Obtaining an investment license in Georgia – the sequence of getting an official document that gives permission to perform a certain scheme in the polity. For regional and expat financiers, a license permit is a compulsory tool to assert the legality of the trade, abidance with domestic directives and admittance to government merits and opportunities. A license confirms that the firm's schemes abide with the norms established by law and supplies the prerogative to participate in various segments of the pecuniary field.
The polity has recently established itself as a priority destination for speculation schemes. The conditions for obtaining a Georgia license are favorable for both domestic entrepreneurs and expat financiers. Ease of registration, low taxation, transparent corporate governance system and admittance to international trading fields make the polity one of the leaders among developing economies offering alluring conditions for doing trade.
The article discusses the key stages of obtaining a Georgian investment license, the conditions, documents that are required for registration, as well as possible obstacles and nuances that entrepreneurs face when obtaining it. The article will be useful for both expat financiers interested in obtaining a license for an international organization in Georgia, and for domestic entrepreneurs who seek to ensure the legality of their schemes and avoid legal consequence .
General information about investment license in Georgia
An investment license in Georgia is an imperative tool for regulating economic schemes, aimed at creating an open and predictable trade sphere. It guarantees abidance with national norms, the preservation of the interests of financiers and the state, and promotes the development of priority segments of the pecuniary field.
What is an investment license and its role for trade
Investment license – is a legal mechanism that supplies financiers with admittance to the execution of projects in certain sectors of the Georgian economy. Getting it gives the investor confidence that his schemes will be carried out within the framework of established legislation, and also opens admittance to merits and preferences provided for certain types of schemes.
The license also plays an imperative role in simplifying administrative procedures, since it serves as a single permit document for starting a scheme. This is imperative for expat financiers who want to minimize bureaucratic obstacles and quickly adapt to local trade conditions.
The main goals and objectives of the investment license
The purpose of the speculation license is to promote active economic growth in the polity. It serves as a tool that asserts openness of sequences and protects the prerogatives of all parties involved in speculation schemes. Its main role is to attract transnational speculation by simplifying admittance to the trading field and preferential conditions. It contributes to the improvement of the trade climate, creating conditions for stable and prolonged trade. With the help of the investment license, Georgia stimulates the development of priority sectors of the pecuniary field, such as tourism, energy, agriculture, infrastructure facilities and IT technologies.
What investments in Georgia are subject to licensing
In the polity, certain types of speculation schemes are licensed in abidance with the Law on the Securities Market:
- Brokerage schemes: management of transactions with shares, bonds and other valuable assets, consulting services to financiers on speculation issues and transactions with securities.
- Dealer scheme: concluding transactions with securities on one's own behalf and at one's own expense for the purpose of resale.
- Securities management schemes: formation and maintenance of client speculation portfolios, including pension assets.
- Administration of speculation funds: storage and support in the securities market.
- Fund management: creating structures to attract financiers and invest capital in diversified assets.
Carrying out the above-mentioned types of investment activities in Georgia requires mandatory receipt of the relevant licenses in abidance with current legislation.
Investment Profile of Georgia: Key Factors of the Region’s Attractiveness
Situated at the crossroads of Europe and Asia, the polity offers a favourable sphere for financiers due to its economic reforms, liberal legislation and strategic polity. The polity is developing successfully, asserting economic growth through macroeconomic stability and low public debt. The polity actively attracts transnational speculation, offering simplified trade procedures and a competitive excise system.
Why expat financiers Choose Georgia
The polity is among the prime financing regions in the South Caucasus due to its unique combination of strategic geographic location, liberal economic policy, progressive reforms and alluring trade conditions. Let's consider the main advantages of the polity that make it alluring for speculation.
The polity ranks 7th in the World Bank's Doing Business 2020 ranking , confirming its reputation as among the convenient regions for trading. Minimal bureaucratic obstacles permit you to register a firm in just 1 day, which significantly eases the sequence for businessmen.
