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Why is this so important? Firstly, an EU financial license provides official recognition by European regulators, which is critical for building trust and reputation. Secondly, Licensing opens access to the single European market (passporting), allowing services to be offered in most EU countries without the need for re-licensing. Thirdly, compliance with EU financial services regulatory standards — from MiCA to FATF and AML/CFT — becomes a mandatory condition for attracting investors and partners, as well as for protecting the business from sanctions and reputational risks.

If you want to understand how to go through this process without mistakes, gain a deep understanding of all the nuances, and avoid common pitfalls, I recommend reading the article to the end. Here I share not theory but practice, tested on dozens of COREDO cases in the EU, Asia, and the CIS.

EU Financial Licenses in 2025

In 2025 the European financial market becomes even more segmented and technology-driven. For a successful registration of an EU financial company it is important to choose the correct type of license that matches the business model and scaling plans.

EU Electronic Money and Payment Services License

The EU electronic money license (EMI) and the payment institution license (PI) are the foundation for fintech companies, marketplaces, international platforms and startups working with payments, e-wallets, cards and transfers. In 2025 the most popular jurisdiction for such licenses remains Lithuania: here the minimum capital for an EMI starts from €350 000, and for a PI from €125 000. The Lithuanian electronic money license allows you to operate across Europe thanks to passporting, and to integrate with SEPA and major banks.

EU Forex Broker License

A license for an EU forex broker (Investment Firm License) is a mandatory requirement for companies providing services in currency trading, derivatives and securities. In Germany the minimum capital for such a license reaches $20 million, and the requirements for reporting transparency and internal control are extremely strict. The COREDO team implemented a licensing project for a brokerage platform in the Czech Republic: the key success factor was the integration of automated internal audit systems and preparation for multi-level BaFin inspections.

Crypto Licensing: MiCA and CASP

In 2025 new rules MiCA (Markets in Crypto-Assets Regulation) and CASP (Crypto-Asset Service Provider) come into force. The MiCA EU license and the CASP EU license become the standard for crypto exchanges, stablecoin issuers, crypto wallets, crypto brokers and other participants in the digital assets market. These licenses cover a wide range of services: from crypto trading and custody to staking, lending, derivatives and even crypto insurance.

Key requirements for an EU financial license

Success in licensing depends on thorough preparation and a deep understanding of regulator requirements. Over the past years the COREDO team has developed a unique set of best practices that help minimize risks and accelerate the process of obtaining a license.

Minimum capital and stability

Different types of licenses have their own capital requirements for an EU license.

Corporate structure and director requirements

EU regulators require that the board of directors include at least one EU resident with proven qualifications and experience in financial services. For an EU CASP license special requirements are imposed on directors:

KYC and AML/CFT policies

Compliance with AML/CFT policies for EU financial licenses and the implementation of effective KYC requirements for an EU license are key factors for successful licensing. Regulators require not only the existence of formal procedures but also the real functioning of client identification systems, transaction monitoring and employee training.

Security standards and data protection

Financial reporting and audit

Reporting for EU financial licenses includes regular reports to the regulator, a mandatory external audit, disclosure of information about risks and compliance with ESG criteria.

Step-by-step procedure for obtaining an EU license

The licensing process in the EU is strictly formalized, but with proper preparation it becomes manageable and predictable.

Preparation of documents and business plan

First stage: registration of an EU financial company and preparation of a complete set of documents: incorporation documents, a business plan with financial calculations, KYC questionnaires, proof of source of funds.

Interaction with the regulator and review

The next step is submitting the application and interacting with the regulator. This usually includes a preliminary review, interviews with key persons, and sometimes taking exams in compliance and risk management.

License issuance and start of operations

After successfully passing the review, the company receives the license and can begin operations.

License for crypto companies under MiCA and CASP

In 2025 licensing of crypto companies becomes a separate direction with unique requirements and challenges.

Capital and director requirements for CASPs

For MiCA and CASP the minimum capital depends on the type of services: for crypto exchanges: from €125 000, for custodial services, from €150 000, for stablecoin issuers, from €350 000. The director must be an EU resident, have experience in digital assets and an impeccable business reputation.

Physical office and staff

AML/CFT and KYC for crypto companies

Implementing strict AML/CFT policies for EU financial licenses and KYC procedures is a key element of licensing crypto companies. Regulators require integration with international databases, automated transaction monitoring and regular staff training.

Reporting and audit for crypto companies

License requirements in EU countries – comparison

Practical steps for entrepreneurs

Practical steps and recommendations for entrepreneurs are a tool that helps not only to shape a company’s growth strategy but also to increase business efficiency at every stage of development.

