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Crypto Business Licensing

Does Georgia have tax incentives for crypto companies?

Yes, crypto mining and exchange (supply of crypto) are generally exempt from VAT. Additionally, if you develop crypto software, you might qualify for "International Company" status (5% profit tax).

Can I register a crypto company remotely?

Yes, company registration can be done via Power of Attorney (PoA) without visiting Georgia. However, opening a bank account usually requires a physical presence or director interview.

Is mining legal in Georgia?

Yes, crypto mining is legal and unregulated (no license needed). Many miners operate in Free Industrial Zones (FIZ) for tax benefits.

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Introduction: Starting a Crypto Business in Georgia

Georgia is known internationally as a crypto-friendly country, but starting a real crypto business requires more than just registering a company. "Crypto Business Licensing" is a comprehensive service designed for entrepreneurs who want to create a legal and sustainable structure in Georgia. This includes not only preparation for VASP licensing but also corporate structuring, tax planning, legal assessment of IT infrastructure, and, most importantly, solving banking issues. A correct start is crucial, as a wrongly chosen legal form or tax regime can paralyze the business in the future.

A team of professional lawyers helps you optimize your business model—whether it's mining, trading, tokenization, or blockchain development. Our goal is to create a legal framework that is attractive to investors and acceptable to the regulator.

What Crypto Business Registration Services Cover

This serves as a "one-stop-shop" for crypto startups:

  • Legal Entity Selection: Consulting on the advantages of an LLC or Joint Stock Company (JSC), considering capital requirements and governance structure.
  • Tax Structuring: Utilizing the "Estonian Model" (deferral of corporate income tax) and discussing special tax regimes (e.g., "Virtual Zone Person" or "International Company") for crypto businesses with IT components.
  • Opening Bank Accounts: The most challenging stage—negotiating with pro-crypto banks or Electronic Money Institutions (EMIs) to open an account.
  • Office and HR Issues: Ensuring real economic substance, which is necessary for both tax and licensing purposes.
  • Intellectual Property Protection: Trademark registration and software code protection.
  • Founding Documentation: Preparing Shareholders' Agreements, especially if investors are foreign nationals.

Common Scenarios and Use Cases

Crypto business registration services are relevant in the following cases:

  • Legalizing a Mining Farm: An investor wants to open a large mining center in a Free Industrial Zone (FIZ) to access cheap electricity and tax incentives.
  • Crypto Startup Relocation: A foreign company moves operations to Georgia and needs to transfer assets and hire local staff.
  • Web3 Development: A company builds decentralized applications (dApps) and wants to benefit from "International Company" status (5% income tax and 5% profit tax), as its revenue comes from software sales.
  • Investment Fund: A group plans to create a crypto hedge fund. A complex corporate structure is needed to manage fiat and crypto assets.

Georgian Legislation and Regulations

The primary act for crypto business registration is the Law of Georgia on Entrepreneurs, which regulates corporate matters. regarding taxes, the Tax Code of Georgia applies. Specific regulations (VASP) stem from National Bank normative acts. If the business is IT-oriented, Government of Georgia Decrees on International Company Status are relevant, offering significant tax breaks, though crypto trading does not automatically qualify.

Process of Working with a Specialist

Starting a business involves:

  1. Business Model Audit: Determining which regulations apply to you (VASP, Securities, or IT).
  2. Company Registration: Registering at the Public Service Hall remotely or via power of attorney.
  3. Tax Registration: Registering with the Revenue Service.
  4. Banking: Attempting to open an account (often requires working with multiple banks/EMIs).
  5. Authorization: Preparing the licensing application if necessary.

Why Choose Legal.ge?

Starting a crypto business in Georgia seems simple at first glance but is full of pitfalls (especially regarding banking). Legal.ge connects you with lawyers who know the practical ways to set up financial and legal infrastructure.

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