Obtaining a cryptocurrency license in the Tbilisi Free Zone (TFZ) of Georgia offers a streamlined and cost-effective pathway for crypto entrepreneurs seeking minimal regulatory burdens and significant tax advantages. This guide outlines the essential steps, requirements, and benefits associated with securing a crypto license in TFZ.
Why Choose Tbilisi Free Zone for Your Crypto Business?
The Tbilisi Free Zone is a designated area in Georgia that provides favorable conditions for businesses, especially in the crypto sector. Key advantages include:
- Tax Incentives: Companies registered in TFZ benefit from 0% corporate income tax, 0% VAT, and no property taxes, with only a 5% tax on dividend distributions .
- Simplified Licensing Process: TFZ offers a faster and less complex licensing procedure compared to the mainland Virtual Asset Service Provider (VASP) license.
- No Minimum Capital Requirement: There is no stipulated minimum authorized capital for companies in TFZ .
- Remote Registration: The entire company formation and licensing process can be completed remotely through a power of attorney .
Step-by-Step Guide to Obtaining a Crypto License in TFZ
1. Company Formation
- Legal Structure: Establish a Limited Liability Company (LLC) or Joint Stock Company (JSC).
- Legal Address: Secure a legal address within the Tbilisi Free Zone.
- Documentation: Prepare and notarize necessary corporate documents, including the company’s charter and minutes of the founders’ meeting.
- Registration: Register the company with the Public Register of Entrepreneurs in Georgia.
2. License Application
- Application Submission: Submit the license application to the TFZ administration, including a brief description of the company’s intended activities.
- Required Documents:
- Notarized power of attorney (if applying remotely).
- Identification documents of all participants.
- Company’s charter and other foundational documents.
- Processing Time: Licenses are typically issued within 2–3 working days after company registration .
Costs Involved
- Company Registration: Approximately $1,800, covering assistance, advisory, and representation during the incorporation process .
- Legal Address Registration: A one-time fee of $1,000 for the first year .
- Annual License Fee: Starting from $4,500, depending on the company’s activities .
Activities Permitted Under the TFZ Crypto License
The TFZ crypto license allows companies to engage in various activities, including:
- Buying and selling cryptocurrencies.
- Providing services for debiting and crediting funds to accounts.
- Issuing electronic money.
- Utilizing various electronic financial instruments.
- Conducting payments and transfers using electronic money .
Compliance and Regulatory Considerations
- AML/KYC Policies: While the TFZ offers a simplified regulatory environment, companies are still expected to implement Anti-Money Laundering (AML) and Know Your Customer (KYC) policies to ensure compliance with international standards.
- Operational Restrictions: Companies operating under the TFZ license are generally restricted from conducting business with Georgian residents to maintain tax-exempt status .
Also Read: Exploring Coyyn.com in the Gig Economy Landscape
Conclusion
Securing a crypto license in the Tbilisi Free Zone presents a compelling opportunity for crypto entrepreneurs seeking a swift, cost-effective, and tax-efficient entry into the market. With minimal regulatory hurdles and the ability to operate remotely, TFZ stands out as a favorable jurisdiction for establishing a crypto business.