Preface: If you’re considering establishing your forex business, it’s crucial to choose the right jurisdiction for business setup and forex company registration. Additionally, obtaining a customized forex license requires professional guidance. Fionza Consulting’s team of experts specializes in securing a Georgia forex license and facilitating the seamless establishment of your business in the country.
Georgia is an increasingly attractive destination for global financial brokerage services. For those planning to enter the forex exchange business in Georgia, the appeal is further enhanced, especially in terms of tax optimization potential. Fionza Consulting understands the importance of acquiring offshore financial licenses for entities looking to expand their business in countries like Georgia. In this article, we’ll delve into seven key aspects to know about obtaining a forex license in Georgia.
1. The Legal Regime in Georgia:
The requirement for a forex license in Georgia was introduced in 2018 to regulate and oversee the forex market.
The regulatory framework governing forex businesses in Georgia includes the “Law on the Securities Market,” “Law on Licenses and Permits,” the Tax Code, and specific procedures outlined by the National Bank of Georgia.
2. Licensed Activities:
A company holding a Georgia forex license can engage in various financial activities as defined in the “Law on the Securities Market.”
These activities encompass trading in securities, providing depository services, offering brokerage services, participating in stock exchange operations, and managing investment portfolios for clients, including pension funds.
3. Regulating Authority:
The National Bank of Georgia serves as the regulatory authority responsible for overseeing and supervising forex businesses.
The primary objectives of the National Bank include monitoring the forex market, issuing licenses to legitimate brokerage firms and investment companies, ensuring compliance with regulations, and safeguarding the interests of consumers and investors.
4. License Requirements:
To qualify for a forex license in Georgia, companies must meet specific criteria, including:
- Formation of a Georgia LLC.
- Establishment of a corporate bank account with the National Bank of Georgia.
- Appointment of at least one resident director with a minimum of four years of relevant experience in the finance industry.
- Maintenance of a physical office within Georgia.
- Ensuring that the company’s management has a clean criminal record, with no convictions related to economic crimes over the past ten years or violations of Georgian legislation in the securities field over the past five years.
- Meeting the required authorized capital of GEL 500,000 (approximately US$200,000).
5. Required Documents:
When applying for a Georgia forex license, applicants must submit a comprehensive set of documents to the National Bank of Georgia. These documents include:
- Proof of the company’s registration in Georgia.
- A detailed and well-structured business plan.
- Comprehensive information about the company, including the personal data of partners, share distribution, and more.
- Individual assessments of the management team, taking into account their backgrounds and qualifications.
- A list of planned activities.
- Evidence of minimum capital competence.
- Proof of payment for the registration fee.
- Detailed information about the business model and strategic plan of the applicant.
6. License Application Timeline:
Fionza Consulting aims to provide continuous support throughout the licensing process.
The timeline for various steps includes registering a Georgian LLC in one week, opening a corporate bank account in approximately four weeks, and securing the forex license within an estimated six months.
7. License Revocation:
Forex licenses in Georgia can be revoked under specific circumstances:
- If the company voluntarily requests license revocation.
- If the documents submitted for the license application are found to be fraudulent, incomplete, or non-compliant with requirements.
- If the activities of the brokerage firm are not in accordance with Georgian legislation.
- In the event of the liquidation of the brokerage company.
The National Bank of Georgia makes decisions regarding license revocation within 30 days.
Georgia’s flourishing economy and robust financial markets make it an enticing destination for foreign businesses seeking to obtain forex licenses. However, navigating the regulatory landscape and ensuring compliance with complex financial laws can be challenging. Fionza Consulting’s team of experienced licensing experts is dedicated to guiding you through the process, from company formation to license acquisition, and ensuring your business expansion into Georgia is as smooth and efficient as possible.