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Overview
Payment Service Provider authorization issued by the National Bank of Georgia allows a legal entity to manage payment systems within the territory of Georgia and to provide services stipulated in the Law of Georgia on payment systems and payment services.
Timeframe: Within 3-5 months
Minimum paid up capital: Case-by-case
Overview
In order for a company to apply for a Payment Service Provider license with the National Bank of Georgia, among other requirements, it is obligatory that the company provides payment services not only to foreign customers, but also to resident clients in Georgia.
For each payment service provider a schematic description of implementation of said payment service is required. This is to include a detailed specification on movement of information and money during the entire service process – from payment operation initiation till its completion.
An authorized PSP may provide the following services:
- ▪services that ensure the debiting of funds from the payer’s account
- ▪services related to the crediting of funds to the payee’s account
- ▪making payments through direct debits
- ▪issuing and/or acquiring payment instruments
- ▪remittances
- ▪issuing electronic money
- ▪executing payment transactions
Benefits of Georgia PSP authorization:
- ▪Incorporation of a company can be done within a week
- ▪Company is exempt from corporate tax if at least 90% of its business activities are held outside of Georgia
- ▪Company is exempt from capital duty
- ▪Beneficial location of the country itself – connects Europe and Asia
- ▪ 52 concluded double taxation treaties
- ▪Georgia is not on the high-risk or other monitored jurisdiction list
Comprehensive Guide to Company Incorporation
General information
Company structure
- ▪Minimum 1 resident Director (must have detailed information related to all transactions)
- ▪Minimum 1 Shareholder (natural person or legal entity, no restrictions with regards to citizenship or residence)
Registered Agent – Not required
Registered office – Required
Local physical office – Required
Secretary – Not required
Company name:
- ▪Letters: Roman alphabet
- ▪Must contain the words “limited liability company” or the abbreviation “LLC” or “LTD”
- ▪Shall not in any instance exceed 80 characters, including spaces and punctuation
- ▪The firm name must not be supplemented by any word that can cause misunderstanding for the third persons regarding the volumes and forms of activity of the enterprise or regarding the relationships between the partners
- ▪Restricted connections for company name: names of state and local government bodies and agencies
- ▪A company’s name shall not be contrary to good morals, as well as shall not be misleading with regard to the legal form, area of activity or scope of activity of the undertaking
- ▪Company name is restricted to be identical or similar that of an existing company
- ▪Registrar may reject any name which it considers undesirable or contrary to the public interest
In order to obtain a license, the following steps will be carried out:
- ▪Application for reservation of company name
- ▪Preparation and submission of the application and incorporation documents to the Registry
- ▪Incorporation of a company
- ▪Registration of the Company with Tax authorities
- ▪Opening of the local bank account
- ▪Registration of the Company with the National Bank of Georgia as Payment Service Provider
- ▪ Registration of the Company with Financial Monitoring Service of the National Bank of Georgia
In order to obtain Payment Service Provider authorization in Georgia, please provide the following documents:
- ▪Apostilled copy of valid passport (of each Director or Shareholder)
- ▪Notarized copy of proof of address (e.g. Utility bill of each Director)
- ▪Bank reference (of each Director)
- ▪2 Character reference Letter issued by professionals (of each Director and Shareholder)
- ▪Detailed CV dated and signed by applicant (of each Director and Shareholder)
- ▪Diploma of higher education
- ▪Apostilled non-criminal records
- ▪Detailed business plan
- ▪Filled in questionnaires
In case the shareholder is a company, it is required to provide:
- ▪Certified true copy certificate of incorporation
- ▪Register of shareholders
- ▪Copy of the last annual/financial return
- ▪Apostilled Certificate of Good Standing
Additional Due diligence may be prescribed by Financial Services Commission*:
- ▪Original documents that prove the source of capital
*All documentation shall be provided in English
* Additional documents may be requested by the NBG or local Bank at any point to certify specific information
* If documents are not in English, then they must be accompanied by a notarized translation