Tbilisi Free Zone Crypto License
Today, Georgia is considered one of the most attractive destinations for opening and growing a cryptocurrency business. This appeal is mainly facilitated by a favorable tax policy and reform of the country’s legislative framework. To lawfully provide services related to crypto assets, it is mandatory to obtain a proper cryptocurrency license for your company. Under the current implementation of the new MiCA regulation, all existing VASPs and emerging businesses are required to obtain a CASP license to maintain their legal operations in the market.
At Fintech Harbor Consulting LTD, we acknowledge Tbilisi’s strategic role in today’s constantly evolving crypto ecosystem and its advantageous environment for developing your venture. In particular, this city hosts the Free Industrial Zone (FIZ), known for its business-friendly taxation system that attracts both local and international investors. While Hualing, Poti, and Kuraisi have FIZs, to proceed with your crypto license registration in Tbilisi, FIZ is considered most suitable for crypto-related licensing and business startups, and development.
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Benefits of Tbilisi Free Zone Crypto License
Tbilisi Free Zone has been the choicest jurisdiction for investors and entrepreneurs for a variety of reasons, from duty-free import and export to remarkably business-friendly regulations. Here are the major benefits of a crypto license in Tbilisi FIZ for launching and growing your business:
- The strategic location of the country on the border of East and West;
- Lower setup and operations fees compared to other international jurisdictions;
- Duty-free import and export, which significantly reduces operational costs with tax-free benefits;
- High rating of the state among international partners;
- The country’s non-aligned status allows it to impose more flexible requirements on crypto issuers than in the EU and OECD;
- Enhanced asset protection and confidentiality policies;
- Well-developed technical base;
- Favorable tax tariffs, with 0% VAT and 0% dividend tax;
- Business-friendly, transparent regulations that minimize bureaucratic barriers and allow you a hassle-free and efficient company setup.
With proper licensing, here are the services you can lawfully provide in FIZ:
- Cryptocurrency exchange for fiat or other crypto
- 2P2 operations
- Cryptocurrency wallet services
- Provide blockchain solutions
- Token trading
- Storing cryptocurrency
- Crypto transfers.
Process of Obtaining a Crypto License in Tbilisi FIZ
Here is your step-by-step roadmap as you plan to obtain crypto license in Tbilisi free zone:
- The first step is to sign the service agreement.
- Next comes your document preparation. Keep in mind that if a document is issued abroad, it must be apostilled and/or legalized. It may also be necessary to translate the documentation into Georgian. Once all documents are ready, submit them along with your application to the Tbilisi Free Zone Administration for revision. If any documents are insufficient, the regulator may request them additionally.
- Next, proceed with your company registration. To register a business in Georgia, its founders must submit the following documents to the Office of the Secretary of State:
- A completed registration form – Transmittal Information Form;
- Identification documents of all founders and managers of the company.
Incorporation of an LLC or JSC is crucial before applying for a crypto license. This step typically takes 1 week.
- Upon successful revision of your documents and your license’s final approval, the Tbilisi free zone crypto license will be issued within 2 working days. Along with your permit, you will also receive a full set of corporate documents, including a certificate of incorporation, company charter, founding agreement, and license agreement with the free zone. All this documentation confirms your business’s legal authorization for operating both within the Tbilisi free zone and internationally.
Time Frame of Obtaining a Crypto License in Tbilisi FIZ
The licensing process in Tbilisi is known as one of the most streamlined and time-efficient. Indeed, the estimated timeframe for the entire licensing process is between 10 and 14 days. Yet, the receipt period may increase if an incomplete package of documents is submitted.
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Requirements for Tbilisi Free Zone Crypto License
Tbilisi’s crypto regulation is known for its streamlined and efficient licensing process and clear regulations. To your successful company setup in Georgia, make sure to meet the following crypto license requirements in Tbilisi free zone:
- One shareholder who can be an individual or a corporate entity;
- A certified passport copy and a power of attorney to be sent to Georgia;
- A legal address in Georgia. It is not necessary to confirm the existence of a physical office space, and a virtual office is acceptable;
- The founders of the company can be residents of any country;
- No minimum share capital requirement;
- No requirement to hire local employees or keep accounting records.
Besides fulfilling the Tbilisi free zone crypto license regulations, make sure to prepare the complete set of necessary documents before you apply. Those must be notarized, apostilled, or legalized, depending on the country of issuance. Here is the list of documents you’ll need to prepare before applying for a crypto license in FIZ:
For individuals:
- Certified passport copy;
- Certified power of attorney (PoA);
- A utility bill as proof of address.
For companies, the list of necessary documents includes the following:
- Corporate documents, including a certificate of incorporation, shareholders register, etc.;
- Board resolution approving investment;
- Certified financial statements.
Even though the regulatory obligations in Tbilisi are incredibly straightforward, it’s always a great idea to cooperate with legal professionals who will assist you along the way with your documentation and company setup. With our end-to-end support, you will fully benefit from Tbilisi’s crypto opportunities and grow your business in FIZ totally hassle-free.
