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In this article I will break down what the new EU beneficiary requirements mean for businesses in Europe, Asia and the CIS, how the 2025 AML directives are changing, and — most importantly — which practical steps to build into your strategy now. If you are planning expansion, restructuring your corporate structure or obtaining financial licenses in the EU, I recommend reading to the end: this is not theory but a distillation of what the COREDO team deals with every day in real projects.

New requirements for beneficiaries in the EU in 2025

By 2025 the EU is moving from fragmented directives to a coherent regulatory architecture:
a single AML/CFT regulation, an updated EU Anti-Money Laundering Directive (AMLD) and the supranational regulator AMLA strengthen control over who really stands behind companies and transactions.

Key areas of change:

1. Expansion of criteria for determining beneficiaries in Europe 2025
   The traditional 25% ownership threshold remains, but is no longer sufficient. Regulators increasingly use the concept of “criteria of substantial control”: the right to appoint and remove directors, control over key contracts, veto over strategic decisions, existence of trust and shareholder agreements. Formal splitting of shares no longer works: controlling influence matters more than the percentage of shares.
2. Mandatory and more frequent updating of beneficiary data in the EU
   A strict obligation to update beneficiary information upon any material change in the structure is being introduced, rather than “once a year for form’s sake”. Many EU jurisdictions are already moving to a regime where delays in updating data in digital beneficiary registers are treated as an AML breach, not a corporate formality.
3. Digital beneficiary register and unified transparency standards
   EU countries are moving toward unifying data formats and closer integration of registers. Information exchange between registers, banks, licensing authorities and AMLA is expanding. This increases the transparency of ultimate beneficiaries but sharply reduces room for incorrect structures.
4. Strengthening KYC procedures in Europe and control of ultimate company owners
   Banks, payment organizations, crypto providers, investment firms and even certain non-banking entities (for example, luxury goods traders) fall under stricter KYC (Know Your Customer) procedures. Checks are not limited to form: regulators expect an analytical approach to ownership chains, sources of funds and potential sanctions risks.

Who is the ultimate beneficiary under the new EU standards?

Criteria of substantial control

Corporate audit of ownership structure

# Responsibility of directors and controlling persons

Digital beneficiary registers in AML compliance

# Open and closed registers

Automation of data updates and integration with ERP

# The impact of digitization on ownership transparency

Registration of legal entities in the EU: new requirements and international business

AML control in Asia, the CIS and Africa

Impact of EU sanctions on beneficiaries and owners

Risks and challenges of non-compliance with the new requirements

New restrictions on cash payments and business processes

Best practices for AML compliance and risk management in 2025

Recommendations for business preparation

Due diligence methods and risk management

New AML monitoring technologies: AI and blockchain

Integrating AML and scaling in ERP

AML controls for companies with international operations

Preparing businesses for EU beneficial owner requirements

1. Step-by-step update of ultimate owner data
   • conduct an internal corporate audit of the ownership structure;
   • identify all beneficial owners under the new substantial control criteria;
   • harmonize disclosures across all jurisdictions where the company operates;
   • establish a process for regularly updating data on EU beneficial owners.
2. Organizing internal controls
   • appoint persons responsible for reporting requirements on ultimate owners in the EU;
   • implement a procedure requiring legal department approval for any changes to the structure;
   • document procedures for interaction with registrars, banks and licensing authorities.
3. Implementation and optimization of KYC and AML procedures
   • update KYC questionnaires, taking into account changes in KYC procedures in Europe in 2025;
   • adapt policies to the requirements of the AMLD and national regulators;
   • take into account the widening scope of AML supervision, including non-bank entities.
4. Training and accountability of directors and employees
   • conduct training on the responsibilities of directors and controllers;
   • develop practical guides for interacting with banks and regulators;
   • establish internal standards of conduct for responding to compliance requests.
5. Preparation for inspections and audits under the new AML standards
   • conduct a trial internal audit simulating a regulatory inspection;
   • remediate identified gaps in documentation and processes;
   • prepare a package of evidence that the company complies with the new EU beneficial owner requirements and AML standards.

Conclusion: what is important for a manager now

Over the past three years the COREDO team has been seeing the same scenario more and more often: an IT company with annual revenue of 10–30 million spends up to 9–12 months changing jurisdiction, and two years later is forced to start the process again due to changes in tax regulation and AML requirements.

The overly simple question “in which country to open a company?” becomes risky in 2026.

Choosing a jurisdiction for an IT company in 2026

When I hold a strategic session with IT business founders, we always start not with the country but with the criteria. Jurisdiction is a derivative of the business model, client geography, investment plans and the level of product regulation (fintech, AI, SaaS, marketplace, etc.).

Due diligence of jurisdictions

The first filter is due diligence of jurisdictions. At COREDO we analyze a country across several dimensions.

1. Reputation and stability of the legal system
   For IT businesses it is important not only corporate law but also how courts and regulators treat digital models, crypto elements, remote teams and data handling. A country may offer attractive tax incentives for IT companies, but if it has weak judicial protection or unpredictable law enforcement, this immediately reduces the jurisdiction’s investment attractiveness for IT businesses.
2. Tax burden and optimization
   We always calculate not the nominal, but the effective tax rate: corporate tax + dividend taxes + social contributions + local levies. It’s important not only the rate, but also the ability to use international tax planning, double taxation avoidance treaties and the presence of a sustainable regime not tied to temporary incentives.
3. Corporate reporting and audit requirements
   For clients focused on funds, reporting requirements for IT companies in the EU and transparency to investors are very important. At COREDO we see a trend: investors expect clear, comparable reporting in accordance with international standards and a transparent ownership structure, including holdings and sub-holdings.
4. legal risks of changing jurisdiction
   Changing the country of incorporation is often accompanied by exit tax triggers, contract renegotiations, changes in tax residency and risks of substance-related claims. We now build risk management for changing jurisdiction into the structure from the start: we look at how painlessly it will be possible in the future to move IP, create a separate holding or trust.
5. impact of sanctions and geopolitics
   For businesses from the CIS and some Asian countries, the impact of sanctions and geopolitics on jurisdiction choice is a critical factor. Some countries are formally open, but their banks practically do not work with certain regions. The COREDO team always includes an analysis of sanctions risks in due diligence, even if the company does not operate in sensitive goods or services.

Tax regulation and incentives for IT companies in Europe and Asia

The next layer is tax regulation for IT companies in 2026 and a comparison of tax rates for IT companies in Europe and Asia. In practice we most often discuss Cyprus, Ireland, Lithuania, Poland and Singapore.

1. Cyprus
   For IT structures Cyprus remains interesting as a platform for IP holdings and in terms of double taxation avoidance agreements. Registration features of companies in Cyprus include flexible corporate law, clear substance requirements (office, director, staff) and access to European infrastructure with a moderate tax burden.
2. Ireland
   Registering an IT company in Europe through Ireland is often justified when focusing on large B2B clients and entering English-speaking markets. The features of company registration in Ireland are important for structures with a strong IP base and R&D. Ireland offers a developed ecosystem, R&D support programs and clear corporate reporting requirements for IT companies in the EU.
3. Lithuania and Poland
   These countries strengthen their positions through fintech licensing and startup support. Company registration features in Lithuania and Poland include a focus on regulatory predictability, access to fintech infrastructure and European grant programs. For some COREDO clients, Lithuanian and Polish structures become a base for fintech licenses and AML/KYC-intensive businesses.
4. Singapore
   Registering an IT company in Asia is often associated with Singapore. For startups and scalable products, the features of registering startups in Singapore include a low entry threshold, a fast process via ACRA and BizFile+, a supportive tax environment and R&D support programs. Regulators actively work with fintech and AI, and the country offers a developed banking infrastructure for IT businesses and access to Asian markets.
5. Tax residency and reporting
   In the EU, not only rates are critical, but also the criteria and definition of tax residency. In COREDO practice we regularly explain to clients that the physical location of management, place of management and location of mind and management can affect where a company is considered a resident. This is directly related to corporate reporting and audit and affects the effective tax rate.

Substance requirements and compliance with international standards

From 2026 regulators take an even stricter approach to formal structures. Substance requirements (requirements for economic presence) are becoming not just a recommendation but a mandatory condition for access to tax benefits and international banks.

1. What is substance and why is it needed
   Substance requirements for IT companies – это не только офис и местный директор. Это реальное управление из юрисдикции, локальная команда, расходы, которые подтверждают экономическую суть. Практика COREDO подтверждает: банки и налоговые службы больше всего обращают внимание именно на соответствие деятельности заявленной модели, а не на красивую схему.
2. Substance implementation practice
   In some cases the COREDO team helps build a full-fledged R&D‑office in Europe, in others to create a management center in Asia while leaving the operational unit in another country. The main point is that the substance corresponds to the actual picture of the business and does not look like a formal shell.
3. AML/KYC procedures and international standards
   AML services for IT companies in 2026 are becoming not only a matter of licensing but also a matter of access to banking and payment systems. AML/KYC procedures must be embedded into the product: verification processes, transaction monitoring, reporting. For COREDO clients obtaining fintech licenses and AML/KYC‑dependent permits, we build a full compliance framework taking into account international AML standards and the requirements of specific regulators.
4. Digital compliance and cybersecurity
   For IT players, digital compliance and cybersecurity are becoming a separate criterion for choosing a jurisdiction. Regulators increasingly assess how the company protects data, what security protocols it applies, and how well processes comply with international data security standards.

Registering an IT Company in Europe and Asia: Process and Features

Once the criteria are clear, we move on to practice: registration of a legal entity in the EU or Asia. Here it is important to combine corporate law, requirements for participants and subsequent access to banking infrastructure.

1. Main legal forms
   In most cases COREDO uses analogues of a private limited company: s.r.o., limited, GmbH‑types. For the IT business, limited liability, a clear share structure, the ability to attract investors and option programs are important.
2. Founding documents and composition of participants
   Requirements for the share of foreign participation, the presence of a local director, and requirements for authorized capital are important. In some countries there are separate rules for registering offshore and non-resident companies, but by 2026 low-tax jurisdictions almost always require enhanced substance.
3. Registration procedure in the EU and Asia
   In practice the COREDO team structures the process so that in parallel they proceed with: preparation of founding documents, KYC on beneficiaries, bank selection and formation of a legal opinion when registering an IT company abroad. In the EU we pay special attention to corporate law for IT companies: articles of association, corporate agreements, option programs, protection of minority shareholders.
4. opening a bank account for an IT company
   This is one of the most difficult stages. The legal aspects of opening an account with international banks include verification of the structure, beneficiaries, business model, AML risks. Our experience at COREDO shows: having a well-thought-out compliance package, documented business logic, AML/KYC policies and a clear source of funds critically increases the chances of successful account opening.
5. The role of legal opinion and legal support for IT business
   For many transactions and dealing with international banks a legal opinion is required: confirmation of company status, compliance of activities with legislation, tax residency. The solution developed by COREDO usually includes a bundle: legal opinion + tax opinion + a funds flow scheme understandable to the bank and investors.

Registration of startups and fintech companies

A special layer of requirements applies to startups and fintech players.

1. Startups in Singapore and Europe
   The specifics of registering startups in Singapore include a low entry threshold, a fast process at ACRA and a flexible innovation support ecosystem. In Europe, a number of countries (for example, Ireland, Lithuania, Poland) offer innovative tax regimes for startups in 2026, grants and acceleration programs. The COREDO team often builds structures where a legal entity in the EU is combined with an R&D centre and R&D support programs.
2. Fintech licensing
   Fintech licenses and AML/KYC are a separate matter. Payment institutions, e-money, forex, crypto services require licensing and a detailed AML framework. Requirements of CySEC and other regulators are tightening by 2026: the role of internal control, reporting and an independent compliance officer is increasing.
3. The impact of international AML and KYC on fintech
   The impact of international AML on IT companies is especially noticeable in fintech. Banks and payment institutions expect the client to have documented onboarding, monitoring and reporting processes. In COREDO’s practice we often see that the maturity of the AML/KYC system determines whether a company gets access to partner banks and payment providers.
4. R&D support programs and cooperation with universities
   Many jurisdictions in 2026 link tax incentives and state accreditation of IT companies to participation in R&D support programs and to IT companies’ support of universities and educational programs. For international structures, COREDO builds cooperation with universities into the strategy as a tool both for incentives and for access to talent.

Risks and consequences of changing jurisdiction for IT companies

In 2026, more and more clients come to us already after a first jurisdiction change and want to make the second one “painless.” It is important to honestly name the risks here.

