Crypto License in Tbilisi Free Zone Georgia

Georgia FIZ crypto license is among the fastest crypto registrations to obtain in the world, as well as the fastest one in Asia. With LegalBison’s assistance, the application process takes around 3 weeks on average. Another crucial advantage is a 0% corporate income tax for crypto companies that offer their services outside Georgia.

Consequently, the operational costs of running a Georgia FIZ company are also lower compared to other registrations, as the taxation on such companies is absent. At the same time, the Georgia FIZ license is enough to give your company full operational rights worldwide.

More on Mainland Georgia VASP vs Tbilisi Free Zone crypto license

Although different from the mainland VASP license, the Georgia FIZ crypto license allows for a vast range of crypto-related activities, including:

• Crypto-to-crypto exchanges
• Crypto-to-fiat exchanges
• Custodial services for digital assets
• Initial Token Offerings (ITO), Initial Coin Offerings (ICO), and related activities
• Crypto mining

The Tbilisi free zone is known for its low operational costs for businesses, especially compared to mainland Georgia: therefore, activities that require a lot of energy and resources, such as crypto mining, will not pose a threat to the company’s budget.

Before obtaining a Georgia FIZ crypto license, one must form a company. Company formation in Georgia is a key step to take that will open the doors to licensing applications for your startup. LegalBison assists clients with all the incorporation steps, including:

• A basic, short description of the company’s activities;
• Copies of identity documents of all the involved individuals;
• A legal address of the company in Georgia;
• Power of Attorney along with the full set of legal documents.

All these processes are considerably faster in reality than on paper when performed under the guidance of a competent lawyer. LegalBison’s team can accelerate the company incorporation and license obtainment in Georgia FIZ for your crypto startup.

Forming a crypto company and licensing it in Georgia FIZ comes with an extensive set of legal documents that must be prepared in advance. These include, first and foremost, the basic paperwork set required to incorporate a legal entity, such as identity information (notarized passport copies) of the owners, shareholders, and directors, a business plan (a description of the planned activities), and a Power of Attorney.

The flip side of the coin is the website documentation package, which must also be drafted and prepared by a competent lawyer. LegalBison assists in preparing Terms and Conditions of Use, Privacy Policies according to the GDPR/CCPA, and Risk Disclosure Statements.

At the time of forming and submitting your licensing application along with the full legal documentation package, you must already have a legal entity formed in Georgia. On the licensing application, there are two types of companies you can choose from: a Limited Liability Company (LLC) and a Join Stock Company (JSC). Incorporating an LLC in Georgia is mandatory before applying for a crypto license in the Tbilisi FIZ.

An LLC company formation process in Georgia on average takes around a week once all the documents are submitted to the local authorities and the incorporation costs are paid. Once the company is registered and has its legal address in Georgia, you might move on to drafting and submitting the license application.

Georgia FIZ has one of the lightest and most comprehensive licensing processes for crypto startups in the world. The whole process consists of company formation and licensing application and totals up to no more than 2-3 weeks on average. To acquire the Georgia FIZ crypto license, you will only need a basic set of documents such as Power of Attorney and notarized copies of passports of all beneficiary owners and directors. Other key benefits include:

• No AML/CFT compliance requirement & no AML Officer requirement;
• No physical office requirement, only a legal address;
• No share capital requirement.

These factors make the Georgia FIZ crypto license a fast and cost-effective solution both for experienced businesses and young startups. Once again, LegalBison can accelerate the process even further and fully undertake the incorporation and licensing procedures on your behalf.

Holding a crypto license in Georgia FIZ comes with ongoing obligations that need to be fulfilled. There are three main obligations if you want to continue your business operations under a Georgia FIZ license:

• Due diligence procedure once a year;
• Legal address renewal;
• Crypto license renewal.

A major part of obtaining and holding a Georgia FIZ crypto license is annual renewal. Once a year, it is mandatory to renew the company’s legal address in Georgia and the Free Zone crypto license for continued business operations. Although the process is obligatory, it is pretty straightforward and fast: to renew the legal address and the license a year after the company registration, it is enough to pay the renewal fee to the regulatory authority. No extra paperwork on the matter is required.

In order to renew your legal address and crypto license in Georgia FIZ, it’s enough to pay the renewal fee to the authority one year after registering the business. LegalBison communicates with the regulatory authority on the client’s behalf and takes care of the Georgia FIZ license renewal and all the necessary due diligence checks of each individual involved in the company.

As there is no share capital requirement for the Tbilisi FIZ license, the company is also not obliged to create a corporate bank account. However, if necessary, it is possible to open a bank account outside Georgia, as local banks do not provide services to the businesses registered in the FIZ.

Upon your request, LegalBison will choose the best jurisdiction for opening a bank account for your company, taking into account such factors as your corporate expenses and business needs.

Georgia is one of the most strategic locations for crypto business in the world. The country is known for its business-friendly approach and multiple incentives when it comes to blockchain development. The fact that crypto startups are allowed registration in the Tbilisi Free Zone further proves the country’s encouraging stance towards development and innovation in the crypto sector.

Set-up of an European payment agent for banking

What if your Georgia FIZ crypto company came with a bank account opened in a reputable jurisdiction?

This company, which can be registered in a low tax jurisdiction in Europe for example, will have for business activity the processing of payments for third party companies. Practically speaking, as this company can open a bank account and payment gateway account, it will be able to collect payments from the crypto licensed company’s activity, as well as make payments in fiat currencies on its behalf.

Georgia has two main licensing frameworks for blockchain companies: the mainland Georgia VASP license and the Georgia FIZ license. The VASP license is issued by the National Bank of Georgia, while the relevant crypto laws are enforced through the Financial Monitoring Service (FMS).

The legislative changes concerning virtual asset service providers (VASPs) came into force in Georgia on January 1, 2023. According to this law, all crypto actors in mainland Georgia must go through the VASP registration procedure with the National Bank.

For Free Industrial Zones (FIZs), no relevant crypto law has been introduced so far. Legal entities operating in the Tbilisi Free Zone may do so in compliance with the Law of Georgia on Free Industrial Zones.