---
title: "Microfinance Licensing"
url: "https://legal.ge/en/service/banking-and-finance-law-en/microfinance-licensing-en"
field: "Banking & Finance Law"
description: "Microfinance licensing in Georgia. National Bank registration, minimum capital requirements, regulatory compliance, and MFI legal advisory."
reviewed: "2026-03-09"
updated: "2026-11-07"
publisher: "legal.ge"
---

# Microfinance Licensing

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

Microfinance licensing in Georgia is a complex and strictly regulated process aimed at ensuring the stability and transparency of the financial sector. As a result of legislative changes in recent years, Microfinance Organizations (MFOs) have come under the enhanced supervision of the National Bank of Georgia (NBG). This means that a company wishing to operate in this field must satisfy a number of strict requirements, ranging from statutory capital to the qualifications and reputation of the members of the governing bodies. The microfinance sector plays a significant role in Georgia in financing small businesses and individuals, making it attractive for investors. However, obtaining a license requires a professional approach and impeccable preparation of documentation. The Legal.ge platform allows you to connect with qualified lawyers and financial consultants who will help you successfully navigate all stages of the licensing process.

## What does the Microfinance Licensing service cover?

The microfinance licensing service includes complex legal and consulting support. The service covers the following issues: establishment of a legal entity and preparation of the charter in accordance with NBG requirements; legal control over the formation of statutory capital; "Fit and Proper" checking of administrators and preparation of documentation; drafting a business plan that includes financial forecasts and a risk management strategy; development of internal policies and procedures (AML/CFT, corporate governance, consumer protection); representation in the communication process with the National Bank of Georgia; and consultation on compliance with technical and software requirements. Lawyers ensure that your application is perfect, minimizing the likelihood of deficiency findings or rejection.

## Common real-world scenarios

The need for microfinance licensing arises in various situations. The most typical scenario is the establishment of a new company when a local or foreign investor decides to enter the Georgian credit market. The second scenario concerns existing lending entities that wish to upgrade their status and transform into a microfinance organization to benefit from more legal privileges and attract funds. The third scenario involves the acquisition of a local MFO by foreign financial groups, requiring re-authorization and agreement on the ownership structure with the regulator. It is also common for a licensed MFO to expand its branch network or introduce new digital products, requiring additional legal validation from the NBG. Each of these cases requires an individual approach and highly qualified legal advice.

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

### What is the status of a microfinance organization?

It is a representative of the financial sector, registered by the National Bank and operating under continuous supervision.

### Is a license needed to take deposits?

Yes. Deposits may be taken only under a banking activity or microbank activity license; a microfinance organization does not have this right.

### How is the raising of funds legalized?

Attracting repayable funds from a wide circle of natural persons is allowed only on the basis of the relevant registration or license; otherwise the statutory restriction is breached.

### What sanctions exist?

The National Bank may impose restrictions and monetary fines, prohibit profit distribution, revoke the registration, or strip the license.