1. Tax and legal risks
   Legal risks of changing jurisdiction for IT companies include possible taxation when transferring IP, revaluation of assets, recognition as a controlled foreign company, and a change in tax residency status. Legal consequences of changing jurisdiction may also affect contracts: change of applicable law, the need to reissue or re-execute contracts, licenses and IP rights.
2. GDPR and international data protection
   When operating across borders, the influence of the GDPR on choosing a jurisdiction for an IT company becomes decisive. If the primary customer base is in the EU and data are processed outside the EU, it will be necessary to build a complex GDPR and international data protection framework by adopting standard contractual clauses, adapting the privacy policy and technical measures.
3. Corporate structures, trusts and funds
   For mature IT groups we often use corporate structures such as holdings, sub-holdings and the use of trusts and funds within the IT business structure. This allows separating operational risks and IP ownership, protecting assets and simplifying investor attraction. But when changing jurisdiction any structural changes require careful assessment from the standpoint of international law and taxation.

Choosing a jurisdiction for an IT company in 2026

To turn analysis into action, at COREDO we use a clear algorithm.

1. Algorithm for choosing the country of registration
   • Formalize the business model, client geography, and planned markets.
   • Determine licensing requirements (including which fintech licenses IT companies need to operate in the EU and Asia).
   • Establish criteria: tax burden, substance requirements, access to banks, data regulation, investment attractiveness.
   • Conduct due diligence on jurisdictions for IT companies in 2026 based on these criteria.
   • Model scaling of the IT business through international structures and scenarios for a possible change of jurisdiction.
2. Assessment of investment attractiveness and ROI of jurisdictions
   Investors care about reporting and transparency requirements, predictability of regulation, and clarity of corporate governance. The COREDO team often prepares comparative analyses: tax changes in 2026 and their impact on IT businesses, requirements for financial reporting and auditing in the EU, and the impact of ESG and sustainability on IT companies in a particular country.
3. Comprehensive legal and financial support
   Financial support and legal consulting become not a one-off project but an ongoing function. COREDO’s practice shows: companies that regularly review their structure, compliance, and tax burden cope more easily with regulatory changes and enter new markets faster.
4. Digital nomad visas and migration programs
   For distributed teams, digital nomad visas and migration programs for IT specialists are relevant. They affect founders’ personal tax residency and substance possibilities: sometimes it’s easier to carefully move part of the management to a country that offers clear rules for digital nomads and freelancers.
5. Optimization of insurance contributions and taxes
   In some structures, it is the insurance contributions and their optimization that significantly affect the effective tax rate. The COREDO team often designs models where part of the team is employed in jurisdictions with more flexible regimes, while maintaining compliance with local labor and social legislation.

Conclusion: what to rely on in 2026

By 2026 the question of how to choose a jurisdiction for an IT company is no longer about the «top‑10 countries with low taxes», but about building an international structure that takes into account: tax regulation of IT companies in 2026, substance requirements, international AML and compliance standards, GDPR and digital compliance, as well as long-term investment attractiveness.

EU and Swiss crypto regulation in 2026: a choice between strictness and flexibility

In 2026 cryptocurrency legislation in Europe and Switzerland enters a new phase: digital assets cease to be a “gray area” and are integrated into the traditional financial system at the level of laws, reporting standards, and supervision. Entrepreneurs face a choice: register in the EU with its strict but predictable MiCA/AMLR framework, or choose Switzerland with a more flexible but increasingly transparent model.

Three key trends in crypto regulation for 2026

Cryptocurrency regulation in the EU in 2026

MiCA: structuring the market by asset types

impact on business is twofold: on one hand, it is a significant entry barrier with capital and corporate governance requirements, on the other – a single CASP (Crypto Asset Service Provider) authorization opens access to the entire EU market without the need to obtain licenses in each country separately.

AMLR: aligning requirements with financial institutions

Notably, more than 90% of crypto platforms and wallet providers serving clients from the EU fall under the scope of MiCA and AMLR, even if the company is legally located outside the Union.

Licensing in the EU: jurisdictions and requirements

Crypto regulation in Switzerland in 2026

Automatic exchange of information on crypto-assets

It is important to note: inclusion on the list does not guarantee an immediate start of exchange. Interaction will be carried out only with those countries that express readiness to cooperate and implement reporting standards that correspond to OECD norms.

Licensing and FINMA

Regulation in Switzerland places extremely high demands on the quality of internal control and documentation of processes. Switzerland, as the Zug “crypto valley”, sets benchmark regulatory standards, but this is achieved at the cost of longer approval times and higher substance requirements for companies.

The Swiss National Bank’s position

Comparative analysis of the EU and Switzerland

Practical criteria for choosing a jurisdiction

Choose the EU if:

• priority — a broad market and scaling across a single market
• you need predictability and uniform rules for everyone
• target clients — retail users and SMEs in Europe
• you want to minimize the complexity of regulatory interaction

Choose Switzerland if:

• you work with HNWIs and institutional clients
• you need flexibility in structuring and complex financial arrangements
• you plan R&D, tokenization, or innovative models
• you are prepared for higher costs and longer licensing timelines

Key risks and recommendations

To comply with the new requirements:

• Establish AML/CFT processes with a risk‑based approach, client segmentation and regular review of risk ratings
• Integrate technologies for automatic exchange of crypto-asset data and CARF reporting preparation
• Deploy blockchain analytics and transaction monitoring tools
• Budget for comprehensive legal support and regular compliance reviews

When the COREDO team began actively supporting fintech clients in Switzerland, one figure surprised me: according to the Swiss Financial Market Supervisory Authority (FINMA), more than half of licensing applications are returned for revision precisely because of weak compliance procedures and poorly thought‑out risk management. Against this background, Switzerland retains its status as one of the strictest and at the same time most attractive financial centres in Europe.

In this article I explain how, in practice, to obtain a license from FINMA in Switzerland:

• which FINMA requirements are truly “red lines”;
• how to design the legal structure and capital;
• which compliance procedures FINMA expects to see in 2025;
• how to set up the process so as not to “burn” the budget and timelines.

What is a FINMA licence and why is it needed?

By “FINMA licence” people in practice mean a whole range of regimes:

• a bank licence or a securities dealer licence;
• a licence for a payments institute or electronic money institution (EMI);
• an asset manager licence;
• licenses for virtual asset service providers (VASP licence);
• authorization to operate a DLT trading facility for distributed ledger infrastructures.

For international business this is not just formal FINMA Licensing. A licence in Switzerland:

• opens doors to Swiss and European banks, large corporate clients and funds;
• facilitates scaling the business in the EU and Asia due to the high degree of trust in Swiss supervision;
• reduces regulatory risks when subsequently entering other markets (Liechtenstein, Germany, Singapore), where a Swiss background is perceived as a mark of quality.

Key FINMA requirements for a license in Switzerland

Key FINMA requirements for obtaining a license in Switzerland cover not only financial metrics, but also how you build your business at the level of structure and governance. To obtain a license, the regulator primarily assesses the corporate and legal structure of the company, its transparency, presence in Switzerland and compliance with local legislation.

corporate structure and legal framework

First step: registration of a legal entity in Switzerland with the correct ownership and governance structure. In most cases clients choose the form of a joint-stock company (AG) or a limited liability company (GmbH) depending on the type of license and capital requirements.

Key points FINMA looks at:

• The legal structure of the company in Switzerland must be transparent: identifiable beneficiaries, absence of convoluted offshore chains, justified use of holding levels.
• A genuine management center, the board and key functions (risk, compliance, MLRO) must be actively involved in the activities of the Swiss entity, not be “nominal”.

FINMA requirements for the management team include:

• proven experience in the financial sector, risk management and compliance;
• an impeccable professional reputation, confirmed by background checks and the absence of sanctions or significant past violations;
• sufficient presence in Switzerland (often, a resident director and local key functions).

Financial requirements and capitalization

The minimum capital for a FINMA license depends on the type of activity and the scale of operations:

• for payment institutions and EMI, from several hundred thousand CHF;
• for an asset manager license: from hundreds of thousands to millions CHF;
• for banks and large brokers: significantly higher, taking into account risk buffers.

FINMA assesses not only formal compliance with the threshold but also financial resilience and capitalization:

• sufficient capital taking into account stress scenarios;
• availability of reserves for operational, market and compliance risks;
• a sustainable business model supported by a realistic financial plan.

Key requirements for financial reporting under FINMA standards:

• preparation of reports according to International Financial Reporting Standards (IFRS) or Swiss GAAP, depending on the type of license and group structure;
• annual audit by an independent auditor recognized by FINMA;
• ability to provide interim reports and reports on special requests from the regulator.

Compliance, AML and KYC requirements

A separate section — AML and KYC in Switzerland. The regulator expects not a formal set of policies, but a genuinely functioning system:

• detailed anti-money laundering (AML) and counter-terrorist financing policies;
• clearly described Know Your Customer (KYC) procedures, including identification, verification and ongoing customer monitoring;
• a well-developed Source of Funds check and, if necessary, Source of Wealth, especially for high‑risk clients.

implementation of AML/KYC procedures for FINMA includes:

• a risk‑based approach with classification of clients and transactions by risk categories;
• use of transaction monitoring technology systems (rules‑based and/or ML solutions);
• clear separation of first, second and, if necessary, third line of defense.

FINMA compliance procedures for 2025 are built taking into account FINMASA and FINMA’s current guidance:

• appointment of a responsible MLRO and compliance officer;
• regular staff training;
• a documented system of internal control and incident escalation;
• readiness to provide the regulator with a full trace of actions on AML/KYC cases.

How to obtain a FINMA license in Switzerland?

procedure for obtaining a FINMA license in Switzerland requires careful preparation of documents, a sound business model and strict adherence to regulatory requirements for finance and compliance. Below we outline the key stages of submitting and reviewing an application that every company planning to operate legally under FINMA supervision goes through.

Stages of submitting an application and its review

In practice, the procedure for obtaining a FINMA license is divided into several stages:

1. Diagnosis and architecture (1–2 months)
   At this step at COREDO we carry out a GAP analysis:
   • alignment of the business model with the licensed activity;
   • readiness of corporate governance;
   • maturity of compliance and IT systems.

   Result, a roadmap and the structure of the document package.

2. Package preparation (2–4 months)
   Includes:
   • a detailed business plan with financial models and a description of risk management in the financial sector;
   • compliance, AML/KYC, operational and IT risk management policies;
   • a description of the IT infrastructure for licensing (architecture, security, backup, cyber incident plans);
   • shareholder register and group structure.
3. Submission of the application
   At this step the formal process of preparing an application for obtaining a license FINMA in Switzerland begins:
   • set of FINMA forms;
   • certified incorporation documents;
   • information about responsible persons and the management team;
   • description of processes and systems.
4. FINMA application review (usually 4–6 months)
   At this stage the regulator:
   • analyses the documents;
   • sends requests for clarifications;
   • may initiate an audit and on‑site FINMA inspection to verify that the declared processes correspond to reality.
5. Conditional license and implementation phase (3–4 months)
   Often FINMA issues a conditional license subject to a number of additional conditions: fine‑tuning IT systems, strengthening compliance, hiring additional specialists. In such cases the COREDO team guides the client through the checklist for fulfilling the conditions and communications with the regulator.
6. Final licensing and launch
   After confirmation that all conditions have been met a full license is issued and the company begins operations at full capacity.

Documents required for the application

licensing specifics DLT trading facility FINMA:

• a detailed description of the DLT architecture, consensus mechanisms, key management;
• assessment of cyber risks and an incident response plan;
• a demonstration of how the DLT platform protects investors and market integrity.

Conditions for obtaining a FINMA VASP license for companies working with virtual assets:

• clear separation of custody, exchange and other functions;
• advanced AML procedures taking into account on‑chain risks;
• demonstrable measures to protect client assets (custody model, segregated accounts, insurance).

Features of licensing fintech and virtual assets

For fintech players, the question of how to obtain a FINMA license in Switzerland inevitably boils down to three areas: governance, IT, and risks.

FINMA requirements for fintech companies include:

• well-considered corporate governance in fintech: roles and responsibilities of the board of directors, risk and audit committees;
• a mature risk management system in the financial sector — credit, market, operational, compliance and IT risks;
• provable reliability of the IT infrastructure for licensing: redundancy, change management, cybersecurity, independent testing.

For crypto businesses and virtual asset providers:

• A FINMA VASP license requires strict segregation of client and own funds, a transparent fee structure and asset custody arrangements;
• AML/KYC implementation in crypto business must take into account anonymous and mixing services, DeFi risks and cross-border flows.

FINMA Risk Management and Compliance

In practice, risk management during FINMA licensing is not a one-off exercise to obtain a license, but a transition to ongoing regulatory supervision. FINMA expects to see:

• a formalized risk appetite and limits;
• regular reports on key risk indicators;
• an independent risk management function.

Implementing transaction monitoring technologies is a mandatory element:

• systems must be able to detect anomalies and suspicious activity scenarios;
• configurable rule logic and a documented process for handling alerts are required;
• the result — a transparent history of actions for each case, available for review.

On-site FINMA audits and inspections usually include:

• checking that actual processes comply with those described in the documents;
• selective review of client files and AML case files;
• assessment of the effectiveness of internal controls.