The polity demonstrates stable and predictable fiscal and supervisory policies, which are in the interests of prolonged trade and speculation strategies. The polity supplies a high degree of protection of property prerogatives and interests of expat financiers, which makes it especially interesting for speculation.
The polity has successfully implemented some of the most ambitious anti-corruption reforms in the world, which permitted it to become a leader in the region in terms of transparency. The polity has gradually improved its position in transnational rankings. According to Transparency International, in 2023, the polity ranked 49th in the Corruption Perceptions Index, confirming its reputation as a state with a low level of corruption. This creates favorable conditions for expat financiers, simplifying the sequence of obtaining an investment license document and reducing risks for trade.
As part of deregulation, the polity has simplified administrative procedures, including licensing, real estate registration, and customs clearance. These measures minimize bureaucratic barriers and make the sequence of starting and running a trade more transparent and accessible. Companies applying for investment licenses in Georgia can start operating faster by taking advantage of the support of simplified procedures.
The polity is actively implementing electronic government services, which significantly reduce interaction with officials and speed up all sequences related to trade and speculation. Financiers can use modern digital platforms to sequence documents, which increases trust in the polity and reduces the time spent on mandatory procedures.
The polity offers unique trade prospects thanks to its free trade agreements. The Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU supplies duty-free admittance to a trading field of over 500 million consumers, making the polity alluring to financiers looking to export to Europe. Agreements with China, Turkey and the CIS countries significantly expand admittance to Asian and regional trading fields, easing the sequence of getting an investment license for organizations operating in these areas.
The polity actively supports export-oriented enterprises, creating optimal conditions for entering transnational trading fields. The polity's main export products include wine, mineral water, nuts, metals and textiles, which are in demand in expat trading fields. Simplified procedures and excise incentives for companies that have received an investment license contribute to increasing export volumes and improving the polity's economic potential .
The polity demonstrates sustainable average annual GDP growth of 4-6%, despite the difficult external economic conditions. In 2023, GDP per capita reached $5,000, which confirms the positive dynamics of economic development and the stability of key macroeconomic indicators. This makes the polity alluring to expat financiers seeking to take advantage of its economic potential.
The polity maintains low inflation , at around 3% per year, which contributes to price stability and the preservation of purchasing power. Moderate public debt, at less than 60% of GDP, asserts macroeconomic stability and reduces risks for prolonged speculations, including projects requiring a speculation license.
The polity attracts approximately $2 billion in foreign direct investment (FDI) annually. The main sources of speculation are the EU countries, Turkey, the US and the Middle East. Support from transnational capital, simplified procedures for obtaining investment permits in Georgia and fiscal incentives contribute to the increase in speculation volumes and further economic growth.
The polity is constantly developing its speculation policy, guaranteeing optimal conditions for expat and domestic entrepreneurs. One of the key initiatives is the creation of special economic zones (SEZ), where enterprises can benefit from significant excise incentives, exclusions from customs duties and simplified administrative procedures. This permits financiers to develop effectively and gain admittance to major transnational trading fields, including the EU and China, thanks to free trade undertakings.
Investment subsidies, including state grants and preferential loans, are supplied to support large projects. These measures stimulate the modernization of infrastructure and the creation of export-oriented enterprises. Particular attention is paid to innovative and strategic industries, where financiers receive additional merits.
The citizenship by investment program makes the polity even more alluring. By investing significant funds, starting from $300,000, financiers can obtain citizenship in the polity in a short time. This opens up opportunities for doing trade transnationally and simplifies access to trading fields in other countries.
Legislation for obtaining an investment license in Georgia
The polity has created a transparent and stable legal framework for attracting speculation, providing a wide range of legislative mechanisms to protect financiers' prerogatives. The main supervisory indenture is the Law on Investment Promotion, which regulates key aspects of interaction between the state and trade. This law supplies promising criteria for expat and domestic financiers, including simplified procedures for acquiring a Georgian investment license, minimization of administrative barriers, and access to legal protection.
