Obtaining an EMI license in Europe is an important step for companies that want to provide financial services and work with electronic money. This license opens up a wide range of business opportunities, including managing electronic payments, issuing prepaid cards and much more. However, the process of obtaining an EMI license may seem complicated.
What is an EMI license and why is it needed?
EMI (Electronic Money Institution) is a license that allows companies to issue electronic money and provide related services. It is regulated by EU directives and is mandatory for anyone who wants to conduct such a business in European countries. The EMI license allows you to:
- To carry out payment transactions.
- Store customer funds in separate accounts.
- Issue electronic wallets and cards.
- Provide international transfers.
The advantages of such a license are obvious: This is an opportunity to work in a stable legal environment, attract clients from different countries, and ensure a high level of trust from partners and users.
The main stages of obtaining an EMI license
The process of obtaining a license requires careful preparation and compliance with many requirements. The main stages:
- Select the country of registration. There are several popular jurisdictions in Europe for issuing an EMI license: Lithuania, Malta, Estonia, Cyprus. Each of them has its own characteristics related to taxes, the regulatory environment and the cost of obtaining a license. For example, Lithuania is considered one of the most accessible and popular due to the accelerated registration process and the support of fintech companies.
- Preparation of documents. You will need to collect a large package of documents, including a business plan, risk management policy, financial model, and information about the owners and management of the company. It is especially important to make sure that all documents comply with the requirements of the chosen jurisdiction.
- Company registration. Before submitting an application, it is necessary to register a legal entity in the selected country. This will be the basis for obtaining a license.
- Submitting an application to the regulatory authority. The application is submitted to the country’s financial regulator. At this stage, the state fee is also paid.
- Passing the inspection and audit. The regulator carefully checks the company: its financial stability, transparency of the structure, compliance with anti-money laundering (AML) requirements. This process usually takes from 3 to 12 months.
- Getting a license and getting started. After successful verification, the company receives a license and can start providing services.
The process of obtaining a license requires not only in-depth knowledge of the law, but also an understanding of financial markets. Therefore, many companies turn to professionals for help, such as https://prifinance.com/en/payments/ to avoid mistakes and speed up the process. Experts help with the choice of jurisdiction, preparation of documents and interaction with regulators.
What are the requirements for the company?
To obtain an EMI license, a company must meet several key requirements:
- Capital. The minimum authorized capital of the company ranges from 350,000 to 1,000,000 euros, depending on the country.
- The team and the office. The company must have a team of specialists with experience in the financial sector. It is also necessary to open a physical office in the selected jurisdiction.
- Compliance with AML and KYC rules. It is important to develop effective anti-money laundering and customer identification procedures.
- Business plan and transparency. Regulators require a detailed business plan, including financial forecasts, and a fully transparent company structure.
Obtaining an EMI license in Europe is a difficult but quite feasible process. With proper preparation and attention to detail, you will be able to successfully complete all the stages and launch your company in accordance with European standards. This opens up wide opportunities for businesses and guarantees high competitiveness in the financial services market.