How to obtain a FINMA license: timelines and ROI

From COREDO’s project experience, the timeframes for FINMA’s review of fintech and VASP cases on average are:

• 2–6 months for preparation;
• 4–8 months for review and revisions;
• 3–4 months to meet conditions and launch.

Benefits of obtaining a conditional FINMA license:

• a clear list of required revisions instead of a rejection;
• the ability to build partnerships and processes for an almost approved model;
• increased trust from investors and banks, even before full licensing.

Recommendations and conclusions for entrepreneurs and executives

In conclusion – a condensed checklist I usually discuss with founders and the CFO.

Checklist for obtaining a FINMA license

• Clearly determine the type of FINMA license and verify that the business model complies with it.
• Design the company’s legal structure in Switzerland with a transparent beneficial ownership chain.
• Assess and, if necessary, recapitalize the business to meet the minimum capital required for a FINMA license, with a buffer.
• Form a management team that meets FINMA requirements regarding experience, reputation, and presence in Switzerland.
• Build comprehensive FINMA 2025 compliance procedures, including AML/KYC, risk management and internal control.
• Prepare a financial model and financial reporting according to FINMA standards (IFRS or Swiss GAAP).

How to form the management team and compliance function

• Include specialists with real experience in the banking, payments, or investment sector on the board of directors and in top management.
• Define independent compliance, risk, and, where necessary, internal audit functions.
• Ensure key roles are not combined in ways that create conflicts of interest.

How to ensure AML and KYC compliance

• Implement risk-based AML/KYC adapted to your type of activity and client geography.
• Set up source-of-funds verification and continuous transaction monitoring.
• Provide regular staff training and testing of procedures under stress scenarios.

How to minimize risks and accelerate licensing

• Start with a preliminary GAP analysis of FINMASA requirements and relevant regulations.
• Don’t skimp on document quality: FINMA quickly spots templated and “dead” policies.
• Plan the project at least a year ahead, synchronizing it with growth and capital-raising plans.

According to the ČNB and European regulators, in recent years the volume of assets under management by collective investment structures in the Czech Republic has been steadily growing at double-digit rates, and the share of cross-border investments through local structures within the EU and beyond is becoming one of the drivers of that growth. For entrepreneurs from Europe, Asia and the CIS this is not abstract statistics: access to the EU single market, predictable regulation and a transparent tax environment turn an investment company in the Czech Republic into a practical tool for scaling capital and business.

In practice this means: the market entry threshold is rising, but those who set up the structure correctly from the start gain a long-term competitive advantage and easier access to institutional capital.

In this article I have gathered for you a distillation of COREDO‘s practice: a step-by-step procedure for registering an investment company in the Czech Republic in 2026, realistic timelines, requirements for the share capital, nuances of interaction with the Czech National Bank (ČNB) and the key strategic decisions that are best made before submitting the first application.

Company registration in the Czech Republic for investments

The specifics of registering a company in the Czech Republic for investment business are important for those who want to combine access to the EU market, transparent regulation and a considered tax burden. Once you understand why the Czech Republic is considered a workable jurisdiction for an investment company, it will be easier to assess the real advantages, risks and requirements for the structure of your future business.

Why the Czech Republic as a jurisdiction for an investment company?

When entrepreneurs ask me which country is reasonable to start a European expansion from, the Czech Republic makes the short list. The reasons are practical:

• A stable legal system and predictable corporate law of the Czech Republic. The Act on Investment Companies and Funds (ZISIF) clearly describes the forms, licensing procedures and management requirements.
• EU membership and direct access to the single market through passporting mechanisms for certain licenses and cross-border distribution of products.
• Developed infrastructure: local custodians, auditors, fund administrators, IT providers for asset and investment portfolio management.
• A balance between the level of regulation and operating costs compared to a number of “top” Western European jurisdictions.

For those considering registering a company in the Czech Republic as a first step toward cross-border investments in the EU and CIS, this combination provides the opportunity to build a sustainable structure without excessive ownership costs.

Types of investment funds in the Czech Republic

Czech regulation offers several types of structures if you are targeting an investment fund in the Czech Republic or a management company:

• classic investment companies (akciová společnost, SICAV) under asset management;
• investment funds with various legal forms (including a fund for qualified investors – a fund for professional and semi-professional participants);
• open-ended funds (retail segment, closer to the UCITS model);
• closed structures (private equity, venture, property funds for real estate, infrastructure, private debt).

The choice of form determines the ČNB’s requirements for capital, corporate governance and disclosure. In one of the recent projects the COREDO team structured a hybrid model for a client: an investment management company + a separate Czech investment fund for qualified investors. This allowed splitting licensing risks and flexibly managing new sub-funds for different strategies.

The role of the Czech Republic in the EU and cross-border investments

A properly structured legal entity registration in the EU in the form of a Czech investment structure opens up:

• the distribution of products among investors in other EU countries, taking into account the AIFMD/UCITS regimes and local marketing rules;
• a convenient hub for cross-border capital flows between the EU and Asia, including the use of SPVs and sub-funds for deals in different currencies;
• a legal basis for cross-border legal support of projects in EU and CIS countries with a single decision-making centre.

COREDO’s experience shows that a well-designed investment fund structure in the Czech Republic allows managing a portfolio of assets across several jurisdictions, while compliance and reporting are centralized and clear to the regulator.

Registration of an Investment Company in the Czech Republic 2026

The procedure for registering an investment company in the Czech Republic in 2026 includes several sequential legal and regulatory stages, from choosing the legal form to obtaining a license from the Czech National Bank. Below we will consider the general logic of the process: which steps need to be taken, which authorities are involved and what requirements must be taken into account already at the planning stage of the structure and investment strategy.

Overall logic of the process

The procedure for registering an investment company in the Czech Republic in 2026 remains formally similar to the current one, but taking into account tightened requirements for disclosure of ultimate beneficial owners, AML control and the quality of business plans in the financial services sector. In practice I divide it into six blocks.

Name verification and selection

First step: checking the uniqueness of the company name in the commercial register and compliance with restrictions for the financial sector (references to “investment fund”, “asset management” etc. must be agreed with the ČNB). At this stage, COREDO lawyers immediately tie the name to the future license and marketing strategy to avoid changing the brand after obtaining permits.

Founding documents and business plan

To register a company in the Czech Republic for investment activities the following will be required:

• charter and founding agreement with a clear description of the scope of activities;
• a detailed business plan of the investment company: target markets, product line, investment strategies and ROI, cost structure, assets under management forecast, risk management model;
• internal policies: conflict of interest management, compliance, AML for investment companies, internal control.

When the COREDO team prepares the package, we proceed from the fact that the ČNB looks at these documents effectively as a “Due Diligence dossier” of a future market participant, rather than a formality.

Legal address and bank account

You will need:

• a confirmed legal address in the Czech Republic (an office or an office solution from a certified provider);
• a preliminary agreement with a bank or a licensed payment/EMI organization on opening an account.

Depending on the business model, it is possible that a classic bank account is combined with infrastructure for electronic money services (EMI license). In one of COREDO’s cases the client required a combined structure: an investment company + a Czech EMI provider as a partner for settlements with investors in different regions.

Preparation and submission of documents

documents for registering an investment company in the Czech Republic include:

• founding documents;
• information about beneficiaries and ownership structure (including registration of a company with foreign founders);
• confirmation of the source of funds for forming the share capital;
• resumes and proof of qualifications of key executives and board members;
• internal regulations on compliance, AML, risk management;
• draft agreements with a depositary (for certain fund structures) and with an external auditor.

The package is sent to the commercial court for incorporation and simultaneously to the ČNB for obtaining a license.

Notarization of documents

Some documents must be notarized and, if necessary, apostilled (if the founders are non-EU residents). COREDO’s practice shows that careful preliminary verification of the wording and the signatories’ powers at this stage can save up to several weeks in the overall launch timeline.

Awaiting the decision and issuance of the license

After submitting the application, the ČNB conducts a comprehensive review: it analyzes the business reputation of the beneficial owners, the sustainability of the business model, the internal control system and the company’s readiness to comply with regulatory requirements for investment companies. In a number of projects COREDO accompanied written requests from the regulator and participated in meetings where it was necessary to present the risk and compliance model in detail.

Estimated timelines for stages

These timelines are averages. In complex projects with multi-level structures and cross-border flows the regulatory phase can be longer; COREDO’s experience allows managing expectations and building a roadmap in advance.

Requirements and licensing for an investment company in the Czech Republic

Requirements for an investment company in the Czech Republic and Licensing: this is not a formal procedure, but a set of strict regulatory rules that determine access to working with investors’ capital. To actually enter the market, it is important to understand not only the minimum figures for share capital, but also what capitalization and structural parameters the company must demonstrate to the regulator in practice.

Share capital: minimum and reality

The formal share capital for an investment company in the Czech Republic depends on the specific type of license and whether the structure falls under the UCITS/AIFMD directives. For a number of management companies and funds there is a minimum threshold comparable to pan‑European standards (from hundreds of thousands to millions of units of the base currency), while for lighter regimes: lower.

In practice, the COREDO team recommends focusing not only on the minimum share capital and its bare minimum, but on a “comfortable” level: it should demonstrate to ČNB the resilience of the business model and create a buffer for operational risks. In several cases the regulator explicitly pointed to the insufficiency of the initially declared capital given the scale of planned operations.

Czech National Bank requirements for structure and management

A Czech National Bank (ČNB) license for an investment company requires meeting a number of criteria:

• a transparent ownership structure without “black boxes” in offshore jurisdictions;
• the qualification and experience of board members and top management in asset management;
• an effective compliance and internal control system, and an independent risk management function;
• policies for managing liquidity, market, credit and operational risks.

ČNB’s role in licensing investment companies is not limited to issuing the permit: supervision continues in the form of regular reporting, inspections and monitoring of key risk indicators and capital adequacy.

Licensing, AML and EMI

licensing specifics of investment companies in the Czech Republic in 2026 will largely be determined by updated European standards:

• thorough AML compliance checks (anti‑money laundering) for investment companies: KYC procedures, transaction monitoring, sanctions screening;
• assessment of readiness for new sustainable finance requirements (ESG disclosure, SFDR) for products distributed in the EU;
• increased attention to cross‑border investments and funding channels.

In some cases it makes sense to separate functions: the investment company concentrates on asset management, while the payment/EMI structure focuses on payments and the issuance of electronic money. But there are scenarios where a group of companies under common control builds a vertically integrated model.

Taxation and incentives for investment companies in the Czech Republic

Tax regulation and incentives for investment companies in the Czech Republic determine not only the size of the fiscal burden but also the overall profitability of investment projects in this jurisdiction. Understanding current tax rates and obligations is the first step to properly structuring a company and making the most of available benefits.

Tax rates and obligations

The Czech tax regime remains competitive within the EU context, especially taking into account double taxation agreements and the specifics of taxation of collective investment funds. For investment companies the key points are:

• corporate income tax;
• taxation of dividends and interest income;
• rules on thin capitalization and transfer pricing for intra-group transactions.

When planning a structure, COREDO always models how registration of an investment company in the Czech Republic will affect the tax obligations of the business in the investors’ countries and the countries of the target assets.

Tax incentives and planning

For investment companies in the Czech Republic in 2026 the following are important:

• preferential regimes for certain types of investment funds in the Czech Republic (including funds for qualified investors);
• opportunities to use a Czech company as a holding with a preferential regime for dividends and capital gains when criteria are met;
• tools for optimizing taxation of cross-border investments in the EU and Asia.

In several projects COREDO structured arrangements so that a Czech company acted as the center of managerial and investment expertise, while the risk and tax burden at the level of the target countries were allocated through sub-holdings and SPVs.

Compliance, AML and Internal Control in Czech Investments

Compliance, AML and internal control in Czech investment companies today are becoming an integral part of launching and scaling a financial business: without a built AML framework, transparent KYC procedures and documented internal control it is practically impossible to obtain a licence and work with banks. In the following sections we will explain how to correctly build an AML framework and internal control already at the business launch stage in order to meet the requirements of Czech regulators and avoid critical risks.

AML framework and launching a business

From the regulators’ point of view, ensuring AML compliance when registering an investment company in the Czech Republic is one of the key questions for market admission. Typically required:

• a developed client identification system (KYC), including beneficiaries and sources of funds;
• procedures for monitoring transactions and detecting unusual activity;
• staff training and fixed accountability for violations.

COREDO’s practice confirms: if the AML framework is designed at the project stage, questions from the ČNB during licensing are reduced both in volume and in depth.

Internal Control and Risk Management

Risk management in Czech investment companies goes far beyond standard VaR models. The regulator expects:

• independence of the risk management function from the front office;
• regular stress tests and scenario modelling;
• clear documentation on limits for country, instrument and counterparty levels.

