Georgia corporate bank account
Since 2003, our dedicated Georgian team assists foreign investors with applying to the full range of corporate banking services available in the country. Healy Consultants PLC project manages all the steps necessary for our Clients to open and operate a corporate bank account in Georgia;
During the engagement, we will i) determine which banks offer the services most tailored to our Client’s needs ii) complete the corporate bank account opening forms and iii) liaise with the banks to minimize the due diligence requested.
Please read below for further information regarding corporate banking services in Georgia.
Georgia banking sector
- Georgia’s banking sector is moderately increasing over the past five years, reaching 37.8 billion Georgian Lari in assets by September 2018 with return on investment (ROE) of 18.68%;
- The largest borrower in the Georgian banking sector remain the households with more than 55% share, followed by trade and industry. Consequently, Herfindahl-Hirschman Index of amounted to 2,664, which implies that the Georgian banking sector is highly concentrated;
- Georgian banks enjoy moderate long-term credit rating of BB- from Fitch Ratings as of Q2 2019 and Ba3/Ba2 from Moody’s as of Q1 2017.
Georgia corporate bank account
- Many Georgia banks require personal meeting in order to supply corporate bank account facilities. However, we often recommend our foreign Clients to open their Georgian corporate account with a bank with which they already have a bank account in another country, to reduce compliance background checks and potentially negate personal travel;
- There are 15 licensed commercial banks in Georgia with the main two players holding almost 60% of the total bank assets. These two largest banks are i) TBC bank and ii) Bank of Georgia;
- The Georgian banking sector and assets are predominantly foreign owned;
- Foreign banks present in Georgia include i) VTB bank ii) Hualing Industrial Group iii) FMO iv) Dhabi Group and v) Ziraat bank.
Healy Consultants’ Georgia corporate banking services
- To optimize the process, our team project manages the corporate bank account opening on the ground without our Client’s travel required. Our Client can expect to receive corporate bank account numbers within 4 weeks and activate internet banking facilities within the subsequent week;
- Our team will proactively prevent our Clients from traveling to Georgia; however, due to the country’s close implementations of the guidelines advised by the FATF, there is still a 20% chance that the bank’s compliance department may require our Clients to attend a one hour interview in the country. There will be a fee discount of US$950 if you have to travel;
- Once our Client received confirmation from the Georgia bank, the latter will directly and independently provide our Client the online banking kit required for initiation of international funds transfers.
Ongoing banking support
As supplementary part of the engagement, and if required, Healy Consultants Group PLC will also be pleased to obtain additional bank financial support for our Client’s projects in Georgia.
- Healy Consultants Group PLC may assist our Clients with obtaining various forms of funds and corporate finance, including modern instruments such as: i) extended bank guarantees; ii) flexible operational credit lines/ overdraft facility or iii) promotional/ preferential long-term loan terms. Please contact our Georgia Client Relationship Officer for inquiries regarding these services and related fees;
- In any case, local bank’s legal and compliance departments will require to review high-quality support due diligence, including: i) a feasibility study, ii) profit and loss estimations, iii) adequate educational and professional background of senior management and iv) last 3 years audited financial statements.
Steps required to open a Georgian corporate bank account
- During the initial stages of our Georgia engagement, Healy Consultants will advise our Client towards choosing the optimal banking group to suit our Client’s business goals;
- Upon receipt of the comprehensive information on i) company’s business activities (including proof of business like contracts and invoices), ii) company’s customers and suppliers iii) details of the management team and iv) the company’s financial projections, our experts prepare a detailed business plan highlighting the company’s activities, financial projections and reasons for opening a Georgian bank account;
- Healy Consultants Group approaches the local banks in Georgia to obtain preliminary approval for bank account opening for our Client’s business;
- Following the receipt of the preliminary approval, Healy Consultants Group prepares bank account opening forms for our Client’s signature and submission to the bank;
- Within two to three weeks of submission of the account opening application, Healy Consultants Group will receive the feedback from bank;
- Our Client will be required to fund the bank account within one week. The minimum initial deposit for a business bank account in Georgia can range from US$1,000 to US$500,000 depending on the bank and type of account chosen;
- Once the corporate bank account is approved, Healy Consultants liaises with the Georgia bank to secure timely activation of internet banking facilities in Georgia and then courier to our Client the bank tokens, cheque books and other bank account documents.
Exchange controls and other regulation
- Georgia does not implement exchange controls to international transfers in any currency;
- Both residents and non-residents in Georgia are allowed to open bank accounts in foreign currencies, including GEL, €, US$ and £;
- There are no restrictions on the amount of foreign currency that residents may hold in their bank accounts, as advised by the Georgian National Bank.