Bank Account In Georgia
Georgia, a dynamic hub bridging Europe and Asia, offers a welcoming environment for foreign entrepreneurs looking to establish or expand their businesses. A critical step for any businessman is opening a bank account to facilitate smooth financial operations. For EU citizens, including Germans, Georgia’s banking system is accessible, efficient, and tailored to support international business needs. This article provides a comprehensive guide to opening a bank account in Georgia as a foreign businessman, outlining the process, benefits, and practical tips.
Georgia’s banking sector is renowned for its stability, efficiency, and foreigner-friendly policies, making it an attractive choice for entrepreneurs. Key advantages include:
Ease of Access: Non-residents, including EU citizens, can open personal and corporate bank accounts with minimal restrictions, often without needing a local address.
Low Costs: Account opening fees are minimal (e.g., 10–20 GEL, or €3–€6), and maintenance fees are low, starting at 1.5 GEL (€0.50) per month.
Multi-Currency Accounts: Accounts can hold Georgian Lari (GEL), USD, EUR, and GBP, facilitating international transactions without high conversion fees.
Business-Friendly Environment: Ranked 7th globally for ease of doing business (World Bank, 2019), Georgia supports entrepreneurs with low taxes (15% corporate tax, 0% on reinvested profits) and streamlined regulations.
Fast Transactions: Georgian banks use the IBAN system, ensuring swift international transfers, often faster than in many EU countries.
Privacy: Until 2023, Georgia did not participate in the Common Reporting Standard (CRS), offering enhanced privacy. Even post-CRS, compliance for EU citizens is straightforward due to double taxation treaties with countries like Germany.
These features make Georgia an ideal banking hub for foreign businessmen, particularly in sectors like IT, trade, and tourism.
Foreign entrepreneurs can choose from several account types based on their business needs:
Corporate Account: Required for Georgian-registered entities like LLCs or Virtual Zone companies. Essential for VAT-registered businesses or those needing to connect to the Georgian Revenue Service’s portal. Supports card payments and employee payroll.
Personal Account for Individual Entrepreneurs: Suitable for freelancers or sole proprietors under Small Business Status (1% tax on turnover up to 500,000 GEL). Income can be received in any personal account, but a separate account is recommended for clarity.
Online Business Accounts: Platforms like Wise or Payoneer allow foreign businessmen to open accounts linked to a Georgian business without visiting a bank, ideal for those not requiring local operations or VAT registration.
Opening a bank account in Georgia is straightforward for EU citizens, with options for both in-person and remote setup. Here’s how:
Choose a Bank: Leading banks for foreigners include:
Bank of Georgia: The largest bank, offering multi-currency accounts, internet banking, and premium Solo services for high-end clients.
TBC Bank: Known for its fast account opening (as little as 20 minutes) and “Payment from Abroad” system, ideal for international transactions.
ProCredit Bank: Focused on SMEs, with tailored business packages.
Basisbank: Offers Visa and Mastercard options, accessible for non-residents with a Georgian residence card.
Prepare Documents: Requirements vary by bank but typically include:
Valid passport or EU ID card
Georgian phone number (can be purchased locally for €1–€2)
Proof of address (not always required; a hotel or Airbnb address may suffice)
Proof of income or business activity (e.g., contracts, foreign bank statements, or company registration documents)
For corporate accounts: Georgian company registration certificate and tax ID
Visit a Branch or Appoint a Proxy: Most banks require an in-person visit to a branch in Tbilisi, Batumi, or Kutaisi, which takes 20–30 minutes. Alternatively, remote opening is possible via a notarized power of attorney (POA) sent to a local representative in Georgia. The POA must be apostilled or notarized, depending on the country, and translated into Georgian.
Complete KYC (Know Your Customer): Banks conduct due diligence to verify the legality of your income and business activities. Provide clear documentation to avoid delays or rejections.
Receive Account Details and Cards: Accounts are typically activated on the same day, with debit cards issued within 2–3 days. Online banking apps (available in English) allow instant access.
For businessmen unable to travel, remote opening is a viable option:
Appoint a Representative: Engage a trusted lawyer or consultant in Georgia to act on your behalf using a notarized POA.
Document Submission: Send notarized copies of your passport and other required documents via courier (e.g., DHL or FedEx). Translation and notarization in Georgia take 1–2 days.
Bank Selection: Work with your representative to choose a bank and submit the application. The process takes 2–4 weeks, depending on the bank’s review.
Work with Professionals: Engage a local consultant to handle document preparation, translation, and bank communication. This reduces the risk of rejection and speeds up the process.
Currency Strategy: Use multi-currency accounts to minimize international wiring fees (higher for GEL than USD/EUR). Consider holding major currencies for global transactions.
English Support: Major banks like Bank of Georgia and TBC offer English-speaking staff and online platforms, making communication seamless for Germans.
Tax Compliance: Ensure your account aligns with your business’s tax obligations, especially if VAT-registered. Consult an accountant to maintain compliance with the Georgian Revenue Service.
Georgia’s banking system is a gateway for foreign businessmen to thrive in a dynamic, low-tax environment. With its accessible account opening process, competitive fees, and robust financial infrastructure, Georgia is an ideal base for EU entrepreneurs, particularly from Germany. Whether you’re launching an IT startup, trading company, or freelancing venture, opening a bank account in Georgia is a strategic step toward success. Contact our agency for tailored support, from document preparation to bank selection, to ensure a seamless setup and a strong start for your business in this vibrant Caucasian hub.