The COREDO team develops practical procedures for clients: from investment committee regulations to dashboards for monitoring key metrics in real time using specialized technologies for managing investment funds.

Impact of EU Regulations 2026

EU financial regulation in 2026 increases requirements for:

• transparency of ownership structures;
• reporting on sustainable finance and ESG risks;
• information exchange between national regulators.

For Czech investment companies this means the need to integrate an expanded set of metrics and reports into processes in advance. In a recent project COREDO helped a client adapt an existing Czech structure to the new European standards to preserve the right to market products in multiple EU jurisdictions.

Structure of an investment fund

The structure of an investment fund and asset management determine how the fund is organized, who makes the key decisions and under what rules risks and returns are allocated among investors. Understanding common fund structures makes it easier to choose the appropriate investment format and to build your own capital management taking into account objectives, the investment horizon and risk tolerance.

Typical fund structures

In the Czech Republic, several basic architectures are used:

• corporate fund (SICAV) with a sub-fund structure – convenient for parallel strategies across different asset classes or geographies;
• trust-like and partnership forms for a limited group of investors;
• real estate funds and infrastructure funds with a focus on physical assets.

The choice of an investment fund’s structure is always linked to the investment strategy for Czech investment funds and their target investor audience.

Capital and risk management

Effective capital and risk management includes:

• diversification across countries and sectors taking into account political and regulatory risk;
• integration of currency and interest-rate risk into the overall portfolio model;
• use of derivatives and structured products within limits permitted by regulators.

In one COREDO case, we support a Czech fund that invests simultaneously in debt instruments in the EU and stakes in fast-growing companies in Asia. For that fund we built a multi-level system of limits and hedging procedures.

Technologies and operational model

A modern investment company in the Czech Republic relies on:

• centralized accounting and risk analytics platforms;
• automation of reporting to regulators and investors;
• integration with banks, custodians and payment systems via APIs.

Solutions developed by COREDO together with technology partners enable clients to roll out reporting under new regulatory requirements with minimal changes to the operational cycle.

Recommendations for entrepreneurs and key takeaways

In this section you will find practical recommendations and key takeaways for entrepreneurs that can be applied immediately to your project. Below is a step-by-step launch checklist that will guide you through all stages: from idea validation and risk assessment to first sales and scaling.

Step-by-step launch checklist

If you are thinking about how to open an investment company in the Czech Republic in 2026, the practical sequence of actions will be as follows:

1. Define the target model: an investment company, a fund, or a combination; fix the target markets and product range.
2. Develop the investment company’s business plan with realistic scenarios for AUM, returns, and expense structure.
3. Choose the legal entity form and prepare the articles of association taking into account the requirements of ZISIF and ČNB.
4. Agree on the trade name and legal address, prepare infrastructure for opening a bank account.
5. Establish the registered capital at a level that will satisfy the regulator and provide stability.
6. Develop document packages for AML, compliance, internal control, and corporate governance.
7. Prepare and notarize the documents for registering the investment company in the Czech Republic.
8. Submit applications to the commercial court and the ČNB, and manage communication with the regulator.
9. Set up operational processes, reporting, and IT infrastructure before starting to accept investments.

Legal address, bank account, and EMI

When choosing a legal address and bank account for the company, the following are important:

• reputation and experience of the counterparty (landlord, bank, or EMI provider);
• the bank’s willingness to work with an investment profile and the geography of your investors;
• potential integration with payment infrastructure if you plan to obtain an EMI license or cooperate with such providers.

The COREDO team implemented several projects where preliminary work with the bank before the company’s incorporation helped avoid prolonged KYC processes after obtaining the ČNB license.

How to minimize difficulties and time costs

The main difficulties in registration are not “paperwork”, but:

• underestimating the depth of ČNB’s requirements for risk management and compliance;
• an overly optimistic business plan;
• an opaque beneficiary structure.

Our experience at COREDO has shown that early auditing of the structure (including sources of capital, the group’s corporate structure, and planned cross-border flows) reduces the likelihood of additional rounds of questions from the regulator and helps meet the originally stated timelines for registering an investment company in the Czech Republic.

Impact of the New EU Rules on Investment Business in the Czech Republic 2026

The impact of the new EU rules and the prospects for the development of the investment business in the Czech Republic in 2026 are directly linked to a comprehensive overhaul of financial regulation, tighter requirements for transparency and capital control, and the reallocation of EU budgetary priorities in favor of innovation and digitalization. For the investment business in the Czech Republic this means not only an increase in compliance burden, but also new niches for products, structures and services that meet the updated EU standards in 2026.

New EU financial regulation 2026

The impact of the new EU regulations on investment companies in the Czech Republic will appear along several lines:

• strengthening requirements for transparency, reporting and corporate governance;
• development of unified ESG disclosure standards;
• further digitalization of interaction with regulators and data exchange.

For Czech market participants this is both a challenge and an opportunity: companies that are already integrating future requirements into their processes today will be able to bring products to other EU markets more quickly.

Scaling and long-term effects

From a strategic perspective, opportunities to scale the investment business in the Czech Republic include:

• launching additional sub-funds for new strategies without creating a separate legal entity;
• expanding the geography of investments (EU, Asia, Middle East) with centralized management and compliance;
• using the Czech Republic as the group’s centre of competence with branches or partners in other countries.

For entrepreneurs focused on the long term, registering an investment company in the Czech Republic is not a one-off legal operation, but a foundation for building a sustainable international investment business. COREDO’s practice confirms: careful preparation at the start, the right choice of structure and a constructive dialogue with ČNB turn the regulatory environment from a barrier into a competitive advantage.

The key question I hear more and more often from COREDO clients:

Czechia today is one of the entry points to the European crypto market: flexible national VASP regulation, clear case law, and access to consulting expertise in Prague and Brno. But from 2026 it will be a completely different game: the national regime for VASPs will transform into the CASP regime under MiCA, and AML/KYC and cybersecurity requirements will move closer to banking standards.

In this article I will lay out step by step what the process of obtaining a crypto license in the Czech Republic will look like in 2026, what the realistic timelines are, what the requirements are for capital, corporate governance, AML/KYC and DORA, and at which stages having an experienced partner like COREDO saves months and tens of thousands of euros of budget.

If you are planning to register a crypto company in the Czech Republic or to relicense an existing VASP to the Czech CASP regime, I recommend reading to the end: what follows is a practical guide, not a theoretical overview.

Crypto license in the Czech Republic in 2026: what is it and why is it needed?

From 2026 the focus shifts: the key regime becomes the MiCA crypto license, and providers will convert into Crypto‑Asset Service Providers (CASP). This status gives not only the right to operate in the Czech Republic but also passporting across the entire EU, provided MiCA standards on capital, risk management, client protection and disclosure are met.

The Markets in Crypto‑Assets (MiCA) regulation introduces uniform rules for issuers and providers of crypto-asset services across the Union:

• strict requirements for the crypto license in the Czech Republic regarding capital, corporate governance, IT security and reserves;
• a clear classification of services (custody, exchange, order execution, portfolio management, etc.);
• expanded AML obligations (Anti‑Money Laundering) and KYC (Know Your Customer) in conjunction with the existing European AML framework.

For existing Czech VASPs this means relicensing under MiCA in the Czech Republic: companies that currently operate under national rules will have to:

• adapt their governance structure, risk management and IT systems to CASP standards;
• confirm the minimum share capital for the crypto license and the existence of financial reserves;
• update internal policies on AML/CFT, incident management and data protection.

In practical COREDO projects I see a simple pattern: companies that view MiCA as a ‘tick-box’ requirement enter the market with a fragile model. Those who build their business architecture ‘for MiCA from scratch’ gain a competitive advantage in scaling and in banks’ trust.

Obtaining a crypto license in the Czech Republic in 2026

The process of obtaining a crypto license in the Czech Republic in 2026: this is no longer a formality, but a complex sequence of legal and compliance steps within the MiCA framework and the requirements of the Czech National Bank. To successfully go through this path, the first key step becomes registration of a legal entity for crypto business, which defines the legal basis and structure of the future licensable activity.

Registration of a legal entity for crypto business
The first step is the registration of a legal entity (s.r.o. or a.s.) in the Czech Republic. In practice, 90% of crypto projects choose s.r.o. as the analogue of a private limited company: flexible charter, clear corporate governance and adequate capital requirements. For more capital‑intensive projects (crypto exchanges, custody providers) an a.s. (joint‑stock company) is sometimes appropriate.

registration requirements in the Commercial Register include:

• signing the founding documents;
• specifying the ownership and beneficiaries structure;
• registered address.

MiCA and local practice effectively establish requirements for a physical office in the Czech Republic and actual presence:

• an office or a full registered address with actual operational activity;
• the presence of a compliance officer and internal controls that are actually located in the jurisdiction and can interact with the regulator.

Preparation and submission of documents
The next block is the documents for a crypto license in the Czech Republic. The standard package that the COREDO team prepares for clients includes:

• a detailed business‑plan and financial forecast for at least 3 years with stress‑scenario modelling;
• financial statements (for existing companies) and confirmation of founders’ sources of funds;
• policies and procedures on AML/KYC, risk management, information security, incident management;
• description of IT architecture, encryption technologies, backup and recovery procedures.

• detailed CVs demonstrating relevant experience in finance, IT, and risk management;
• Due Diligence of management and owners, including checks against international sanctions and PEP lists;
• background checks and certificates of no criminal record from countries of citizenship and residence.

For a CASP license, the regulator assesses the minimum capital for a crypto license in the Czech Republic and the financial resilience and reserves for crypto companies. Specific requirements for the share capital for a crypto license in the Czech Republic depend on the type of services:

• custody and asset storage – a higher capital and reserve threshold;
• brokerage and exchange services, separate requirements for own funds and liquidity;
• lighter models (for example, single exchange services): reduced limits, but still higher than for an ordinary s.r.o. without a license.

implementation of AML, KYC and compliance programs
AML requirements for crypto business in the Czech Republic in 2026 will combine national rules and the pan‑European AML package. For the license the key elements are:

• a formal and functioning AML/CFT program covering client identification, transaction monitoring, management of suspicious operations and reporting;
• clearly described KYC and AML for crypto companies in the Czech Republic with a risk‑based approach (different levels of checks for different client categories and geographies);
• regular internal and external audits of AML/CFT program implementation for crypto companies in the Czech Republic.

Separate block: corporate risk management in the crypto sector: here COREDO helps clients build:

• a risk matrix (regulatory, market, operational, IT risks);
• incident escalation procedures;
• an internal control system where the compliance officer has a real veto right over transactions and products.

Technological requirements and cybersecurity
After the implementation of MiCA and DORA (Digital Operational Resilience Act), crypto companies in terms of IT risk requirements are effectively approaching banks and payment organizations.

For cybersecurity and DORA in crypto licensing in the Czech Republic the following are important:

• a formalized IT risk management framework: identify, protect, detect, respond and recover;
• regular testing of digital operational resilience: stress tests, penetration testing, cyber incident drills;
• documented procedures for interaction with IT services outsourcing providers.

Technological standards and innovations in crypto licensing include:

• implementation of encryption technologies for storing keys and personal data;
• multi‑factor authentication and role separation for critical operations;
• testing for resilience to attacks as a mandatory part of licensing.

Timelines and stages for obtaining a crypto license in the Czech Republic

Conventionally, the stages and timelines for obtaining a crypto license in the Czech Republic look like this:

1. 1–2 months – company registration, office selection, formation of the management team;
2. 2–3 months, preparation of documentation, financial models, IT descriptions and compliance policies;
3. 3–4 months: review of the application by the regulator, responses to requests, revision of documents.

• the complexity of the business model (custody, exchange, brokerage usually require more detailed elaboration);
• the completeness of the provided data;
• the company’s readiness to respond promptly to regulator requests.

Features of MiCA relicensing in the Czech Republic

For existing VASPs the key question is: how does relicensing of crypto companies in Czechia under MiCA proceed. Essentially, this is about transforming the status into a CASP license in Czechia.

Procedures for relicensing under MiCA include:

• an audit of the current model for compliance with MiCA and DORA;
• analysis of corporate governance, capital, IT systems and AML/KYC;
• preparation of a transition plan and a roadmap to close gaps.

• weak and undercapitalized participants will most likely exit the market or be acquired;
• strong players with well-thought governance and IT setup will gain a strategic advantage through access to the pan-European market.

In COREDO’s relicensing projects we usually build a phased plan: first we address the ‘critical’ requirements (capital, governance, AML), then DORA and fine IT tuning.

Tax and finances of crypto business in the Czech Republic

The financial section begins with the minimum share capital and financial reserves. Depending on the type of CASP, the regulator sets:

• minimum own funds;
• additional reserves for operational and IT risks;
• liquidity requirements and coverage of client obligations.

