The Georgia Securities Brokerage License in 2021
Since 2003, Healy Consultants Group PLC has been assisting our Clients with the A to Z of securities brokerage companies business setup and licensing. Our services include: i) company registration ii) company secretary and registered address services iii) opening a Georgia corporate bank account iv) sourcing a qualified resident director and physical office space solutions v) preparation of AML/CFT programmes and other required documents vi) securing a brokerage license with National Bank of Georgia (NBG) and vii) registering your company as an AML/CFT reporting entity with the Financial Monitoring Service of Georgia.
Press the headings below to receive updated and relevant information about securities brokerage licensing in Georgia.
What is Georgia Securities Brokerage License?
- The license is granted by the NBG. Licensing applications are processed by NBG within six months;
- After the license application is approved, your Georgia entity will be able to legally offer brokerage services including i) issuing sales invoices to customers ii) signing legal contracts and iii) conducting activities related to foreign exchange, trading and consultation;
- Only local entities and branches can apply for a license. Non-resident entities cannot apply. Consequently, most of our Clients also engage us to register a simple practical Georgia LLC.
Advantages of doing business with a Georgia Securities Brokerage license
- Substance requirements to secure the license are low: our Clients only need to secure a physical office space, which can be a shared office to legally minimize rental costs. There is no requirement to hire local staff beside a resident active qualified director;
- Our Clients can secure a license with a paid-up capital as low as US$200,000;
- Corporate income tax is only 15%. Companies in Georgia are exempted from taxes including i) capital duty ii) social security contributions iii) payroll and iv) branch remittance;
- Georgia is reputable financial center and jurisdiction. It is neither a tax haven nor blacklisted by the European Union nor the FATF;
- Georgian Banks are connected to IBAN and are SWIFT/BIC Members. As such, there is no need for intermediary banks when customers are transferring funds to your business.
Problems of doing business with a Georgia Securities Brokerage License
- The license does not allow to i) supply investment advisory services nor ii) its holder to hold customers’ investment portfolios and funds that are allocated for operations in securities;
- Since November 2018, the National Bank of Georgia requires the appointment of a local qualified director. Most of our Clients require Healy Consultants Group PLC to supply them with a professional nominee to meet this legal requirement;
- Georgia banks often require a face to face KYC meeting with one of the foreign directors before issuing corporate bank account numbers. Healy Consultants Group PLC will skilfully negotiate for a travel waiver but the Bank enjoys ultimate power of approving the same. In the unfortunate event our Client is required to travel, our team will action this travel policy.
Main licensing requirements?In order to secure a brokerage license, your Firm is required to:
- Maintain a physical office space in Georgia: Lease agreement with the landlord must be provided during application;
- Appoint a qualified resident director: All directors and UBOs to have at least 4 years’ experience in the financial sector substantiated with legalized educational certificate, CV and 2 professional references and criminal records;
- Have a minimum paid-up capital of US$200,000 (GEL500,000): Capital injection has to be carried out before the license application.
Steps to take for license application
- Securing a qualified director and office solutions: Healy Consultants Group PLC will supply a qualified resident director who has at least four years’ experience in the financial sector. Our team will supply educational certificates, CV, two professional references and criminal records of our preferred directors. We will also assist our Client to source low cost office space solutions;
- Preparation of documents: Healy Consultants Group PLC will assist our Client in preparing i) employment contracts of all directors with a descriptive of their obligations and functions ii) business model and strategic plan for the business and iii) organisational chart;
- Capital injection: Before Healy Consultants Group PLC can submit the licensing application to the Georgia Government, your Firm will be required to inject a paid-up capital of at least US$200,000 (GEL 500,000) to the Georgia corporate bank account of the entity;
- Submission of license application: Healy Consultants Group PLC will collate and submit a quality license application file to NBG. All going well, the license will be approved within six months. During the review, our Clients should, however, expect the Regulator to revert multiple times for additional information and supporting documents;
- Registration as an AML/CFT reporting entity: Within two weeks of approval, all securities brokerage businesses must register as an AML/CFT reporting entity with the Financial Monitoring Service of Georgia. Healy Consultants Group PLC will assist our Client with the registration.
Our service package
- For a total engagement fee of US$47,950, Healy Consultants Group PLC will project-manage the A to Z of your securities brokerage business set up. Total engagement period will be eight months;
- Our standard package of services includes i) company registration ii) company secretary and registered address services iii) opening international multicurrency corporate bank account iv) sourcing qualified resident director v) preparation of AML/CFT programmes and other required documents vi) securing a brokerage license with CIMA and vii) securing tax exemption certificate;
- Additionally, our Firm can also offer multiple additional support services, including i) accounting and bookkeeping services ii) merchant account opening services iii) drafting of prospectus if your Firm is planning to issue structured products and v) assistance to recruit employees;
- Refer to attached pdf file to view updated sales invoice with our latest notes: View invoice PDF