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ELECTRONIC MONEY INSTITUTION (EMI) LICENSE

EMI.PSP.SPI.

Get Electronic Money Licenses in European Countries

EMI license is an authorization to issue electronic currency for legal entities and individuals. When registering this type of license, a company receives the rights that classic payment companies use. Such an organization will be able to make offline/online payments and provide sub-accounts within a bank account, which provides the ability to create electronic wallets and provide individual IBANs.

Users can use the exchange of cash for electronic money issued by the company and use financial storage services. In addition, users will be able to pay for services or goods with electronic currency or perform various payment operations.

It is possible to register an EMI license almost all over the world, but the most popular is the EU license. They allow you to cover a large market, using the reliable and stable reputation of the European economy, and also provide access to SEPA translations.

The most popular countries in jurisdictions where this license can be registered are Lithuania, the United Kingdom, Malta, the Czech Republic, Cyprus, etc.

What gives an EMI license

SPI(Small-Scale Payment Institution)
  • Payment system management
  • Provision and implementation of payment services/money remittance
  • Carrying out activities with the provision of loans (using equity capital only)

The maximum turnover for 12 months on sub-accounts of users of the payment system cannot exceed 36 million EUR (based on 3 million EUR per month)

The payment institution has the right to provide services only in the territory of the country of registration. However, it does not prohibit having Clients from any country in the world.

!
Share capital: NO REQUIREMENT
PSP(Payment Service Provider)
  • Payment system management
  • Provision and implementation of payment services/money remittance
  • Carrying out activities with the provision of loans (using equity capital only)

The maximum turnover on sub-accounts of users of the payment system is unlimited

The payment institution has the right to provide services through out the EEA and have the users from any country in the world.

!
Share capital: 125.000 EUR
EMI(Electronic Money Institution)
  • Emission of electronic money
  • Services allowing the use of issued electronic money as a payment instrument
  • Exchange of emitted electronic money for fiat currency
  • Payment system management
  • Provision and implementation of payment services / money remittance
  • Carrying out activities with the provision of loans (using equity capital only)
Share capital: 350.000 EUR

What is Electronic Money Institution

EMI (Electronic Money Institution) is a legal company or a person who has the right to create electronic money, quasi-money, and in addition, can make payments on these assets.

Many people confuse an EMI with a classic bank, but this is a misnomer. The main difference between EMIs and standard banks is that an Electronic Money Institution has no legal right to hold deposits or issue loans. They were originally invented to pay and service businesses and individuals.

The limitation on sub-account transactions, in most cases, depends on the level of customer identification and differs depending on the specifics of the jurisdiction. Statutory provisions that govern this issue are constantly changing around the world, so it is recommended to conduct separate clarification studies for each new project.

Full list of Capabilities

EMI
  • Emission of electronic money
  • Possibility of using e-money by users as a unit of account for payment for services/goods of third parties
  • Exchange of emitted electronic money for fiat currency
EMI
PSP
SPI
  • Opening sub-accounts for Clients inside a corporate account of a Payment Service Provider
  • Services allowing users placing cash on a current account
  • Services allowing users to withdraw cash from a current account
  • Execution of payment transactions and money transfers/money remittance (including between payment accounts of users of a payment institution)
  • Account information services
  • Provision of loans. The loan cannot be provided from funds that have been entrusted to the payment institution for the payment transaction and the equity capital must be equivalent to the total amount of the loan provided. The loan must be repaid by the borrower within one calendar year. Issuance and/or purchase of payment instruments
  • Assign existing payment bank cards to Client sub-accounts and issue cards of major vendors (VISA, MC)

The difference between EMI and PI

PI (Payment Institution) license allows companies to provide financial and intermediary services not only for Internet business. For Example opening and closing of accounts, provision of account replenishment services by other payment systems; withdrawal of funds from individual and personal accounts; various payment operations between customer accounts; money transfers; creation of own and involvement of third-party payment instruments, etc.

The main difference between EMI and PI is that EMI has the right to issue electronic currency and store client money for a longer period, while PI does not have the right to issue electronic funds. EMI can produce payment cards, e-wallets, and other payment instruments that provide for the storage of client funds.

The list of services of the electronic payment system corresponds to the services offered by traditional banks. In addition, EMI allows the use of innovative developments and the speed of transactions, which implies a reduction in payment fees and leads to an increase in customer loyalty.