Tax regulation of the crypto business in the Czech Republic is built on general corporate rules, but is supplemented by specific issues:

• tax accounting of cryptoasset transactions;
• rules for recognition of income and expenses of crypto exchanges and exchangers;
• requirements for documenting cross-border transactions.

With a well-structured setup, tax incentives for crypto business in the Czech Republic are possible, especially when using innovative and R&D models, but this is always calculated individually.

For the license the following are required:

• detailed financial statements and a business plan for the crypto license, including scenario analysis;
• proof of financial stability and reserves for crypto companies;
• a realistic ROI model in crypto licensing: an assessment of the costs of preparation, maintaining the license and potential revenue.

Key takeaways for entrepreneurs

If we systematize our experience at COREDO on how to obtain a crypto license in the Czech Republic in 2026 under MiCA, the practical steps are as follows:

1. Define the target business model and list of services (custody, exchange, brokerage, exchange service), as capital, IT and the scope of compliance depend on this.
2. Choose the form of legal entity registration (s.r.o., a.s.) in the Czech Republic, taking into account capital and governance requirements.
3. Form the management team and appoint a strong compliance officer with real authority.
4. Develop and implement AML and KYC programs for a crypto company in the Czech Republic, embedding a risk‑based approach and regular audits.
5. Bring the IT infrastructure in line with DORA requirements, crypto platform cybersecurity and digital operational resilience.
6. Prepare a business plan, financial forecast and documentation package taking into account regulator requirements and the specifics of beneficiary profiles.

To minimize risks and speed up the process, in COREDO projects we focus on:

• preventive work on vulnerable areas (beneficiaries, sources of funds, IT outsourcing);
• building corporate risk management in the crypto sector before submitting the application;
• proactive communication with the regulator at the questions and clarifications stage.

• cross‑border regulation of crypto services in the EU;
• reporting and control standards for crypto providers;
• real processes for digital and financial resilience.

From COREDO’s experience, those who start thinking about MiCA, DORA, AML and cybersecurity in advance perceive 2026 not as a threat but as a window of opportunity: the market will become more transparent and the barriers to entry higher. And it is precisely here that a well‑thought‑out crypto license in the Czech Republic turns into a strategic asset, not just a regulatory obligation.

According to the European Banking Authority, in recent years the number of licensed Electronic Money Institutions in the EU has grown many times over, and competition for customers in cross‑border payments has become tougher than in the traditional banking market. Against this background choice of jurisdiction for an EMI license has ceased to be a technical matter: it determines the cost of raising capital, the speed of entering the EU market and even the final business model.

I suggest looking at the question “how to choose a country for an EMI license” as a strategic decision rather than a formal registration. In this article I will examine:

• what an EMI license actually means / EMI license EU;
• which selection criteria for a jurisdiction actually affect PL
• how Lithuania, Portugal, Germany and the Czech Republic differ in regulatory and operational parameters;
• what practical steps need to be taken to obtain an EMI license and preserve flexibility for scaling.

If you are considering registering an EMI company in the EU not as an experiment but as a long-term project, I recommend reading the material in full: below is not theory, but a distillation from real COREDO cases in Europe and the EEA.

EMI license: what it is and why it is needed in Europe

• access to the EU and EEA single market with the ability to passport services;
• the right to open and operate e-wallets, issue prepaid instruments, work with merchant acquiring;
• operation within a clear regulatory environment with established approaches to risk and compliance in fintech.

It’s important to understand the differences between Small EMI and Full EMI:

• Small EMI (sEMI):
  • typically operates within a single country;
  • limited in transaction volume and average monthly balance of client funds;
  • offers a fast market entry but scales poorly beyond the national market.
• Full EMI:
  • full EMI license EU with the standard initial capital (€350 000);
  • ability to freely passport across the EU/EEA;
  • stricter requirements for capital, governance, operational risk management and IT‑infrastructure.

Criteria for choosing a country for an EMI license in Europe

regulatory requirements and legislation

• the level of formalism of the financial services regulator (BaFin, CNB, Bank of Lithuania, Central Bank of Portugal);
• willingness to engage in dialogue in English;
• the depth of assessment of the business model and IT architecture;
• emphasis on local presence, office, resident management.

Share capital and financial requirements

• requirements for additional capital depending on the volume of operations;
• expectations regarding the structure of equity, liquidity and financial stability and reporting.

• forecast of turnovers and commission income;
• potential capital requirements over a 3–5 year horizon;
• impact on the project’s ROI and KPIs.

Application process and document review timelines

• the format of communication with the regulator (online portal, email, in-person meetings);
• number of rounds of questions;
• typical application process and review timelines in a specific country.

Taxation and cost of support

• corporate tax and the tax treatment of IP and revenues from payment services;
• the cost of external audit and accounting, the requirement for a local auditor;
• the price of ongoing compliance support and audits for the EMI business.

Requirements for top management and residency

• proven experience in payments, risk management, the banking sector;
• an impeccable business reputation;
• actual involvement in management.

• the share of resident directors;
• the need for physical presence of C-level executives;
• formal requirements for staff qualifications.

AML, KYC and compliance

• the depth and detail of the Anti‑Money Laundering (AML) policy;
• mandatory KYC procedures and AML for EMI companies;
• the models used for risk‑scoring, restrictions by jurisdictions and client types.

IT infrastructure and cybersecurity

• architecture of the core platform and accounting systems;
• presence of a PCI DSS security certificate when working with cards;
• logging systems, event monitoring, disaster recovery plan;
• data protection, compliance with European payment security standards.

External factors: Brexit and regulatory trends

• requirements for comprehensive internal documentation of an EMI company;
• expectations for disclosure of information on risks and operational processes;
• an emphasis on the resilience of models to technological and cyber risks.

Regulatory requirements in key European countries

# EMI license in Lithuania

• clear requirements, transparency and speed of review;
• willingness to engage in dialogue in English;
• clear expectations for sEMI and Full EMI licenses.

• standard share capital for an EMI license €350 000 for the full model;
• detailed requirements for the business plan and financial reporting and 3-year projections;
• special attention to the description of the product line and customer geography;
• emphasis on well-developed operational risk management and IT security policies.

# EMI license in Portugal

• standard capital, but a stricter emphasis on funds safeguarding models;
• increased focus on holding client funds in a separate account and on audit procedures for EMI companies in Portugal;
• mandatory regular external audit and accounting;
• attention to IT architecture and business continuity plans.

# EMI license in Germany

• deep analysis of financial resilience and reporting, sources of capital;
• high requirements are imposed on top management and residency, real presence in Germany;
• risks and limitations are assessed separately when licensing EMIs in Germany, including the business model and partnerships.

Specifics of EMI licensing in the Czech Republic

• standard minimum capital for a Full EMI;
• registration requirements for the legal entity (s.r.o.), a local office and part of the staff;
• emphasis on the internal control system and risk control procedures;
• clear timeframes for obtaining a license when the dossier is well prepared.

Comparison of key parameters in a table

Obtaining an EMI license in the chosen country: practical steps

Business plan and financial forecasts

• describe the target audience, product line, geography and competitive positioning;
• prepare financial statements and 3-year forecasts: P&L, cash‑flow, balance sheet, scenario analysis;
• demonstrate capital resilience and the realism of unit economics.

Internal documentation and risk management

• AML policy and KYC and AML procedures for EMI companies;
• policies and procedures for managing operational risks;
• IT security regulations, including a disaster recovery plan and business continuity;
• descriptions of risk control, escalation and reporting procedures.

company registration

• forming the shareholder structure and governance;
• appointing directors and key functions (CEO, CFO, COO, MLRO);
• opening temporary accounts for depositing the authorized capital.

Preparation and submission of the dossier

• questionnaires and resumes of key personnel;
• business plan, financial models;
• all policies and procedures;
• descriptions of IT architecture, technology base and software for the EMI;
• evidence of shareholders’ sources of funds.

Interaction with the regulator

• responses to clarification requests;
• revisions of specific sections;
• clarification of technical and organizational details.

Post-licensing support

• regular regulatory reporting and external audit;
• maintaining up-to-date AML/KYC and IT policies;
• preparation for checks and inspections;
• planned scaling of the EMI business in Europe: new countries, products, partnerships.

PSD2 compliance specifics and protection of client funds

PSD2, key requirements

• requirements for transparency of fees and terms;
• standards for access to accounts and interaction with third parties (TPP);
• the requirement for strong customer authentication and security incident management.

Safekeeping of client funds

• safeguarded accounts in banks;
• insurance or similar protection mechanisms for certain models.

Payment security and IT infrastructure

• compliance with the PCI DSS standard and security certification when working with card data;
• secure transmission channels, encryption, and segmentation of environments;
• a well-designed disaster recovery plan and business continuity plans.

AML/KYC and risk management

• multi-level customer identification (remote/on-site, by risk segments);
• transaction monitoring and detection scenarios for suspicious activity;
• regular risk reassessment and updating of customer profiles.

How to scale an EMI business in Europe after obtaining a license?

Strategy for entering the EU and EEA markets

• notifying regulators in target countries;
• setting up local processes (support, localization of documents, marketing);
• building partnerships with banks and payment infrastructure providers.

Technology base and services

• rapidly adding new payment methods and currencies;
• integrating with local payment systems;
• using data to improve risk‑scoring and the product.

Financial resilience and performance metrics

• continuous monitoring of financial resilience and reporting;
• managing capital and liquidity;
• assessing performance through key metrics (ROI and KPIs): LTV/CAC, cost‑to‑serve, share of problematic transactions, retention.

Impact of regulatory requirements on scaling

• increased focus on governance and independent directors;
• higher expectations for internal audit, second line of defence;
• requirements for capital buffers and risk models change.

Key findings and recommendations

1. Regulatory framework and practice: transparency of requirements, the regulator’s experience with fintech, realistic timelines.
2. Finances: minimum and operating capital, taxes, the cost of audit and compliance.
3. Operations and technology: requirements for office premises, personnel, IT infrastructure, payment security.
4. Growth strategy: passporting opportunities, market reception of the jurisdiction, prospects for scaling across the EU and EEA.

Over the past three years the average size of regulatory fines for financial companies in the EU and Asia has increased many times over, and some individual cases reached hundreds of millions in base currency units. The 2024–2025 sanctions restrictions led to account freezes and license revocations for otherwise stable businesses simply because their compliance system failed to keep up with the changes.

When is a compliance audit mandatory for companies

Regulatory framework: EU, Asia, CIS
In the work of the COREDO team I see three main drivers that make a compliance audit mandatory:

• direct regulatory requirements,
• conditions of financial licensing,
• sanctions-related and banking expectations regarding sanctions compliance and AML.

In the EU mandatory compliance audits for legal entities are established primarily for:

• credit and payment institutions, electronic money issuers, investment firms (MiFID, PSD2 licenses and their local implementations),
• crypto providers subject to the updated AML directives and MiCA,
• issuers of securities and companies whose securities are traded on regulated markets (requirements on internal control and risk management).

In Asia the picture is more fragmented, but the general trend is similar. In centres such as Singapore and Hong Kong, for licensable financial, payment and crypto companies:

• detailed regulatory requirements for internal control and compliance are established,
• regular monitoring and compliance audits are prescribed, often with involvement of external consultants,
• special attention is paid to compliance and AML (anti‑money laundering), as well as compliance and data protection.

Sectors with mandatory compliance audits
COREDO’s experience shows: regardless of the literal law, there are sectors where without a regular audit you will not pass either Licensing or banking compliance:

• the financial sector (banks, payment organizations, PSP, EMI, forex dealers, investment companies);
• crypto and fintech services operating in the EU, Singapore, Dubai, Cyprus, Estonia and the United Kingdom;
• companies registering legal entities in the EU with subsequent financial licensing;
• international holdings operating with sensitive markets and currencies: here compliance and risk management are already expected by the banks and partners themselves.

Sanctions, AML and increasing obligations
The 2025 sanctions regime turns compliance and sanctions risks into a key factor making checks mandatory. Banks and payment providers require from clients:

• formalized sanctions compliance,
• procedures for counterparty due diligence and supply chain control,
• evidence that compliance and protection from sanctions for the business are not a declaration but a functioning system.

Risks of non-compliance: fines and loss of licenses
Companies whose compliance and risk management exist only “on paper” face three types of consequences:

• financial fines and freezing of operations,
• regulatory risks – revocation or suspension of licenses, restrictions on new products and markets,
• reputational losses and severing of relationships with banks, payment providers and key partners.

Stages of a compliance audit from preparation to remediation
A compliance audit is a systematic review of the company’s conformity to laws, standards and internal rules, covering all key stages: from preparation and gathering the regulatory base to identifying and remedying non-compliances. For the audit to be effective, it is important to clearly define its scope and prepare a complete set of data and documents.

Preparation: verification and data collection
When I am asked how to conduct a compliance audit in a company, I always start by defining the perimeter:

• which jurisdictions (EU, Asia, CIS),
• which licenjurisdictions and types of activities,
• what processes (KYC, sanctions screening, compliance and transaction monitoring, data protection, information security, anti-corruption).

