Georgian corporate bank accounts in 2023
Since 2003, Healy Consultants Group helps multinational Clients open Georgian multicurrency corporate bank accounts for resident and non-resident companies.
Our team will project manage every step of the multicurrency corporate bank account opening process, including preparing a quality business plan for our Client’s business. In most cases, our Client will not need to travel to Georgia to complete bank account opening.
We recommend our multinational Clients read this web page to avoid unexpected surprises.
Georgian banking problems and solutions
No Georgian banking problem Solution 1. Bank insists the signatory travels to Georgia for a one-hour bank interview.
While in most cases our Client does not need to travel, there are instances where the bank insists to meet our Client in person. When this happens our first priority will be to negotiate for our Client to visit the bank’s international branch in their country of residence.
When travel is unavoidable, Healy Consultants Group’s Client travel policy will apply. As much as possible our staff will organise the bank meeting in our Georgian affiliate’s office and assist our Client during the bank interview(s).
2. Georgian corporate bank account opening for a newly-registered company is difficult when there is no business history and turnover cannot be confirmed in Georgia. Healy Consultants Group will prepare a quality business plan for the bank to increase the likelihood of account approval. This business plan will include details on i) the company’s activities ii) financial projections iii) staffing iv) assets and liabilities. 3. Our Client needs to urgently receive funds from the proceeds of a sale. Corporate bank account opening in Georgia takes on average 2 months. If our Client cannot wait, we offer a shelf company with an already-approved international corporate bank account. 4. Multiple Georgian banks refuse to open a multicurrency bank account for our Client. Healy Consultants Group will open a multi-currency corporate bank account outside Georgia. The bank account will be located in the United States of America, Central America, Europe or Asia. Irrespective of the location, all options will be top-tier banks with excellent internet banking services. 5. Our Client encounters difficultly remitting funds outside Georgia We recommend our multi-national Clients diversify risks by opening multiple multicurrency corporate bank accounts for the same entity. It is unwise to have their business be dependent on one sole bank. 6. The bank’s staff speak no English Healy Consultants Group will open a multi-currency corporate bank account for our Client with an international bank which has a presence in Georgia, and which offers communication in English. 7. Our Client is unable to activate internet banking Healy Consultants Group will activate the same on behalf of our Client. When internet banking tokens are already with our Client, we will detail-guide our Client through the process.
The Georgian banking sectorSummary overview:
- The Georgian banking system is stable, and the Central Bank has a reputation for taking firm steps to tighten monetary policy to protect the economy and financial institutions. Despite Georgian banks’ relative stability, we nevertheless recommend our Clients spread risk by securing additional bank accounts in countries other than Georgia.
- Despite the sector’s relative stability, the Georgian banking system is exposed to:
- High levels of household debt, which grew during Covid-19 as unemployment rose and households became unable to repay loans;
- Rising unemployment, which hurts Georgian banks by reducing demand for credit, loans and mortgages.
- On the positive side, the value of Georgian bank assets rose between Q1 2020 and Q1 2021.
- All commercial banks are required by the Georgian central bank to maintain a percentage of their foreign currency deposit liabilities in reserve.
- Bank deposits in Georgia are protected by a guarantee scheme in the event of a bank liquidation. Unfortunately the scheme protects investments up to the value of 15,000 Lari (US$4,350) per individual or entity, per account.
- Georgian banks enjoy a moderate long-term credit rating of BB-. Subsequently, the probability of a bank default during a global recession is low.
- Georgia imposes no controls on foreign exchange transactions.
Key information on the Georgian banking sector
- The Georgian financial system is regulated by the National Bank of Georgia. In 2022, there are 14 commercial banks operating in Georgia. The two largest banks are i) TBC Bank and ii) Bank of Georgia. Foreign banks in Georgia include i) VTB Bank ii) Hualing Industrial Group iii) FMO iv) Dhabi Group and v) Ziraat Bank. For non-Georgian-speaking Clients we recommend opening a bank account with one of the foreign banks.
- Both residents and non-residents in Georgia are allowed to open bank accounts in foreign currencies, including Georgian Lari, €, US$ and £.
- The National Bank of Georgia imposes no restrictions on the amount of foreign currency that residents (and non-residents) may hold in their bank accounts.
- Banks in Georgia have no minimum deposit or balance, and maintaining the account is inexpensive.
- Most Georgian banks offer i) credit and debit cards ii) personal and business loans iii) mortgages iv) wealth management services v) insurance and vi) merchant services.
- As of 2022, many Georgian residents conduct everyday transactions on their smartphones. Most retailers, including smaller retailers, accept card payments, and utility bills, loan applications and bank transfers are routinely carried out online only.
- As a result of the above, there are fewer bank branches in Georgia, and fewer ATMs.
- Georgia is not a part of the Common Reporting Standard (CRS) global information exchange system. As a result, Georgian banks do not share information on accounts and account holders with tax authorities in which the company or individual is a tax-resident.
- However, Georgia is a signatory to the Foreign Account Tax Compliance Act (FATCA), whereby the Georgian authorities pass information of US citizen account holders to the US Inland Revenue Service (IRS).
- Within two months, Healy Consultants Group will secure multi-currency corporate bank account approvals with at least one Georgian bank. There is an 80% probability the bank signatory will not have to travel.
ConclusionGeorgian corporate bank account opening is straightforward if you know how. Contact Healy Consultants Group if your firm needs assistance navigating the different banking solutions in this Caucasian country.