Kaukapital is a leading financial advisor same is providing it’s focused advisory services to individuals, companies, and small medium entrepreneurs. They have more than 10 years of experience in finance domain. They provide their services in a company set up, bank account opening, investment opportunity, and extend help in immigration. They also help the company in setting up such Banks, Forex Brokerage firm, etc. They also well knew for offering their value addition services to a financial company such as banks and other NBFC.

Kaukapital also offers de-localization, so they can help in re-localize of any company which includes the manufacturing setup. They also extend their services to off-shore banks in opening the branch in Georgia. Their other value addition services include immigration (visa and residency) not only limited to Georgia territory but also covers the Estonia and UAE. They other services include investment opportunity in different domains such as agro, real estate, tourism, energy etc. They also offer their back end services which include accounting and taxation matters to the SME & middle segment companies.

They ensure their customers are getting the best guidance from the professional and smartest people in the industry. For businesses and individuals needs, you can rely on Kaukapital to deliver.


Need to setup a bank

Georgia’s economy is characterized with dynamic growth tendency. For past 5 years, Georgian economy annually grew by around 4%. According to recent projections and announcement of World Bank, its GDP will grow by 5.2% in 2017, by 5.3% in 2018. Personal income is expected to grow in Georgia, jobs will be easier to find and home prices are expected to go up. It should be highlighted that Georgia has one of the highest forecasted rates of economic growth within the region. Georgia attracted significant amount of Foreign Direct Investments (FDI) in the past few years. FDI inflow amounted to USD 1.75 billion in 2014 and USD 1.56 billion in 2015. Tendency of growth is continuing and according to preliminary data, FDI inflow for 3 quarters of 2016 amounts to USD 1.29 billion. This means 40% increase compared with the average indicator of the same period during past 5 years.


Bank License

The banking sector in Georgia assumes immense importance as the same (i.e. Banking) share of all financial assets of the economy. The banking sector health and condition therefore assume immense importance to the smooth functioning and continued growth of the country. The recent trends in this industry have not been encouraging, with slowing deposit and advances creation and a growth in restructured and non-performing assets.

The banking license is issued by the National Bank of Georgia (NBG). In order to obtain the license for banking activities Joint Stock Company (JSC) shall submit to the following documents to the NBG:

  • An application form; and
  • Supporting documents.

The banking license is issued for unlimited time period.


Activities allowed on Bank License

The license granted by the National Bank of Georgia (NBG) allows commercial banks to engage in the following banking operations inside the country as well as overseas:

  • Receiving interest-bearing and interest-free deposits (of fixed period, upon demand and other) and other returnable means of payment;
  • Issuing consumer loans, mortgage loans, unsecured and other loans, engaging in factoring operations with and without the right of recourse, trade finance including the granting of guaranties, letters of credit, acceptance finance, and forfeiting.
  • Upon its own or clients’ funds, buying and selling of monetary instruments, such as promissory notes, checks, certificates of deposit, as well as securities, futures, options and swaps upon debt instruments or interest rates, currencies or interest instruments, debt documents, foreign currencies, precious metals and precious stones.
  • Cash and non-cash settlement operations and the provision of collection services.
  • Issuing money orders and managing money circulation (including tax cards, checks and bills of exchange).
  • Securities brokerage services;
  • Trust operations on behalf of clients and funds management;
  • Safekeeping and registration of valuables including securities;
  • Credit-information services;
  • Depositary central activities.

Documents Needed for the Bank License

Joint Stock Company (JSC) is a legal entity the charter capital of which is divided into shares of equal nominal value. The liability of a JSC is limited to its entire assets. Shareholders are not liable for obligations of the JSC.

In order to register a JSC, the founder(s) shall submit to the National Agency of Public Registry of the Ministry of Justice of Georgia the following documents:

  • Charter (Articles of Association) of JSC;
  • An application form as approved by the Ministry of Finance of Georgia; and
  • Supplementary documents.


Registration requirements for establishing a Branch Office of Foreign Bank

A branch office of a foreign bank is a sub-unit of a business entity. Same is not considered a separate legal entity. Any foreign bank may establish a branch office by submitting respective documentation to the National Agency of Public Registry. A branch of a Commercial Bank is a unit of a bank which may run all or some banking activities. The establishment of branches or bank representative offices shall be subject to conditions and required the approval from the National Bank of Georgia (NBG).


Bank Licence- Cost and Time Frame

The applicant (i.e. Corporate) is required to deposit a minimum of 12 million gel (5.2M USD), fully paid in cash. Same is also required to be registered under a JSC (i.e. Joint Stock Company). Same can expect the bank license in a minimum timeframe of 3 months.