Internal compliance audit: documents and practice
Modern internal audit inevitably goes beyond a ‘paper review’. In our practice it includes:

• document analysis: compliance procedures, AML policies, anti-corruption regulations, compliance and data protection standards, information security;
• interviews with responsible persons: compliance manager, lawyers, operations specialists, risk managers;
• sample testing: how compliance and counterparty control work, how decisions on high-risk clients are documented, how red flags are recorded.

Assessment of conformity with rules and standards
The next layer: formal assessment of compliance and conformity with regulations:

• relevant EU and Asian laws on AML, sanctions, data protection and corporate governance;
• local regulatory requirements for compliance in the financial sector;
• international standards such as ISO 27001 for information security and elements of corporate governance standards.

Audit report: structure and focus
A good report is not just a list of violations. When preparing compliance audit reports I always aim for three things:

• a clear risk map by areas: AML, sanctions compliance, anti-corruption, data protection, information security, contract work;
• reference to standards: specific statutory provisions and regulator requirements that the systems fail to meet;
• impact assessment: legal, financial and reputational risks, impact on licenses and banking relationships.

Corrective measures and roadmap
The next step is recommendations to eliminate compliance gaps. At COREDO we always present them as a roadmap with prioritization:

• quick measures (1–3 months): policy amendments, strengthening counterparty due diligence procedures, additional internal control and compliance for high-risk deals;
• medium-term (3–9 months): implementation or upgrade of IT systems for compliance and process automation, strengthening compliance and information security audit, staff training;
• strategic (9–18 months): restructuring the compliance system, integration with the legal department, updating the compliance risk management model.

Monitoring and repeat checks
An audit is not the end, but a starting point. I always recommend:

• embed regular monitoring and compliance audits into policy,
• conduct selective repeat checks of key processes,
• track compliance and process maturity assessment against predefined KPIs.

The role of legal support and AML in the compliance audit
The role of legal support and AML services in the compliance audit is especially noticeable where companies need not only formal compliance with regulator requirements, but also to build a sustainable risk management system. Legal support and specialized AML services allow the compliance audit to be deeper, more accurate and directly affect the effectiveness of further integration between compliance and the legal service.

Integration of compliance and the legal department

The optimal model is integration of compliance and the legal department:

• lawyers provide legal business support, analyze legal liability, sanctions and regulatory restrictions on transactions;
• the compliance manager and his team are responsible for customer, counterparty, beneficial owner and transaction screening procedures;
• together they establish compliance and Legal review of contracts, including sanctions and AML restrictions, reps & warranties, termination clauses in case of regulatory risks.

AML services as the core of risk control
For companies applying for financial licensing or working with cross-border payments, AML services are no longer an option but a foundation:

• KYC/KYB procedures,
• screening against sanctions and PEP lists,
• transaction monitoring,
• investigation of suspicious transactions and preparation of reports to the regulator.

Company registration and compliance requirements
When registering legal entities in the EU or Asian jurisdictions, incorporation itself is no longer limited to filing documents. Banks, licensing authorities and investors expect:

• a basic compliance system,
• formalized internal control and compliance,
• compliance procedures and management of internal procedures and approval chains for transactions.

Preparation for inspections

policies, but also evidence of their real application. In such cases legal support for business and compliance work together:

• prepare a package of documents for review,
• address possible questions from the regulator,
• prepare an internal presentation of the control and sanctions risk management system.

COREDO’s experience shows: companies that have previously completed an internal compliance audit and implemented corrective measures pass external inspections noticeably more calmly.

Compliance audit under sanctions 2025
The compliance audit under sanctions in 2025 has ceased to be a “checkbox” option and has become a working tool for business survival in international markets. With increasing pressure from regulators and the growth of secondary restrictions, competent sanctions compliance has become a mandatory module of risk control systems and the basis for further steps to adapt to new requirements.

Sanctions compliance: a mandatory module
In 2025, the compliance audit under sanctions became a separate area. It includes:

• checking how sanctions filters are integrated into compliance and transaction controls;
• analysis of the geography of operations, supply chains and the financial stability of counterparties taking into account sanctions regimes;
• assessment of how quickly the company can respond to changes in lists and requirements.

Role of the compliance manager
In the sanctions agenda, the role of the compliance manager in audits is changing:

• from a “document controller” he moves to the role of a risk partner of management;
• participates in the assessment of new markets, products and partnerships;
• is responsible for compliance and the management of sanctions risks and for communication with banks and regulators.

Technology and automation

Practical recommendations for entrepreneurs and managers
For entrepreneurs and managers, a mandatory audit is not just a formality, but an important tool to verify the reliability and transparency of the business. Below are practical steps and recommendations that will help you properly prepare for the audit and pass it with minimal risks.

Preparing for the mandatory audit
If you understand that your industry and jurisdictions make a compliance audit inevitable, I recommend starting with three steps:

1. Define the regulatory map: which laws of the EU, Asia, CIS, which standards (AML, sanctions, information security, corporate governance) apply to you.
2. Conduct a rapid assessment of the compliance system: whether there are formalized policies, procedures, internal control and compliance, allocation of roles.
3. Set a budget and timeline for an internal or external compliance audit in the company.

Internal control and staff training

Scaling the compliance system

KPI and ROI of compliance

Actions when discrepancies are identified

The COREDO team often accompanies clients at this stage, helping to turn a crisis into an opportunity to strengthen the system and reinforce the trust of regulators and partners.

Mandatory compliance audit for business

Table of mandatory compliance audits by regions and industries

European regulators have radically changed their approach to card issuance. Where requirements used to be relatively flexible, they are now strict and relentless. The tightening affects everything: from customer verification procedures to technological security standards, from sanctions restrictions to tax regulation. And this is only the beginning.

Over nine years of work COREDO we have helped over 500 companies from Europe, Asia and the CIS successfully register payment services and obtain the necessary licences. Our experience has shown that success depends not only on knowledge of the law, but also on understanding how regulators interpret these requirements in practice. In this article I will share what every entrepreneur planning to work with card issuance in Europe needs to know.

Issuance of EU payment cards: who controls?

The European financial regulatory system is arranged like a matryoshka. At the top level are supranational bodies, the European Central Bank and the European Banking Authority. They set common rules and standards. At the middle level operate national central banks and financial regulators of each country. They adapt European requirements to local conditions and conduct supervision. At the lowest level are the companies themselves, which must comply with all these requirements at the same time.

COREDO’s practice confirms: companies often do not understand exactly who supervises them. For example, if you register a payment institution in Spain, you will be supervised by the Spanish regulator (Banco de España), but at the same time you must comply with the requirements of the EBA and the ECB. This means you are subject to three levels of regulation at once.

Role of the ECB, EBA and regulators in card issuance

The European Central Bank focuses on macroeconomic stability and monetary policy. But in the context of card issuance its role is critical: the ECB sets requirements for payment systems, defines security standards and monitors systemic risks. When the ECB issues a recommendation, it is not just advice — it is effectively a mandatory requirement for all market participants.

The European Banking Authority (EBA) is the body that develops technical standards for payment services. The EBA issues regular updates that define exactly how companies must implement PSD2 (Payment Services Directive 2) requirements. For example, the EBA determines which customer verification methods are considered sufficient, which technologies should be used to protect data, and how to organize monitoring of suspicious transactions.

National regulators are those who issue licenses and carry out on-site supervision. They have some freedom in interpreting European requirements, but they cannot ignore them. For example, the Spanish Banco de España may set higher capital requirements than the minimum established by the EBA, but it cannot set lower ones.

PSD2 and card issuance in 2025–2026

The main principle of PSD2 is openness and competition. The directive requires banks to open access to accounts to third parties (Open Banking), so that payment services are available not only to banks but also to specialized payment institutions, and so that customers have a choice among different service providers.

Third, Open Banking requirements. If a customer wants to connect your card to a payment aggregator service, you must provide an API for integration. This creates new opportunities but also new risks: you need to ensure that third parties meet security requirements.

COREDO’s practice has shown that many companies underestimate PSD2 requirements. They think that simply adding two-factor authentication is enough and that everything is fine. In reality, the requirements go much deeper. You need to review the entire system architecture, update processes, and train the team. We helped a Spanish company conduct a full compliance audit of PSD2, and it turned out they had more than 50 compliance gaps. After fixing these gaps the company not only avoided fines but also improved the user experience.

Sanctions restrictions and card issuance in 2025–2026

For card issuers this creates a difficult situation. If you issue cards that can be used for payments through sanctioned systems, you may be held liable. This is not just a fine; it may lead to license revocation and criminal prosecution of company executives.

The solution developed by the COREDO team: we created a sanctions monitoring system that integrates with payment systems. The system automatically checks every transaction against sanctions lists and blocks suspicious operations. This requires investment in technology, but it is necessary to comply with regulator requirements.

In addition, companies must regularly update their sanctions policies. You need to clearly define which countries and companies you do not serve, which payment systems you do not use, and how you screen customers for sanctions restrictions. All of this must be documented and reviewed regularly.

AML requirements for card issuance in 2025–2026

Regulators tightened requirements because money laundering volumes are increasing. According to the International Monetary Fund, between 2 and 5% of global GDP is laundered each year. That’s trillions of dollars. And payment systems often become a channel for these operations. Regulators decided this must change.

Updated AML and KYC standards in the EU for card issuance

Previously companies could use simplified verification for low-risk customers. Now all customers must undergo full verification. This means collecting not only passport details but also information about income sources, the company’s structure (if the customer is a legal entity), and beneficial owners.

For individuals the process looks like this: the customer uploads a copy of their passport, takes a selfie, and confirms their residential address. The system checks this data against databases (for example, against PEP lists, politically exposed persons). If the customer falls into a higher-risk category, additional verification is required.

For companies the process is much more complex. You need to collect incorporation documents, information about ownership structure, data on beneficial owners (Ultimate Beneficial Owners, UBO). You must check whether the company is connected to sanctioned countries or engaged in activities that could be linked to money laundering (for example, casinos, arms trading).

COREDO’s practice has shown that many companies underestimate the complexity of KYC for corporate clients. We helped a Lithuanian payment company develop a KYC process that includes 15 verification steps. It may seem like a lot, but it is necessary to meet regulatory requirements and to protect the company from risks.

Verification timelines have also tightened. Previously companies could complete verification within 10 days. Now verification is required within 2–5 days. This means investing in process automation. We recommend using digital identification systems (for example, eIDAS in the EU), which allow speeding up the verification process.

Reporting and monitoring of AML operations

What is considered suspicious? For example, if a customer suddenly starts making transactions totaling ten times more than usual. Or if a customer who lives in Europe makes payments to countries that are under sanctions. Or if a customer makes many small transactions that together add up to a large sum (this is called “structuring” and is a sign of money laundering).

Monitoring systems must automatically detect these patterns and generate alerts. Then a compliance specialist must analyze the alert and decide whether to file a Suspicious Activity Report (SAR) with the regulator.

Risks and management of issuing corporate cards in the EU

The main risk when issuing corporate cards is that the card may be used to finance terrorism or other illegal activities. For example, a company may be a front for money laundering. Or the card may be used to finance terrorist organizations.

To minimize these risks, companies must carry out enhanced verification for corporate clients. This includes checking the company’s ownership structure, verifying beneficial owners, screening against sanctions lists, and checking the company’s history.

In addition, companies should set limits on corporate card transactions. For example, a daily transaction amount limit, a limit on the number of transactions per day, and limits on transactions in certain countries.

COREDO’s practice has shown that companies that take risk management seriously gain an advantage. They avoid fines, they avoid account closures by banks, and they gain regulators’ trust. We helped a Spanish company develop a risk management system that includes automatic screening of all corporate clients. This led the company to identify several suspicious clients and avoid serious problems.

Registration of legal entities for card issuance in the EU

If you decided to launch a payment service with card issuance, the first question is: where to register the company? This is a critical decision that affects everything else: capital requirements, taxes, compliance requirements, and the ability to scale.

Selecting a jurisdiction to register a company for card issuance

There are several jurisdictions in the EU that specialize in payment services. Each has its own advantages and disadvantages.

• Spain: this is one of the most popular choices for startups. Capital requirements are relatively low (from €50 000 for a payment institution), the licensing process is relatively fast (3–6 months), and taxes are competitive. In addition, Spain has a well-developed ecosystem of payment companies, experienced consultants, and service providers.
• Lithuania: this is another popular choice. The Lithuanian regulator (Bank of Lithuania) is known for its progressive approach to regulation. Capital requirements are low, the licensing process is fast, and taxes are low. Lithuania is also known for its digital infrastructure and support for fintech companies.
• Luxembourg, this is a choice for companies that want to work with high-value assets. Capital requirements are high (from €1 million), but Luxembourg’s reputation as a financial center opens doors to attracting investments. Taxes in Luxembourg are also competitive thanks to tax incentives for financial companies.
• Cyprus: this is a choice for companies that want to work with clients from different regions. Cyprus has low capital requirements, a fast licensing process, and low taxes. In addition, Cyprus has good links with companies from Asia and the Middle East.

