Terms 

The term of obtaining license is 60 days (in exceptional cases may be extended for 3 or 6 months).

Costs

The cost of legal services in supporting the process of obtaining financial license in Georgia is 15,000 USD (includes all the costs except the license fee and transfer that are paid separately). Services included in 15,000 USD, are discussed with the client individually (email / skype).

SBSB offers help in obtaining brokerage license in Georgia and other jurisdictions.

Please check all the list of jurisdictions below.

If any qualified help in obtaining brokerage license need, please, feel free to contact our specialists via phone-call (numbers required can be found in contact list on the internet page) or by submitting a form located on the left side of the page.

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