How to choose a reliable consulting partner

Obtaining a license in Europe: a task that requires not only legal expertise but also a deep understanding of the specifics of each jurisdiction.

How to minimize risks and avoid fines

financial services regulation in the EU is becoming increasingly strict. To minimize risks, it is important not only to comply with formal requirements but also to implement effective internal control mechanisms, compliance automation and regular employee training.

How can I get a license quickly and cheaply?

Key takeaways

financial license in the EU is not only a formal document but also a strategic asset that ensures legality, trust and access to European markets.

In this article I, Nikita Veremeev, CEO COREDO, share the systematic experience of our team: how to register an investment company in the EU, obtain an investment activity license, comply with AML requirements, and open an account with an international bank.

Investment company in the EU — what is it and why is it needed?

Registering an investment company in the EU opens access to the single European market, opportunities for passporting an investment license (passporting), as well as to the infrastructure of international banks and investment platforms.
COREDO clients, when entering the European market, gain not only prestige but also legal access to qualified investors, institutional partners, and secure funding channels.

Who can open an investment firm in Europe? EU legislation does not limit this process to residents only – registration of an investment company for non-residents and obtaining an investment license for non-EU residents are possible provided certain conditions are met.

How do I register an investment company in the EU?

For successful registration of an investment company in the EU, it is necessary to meet a number of key requirements that govern both the incorporation process itself and subsequent activities. One of the fundamental conditions is compliance with the established requirements for own capital, which guarantee the company’s financial stability and reliability.

Own capital: requirements

Confirmation of payment of the share capital: a mandatory step: funds must be deposited into a temporary account in a European bank, and the deposit statement is attached to the registration package.

Requirements for directors and shareholders
The director of an investment company can be either an EU resident or a non-resident, but some countries (for example, Germany or Ireland) require at least one director who is a resident.
A crucial stage is the verification of business reputation: directors, shareholders and beneficiaries must undergo KYC procedures, confirm the absence of criminal records, provide references and disclose the ownership structure.

Requirements for the business plan and reporting
The business plan is the key document for registering an investment company and for IES/DA reporting.
European regulators expect from the applicant not only a description of the strategy but also a financial model, forecasts for attracting investors, a description of risk management procedures, AML policies and IT infrastructure.
Reporting for an investment company in the EU (including IES/DA) must be transparent, comply with IFRS standards and be regularly submitted to supervisory authorities.

Requirements for AML audit and KYC procedures
AML requirements for investment companies in the EU are among the strictest in the world.

registration requirements in registries and taxation
For full operation of an investment company in the EU, registration in the EU commercial register, tax registration with the tax authority and, if necessary, registration with the social security fund are required.
Procedures can differ between countries: for example, registering an investment company in Germany requires notarization of the founding documents, while in Lithuania and Estonia online submission via government portals is allowed.

Legal address and office: requirements

Requirements for online submission and notarization of documents
Modern EU jurisdictions (Lithuania, Estonia, Portugal) allow registration of an investment company via online document submission through government systems.

How to obtain a license for investment activity in the EU

Types of licenses for investment activity in the EU
There are two main categories of licenses in the EU:

• AIFM (Alternative Investment Fund Manager), for management companies of alternative investment funds.
• UCITS (Undertakings for Collective Investment in Transferable Securities) – for collective investment schemes aimed at retail investors.

Also in demand are fund management licenses, licenses for non-residents of the EU, and specialized licenses for investment companies with a collective investment scheme (CIS).

Obtaining a license
the process of obtaining a license for investment activity in the EU includes several stages:

• Submitting an application with a complete set of documents, including a business plan, AML policy, proof of capital, and KYC information about beneficiaries.
• Review of the application by the regulator (usually 2–6 months).
• Obtaining the license and registration in the relevant registers.
• Passporting of the investment license: after obtaining a license in one EU country, a company can legally provide services in other EU countries without the need for re-licensing.

Registration of an investment company in EU countries

Registration of an investment company in Lithuania

Company registration in Estonia
Estonia – a leader in digitalization: registering an investment company in Estonia with online document submission is possible through e-Residency and the government portal.
Minimum capital – 125 000 euros, director requirements are flexible, and the absence of a resident among management is permitted.

How to register an investment firm in Portugal?

Registration of an investment company in Ireland
Ireland is a hub for large investment funds and management companies.
Registering an investment company in Ireland with a business plan requires detailed development of the financial model, the presence of a qualified director and a transparent shareholder structure.

company registration in Germany
In Germany the procedure is more formalized: notarization of the founding documents is required, the presence of at least one director-resident and confirmation of the business reputation of all participants.