Cost of Crypto License in Tbilisi Free Zone
The cost of crypto license in Tbilisi FIZ depends primarily on the urgency of obtaining it and the readiness of the necessary documents. The total price of your company incorporation, which includes the license fees, one-time company formation, and professional legal fees, is around €17,000 at the time of writing. Besides, the annual maintenance, license renewal, and company renewal fees are €14,000. Additional expenses for legal assistance with the preparation of necessary applications, documents, and submitting them to the authority may vary. Do not hesitate to contact our specialist team to get a total price for the whole procedure.
Crypto Taxation in Tbilisi FIZ
- 0% VAT on goods and services delivered within the zone or exported;
- 0% customs duties for imported/exported goods within the zone, and no property tax is levied on legal entities that have plants and equipment here;
- 20% standard Georgian income tax;
- 15% corporate profit tax.
Crypto Regulations in Tbilisi Free Zone
The crypto licenses in FIZ are issued by the Tbilisi Free Zone Administration – not the National Bank of Georgia – and are accessible to companies with the organizational legal form of LLC (Limited Liability Company) and JSC (Joint Stock Company). It’s important to note that under the FIZ crypto license, individuals are not allowed to lend virtual assets in Tbilisi.
The regulatory framework that underpins operations in the Tbilisi Free Zone (TFZ) is shaped by several key legislative acts, including the following:
- Law of Georgia on Free Industrial Zones: The foundational law governing Free Industrial Zones, including the Tbilisi Free Zone (TFZ);
- Tax Code of Georgia: Relevant tax regulations applicable within TFZ;
- Customs Code of Georgia: Governs customs procedures and operations within TFZ.
With a crypto exchange license in Tbilisi FIZ, your company is authorized to operate the following services:
- Crypto activities:
- Crypto exchange
- P2P operations
- Cryptocurrency wallets
- Token trading
- Blockchain solutions
- DeFi projects
- Payment and financial services:
- Cross-border payment processing
- Electronic money institutions
- Fintech solutions
- Forex and trading platforms:
- Brokerage services
- Online trading
- Investment management
Our Crypto Licensing Services in Tbilisi FIZ
From the company setup to maintaining your business fully compliant in the years to come, we’ve got you covered with everything you need on your licensing journey in Tbilisi FIZ. We’ll handle your company registration and license acquisition. Moreover, we’re here to help you prepare the full set of documents, ensure regulatory compliance, and assist you in setting up your bank account in Georgia. Our Tbilisi FIZ crypto license legal services don’t end once you obtain your permit. Rather, we’ll continuously support you in keeping your business fully compliant with the local regulations in the years to come.
At Fintech Harbor Consulting, we’ll help you quickly and smoothly issue the right license for your business. We provide comprehensive support to companies involved in blockchain technology and cryptocurrency operations. The experienced technology lawyers and crypto and fintech experts on our team will answer every question you have and find the best solutions for your business goals:
- EMI, Forex, Crypto licensing
- Financing audit
- Investment attraction
- Development of internal compliance policies
- KYC procedures, etc.
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FAQ
What types of crypto businesses can operate within the Tbilisi FIZ?
Having a license entitles you to acquire and provide services of using various cryptocurrencies, and making payments and transfers using them. Thus, the license gives the right to open a crypto-exchange or to expand the services of a fintech company;
Are there any specific residency requirements for obtaining a crypto license in the Tbilisi FIZ?
No, a license can be obtained by a company whose founders do not necessarily need to have a local residence.
What are the ongoing compliance obligations for licensed crypto businesses in the FIZ?
After obtaining a license, the company must notify the National Bank of all structural changes. It also applies if a natural or legal person decides to directly or indirectly sell its significant shareholding. Our lawyers provide ongoing support in keeping your company fully compliant with the latest regulatory updates in the Tbilisi free zone.
How does taxation in the Tbilisi FIZ compare to other jurisdictions for crypto businesses?
Georgia’s free zone imposes incredibly advantageous tax policies compared to those in other jurisdictions:
- 0% dividend tax. For comparison, this tax is 0% in some other jurisdictions, too. Those include the UAE, Singapore, and Hong Kong. Meanwhile, in other countries, the dividend tax varies from 20% in Estonia to almost 39% in the UK;
- 0% VAT on goods/services delivered within the zone or exported. To compare, VAT in the EU jurisdictions is 19–25%;
- 20% personal income tax. To compare, in other jurisdictions, this tax varies between 0%, like in the UAE, to 20-45% in the UK;
- 15% corporate profit tax. This tax differs significantly among other jurisdictions, varying from 12.5% in Cyprus to as much as 30% in Germany.
What are the key benefits of choosing the Tbilisi FIZ over other locations for a crypto business?
Here is why Tbilisi FIZ is a perfect choice for your crypto business launch:
- The country’s strategic location on the border of East and West, and the Tbilisi free zone’s location within a 25-minute drive from the capital of Georgia;
- Lower setup and operations fees compared to other international jurisdictions;
- Duty-free import and export, which significantly reduces operational costs with tax-free benefits;
- TFZ has a high rating in the state among international partners;
- Georgia’s non-aligned status allows for its flexible requirements on crypto issuers compared to the EU and OECD;
- Enhanced asset protection and confidentiality policies;
- Well-developed technical base;
- Favorable tax tariffs, with 0% VAT and 0% dividend tax;
- Tbilisi is extremely business-friendly, with transparent regulations designed to minimize bureaucratic barriers and allow you to enjoy a hassle-free and efficient company setup and license process.