Requirments
Advantages
In many European Union countries, the regulator conducts a thorough check on all company founders who apply for an EMI license.
Requirements may vary from jurisdiction to jurisdiction, but as a general rule, a company must:
Have at least 2 executives residing in the EU
Prove relevant education and professional experience of employees in the financial sector
Contribute a minimum share capital ( usually from €350k)
All managerial positions must have an impeccable reputation and a clean criminal record
Open a local office
Rules and regulations are set by different jurisdictions, but there are necessary and generally accepted PSD2 guidelines:
The company must have the appropriate software
Implementation of procedures to monitor different risks
Implementation of AML policies
Transparent and secure customer identification procedures
Existence of technology bases and separate client accounts
Mandatory accounting records
Ability to obtain SWIFT
Institution clients receive IBAN accounts
Ability to open accounts remotely
Issuance of Visa or MasterCard payment card for clients
The company can transfer payments with global banks in different currencies
In-house AML department
The company can make its own payment decisions and open accounts. In addition, correspondent accounts all over the world.
Providing services for cash deposit or withdrawal and all operations necessary for payment account operation.
Requirments
Opportunities
In many European Union countries, the regulator conducts a thorough check on all company founders who apply for an EMI license.
Requirements may vary from jurisdiction to jurisdiction, but as a general rule, a company must:
Have at least 2 executives residing in the EU
Prove relevant education and professional experience of employees in the financial sector
Contribute a minimum share capital ( usually from €350k)
All managerial positions must have an impeccable reputation and a clean criminal record
Open a local office
Rules and regulations are set by different jurisdictions, but there are necessary and generally accepted PSD2 guidelines:
The company must have the appropriate software
Implementation of procedures to monitor different risks
Implementation of AML policies
Transparent and secure customer identification procedures
Existence of technology bases and separate client accounts
Mandatory accounting records
Ability to obtain SWIFT
Institution clients receive IBAN accounts
Ability to open accounts remotely
Issuance of Visa or MasterCard payment card for clients
The company can transfer payments with global banks in different currencies
In-house AML department
The company can make its own payment decisions and open accounts. In addition, correspondent accounts all over the world.
Providing services for cash deposit or withdrawal and all operations necessary for payment account operation.

EMI/PSP license holder's distribution, 2021

EE
Estonia
Number of PSP license,based on EBA
10
Number of EMI license,based on EBA
1

Business climate

Currently, the Czech Republic and Lithuania are the most attractive jurisdictions in the EU for establishing a company in order to obtain an electronic money institution or payment service provider license, as evidenced by the map above. By 2021, 40 PSP / EMI and 104 small-scale payment institutions are registered in the Czech Republic, while in Lithuania there are 112 full-scale payment systems. The growth in Lithuania has almost doubled since 2018 when the number of full-scale PSP / EMI was 63.

Interest in the Czech Republic and Lithuania jurisdictions caused by the relatively low cost of labor in the EU, a convenient regulatory system and transparent tax system. The speed of processing the application by the regulator is also significant. While in Germany, Malta and other EU jurisdictions, the process can take from 6 to 12 months, in the Czech It should also be noted that in Lithuania an application for a license could be submitted without setting up a company.

Since the requirements are almost the same in all EEA countries for EMI/PSP license acquisition (except small formalities), the steps needed to be undertaken also does not vary significantly.

Sequence of the steps

1
1
step
Company formation in the jurisdiction of choice
2
2
step
Address of registration and virtual box service for one year
3
3
step
Shareholders and Management Board Members/Directors due diligence
4
4
step
Assistance with preparation of application documents
5
5
step
Completing a License Application
6
6
step
Submitting the application to the Financial Authority and following it up until finalized

Extra assistance

Search and selection of qualified personnel
Search for office premises
Connection to card acquiring
Connection to Single Euro Payments Area (SEPA)
SWIFT Registration

We are working directly with the following regulators

estonia flag
FSA
Financial Supervisory Authority of Estonia
estonia flag
FIU
Estonian Financial Intelligence Unit
estonia flag
CBN
Czech National Bank
estonia flag
Bank of Lithuania
Lithuanian Central Bank
estonia flag
CBI
Central Bank of Ireland
estonia flag
BaFin
Federal Financial Supervisory Authority (FFSA) of Germany
estonia flag
FCIS
Financial Crime Investigation Service
estonia flag
GFSC
Gibraltar Financial Services Commission
Gofaizen & Sherle will provide professional assistance in jurisdiction choice and with PSP or EMI license acquisition, including preparation required documents for application, company formation, search for personnel, support with Bank account opening, consulting on IT issues and full compliance with applicable regulations. Upon licensing process completion Gofaizen & Sherle will provide corresponding maintenance (accounting and reporting and legal support of current activities).