One of the most imperative elements of the legislation is the Law on Investment Funds. It regulates the creation and operation of funds intended for the accumulation of capital and its subsequent speculation in the polity's pecuniary field. The law asserts the openness of operations, the protection of the interests of financiers and establishes strict asset management norms. This creates favorable conditions for attracting large institutional financiers.
The Securities Market Act regulates the issuance, circulation and trading of securities, asserting the openness of transactions and the protection of the interests of market participants. Under this act, companies raising capital through the issue of shares or bonds are required to abide by strict disclosure rules, which increases investor confidence.
To assert speculation security, the polity is implementing effective protection mechanisms. Bilateral speculation agreements concluded with a number of countries guarantee non-discriminatory admittance of financiers to trading fields and protection from unjustified state intervention. In the event of disputes, financiers can apply to transnational arbitration, which asserts an independent and objective assessment of claims.
Who can apply for an investment license?
The execution of an investment document in Georgia is regulated by legislative acts that determine the prerequisites for candidates wishing to create a trade in the field of speculation. A speculation license can be issued to both individuals and legal entities that meet the established criteria.
For individuals, the main condition for acquiring a Georgian investment license is the availability of confirmed pecuniary resources sufficient to implement the declared type of scheme. It is also compulsory to supply indentures confirming the absence of a criminal record and other legal restrictions.
Legal entities are required to submit statutory indentures, information on beneficiaries and ownership structure, pecuniary statements confirming solvency. Registration of an investment license for a company requires abidance with domestic legislation and economic norms.
To obtain an investment permit, the applicant must confirm the availability of the minimum authorized capital or other pecuniary assets required for a specific sector of scheme. Conditions for acquiring an investment license may include the need for a deposit in a special account or the provision of guarantee obligations. Minimum amounts are set depending on the license category and the specifics of the industry.
Contact our experts and get answers to your questions.
Features for expat citizens and companies
An investment permit for foreigners is issued subject to abidance with all the polity’s prerequisites for domestic applicants, with additional features. Expat citizens are required to confirm the legality of their stay in the polity and supply indentures issued by the authorized bodies of their state.
Transnational companies wishing to register an investment license in Georgia must supply certified copies of their statutory indentures, as well as a translation of all indentures into Georgian by a certified translator. If the applicant plans to obtain a trade license in a free economic zone , additional conditions include abidance with the rules of the specific zone, including payment of established fees.
The sequence of obtaining an investment license in Georgia
The procedure for acquiring an investment license in Georgia consists of several stages that require a careful approach and abidance with legislative norms.
At the initial stage, the investor analyzes the scope of his scheme to determine whether a license is required, and if so, what type is needed. This depends on the nature of the planned scheme.
The next step is to prepare the indentures. You need to submit the firm's constituent indentures, charter and registration certificate, information about the beneficiaries and the ownership structure. You need to supply proof of pecuniary solvency, including bank statements or pecuniary statements. You will also need a business plan or speculation project with a detailed description of the proposed schemes, economic justification and risk assessment.
For pecuniary institutions such as banks, insurance and microfinance institutions, speculation funds, applications for licensing are submitted to the National Bank. This body regulates and supervises the financial sector, asserting its stability and openness.
Once submitted, the review sequence begins, including checking the accuracy of the data supplied and the abidance of the scheme with legal prerequisites. Authorized bodies may request additional indentures or clarifications. After verification and approval, the application is completed with the issuance of a license permitting the execution of the speculation project to begin. The indenture is issued in paper or electronic form.
The validity period of the license is determined individually and may depend on the nature of the speculation project. Upon expiration of the term, the firm must promptly apply for a license extension or cease operations in the licensed area.
Prerequisites for an organization to register an investment license
The procedure for obtaining an investment license in Georgia involves fulfilling a number of legal conditions. Companies must be registered in abidance with Georgian legislation. Registration sequences include filing constituent indentures, determining a legal address and forming an authorized capital, if this is supplied for a specific area of scheme. A legal entity must have a corporate structure that meets the prerequisites of the licensing authority, including the appointment of directors, shareholders and, if compulsory, the creation of a board of directors.