Licensing and authorization for card issuance

obtaining a license for card issuance: this is a long and complex process. It includes several stages and requires preparation of a large number of documents.

The first stage is choosing the type of license. In the EU there are two main types of licenses for payment services: Payment Institution License (лицензия платежного учреждения) and Electronic Money Institution License (лицензия учреждения электронных денег).

• Payment Institution License: issued to companies that provide money transfer services, payment processing, and issuance of payment instruments (including cards). This is the most common license for companies that want to issue cards.
• Electronic Money Institution License: issued to companies that issue electronic money (for example, prepaid cards). This license requires higher capital and stricter compliance requirements.

The third stage is submitting the application. The application is submitted through the regulator’s online portal. You need to fill out the form, upload documents, and pay the application fee (usually from €500 to €5 000).

The fourth stage is application review. The regulator checks the documents, may request additional information, and may hold a meeting with the company’s management. This stage can take from 2 to 12 months depending on the jurisdiction and the complexity of the application.

The fifth stage is receiving the license. If the regulator approves the application, the company receives the license. The license is issued for a specific period (usually 5 years) and can be renewed.

COREDO’s practice has shown that companies often underestimate the complexity of the licensing process. They think it’s enough to simply submit documents and wait for approval. In reality, you need to actively interact with the regulator, respond to requests, and provide additional information. We helped one Lithuanian company complete the licensing process in 3 months because we had prepared all documents in advance and actively engaged with the regulator.

Documents and the procedure for registering a legal entity

Before submitting an application for a license, you need to register the company. The registration process depends on the jurisdiction, but in general it looks like this:

In the EU the company registration process usually includes the following steps:

1. Choosing the company name — ensure the name is unique and does not infringe third-party rights.
2. Preparing incorporation documents: prepare the company’s articles of association, the decision to form the company, and information about directors and shareholders.
3. opening a bank account — you need to open a bank account to deposit capital.
4. Submitting documents to the company register — you need to file documents with the local company register (for example, in Spain this is the Registro Mercantil).
5. Receiving the certificate of incorporation — after approval the company receives the certificate of incorporation.

Registration times vary from 3 to 7 days depending on the jurisdiction. After registration the company can apply for a payment institution license.

Technological requirements and safety standards for card issuance

Where technology used to be merely a tool for running a business, in 2025–2026 technology has become the foundation for regulatory compliance. Regulators now require companies to adopt specific technological standards and data protection methods.

Tokenization and contactless payments: what you need to know

Contactless payments are payments made without physical contact between the card and the terminal. This can be a payment via NFC (Near Field Communication), a payment via QR code, or a payment via a mobile app. Regulators require that all companies support contactless payments and that these payments be protected against fraud.

COREDO’s experience has shown that implementing tokenization and contactless payments requires significant investments in technology. Payment processing systems need to be updated, integration with payment networks (Visa, Mastercard) is required, and testing and certification must be carried out. But these are investments that pay off through reduced fraud and improved user experience.

In 2025 Spain became one of the most attractive markets in Europe for international entrepreneurs: according to EY, more than 38% of foreign investors name the country a priority for expanding business in the EU. Nevertheless, 67% of companies face legal risks already at the registration stage, and more than 80% during scaling and entering new markets. Why does such a high percentage of businesses fail or lose profits due to legal mistakes? How can you avoid common pitfalls and ensure sustainable development?

My experience and the practice of the COREDO team show: legal support is not just a formality, but a strategic asset that allows you to minimize risks, protect capital and ensure compliance at all stages of a company’s development.

Main legal services in Spain

Legal services in Spain cover the entire business life cycle – from company registration to support for complex transactions, tax optimization and protection of intellectual property. Our experience at COREDO has shown: the success of international business is impossible without a comprehensive approach that includes corporate law, tax support, labor law, compliance and litigation representation.

Company registration in Spain: forms, documents, timelines

Starting a business in Spain begins with choosing the optimal legal form. For foreign investors the most in-demand are Sociedad Limitada (SL) and Sociedad Anónima (SA). SL – the European GmbH equivalent, suitable for small and medium businesses, SA – for large projects and public companies.

The COREDO team has implemented dozens of cases of registering SL and SA in Spain for clients from the EU and Asia. Key stages:

• Due Diligence (legal due diligence) of the structure and beneficiaries.
• Preparation of the company’s statutory documents in Spain: articles of association, decision on the appointment of directors, meeting minutes.
• Legal Opinion (legal opinion) on compliance of the business model with the requirements of Spanish legislation.
• Registration of trademarks in Spain to protect the brand.
• Obtaining a tax identification number (NIF), Opening bank accounts, obtaining licenses and permits.

Spanish corporate law: management and transactions

Spanish corporate law is not only registration, but also transaction support, legal audit, corporate restructurings and company liquidations. COREDO’s practice confirms: competent management of legal risks allows avoiding conflicts between shareholders, minimizing tax losses and ensuring protection of business owners’ assets.

Key areas:

• Support for M&A transactions: Legal review of contracts, deal structuring, Due Diligence of the target company.
• Legal audit in Spain: analysis of corporate structure, compliance, identification of risks.
• Corporate restructurings: optimization of group structure, liquidation of inefficient units, protection of shareholders’ interests.
• Legal support for international investments: preparation of legal opinion for investors, support for cross-border transactions.

Tax support in Spain: optimization, reporting, consulting

Tax support in Spain is a key element of a successful business. Spanish tax law is characterized by a complex structure, many local and national taxes, and strict reporting requirements.

The COREDO team carries out projects to optimize taxation in Spain for companies from the EU and the CIS:

• Tax planning and optimization: selection of the tax regime, structuring transactions taking into account international tax law.
• Tax audits and reporting: preparation and submission of declarations, support during tax audits, protection of the client’s interests.
• Optimization of VAT and corporate tax: implementation of VAT refund mechanisms, reduction of the tax burden on profits.
• Tax consulting for foreign entrepreneurs: advice on double taxation issues, structuring international operations.

Spanish labor law: contracts, disputes

Spanish labor law is one of the most regulated in Europe. Errors in drafting employment contracts, HR documentation or failure to meet compliance requirements can lead to serious fines and litigation.

COREDO’s practice includes:

• Drafting employment contracts under Spanish law: preparation of contracts, confidentiality agreements, data protection policies (GDPR).
• Compliance with the Whistleblowing Act: implementation of internal control procedures, protection of employees’ rights.
• Resolution of labor disputes: pre-trial settlement, representation in Spanish courts, protection of employers’ interests.
• Legal support for business processes and HR recordkeeping: audit of HR documents, staff training.

Support for real estate transactions and contracts

Real estate transactions are one of the most complex and risky segments for business in Spain. Legal review of lease and supply contracts, support for the purchase and sale of commercial real estate, asset protection for business owners are key tasks that the COREDO team handles for clients from the EU and the CIS.

Key stages:

• Legal review of lease and supply contracts: analysis of terms, protection of the interests of the tenant and the landlord.
• Legal support for real estate transactions: preparation of documents, title checks, agreement of terms.
• Asset protection for business owners: structuring transactions taking into account tax and legal risks.

Obtaining licenses and permits in Spain

For conductingFor businesses in Spain, in a number of sectors, obtaining licenses and permits is required:financial services, e-commerce, construction, tourism, healthcare.

The COREDO team supports clients at every stage:

• Obtaining licenses and permits: document preparation, interaction with regulators, Legal support for financial institutions.
• Licensing of businesses and permitting documentation: requirements analysis, structuring compliance processes.
• Support in obtaining licenses for crypto, payment, banking and forex companies.

Legal support for startups and IT companies

Startups and IT companies face unique legal challenges: intellectual property protection, cybersecurity, e-commerce regulation, structuring venture investments.

COREDO’s practice includes:

• Legal support for IT companies and startups: registration of trademarks, patents, copyrights.
• Cybersecurity and new technology law: implementation of data protection procedures, compliance with GDPR.
• Legal support for e-commerce in Spain: contract preparation, personal data protection, structuring online business.
• Venture investment support: preparation of investment agreements, legal due diligence of projects.

Litigation support in Spanish courts

Court dispute resolution is an inevitable part of business in Spain. Court representation, pre-trial procedures, and protection of company and shareholder interests are key areas that the COREDO team provides for international clients.

Key services:

• Representation in Spanish courts: protecting interests in commercial, administrative and labor disputes.
• Litigation and pre-trial procedures: mediation, arbitration, negotiations.
• Legal business protection from risks: analysis of litigation prospects, minimizing losses.

Legal support for foreign investors

Doing business in Spain for foreign investors requires a special approach: knowledge of local and international standards, integration into corporate governance, asset protection and compliance with the requirements for obtaining a residence permit and residency.

The COREDO team assists clients from Europe and Asia in the following areas:

• Support for foreign investments in Spain: legal due diligence of investment assets, deal structuring, protection of the investor’s interests.
• Legal support for foreign investors: obtaining a residence permit through business activity, preparation of documents for obtaining residency.
• Legal aspects of doing business for foreign companies: integration into corporate governance, ensuring compliance, protection of intellectual property.

How to choose a law firm in Spain?

Choosing a law firm is a strategic decision for any business. What should you pay attention to?

• Experience working with foreign investors and international projects.
• Comprehensive approach: Legal outsourcing for businesses in Spain, retainer services, consulting on corporate, tax and employment law.
• Deep expertise in transaction support, litigation, licensing and compliance.
• Transparent processes, clear communication, regular reports on results.

Legal support for businesses in Spain

1. Identify your business needs: registration, taxes, labor law, compliance.
2. Choose a law firm with experience working with foreign investors.
3. Arrange a legal audit and company Due Diligence.
4. Set up tax support and optimization.
5. Ensure compliance and adherence to the law.
6. Draw up employment contracts and HR documentation.
7. Obtain the necessary licenses and permits.
8. Arrange litigation support and asset protection.
9. Regularly conduct legal audits and Due Diligence.
10. Use legal outsourcing to save resources.

Minimize risks and scale your business in Spain

legal protection for businesses from risks in Spain, is not a one-time service, but an ongoing process that requires a comprehensive approach, professionalism and strategic vision. Legal business security, management of legal risks, protection of owners’ assets – key elements of long-term success.

COREDO’s solutions allow entrepreneurs, managers and investors:

• To focus on business development without being distracted by legal issues.
• To minimize risks related to taxes, employment law, transactions and litigation.
• To effectively scale the business in Spain using legal outsourcing and consulting for international business.

Legal services in Spain

Practical steps for entrepreneurs

1. Identify business needs: registration, taxes, labor law, compliance.
2. Choose a law firm with experience working with foreign investors.
3. Arrange a legal audit and due diligence of the company.
4. Set up tax support and optimization.
5. Ensure compliance and adherence to legislation.
6. Prepare employment contracts and HR documentation.
7. Obtain the necessary licenses and permits.
8. Arrange litigation support and asset protection.
9. Conduct regular legal audits and due diligence.
10. Use legal outsourcing to save resources.

Legal business support in Spain – is a strategic tool for minimizing risks, ensuring compliance with legislation and effective scaling. Solutions developed by COREDO enable entrepreneurs and investors to build a sustainable business, protect capital and implement international projects with confidence in legal security.

Why do even experienced executives waste time and resources trying to figure out the nuances of Polish corporate and labor law? How can you avoid legal pitfalls and ensure process transparency when entering the EU market through Poland?

If you are looking not for abstract advice but for concrete solutions, read the article to the end. Here you will find practical recommendations, case studies and tools that will help minimize risks, save time, and build effective legal support for your business in Poland.

Main areas of legal support in Poland

Company registration in Poland: basics

The solution developed at COREDO includes a detailed analysis of the client’s objectives, selection of the ownership form taking into account tax planning and corporate governance requirements. For example, for tech startups and companies focused on international investments, Sp. z o.o. provides flexibility, minimal share capital and ease of attracting new partners. For large holding structures, S.A. opens access to the stock market and corporate governance instruments.

Special attention is paid to issues of legalizing foreign business and corporate governance. It is important not only to correctly draft meeting resolutions and the articles of association, but also to build an internal control system that complies with the requirements of Polish law and EU standards.

Corporate law and contract support

Within contract law and contract drafting, special importance is given to adapting documents to international standards (for example, ICC, UNIDROIT), as well as considering the specifics of Polish and European legislation. For COREDO’s clients we develop comprehensive contract packages that include not only the main terms but also dispute resolution mechanisms, intellectual property protection, confidentiality and compliance provisions.

