Georgia — VASP Registration Plus Virtual Zone Tax Advantage
Georgia regulates virtual asset service providers (VASPs) under the Law on Payment Systems and Payment Services, with the National Bank of Georgia (NBG) as the regulatory authority. Registration as a VASP is required for crypto exchanges, custodians, and wallet providers. The NBG process is streamlined compared to EU regulators — straightforward documentation, clear requirements, and a realistic 2–4 month timeline.
Georgia is particularly attractive due to its Virtual Zone status — companies with Virtual Zone designation pay 0% corporate income tax on income earned from services delivered outside Georgia. The Virtual Zone applies to IT and software companies, and crypto businesses providing services to non-Georgian clients commonly qualify. This combination of regulatory clarity and tax efficiency is rare globally.
Georgia has EU candidate country status as of 2023, with its Association Agreement and DCFTA with the EU already in force. While Georgia is not yet an EU member and MiCA passporting is not available, the country's regulatory alignment with international standards is progressing rapidly.
Virtual Zone qualification: Virtual Zone status is a separate application from VASP registration, filed with the Revenue Service of Georgia. Not all crypto activities automatically qualify — the company must primarily provide IT or software services. Legal analysis is recommended before applying to confirm eligibility for your specific business model.
Georgia VASP + Virtual Zone — Two Designations
Georgia requires two separate applications for a crypto business seeking both regulatory authorisation and the tax benefit: VASP registration with the NBG, and Virtual Zone status from the Revenue Service. Each has separate requirements.
| Designation | Issuing Body | Benefit |
|---|---|---|
| VASP Registration | National Bank of Georgia (NBG) | Legal authorisation to operate crypto exchange, custody, and transfer services in Georgia |
| Virtual Zone Status | Revenue Service of Georgia | 0% corporate income tax on revenue from non-Georgian clients; 5% dividend withholding tax |
| Standard Georgian company | National Agency of Public Registry | 15% CIT on profits; applicable if Virtual Zone not pursued or not qualifying |
Georgia VASP Registration — Key Requirements
How to Get a Georgia VASP Licence — Step by Step
Register a Georgian Limited Liability Company (LLC) at the National Agency of Public Registry. The incorporation process is fast — typically completable in 1–2 days online or through a notary. Inject the minimum capital of GEL 80,000 into the company's bank account. Georgia has no minimum residency requirements for company founders or directors.
1–2 weeksFile the Virtual Zone application with the Revenue Service of Georgia. The application requires: company registration documents, description of IT/crypto services, evidence that services will primarily be provided to non-Georgian clients, and financial projections. Virtual Zone status is typically granted within 2–4 weeks of a complete application.
2–4 weeksDevelop the complete VASP registration package for the NBG: AML/CFT policies aligned with Georgian AML Law, organizational structure and key personnel details, IT security policy, business plan describing all crypto services, and evidence of the company's capital. The package should be translated into Georgian where required.
2–4 weeksFile the VASP registration with the National Bank of Georgia. The NBG reviews the application and may request additional information. Unlike EU regulators, the NBG typically processes complete applications within 4–8 weeks. The NBG engages constructively with applicants during the review period.
4–8 weeks NBG reviewThe NBG confirms VASP registration. Open the Georgian bank account (if not already done) and commence operations. Ongoing obligations include annual NBG reporting, AML/CFT annual review, and immediate notification of material changes. Virtual Zone companies must submit annual reports to the Revenue Service demonstrating continued qualifying activity.
Registration and ongoingGeorgia VASP Licence — Full Cost Breakdown
| Item | Details | Approx. Cost |
|---|---|---|
| Company formation (LLC) | National Agency of Public Registry, notary, legal | USD 500–1,500 |
| NBG registration fee | VASP registration government fee | GEL 500–2,000 |
| Legal & compliance setup | AML policies, registration package preparation | USD 3,000–8,000 |
| Office lease (Year 1) | Physical office in Tbilisi | USD 3,000–8,000/yr |
| Virtual Zone application | Revenue Service application and legal review | USD 1,000–2,000 |
| Min. capital | Paid-in capital (GEL 80,000) | ~USD 30,000 |
| Estimated Year 1 Total (excl. capital) | Setup, registration fees, office, professional fees | USD 10,000–25,000 |