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Payment Service Provider Licensing

How long does it take to get a PSP license in Georgia?

The statutory period is 60 days from submission, but with document corrections and NBG inquiries, it typically takes 3-6 months.

What is the "Fit and Proper" test?

It's an NBG assessment ensuring directors and shareholders have relevant experience, good repute, and no criminal record for financial crimes.

Can a foreign company apply directly?

Usually, a foreign company must establish a local Georgian subsidiary (LLC) to apply for the PSP registration.

Is physical presence required?

Yes, the NBG requires a real head office in Georgia where management functions are performed and documents are stored.

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Payment Service Provider (PSP) Licensing (or registration) is a fundamental step for any company wishing to enter the payment processing market in Georgia. The National Bank of Georgia (NBG) strictly regulates this sector to ensure financial system stability and consumer protection. The process involves not only submitting an application but also a detailed examination of the company's structure, capital, administrator qualifications, and IT infrastructure. Successful licensing requires deep knowledge of banking law and a precise understanding of the regulator's expectations. Legal.ge connects you with experienced lawyers who will help you navigate this complex bureaucratic and legal labyrinth so that your business can start operating legally and smoothly.

What does the Licensing service cover?

The licensing (or in the case of a significant provider - registration) process is complex and involves several stages. Specialists on Legal.ge offer full support:

  • Selection of legal form and registration: Preparing the company's founding documents taking into account NBG requirements.
  • Preparation of the license application: Collecting and compiling a complete package of documentation, including the legal part of the business plan.
  • Fit and Proper testing of administrators: Confirming the qualifications, experience, and lack of criminal record of directors and supervisory board members according to NBG criteria.
  • Development of internal policies: Drafting policies for risk management, AML/CFT (anti-money laundering), information security, and consumer rights protection.
  • Ensuring capital requirements: Legal consultation regarding the formation of the minimum authorized capital.
  • Coordination of IT audit: Legal support during the information systems security audit process and presenting results to the regulator.

Common scenarios and needs

During the licensing process, clients often face the following challenges:

  • Entry of a foreign FinTech company: An international company wants to establish a subsidiary in Georgia and provide payment services, which requires full adaptation to local regulations.
  • Change of registration status: A small payment service provider grows and has to obtain the status of a "significant" provider, implying a transition to a stricter licensing regime.
  • Deficiencies in documentation: The National Bank often returns applications with deficiencies if the beneficial ownership structure is opaque or administrators do not meet criteria.
  • Issuance of electronic money: A company wants not only to process payments but also to create a digital wallet, which creates additional licensing requirements.

Georgian Legal Framework

The licensing process is regulated by several key acts:

  • Law of Georgia on Payment Systems and Payment Services: Establishes the concept of a payment service provider, types of activities, and market entry conditions.
  • Decree of the President of the National Bank of Georgia on Approval of the Rule for Registration and Cancellation of Registration of a Payment Service Provider: Details registration procedures, the list of required documents, and deadlines.
  • Law of Georgia on Entrepreneurs: Regulates general corporate issues of establishing a legal entity.
  • Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism: Defines mandatory requirements that the license applicant must meet at the moment of registration.

Service Process Step-by-Step

Collaboration with specialists on Legal.ge involves the following stages:

  1. Preparatory Consultation: Analyzing the business model and determining exactly what type of authorization the company needs.
  2. Documentation Preparation: Filling out corporate documents, business plans, structural charts, and administrator questionnaires.
  3. Submission of Application to NBG: Submitting the full package to the National Bank and initiating the proceedings.
  4. Communication with the Regulator: Responding to comments made by the NBG, providing additional information, and correcting documentation.
  5. Registration/Licensing: Receiving a positive decision and legally formalizing the commencement of activities.

Why Legal.ge?

Obtaining a Payment Service Provider license is one of the most difficult procedures in the Georgian financial sector. Even a small mistake can cause months of delay or rejection. Legal.ge gives you access to specialists who have a successful track record in managing this process. Through our platform, you will find professionals who ensure the perfection of your application and minimize bureaucratic barriers. Start your FinTech business correctly with Legal.ge.

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