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Financial Institution

FinTech lawyers

Laura Puidokienė
Laura Puidokienė
Position:
Associate, Lawyer
Vladimiras Kokorevas
Vladimiras Kokorevas
Position:
Senior Associate, Lawyer

TESTIMONIALS

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Gofaizen & Sherle has successfully implemented all the tasks related to the settlement of legal part (company formation and VASP license application) of our exchange whitebit.com.
Vladimir Nosov
CEO
Whitebit
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quotes
Payeer OÜ is grateful to Gofaizen & Sherle team for their professional personalized approach. We were presented with quick results and efficient replies. For us it was easy and pleasantly to work with the specialists of G&S and we hope for fruitful continuous cooperation.
Liubov S
CEO
Payeer OÜ
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quotes
Working with Gofaizen & Sherle team was a real pleasure. Their high level of professionalism and expertise made our journey through the process of establishing and licensing of our company really easy and time efficient. G&S is a trusted partner for us in any topics related to FinTech business.
Edward Kost
CEO
VULTURE OÜ
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quotes
We are very pleased with the proficiency, expertise and efficiency that the team of Gofaizen & Sherle showed while delivering our project. Their commitment and approach determine the high quality of services they provide. The competence of the legal advisors in the team of G&S made them a trusted long term partner for us.
Bar El
CEO
UAB GetCoins
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quotes
Gofaizen & Sherle has proven itself as a reliable business partner and highly qualified legal advisor. Our cooperation with Gofaizen & Sherle on many projects has been professional and effective. Extensive expertise, meeting deadlines, being responsive and attentive to every issue distinguish the Gofaizen & Sherle team from other firms. We look forward to working with Gofaizen & Sherle again in the future.
Nikita Tepikin
Managing Partner
Legal Kornet
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quotes
The Manimama OU team would like to thank Gofaizen & Sherle for their professionalism and the quality of the work. Gofaizen & Sherle team has provided us with clear and practical legal advice on various issues including creating of the VASPs in Baltic states and other legal advices. Gofaizen & Sherle's knowledge and expertise base are very deep and they understand the complexities and nuances of many really difficult cases. We strongly recommend their services
Ganna Voievodina
CEO
Manimama OÜ
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quotes
At Pilsenga since the very beginning we counted with Gofaizen & Sherle to build our financial institution in 21 days, we started our operations in record time thanks to them, it’s been pleasant to work with them through the rush of building a Financial Institution in record time. They for real understand compliance and crypto businesses!
Victor Romero
CEO
UAB Pilsenga
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quotes
Excellent service! The communication is fast and friendly, we are very satisfied with received comprehensive package of services such as legal consulting, full turnkey crypto company formation in Lithuania, assistance in bank account opening for ’’high risk” business, human resources acquisition etc. Highly recommended!
Roman Potemkin
Founder & CEO
TRASTRA
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quotes
Gofaizen & Sherle are true professionals, everything related local incorporation, business management and financial licenses I know I can trust getting always 100% service, knowledge and value. Good prices and highly valuable service this what makes them as a solid partner.
Ben Richter
CEO
Ventures X
logo
quotes
Great service and support, and very efficient communication with Maksim and the team. Our company has been successfully created with all the necessary licenses. Highly recommended.
Thomas Zelias
CEO
UAB TalentChain
logo
quotes
Gofaizen & Sherle has successfully implemented all the tasks related to the settlement of legal part (company formation and VASP license application) of our exchange whitebit.com.
Vladimir Nosov
CEO
Whitebit
logo
quotes
Payeer OÜ is grateful to Gofaizen & Sherle team for their professional personalized approach. We were presented with quick results and efficient replies. For us it was easy and pleasantly to work with the specialists of G&S and we hope for fruitful continuous cooperation.
Liubov S
CEO
Payeer OÜ
logo
quotes
Working with Gofaizen & Sherle team was a real pleasure. Their high level of professionalism and expertise made our journey through the process of establishing and licensing of our company really easy and time efficient. G&S is a trusted partner for us in any topics related to FinTech business.
Edward Kost
CEO
VULTURE OÜ
logo
quotes
We are very pleased with the proficiency, expertise and efficiency that the team of Gofaizen & Sherle showed while delivering our project. Their commitment and approach determine the high quality of services they provide. The competence of the legal advisors in the team of G&S made them a trusted long term partner for us.
Bar El
CEO
UAB GetCoins
logo
quotes
