Georgia is a favorable jurisdiction for cryptocurrency business. Gofaizen & Sherle provides professional support in obtaining a crypto license in Georgia
Before obtaining a license for cryptocurrency in Georgia, it is necessary to create a company. It is recommended to do this in the Free Industrial Zone (FIZ) territory, which provides preferential taxation and other favorable conditions. There is no mandatory authorized capital. However, it should be noted that the company must provide a realistic business plan.
Georgia is on the list of countries with a legal regime allowing international dealers to work with cryptocurrencies. This country is open to crypto, thanks to favorable tax conditions, soft laws, and liberal government.
At the moment, the local cryptocurrency sector is supervised but not regulated. To work with virtual currency, individuals do not need special permission from the National Bank of Georgia; however, commercial companies must obtain a crypto license for legal activities.
Request more information about the Georgia Crypto License
There are no technical regulations governing cryptocurrencies in the country. However, government agencies are enthusiastic about blockchain technology and actively implement related technologies in their work. For example, the geo cadastre of the country is already working on the blockchain.
Each company that wants to engage in business activities in virtual currencies must obtain a special crypto license in Georgia. It will allow you to legally carry out operations for the purchase and sale of cryptocurrency, with the possibility of providing services for storing it in wallets and conducting transactions.
With the correct execution of all necessary documents, obtaining a license for a crypto exchange in Georgia is easy and takes up to a month.
Favorable environment for the development of the crypto business
Georgia is one of the most supportive countries in the world regarding cryptocurrencies. Due to the low cost of electricity, mining is flourishing, and cryptomats are successfully functioning. Transactions worth up to 5 million lari (1.6 million USD) are conducted monthly in the country in the cryptocurrency markets. Taxes on operations with digital assets are low, the laws are flexible, and obtaining a license for a crypto exchange in Georgia in 2023 is easy if all the conditions of the regulator are met.
Fast terms for obtaining a crypto license in Georgia
You can quickly register a company and obtain the necessary license in Georgia. On average, this process takes only 2-3 weeks, significantly different from the processing time in other jurisdictions, which can take up to 6 months. This advantage substantially saves time for entrepreneurs and investors and allows you to start a business quickly.
No residency requirements
A citizen of any country can open a crypto company in Georgia. Moreover, there is no need to open a local office, it is enough to provide a legal address, and you can conduct business remotely. There is also no need to maintain a physical office. It allows companies to reduce costs significantly and focus on growing their business.
No minimum authorized capital
In Georgia, there is no minimum authorized capital for company registration. Entrepreneurs can start their businesses with any amount per their industry's requirements. Such a flexible approach allows small and medium-sized companies to create without restrictions, contributing to developing the country's economy and attracting investment.
Free industrial zones
In 2008, Free Industrial Zones (FIZs) were created in the country, providing many benefits for registered companies. One of the main advantages is the exemption from income tax, VAT, and property tax. It significantly reduces the tax burden on businesses and makes the country even more attractive to investors.
To obtain a crypto license in Georgia, you must perform the following steps:
Lõõtsa tn 2a, 11415 Tallinn, Estonia
Žalgirio g. 88-101, Vilnius, Lithuania
License for operating activity: FIU000407
Georgia still needs to have a special law dedicated to cryptocurrencies. However, in June 2019, the Minister of Finance of Georgia issued a public Decision N201, the only normative act (by-law) in Georgia containing a detailed definition of crypto assets and their tax interpretation.
The public decision explains:
While there is no legislative regulation of the cryptocurrency sphere in the country, a crypto license in Georgia for legal activities can be obtained in free industrial zones (FIZ – FZ).
With this license, you will be able to provide the following services:
To open a crypto company in Georgia, you need to follow the following steps:
List of documents required to register a company in Georgia:
Registering a company in a free industrial zone (FIZ) in Tbilisi, Kutaisi, or Poti to receive benefits is better. Companies registered in these zones are exempt from income tax and dividends. At the same time, even foreign investors can be owners of enterprises.
A Free Industrial Zone (FIZ) is established based on the Tax Code, which provides favorable business rules and special customs tax regimes. In addition, payments in any currency are possible in FIZ, and there are no trade barriers or quotas.
Currently, there are free zones in Georgia located in the following areas:
Regarding the taxation of cryptocurrencies, one should again refer to the public Decision N201. The Ministry of Finance made the following decisions:
At the same time, cryptocurrency companies must pay corporate fees on profits, including those earned abroad. Companies should pay a tax of 15% on each transaction if they receive a profit from it.
From 01.01.2017, the "Estonian model" of taxation was introduced in Georgia, which is based on the principle of taxation exclusively from distributed profits. This means that in a situation where enterprises do not pay dividends and instead direct funds to corporate development, they are exempt from paying income tax.
Recall that you should consider opening a company in the FIZ of Georgia if you want to receive tax benefits. Main advantages:
The Georgian government has pledged to launch the Common Reporting Standard (CRS) throughout 2023. The government believes that introducing CRS will increase the country's budget, as it helps identify the income of taxpayers who have previously evaded the introduction and payment of taxes. Georgia will join 113 countries that have already implemented automatic exchange.