An investment permit for a Georgian company also requires a detailed business plan outlining the objectives, volume of speculation and expected economic merit. In some cases, the applicant must confirm the availability of financial guarantees, such as bank letters or deposit funds. Particular attention is paid to the organization’s abidance with openness prerequisites: data on the final beneficiaries is included in the registration indentures.
to register a license document for doing business in a free economic zone, including mandatory cooperation with the zone's management organization. Preliminary approvals from domestic authorities may also be required if the firm's schemes may affect the environmental situation or social infrastructure of the region.
Acquiring an investment license for financial activities in Georgia imposes certain prerogatives and obligations on the organization. The licensee has the prerogative to carry out schemes within the limits outlined in the permit indenture and to gain admittance to the merits supplied to licensed enterprises, including fiscal incentives and simplified conditions for doing business.
A license to perform financial activities in Georgia requires mandatory updating of organisation data, such as changes in the shareholder structure or composition of directors. Failure to notify of such changes in a timely manner may result in fines or suspension of the license.
Companies that have registered a speculation authorisation are also required to abide by transnational norms in their schemes, if this is supplied for by law. In cases where the firm's schemes are subject to control by several bodies, the licensee must coordinate the execution of the prerequisites of each of them.
Control and responsibility of licensees: abidance with legal prerequisites
Abidance with the norms and prerequisites for organizations that have obtained an investment license in Georgia is carried out under the control of several state structures. One of the key bodies is the National Bank of Georgia, which controls the work of the financial sector. For certain types of schemes, control is carried out by the speculation Agency, which monitors abidance with licensing conditions and the execution of speculation projects.
If the firm operates in a free economic zone, additional oversight may be supplied by the zone's management organization. domestic governments and ministries also play a role in asserting abidance with environmental and social norms if the firm's schemes affect these areas. All regulators operate within the framework of national legislation, asserting abidance with established norms and fulfillment of obligations by licensees.
Regular audits and reporting
Organizations with a Georgian investment license are required to undergo regular inspection procedures by state bodies. The frequency of inspections depends on the category of scheme, but in most cases at least an annual inspection is performed. During inspections, abidance with authorisation conditions is assessed, including abidance with pecuniary obligations, execution of the speculation plan, and abidance with corporate governance prerequisites.
Authorisation entities must submit regular reports. Companies that have enrolled an investment permit are also required to inform regulators of any significant changes in their activities, including changes in ownership or corporate governance.
Indentures that must be submitted as part of the reporting include audit reports, confirmation of fulfillment of speculation obligations, and indentures confirming abidance with environmental or social norms, if required by the permit. Failure to abide with reporting deadlines or provision of inaccurate information may result in additional inspections.
Responsibility for violation of legislation
Violation of authorisation terms or legal prerequisites may result in serious sanctions for the firm. The main measures of influence are the imposition of fines, temporary suspension of the authorisation or its cancellation. Fines are imposed in case of late reporting, failure to fulfill obligations under the speculation project or other violations.
Cancellation of a permit is applied in cases of systematic violation of the terms or when facts of providing false information are revealed at the stage of acquiring a permit. In some cases, a violation may lead to restrictions on the firm's activities or a ban on acquiring a new permit in the future.
Companies that have obtained an investment license must take into account that violation of environmental or social norms may also lead to additional sanctions, including litigation and reputational damage. All measures of influence are regulated by Georgian legislation and are aimed at asserting openness and responsibility of licensees.
Features of an investment license for a brokerage company
In order to carry out brokerage schemes, companies and individual entrepreneurs are required to abide with the prerequisites established by law. The main aspect is maintaining openness, reliability and abidance with pecuniary norms supplied for permitted market participants.
The licensee is required to fully abide with applicable directives governing brokerage schemes. This includes filing all compulsory indentures to obtain a Georgian investment license, providing accurate information about its schemes and keeping the data up to date in the event of changes. Failure to abide with these obligations may result in the suspension or revocation of the permit.