Registration of an investment company for non-residents

Registration for non-residents
The registration of an investment company for non-residents of the EU requires special attention to matters such as a business visa, a bank recommendation letter, and proof of sources of capital.

Opening a corporate account for an investment company in the EU

What requirements do banks place on investment firms?
International banks impose strict requirements on investment companies:

• A detailed business plan and growth strategy.
• KYC documents for all beneficial owners and directors.
• Evidence of business reputation.
• Transparency of sources of funds.

How to choose an international bank?
selection criteria, not only reliability, but also experience working with investment companies, availability of infrastructure for collective investment schemes and support for online banking.

Registration of an investment fund in the EU

Types of EU investment funds
In the EU, various formats of investment funds are available: collective investment scheme (CIS), funds for qualified investors (QIF), UCITS, AIF.
Registering an investment company with a collective investment scheme (CIS) and for qualified investors enables attracting capital from both private and institutional investors.

Investment fund registration
The process includes submitting an application, review by the regulator, and obtaining a license for the investment fund’s management company.

Practical steps and recommendations

Step-by-step registration of an investment company in the EU

1. Preparation of the complete document package (business plan, proof of capital, KYC).
2. Submitting the application via an online system or notarization (depending on the country).
3. Obtaining an EU investment activity license (AIFM, UCITS).
4. Opening an account with an international bank.
5. Registration in the EU commercial register, tax authority, and EU social security fund.

Tips for reducing risks

• Prepare KYC/AML documentation thoroughly: it is the key to successful registration of an investment company, including AML audits and verification of capital sources.
• Use the experience of professional consultants: COREDO’s practice shows that support at all stages reduces the likelihood of refusal and accelerates the licensing process.
• Don’t skimp on preparing the business plan and reporting: transparency and structured documentation are the main arguments for the regulator.

Key takeaways

Requirements for registering an investment company in the EU by country

In 2026 the CySEC license becomes not just a formal tool for entering the European market, but a strategic asset for financial companies seeking international growth. According to the latest data from the European Commission, the volume of transactions in digital assets and investment services supervised by the Cypriot regulator has increased by more than 40% over the past three years.

Why does obtaining a Cypriot license raise questions?

What will you find in the article?

In this article I, Nikita Veremeev, share the practical experience of COREDO: from analyzing requirements and preparing documents to strategies for minimizing risks and accelerating the process. If you are looking not for theory but for working solutions – read to the end. Here you will find not only answers to key questions, but also tools for successfully launching a business with a CySEC license in 2026.

What is a CySEC license and why is it needed in 2026?

CySEC: the Cyprus Securities and Exchange Commission, a recognized regulator of the financial sector that, since 2004, ensures Cypriot companies comply with EU standards, and since 2012 has been a key player in the regulation of crypto-assets and fintech services.

For companies from the EU, Asia and the CIS, a Cypriot license for financial firms opens access to the European Union market thanks to CySEC’s EU passporting mechanism. This means that, having obtained a license in Cyprus, a company can legally provide investment and financial services in all EU countries without needing to obtain separate licenses in each jurisdiction.

COREDO’s experience confirms: having a Cypriot license significantly increases trust from banks, payment systems, institutional clients and partners from Europe, Asia and the CIS. This is especially relevant for companies working with digital assets, investment products and fintech solutions.

Key CySEC requirements for licensing in 2026

The key CySEC requirements for licensing in 2026 are associated with tightened supervision, ensuring financial resilience and investor protection. Companies seeking to obtain a license must not only comply with organizational and operational standards but also meet strict capital and financial metrics.

Requirements for capital and business resilience

In 2026, CySEC’s capital requirements have become even more differentiated. The following minimum capital levels apply to different license categories:

Requirements for company structure and shareholders

CySEC imposes strict requirements on ownership structure transparency. All shareholders and ultimate beneficial owners undergo thorough vetting: documents are provided confirming the source of funds, absence of criminal records and sanctions, as well as compliance with ESG principles. For international companies and firms from Asia and the CIS, special attention is paid to the legality of capital origin and the transparency of the corporate structure.

This approach not only speeds up the licensing process but also facilitates subsequent account opening and international settlements.

Internal policies and procedures

In 2026, internal AML and KYC policies have become particularly important. CySEC requires the implementation of comprehensive client identification procedures, transaction monitoring and reporting of suspicious operations. For CASPs (crypto asset service providers) and fintech companies, cybersecurity procedures are mandatory in accordance with Circular C462 and GDPR standards.

