---
title: "Crowdfunding Law"
url: "https://legal.ge/en/service/banking-and-finance-law-en/crowdfunding-law-en"
field: "Banking & Finance Law"
description: "Crowdfunding law: the 100-person threshold, prospectus, prohibitions and reporting. Legal.ge."
reviewed: "2026-06-27"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Crowdfunding Law

> Source: legal.ge, https://legal.ge/en/service/banking-and-finance-law-en/crowdfunding-law-en

## The Concept of Public Offering

The legal framework of crowdfunding begins with the concept of a public offering of securities: a public offering is a proposal to at least 100 persons or to a previously unspecified number of persons, in the name of the issuer, for the direct or indirect sale of securities. A proposal of this kind concerning the securities of a non-reporting enterprise, made in the name of a person who is not the issuer, is also treated as a public offering. This definition decides when a crowdfunding campaign takes the form of a public offering: the circle of targeted investors and the formulation of the proposal determine in advance which regulatory regime the campaign falls under. The threshold of one hundred persons is precisely the point where the transition from private agreement to the public market takes place.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/banking-and-finance-law-en/crowdfunding-law-en

### What is a public offering?

A proposal to at least 100 persons or to an unspecified number of persons, in the issuer's name, for the sale of securities.

### What does a public offering require?

An approved issue prospectus, after whose publication the offering takes place.

### When can the prospectus be cancelled?

For violation of requirements and materially incorrect or incomplete information, after the correction period expires.

### When is the report due?

Within 1 month of the offering's completion, to the National Bank, with exact numbers and prices.