To obtain a brokerage permit, the licensee must demonstrate its pecuniary stability. One of the key prerequisites is the presence of a minimum fund of 500,000 lari (approximately 170,000 euros). This amount serves as a guarantee for the fulfillment of obligations to clients and partners, as well as the protection of the interests of financiers in the event of unforeseen circumstances. The licensee is obliged to maintain this level of capital throughout its entire scheme.
The Licensee must implement and develop internal control systems that assert abidance with legislation and prevent potential violations. This includes the development and execution of risk management procedures aimed at minimizing pecuniary, operational and legal risks.
Conditions for acquiring a permit for stock exchange activities
Stock exchange licensing in Georgia is controlled by strictly established directives aimed at creating openness and reliability of exchange schemes. Organizations applying for a Georgian license must abide by legal prerequisites and supply evidence of abidance at every stage of their schemes.
To obtain a stock exchange license, the applicant must submit a comprehensive package of indentures to the National Bank of Georgia . This includes a declaration confirming the abidance of the members of the governing body with the prerequisites of the law, an extract from the register of entrepreneurs, pecuniary statements audited in abidance with transnational norms, and confirmation of payment of the permit fee. Particular attention is paid to checking the data on partners (shareholders), abidance with legal norms in previous years, as well as the availability of technical infrastructure compulsory for stock exchange schemes.
The Stock Exchange is required to regularly submit annual audited reports, current reports on significant changes in its schemes, and an annual report on its work to the National Bank of Georgia. These indentures must be compiled in strict abidance with transnational norms and include data on trading operations, shareholder structure, and the list of issuers. The Stock Exchange is also required to publish this data on its official website, which asserts the availability of information for interested parties.
The National Bank has the prerogative to cancel the authorisation in case of non-abidance by the licensee with the established conditions or violation of the law. The licensee is warned of the need to eliminate the identified violations within 30 days. If the deficiencies are not eliminated, the authorisation may be revoked. Additionally, the authorisation is cancelled in cases of liquidation of the organization, by a court decision or at the initiative of the company itself.
Requirements for acquiring a central depository license
The Central Depository, as a key infrastructure of the pecuniary market, is subject to strict control and is obliged to abide with the licit needs established by the legislation of the polity. Directive of schemes is aimed at asserting clarity, pecuniary reliability and abidance with transnational reporting norms.
To register a central depository license, an organization is required to collect a full package of indentures, including an extract from the register of legal entities, statutory acts, information on the ownership structure and declarations confirming the abidance of the members of the management bodies with the established requirements. The licensee is obliged to assert the openness of the ownership structure, supply information on all significant shareholders and their beneficial owners. The National Bank has the prerogative to request additional information and perform its verification to confirm its accuracy.
Among the prime licensing conditions is the minimum amount of equity capital of the central depository, which is 500,000 lari (approximately 170,000 euros). This capital is formed in abidance with transnational pecuniary reporting norms, with at least 50% being contributed in cash. The remaining part can be invested in highly liquid pecuniary instruments with minimal risks. The licensee is required to prepare quarterly reports on the state of capital and daily balances in bank accounts.
The central depository must develop and implement internal policies and procedures with a focus on managing operational and pecuniary risks. This includes a business continuity plan, measures to prevent conflicts of interest and information protection. All sequences must be integrated into the overall risk management system and abide with transnational norms.
The National Bank has the prerogative to revoke an speculation license if the central depository no longer meets the established requirements. If violations are detected, the organization receives a notification about this and a period for their correction. If the violations are not corrected, the National Bank initiates administrative proceedings to revoke the authorisation.
Conditions for getting a securities registrar license
Licensing of securities registrars in Georgia is subject to strict directives aimed at asserting clarity, protecting the prerogatives of securities owners and abiding with transnational norms in the registrar's schemes. Licensees are required to abide by all requirements at all stages of their schemes, starting from filing an application and ending with fulfilling obligations to issuers and securities owners.