CySEC supervision includes regular inspections, audits and mandatory reporting, which requires continual improvement of internal processes.

Obtaining a CySEC License in 2026

procedure for obtaining a license CySEC in 2026 begins with strict compliance with regulatory requirements and the preparation of a comprehensive package of documents for the application. At each stage it is important to strictly follow the established steps and confirm the company’s readiness to meet CySEC standards, which ensures operational transparency and investor confidence.

Preparation of documents for submitting the application

Key stage: assembling a complete package of documents. For different types of licenses the list varies, but it basically includes:

• Financial statements and confirmation of minimum capital
• A detailed business plan with a risk analysis and an AML strategy
• Shareholder and beneficiary documents (KYC, proof of source of funds)
• Internal policies and procedures on AML, KYC, and cybersecurity
• Confirmation of qualified personnel (director, compliance officer, MLRO)

Stages of submitting the application

The process of submitting an application to CySEC is fully digitalized: documents are uploaded via the online portal. After the initial review there may be requests for clarification or provision of additional data. The timeframes for obtaining a CySEC license in 2026 range from 3 to 9 months depending on the complexity of the structure and the type of license.

License costs and renewal fees

The cost of a CySEC license consists of several components:

• Registration fee (from 7,000 to 25,000 euros depending on the license type)
• Annual supervisory fees (for example, for CASP: from 5,000 euros)
• CySEC license renewal fees, which may be adjusted depending on the volume of operations and the license category

Licensing of financial companies: categories and requirements

licensing specifics for different categories of financial companies directly depend on the type and specifics of their activities, as well as the requirements of regulators in the chosen jurisdiction. Different categories of financial organizations face unique procedures, standards and conditions for obtaining licenses, which is reflected in the required documents, capital level and risk management measures.

CySEC license for Forex brokers

For Forex companies, a CySEC license is the industry standard. Main requirements include a minimum capital of EUR 125,000, qualified personnel and the implementation of comprehensive risk management procedures. CySEC supervision provides for regular inspections, audits and mandatory reporting on transactions and client funds.

CySEC license for crypto-assets

Since 2024, registration and licensing of crypto-asset service providers (CASPs) in Cyprus are regulated under MiCA standards. This means new capital requirements (from EUR 15,000 for basic operations up to EUR 150,000 for custodial and exchange services), enhanced AML controls and mandatory implementation of cybersecurity.

CySEC license for investment advisors and fintech

For investment advisors the minimum capital starts at EUR 15,000. On the other hand, a key factor is the professional experience and qualifications of key personnel. For fintech companies and digital asset providers, CySEC imposes additional requirements on IT infrastructure, data protection and the implementation of innovative AML solutions.

How to obtain a CySEC license in 2026

1. Choosing the license type: Analyze your business model and development strategy to select the optimal type of license (CASP, forex, investment services, etc.). COREDO’s solution – conducting a preliminary audit and modeling growth scenarios.
2. Preparing a business plan: A detailed business plan with risk analysis, financial models and an AML strategy significantly increases the chances of the application being approved.
3. Compliance with AML and ESG: Implement automated KYC/AML systems, train staff, and integrate ESG principles into corporate culture.
4. Document preparation: Check the completeness and accuracy of all documents, taking into account specifics for companies from Asia and the CIS (proof of legal source of funds, transparency of structure).
5. Interaction with CySEC: Ongoing communication with the regulator, timely responses to requests and revisions are key to accelerating the licensing process.
6. Choosing a partner: COREDO’s experience shows that a reliable legal and consulting partner minimizes risks and provides comprehensive support at all stages.

Key takeaways and steps for entrepreneurs and executives

Key takeaways and practical steps for entrepreneurs and executives form the basis for decision-making in a rapidly changing market. To properly structure work and achieve sustainable results, it is important to take current requirements and deadlines into account in a timely manner.

Summary table of requirements and deadlines

Checklist for licensing preparation

• Conduct an audit of the business model and choose the license type
• Prepare the full document package (KYC, AML, business plan, capital confirmation)
• Implement internal policies on AML, KYC, ESG and cybersecurity
• Appoint qualified directors and compliance officers
• Submit the application through the CySEC online portal
• Prepare for possible requests and revisions

Recommendations and advice

Solutions implemented by COREDO for international clients prove: comprehensive support, deep analysis of requirements and flexibility in adapting internal procedures allow not only obtaining a license but also creating a foundation for long-term growth.