August 7, 2025
Georgia Securities and FX Brokerage License Application – Zitadelle AG
Introduction
Georgia has rapidly positioned itself as a competitive financial hub in the Caucasus, offering a transparent regulatory framework and a favorable tax regime. Foreign exchange (FX) and securities brokerage firms can obtain licenses through the National Bank of Georgia (NBG), which supervises and regulates the capital markets. Zitadelle AG assists international clients with the full scope of licensing services, including preparation of documents, compliance advisory, and regulatory submissions.
This article outlines the licensing framework, requirements, and process for establishing a securities or FX brokerage company in Georgia.
Legal and Regulatory Framework
The regulation of brokerage companies in Georgia is primarily based on:
Securities Market Law
On the Approval of the Additional Regulation Rule of Brokerage Companies Involved in Trading with High-Risk Financial Instruments
On Approval of a Rule of Licensing and Regulating of a Brokerage Company
The National Bank of Georgia is the sole authority overseeing licensing, compliance, and supervision.
Scope of Licensed Activities
The NBG offers two types of brokerage licenses:
Limited License
Provide investment consultations, including securities pricing and trading.
Conduct and publish financial research and investment recommendations.
Advise issuers on securities issuance and investment attractiveness.
Prepare and distribute an issuer’s securities on a non-guaranteed basis.
Full License
Covers all activities under the limited license, plus:
Execution of client orders and securities transactions.
Portfolio management, including pension schemes.
Custody and record-keeping of client funds and securities.
Nominee account services.
Dealing on own account.
Guaranteed underwriting of securities.
Securities lending, borrowing, and short-selling.
FX trading and derivatives contracts.
Organizing foreign currency trading platforms.
Additional financial operations permitted under Georgian law.
Capital Requirements
Limited License: 150,000 GEL (~60,000 USD).
Full License: 500,000 GEL (~240,000 USD).
This capital must be fully paid and maintained at all times.
Corporate and Staffing Requirements
The applicant must be incorporated in Georgia as an LLC or JSC.
A physical office in Georgia (lease or ownership documents required).
At least one resident director with a minimum of four years’ financial sector experience.
A comprehensive AML/CFT program with written policies and risk-based procedures.
Licensing Process and Required Documents
Applicants must prepare and submit a comprehensive set of documents, including:
Extract from the Company Register confirming incorporation.
Updated Articles of Association and corporate documents.
Ownership structure and beneficial ownership details.
Identification and background checks for shareholders and management.
List of intended brokerage activities.
Trading platform provider details (if applicable).
Financial statements (audited if older than 6 months).
Proof of paid-in minimum capital.
CVs, qualifications, and declarations of directors and key executives.
Business plan and strategic model.
Proof of office lease or property rights.
Group structure information (if applicable).
Licensing fee payment confirmation.
All foreign documents must be translated into Georgian and notarized.
The National Bank of Georgia processes applications within 30 days, provided all documentation is complete.
State Duties and Ongoing Fees
Application fee: 5,000 GEL (~2,000 USD).
Annual license fee: 15,000 GEL (~6,000 USD).
Margin Trading and CFD Regulations
Brokerage companies engaging in high-risk instruments such as CFDs must comply with additional rules:
Leverage limits:
1:50 for major currency pairs
1:20 for minor FX pairs, gold, and basic indices
1:10 for commodities (except gold), non-major indices, and shares
1:2 for cryptocurrencies
Automatic closure of positions if equity falls below 50% of margin.
Negative balance protection required.
Ban on trading incentives (e.g., bonuses) for retail clients.
Strict disclosure obligations in contracts and advertising.
Advantages of a Georgia Brokerage License
Supervision by a reputable regulator (NBG).
Fast licensing timeline (30 days).
Favorable tax and business environment.
Access to regional and international markets.
Robust investor protection and AML standards.
How Zitadelle AG Assists
Zitadelle AG provides end-to-end licensing and compliance support, including:
Advising on optimal license type (limited vs. full).
Incorporation and corporate structuring in Georgia.
Preparation of licensing application and business plan.
Assistance with compliance policies (AML/CFT, risk disclosure, client agreements).
Recruitment and fit & proper assessments for directors.
Liaison with the National Bank of Georgia throughout the process.
Frequently Asked Questions (FAQ)
1. How long does it take to obtain a brokerage license in Georgia?
The NBG typically processes applications within 30 days, provided all documents are correctly submitted.
2. What is the minimum capital required?
150,000 GEL for a limited license and 500,000 GEL for a full license.
3. Can foreign shareholders own 100% of a Georgian brokerage?
Yes, foreign ownership is permitted, provided full disclosure of beneficial ownership is submitted.
4. Are trading platforms required to be locally hosted?
Platform providers must be approved by the NBG, and compliance with technical standards is mandatory.
5. Does Georgia allow crypto derivatives trading?
Yes, but strict leverage restrictions apply (1:2 for crypto CFDs).
Conclusion
Georgia offers a clear, efficient, and business-friendly environment for establishing a regulated FX and securities brokerage. With a supportive regulator, competitive costs, and strong investor protections, it is an attractive jurisdiction for international brokerage firms.
Zitadelle AG is your trusted partner for navigating the licensing process in Georgia, ensuring compliance and smooth market entry.
Contact Zitadelle AG today to start your brokerage licensing journey in Georgia.