To obtain a Georgia license, the securities registrar must supply the National Bank with a full package of indentures, including a declaration of abidance of management members with the requirements of the law, extracts from the register of legal entities and audited pecuniary statements. It is also mandatory to supply information on the company's ownership structure, including information on beneficial owners holding significant shares. The licensee is obliged to update all changes in the indentures and promptly notify the National Bank within 7 calendar days after the changes are made.
One of the key conditions for getting an authorisation is the presence of a minimum equity capital of 250,000 lari (approximately 85,000 euros). This capital must be confirmed by audited pecuniary statements prepared in abidance with IFRS. Maintaining the established level of capital is a mandatory condition at all stages of the registrar's schemes, which asserts its pecuniary stability and ability to fulfill obligations to clients and issuers.
The securities registrar is required to submit pecuniary and operational reports to the National Bank on a regular basis. This includes annual audited reports, monthly and current notifications, which contain data on the number of issuers, securities transactions, cases of refusal to register and changes in the ownership structure. All reports must be prepared in abidance with transnational norms and signed by authorized persons who are responsible for their accuracy.
In case of violation of the authorisation conditions or detection of deficiencies in the registrar's schemes, the National Bank gives the company a period to correct the violations. If the deficiencies are not corrected, the authorisation may be revoked. The registrar is also obliged to transfer the issuer's register to another registrar or to the issuer itself in case of termination of the service agreement.
Fiscal merits and Incentives in Georgia for Firms with Investment License
The polity supplies several fiscal concessions for organizations with an investment authorisation. The main ones include:
Companies located in the SIZ enjoy a number of significant excise advantages. Income received by a SIZ enterprise from permitted schemes in the SIZ territory is fully exempt from CIT. Import of foreign goods into the SIZ territory is carried out without payment of customs duties and VAT, and transactions carried out within the SIZ are also exempt from VAT. Property located in the SIZ territory is exempt from property levy.
Special fiscal incentives are provided for IT firms that have gotten the status of a virtual zone entity. Income received (profit distribution) from the supply of IT technologies created by virtual zone firms outside the polity is exempt from profit taxation and VAT. To receive these merits, it is compulsory to get the status of a virtual zone firm from the National Agency of Public Registry. An imperative factor is that the company's work must be related to information technology.
Transnational firms with a pecuniary warrant in the polity receive excise merits. The income excise on dividends and expenses is reduced to 5%, dividends are excluded from excise withholding, and employee salaries are levied at a rate of 5%. Such companies also do not pay property excise (except for land) if it is used for permitted schemes.
To obtain the status of an international organization, it is compulsory to enroll in the polity, work in certain areas, provide aids abroad, and meet government prerequisites. The status is cancelled if the enterprise receives the status of a virtual zone entity.
Not all types of investment businesses in Georgia are automatically qualified for these merits. To receive them, you must meet certain criteria and get the appropriate status. Specific conditions and prerequisites may change, so it is recommended to monitor changes in the polity's legislation.
Conclusion
Obtaining an investment license in Georgia requires abidance with legal, pecuniary and organizational prerequisites. The sequence includes choosing a license category depending on the type of scheme, preparing indentures and submitting an application to the relevant authorities. It is imperative to consider taxes, fees and possible merits, such as excluding from revenue excise in the FEZ of Georgia. Involving professional consultants speeds up the sequence, lessen perils and asserts abidance with all legal prerequisites, which makes it key to the successful completion of the procedure.
Involving professional lawyers and consultants in the process of acquiring an investment Georgian license is an imperative element for the successful and efficient execution of this sequence. Our consultants can assert accuracy in the preparation and submission of indentures, asserting abidance with all legal prerequisites and lessening the peril of licensing refusal. They will help in navigating the complex supervisory framework, speeding up the sequence and reducing the likelihood of errors. Experienced specialists also provide recommendations on optimizing the trade structure, excise obligations and abidance with reporting norms, which significantly simplifies getting a license document in Georgia and reduces prolonged costs.