Gofaizen & Sherle has proven itself as a reliable business partner and highly qualified legal advisor. Our cooperation with Gofaizen & Sherle on many projects has been professional and effective. Extensive expertise, meeting deadlines, being responsive and attentive to every issue distinguish the Gofaizen & Sherle team from other firms. We look forward to working with Gofaizen & Sherle again in the future.
Nikita Tepikin
Managing Partner
Legal Kornet
logo
quotes
The Manimama OU team would like to thank Gofaizen & Sherle for their professionalism and the quality of the work. Gofaizen & Sherle team has provided us with clear and practical legal advice on various issues including creating of the VASPs in Baltic states and other legal advices. Gofaizen & Sherle's knowledge and expertise base are very deep and they understand the complexities and nuances of many really difficult cases. We strongly recommend their services
Ganna Voievodina
CEO
Manimama OÜ
logo
quotes
At Pilsenga since the very beginning we counted with Gofaizen & Sherle to build our financial institution in 21 days, we started our operations in record time thanks to them, it’s been pleasant to work with them through the rush of building a Financial Institution in record time. They for real understand compliance and crypto businesses!
Victor Romero
CEO
UAB Pilsenga
logo
quotes
Excellent service! The communication is fast and friendly, we are very satisfied with received comprehensive package of services such as legal consulting, full turnkey crypto company formation in Lithuania, assistance in bank account opening for ’’high risk” business, human resources acquisition etc. Highly recommended!
Roman Potemkin
Founder & CEO
TRASTRA
logo
quotes
Gofaizen & Sherle are true professionals, everything related local incorporation, business management and financial licenses I know I can trust getting always 100% service, knowledge and value. Good prices and highly valuable service this what makes them as a solid partner.
Ben Richter
CEO
Ventures X
logo
quotes
Great service and support, and very efficient communication with Maksim and the team. Our company has been successfully created with all the necessary licenses. Highly recommended.
Thomas Zelias
CEO
UAB TalentChain
logo
quotes
Gofaizen & Sherle has successfully implemented all the tasks related to the settlement of legal part (company formation and VASP license application) of our exchange whitebit.com.
Vladimir Nosov
CEO
Whitebit
logo
quotes
Payeer OÜ is grateful to Gofaizen & Sherle team for their professional personalized approach. We were presented with quick results and efficient replies. For us it was easy and pleasantly to work with the specialists of G&S and we hope for fruitful continuous cooperation.
Liubov S
CEO
Payeer OÜ
logo
quotes
Working with Gofaizen & Sherle team was a real pleasure. Their high level of professionalism and expertise made our journey through the process of establishing and licensing of our company really easy and time efficient. G&S is a trusted partner for us in any topics related to FinTech business.
Edward Kost
CEO
VULTURE OÜ
logo
quotes
We are very pleased with the proficiency, expertise and efficiency that the team of Gofaizen & Sherle showed while delivering our project. Their commitment and approach determine the high quality of services they provide. The competence of the legal advisors in the team of G&S made them a trusted long term partner for us.
Bar El
CEO
UAB GetCoins
logo
quotes
Gofaizen & Sherle has proven itself as a reliable business partner and highly qualified legal advisor. Our cooperation with Gofaizen & Sherle on many projects has been professional and effective. Extensive expertise, meeting deadlines, being responsive and attentive to every issue distinguish the Gofaizen & Sherle team from other firms. We look forward to working with Gofaizen & Sherle again in the future.
Nikita Tepikin
Managing Partner
Legal Kornet
logo
quotes
The Manimama OU team would like to thank Gofaizen & Sherle for their professionalism and the quality of the work. Gofaizen & Sherle team has provided us with clear and practical legal advice on various issues including creating of the VASPs in Baltic states and other legal advices. Gofaizen & Sherle's knowledge and expertise base are very deep and they understand the complexities and nuances of many really difficult cases. We strongly recommend their services
Ganna Voievodina
CEO
Manimama OÜ
logo
quotes
At Pilsenga since the very beginning we counted with Gofaizen & Sherle to build our financial institution in 21 days, we started our operations in record time thanks to them, it’s been pleasant to work with them through the rush of building a Financial Institution in record time. They for real understand compliance and crypto businesses!
Victor Romero
CEO
UAB Pilsenga
logo
quotes
Excellent service! The communication is fast and friendly, we are very satisfied with received comprehensive package of services such as legal consulting, full turnkey crypto company formation in Lithuania, assistance in bank account opening for ’’high risk” business, human resources acquisition etc. Highly recommended!
Roman Potemkin
Founder & CEO
TRASTRA
logo
quotes
Gofaizen & Sherle are true professionals, everything related local incorporation, business management and financial licenses I know I can trust getting always 100% service, knowledge and value. Good prices and highly valuable service this what makes them as a solid partner.
Ben Richter
CEO
Ventures X
logo
quotes
Great service and support, and very efficient communication with Maksim and the team. Our company has been successfully created with all the necessary licenses. Highly recommended.
Thomas Zelias
CEO
UAB TalentChain

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