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Electronic Money Institution (EMI) & Payment Institution Licenses

EMI.PSP.SPI.

Set up anE-Money or Payment Institution

A Payment Institution license is the optimal solution for FinTech companies, as well as financial service providers and startups for making payments and money transfers.

The development of the digital assets and virtual values market has attracted the interest of regulatory authorities in the European Union and EEA. Thus, a legal framework has been formed in many EU states that allow the growth of digital assets oriented projects.

Gofaizen & Sherle assists in the choice of European jurisdiction, company registration, prepares the necessary package of regulator until the complete implementation and finalization.

Significant experience in working with financial projects allows us to offer our Clients a wide range of countries for registration of payment systems. From European countries, we offer to obtain a payment license in Estonia, Lithuania, Czech Republic, Germany and Malta.

Our Practice areas include

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

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)

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
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FIU
Estonian Financial Intelligence Unit
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CBN
Czech National Bank
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Bank of Lithuania
Lithuanian Central Bank
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CBI
Central Bank of Ireland
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BaFin
Federal Financial Supervisory Authority (FFSA) of Germany
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FCIS
Financial Crime Investigation Service
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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).

Explore other financial licenses in Europe

  • Allows operate with 500 MEUR capital
  • Ability to attract deposits from retail investors
  • 2-3 month to set up the infrastructure and acquire a license with low costs
Alternative Investment Funds (AIF’s)
  • Virtual currency for exchange and storage
  • Virtual currency
  • ICO/IEO support
Virtual Assets Service Provider License
  • Investment consulting
  • Issuance of loans (B2B)
  • Wholesale of precious metals
  • Foreign currency exchange
Financial Institution

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Contact
Lithuania: J. Savickio g. 4-7, Vilnius
Estonia: Tartu mnt 53, 10115 Tallinn
License for operating activity: FIU000407
Gofaizen & Sherle UAB
Gofaizen & Sherle OÜ
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