Legal consultations and business support

The COREDO team supports clients at all stages: from pre-trial dispute resolution to representation in arbitration and administrative proceedings. Special attention is paid to legal due diligence of counterparties and risk audits – these tools allow identification of potential threats even before concluding a transaction and minimize the likelihood of financial and reputational losses.

Legal audit and risk assessment are not one-time procedures but systemic tools of business management that include analysis of corporate structure, compliance procedures, tax obligations and employment relations.

Employment law and taxes in Poland

At COREDO we develop bespoke employment contracts and internal regulations that take into account the specifics of the industry, the scale of the business and GDPR requirements for the protection of employees’ personal data. Preparing employment contracts and regulations in Poland includes agreeing on pay terms, work schedules, incentive systems and procedures for resolving labor conflicts.

Legal assistance during tax audits in Poland includes document preparation, support for communication with tax authorities, appealing decisions and defending the company’s interests in court.

AML services and compliance for businesses in Poland

legal services for startups and innovative companies include not only basic compliance procedures, but also the development of tailored solutions for working with new financial instruments, digital assets, and cross-border operations.

Legal support for real estate and intellectual property

Intellectual property protection in Poland is another important aspect for companies operating in the innovation and IT sectors. trademark registration and patents, as well as legal support for licensing and certification, provide not only asset protection but also competitive advantages in the market.

The COREDO team supports clients at all stages: from filing an application with the UPRP (Polish Patent Office) to defending rights in case of infringement and appealing decisions of government authorities.

Legalization and immigration law for entrepreneurs

The solution implemented by the COREDO team includes analysis of the client’s individual situation, preparation and support for submitting documents, and interaction with voivodeship authorities and migration services. Particular attention is paid to issues of legalizing foreign businesses, verifying sources of investments and ensuring transparency of the ownership structure.

Legal assistance in resolving immigration issues allows clients not only to obtain a residence permit but also to build a long-term strategy for staying and developing a business in Poland.

Practical tips for entrepreneurs

Choosing a reliable legal partner in Poland: a strategically important decision for any business focused on long-term development and risk minimization. COREDO’s experience shows: the key mistakes in legal support of business are related to underestimating compliance procedures, a formal approach to document execution, and the lack of systematic risk audits.

I recommend paying attention to the following aspects:

• Check the team’s experience and expertise in supporting international projects.
• Assess the transparency of processes, the presence of clear regulations and internal control systems.
• Use legal audits and counterparty due diligence as regular risk management tools.
• Implement modern compliance procedures that meet EU standards and the requirements of Polish law.
• Evaluate the effectiveness of legal support through ROI metrics: reduction in the number of disputes, acceleration of transactions, minimization of fines and delays.

Table of legal services and benefits

Conclusion

Poland remains one of the most attractive markets for entrepreneurs entering the European Union. But along with open opportunities come concrete legal requirements, ignoring which turns a strategic move into an expensive risk. COREDO’s experience shows: companies that build a sound legal architecture from the earliest stages — from registering the structure to implementing compliance and tax planning — not only avoid difficulties but also gain a real competitive advantage.

Properly prepared corporate documents, a transparent contractual framework, an internal control system, legal cleanliness of transactions and compliance with labor, tax and AML legislation — all of this forms the foundation on which a business can be safely scaled. In the context of strict European regulation, those who act based on data, expertise and a strategic approach win.

Success in the European market begins with the right legal decisions.

Why, despite the apparent simplicity, are many applications rejected or delayed for months? How can you avoid common mistakes, ensure full compliance with ACRA requirements, and obtain not just a certificate but real access to global opportunities?

I, Nikita Veremeev, founder of COREDO, face the questions daily: “How long does company registration in Singapore actually take? What documents are needed? What are the risks and hidden costs?” Over the years, the COREDO team has implemented dozens of successful projects to launch businesses in Singapore: from fintech startups to international holdings. In this article I will not only explain the step-by-step registration procedure in detail, but also share strategic advice that will help you not just open a company, but build a transparent, sustainable and scalable structure for entering the markets of Asia and the world. If you want not a theoretical instruction but a practical guide that takes into account the latest changes in legislation, read the article to the end: you will find answers to key questions and be able to avoid common mistakes.

Company registration in Singapore for business

company registration in Singapore: this is far more than a formal procedure — it opens access to a powerful international infrastructure, a favorable tax system and one of the most stable financial centres in the world. That is why this step is critical for international business: effective entry into global markets and sustainable development largely depend on choosing the right jurisdiction and understanding Singapore’s regulatory environment.

The role of ACRA in regulating business in Singapore

Benefits of registering a company in Singapore

• Legal operation in a global hub: Singapore ranks among the top 3 jurisdictions worldwide for ease of doing business and provides direct access to Southeast Asian markets and the rest of the world.
• Transparency and speed: The process is fully digitized, and most applications are approved within 1–3 days.
• Unified regulatory standards: Compliance with international AML/CTF standards, which facilitates opening accounts and working with investors.
• Trust of partners and clients: The reputation of the Singapore jurisdiction facilitates attracting investment and entering into partnership agreements.
• Flexibility to scale: The ability to quickly expand operations, open branches and obtain licenses for specific types of business.

Types of businesses requiring registration in Singapore

• Financial services: Fintech, payment systems, cryptocurrency platforms, investment funds.
• Technology startups: AI, SaaS, blockchain, cybersecurity.
• International trade and holdings: Companies operating in foreign markets.

Types of legal entities and business licenses

Types of legal entities and licenses are key parameters that determine the strategy and success of your business on the international market. The right choice of company form and required license defines not only the legal structure, but also the level of protection, management flexibility and tax advantages for your project. Below we will review the main options and features to consider when launching a business abroad.

Private Limited Company (Pte Ltd): what is it?

Licenses for specialized activities

• financial licenses (EMI, payment, cryptocurrency): Required for companies issuing electronic money, providing payment services or working with crypto assets. The licensing procedure is regulated by the Monetary Authority of Singapore (MAS) and requires a separate set of documents, a business plan, an AML/CTF system and internal controls.
• Technology licenses: For IT companies working with personal data, registration with the PDPC is required and compliance with cybersecurity standards must be ensured.

Step-by-step company registration in Singapore

The step-by-step procedure for company registration in Singapore allows you to structure the process from analyzing the business idea to obtaining the legal status of a new enterprise. Let’s review the key stages to organize preparation and avoid common mistakes when starting a business in one of the world’s most attractive jurisdictions.

Preparation and analysis — Stage 1

• Choosing a name: The name must be unique and comply with ACRA requirements. Checking and reservation are carried out via the BizFile+ online portal.
• Determining the structure: Appointment of at least one resident director (a citizen or resident of Singapore), determination of the composition of shareholders, the company secretary, and the registered address.
• Preparing the document package: Founding documents, the constitution, information about directors and shareholders, proof of address, a business plan, information about beneficiaries and sources of funds.

Submission of the application via BizFile+ and payment of fees

• All documents are submitted through the BizFile+ electronic system. Payment of the government fee is a mandatory step (from 315 SGD).
• After submission, ACRA conducts an automatic check and, if necessary, requests additional information.

Obtaining the registration certificate and UEN

• Upon successful consideration, the company receives a certificate of registration and a Unique Entity Number (UEN), which is required to open bank accounts and conduct business.

Post-registration requirements

• Maintaining registers of controllers and directors: From 2025, a mandatory requirement for all companies to maintain up-to-date registers of controllers and nominee directors.
• Annual reporting: Filing the Annual Return, financial statements, and confirmation of controller details.
• Compliance with AML/CTF requirements: For licensable activities: implementation of KYC, transaction monitoring, and reporting suspicious transactions.

Financial and operational requirements

Financial and operational requirements are the basic conditions that any business must meet at the stage of launch and while operating. Within these requirements it is important to determine the minimum capital, estimate the cost of registration, and properly organize all necessary financial and operational processes.

Minimum capital and registration costs

• Minimum share capital – 1 SGD, but to open an account and obtain licenses it is recommended to have 10,000–100,000 SGD, depending on the field of activity.
• Government fees from 315 SGD for registration; additional expenses for document preparation and legal support – 2,000–10,000 SGD.

Operating costs and compliance

• Annual expenses: bookkeeping, audit (for companies with turnover above 10 mln SGD), legal services, compliance support.
• Penalties for breaching ACRA requirements: up to 600 SGD for late filing, up to 50,000 SGD and criminal liability for violations of the new rules on corporate service providers.

Compliance and Data Protection Requirements

Modern compliance requirements, AML/CTF and data protection are becoming a mandatory part of the operations of all companies involved in finance and the processing of personal information. Adherence to these standards not only helps minimize the risk of legal violations but also ensures the trust of clients, regulators and partners. Below we will examine the specifics of approaches to AML/CTF and KYC, which are key elements of an effective compliance system.

AML/CTF and KYC

• Companies operating in the financial sector are required to implement KYC procedures, transaction monitoring and reporting of suspicious activities in accordance with MAS requirements and the international FATF standards.
• Internal audit, risk management systems and regular reviews are mandatory elements for preventing financial crimes.

Cybersecurity and Data Protection

• For IT companies and fintech, mandatory implementation of cybersecurity standards (ISO 27001 and higher), data encryption, protection of customer information, and uninterrupted platform operation.
• Violation of PDPC data protection requirements may result in fines and restrictions on operations.

Business expansion and additional licenses

Business expansion is often associated with entering new areas or adding additional services, which may require obtaining new permits. In some cases, conducting certain types of activities requires obtaining additional licenses to comply with legal requirements and avoid legal risks.

When an additional license is needed

• When adding new types of activities (for example, launching payment or cryptocurrency services) a sector-specific MAS license is required.
• For crowdfunding platforms – a separate licensing procedure and compliance with investor protection requirements.

Scaling and entering international markets

• Registration in Singapore opens up opportunities for rapid scaling, opening branches in other countries, participating in international accelerators, and attracting investment.
• COREDO solutions allow integrating a Singaporean structure into global holdings taking into account the requirements of the EU, the UK, Dubai and other jurisdictions.

Common mistakes and how to avoid them

Typical registration mistakes and business support errors in Singapore can significantly reduce its efficiency and partners’ trust. To avoid unnecessary problems and losses, it is important to identify the main mistakes in advance and know how to prevent them. In this section we will look at the key groups of mistakes and simple ways to prevent them.

Documentation errors

• Incomplete set of documents, inaccurate information about beneficiaries, weak business plan, lack of a description of the risk management system – the main causes of delays and refusals.
• COREDO practice: double-checking documents and preliminary coordination with ACRA help minimize risks.

Management qualifications

• Lack of a resident director, insufficient management experience, reputational risks – common reasons for rejection.
• Solution: engaging professional directors and corporate secretaries with experience working in Singapore.

Insufficient financial preparation

• Capital below the minimum, lack of reserves, unrealistic financial forecasts.
• Recommendation: maintain capital sufficient to cover 6–12 months of operating activity.

Registration timelines: realistic expectations

Causes of delays: incomplete documentation, complexity of the business model, additional ACRA requests, need for licensing.

Practical Recommendations and Checklist

• Conduct a business model audit: Determine whether a license is required and which type of company suits your business.
• Prepare documents in advance: Use COREDO checklists and coordinate the structure with consultants beforehand.
• Appoint a resident director and a corporate secretary: This is a mandatory requirement for registration.
• Invest in compliance and cybersecurity: This is not only a legal requirement but also helps build trust with partners and clients.
• Plan your budget with a buffer: Account for not only registration costs but also operating expenses for the first year.
• Be prepared for annual audits and reporting: Non-compliance with requirements can result in fines and suspension of operations.

Myth of “zero taxes” in Estonia is actively discussed among entrepreneurs, but behind this loud name lies a feature of the local tax system, not a complete absence of fiscal obligations. To understand what you need to know about the real taxation mechanisms in the country, it’s important to figure out how the deferred taxation system operates and why it creates the myth of zero taxes.

How taxation works in Estonia: deferred taxation

The main misconception: “tax-free company in Estonia“: is based on the unique system of deferred taxation of profits. In reality, an Estonian company without taxes is possible only if certain conditions are met. In Estonia, corporate income tax is not collected until dividends are distributed: as long as profit remains in the company, the tax rate is 0%. This is not an exemption from taxes but a deferral. Only when the company decides to pay dividends does a tax liability arise: a rate of 22/78 of the dividend amount, and from 2025 an additional 2% is added to the security fund.

Conditions under which a company does not pay taxes

For an Estonian company not to pay taxes, several key conditions must be met:

• The share capital is fully paid and registered in the Commercial Register.
• The annual report is prepared, approved and filed on time.
• The financial year ended with a profit or accumulated profits from previous years.
• Dividends are not distributed to shareholders; profit remains in the company’s accounts.
• The company strictly complies with the requirements of Estonian and EU legislation, including AML and tax transparency.

When do tax liabilities on dividends arise?

Tax optimization for business in Estonia requires a clear understanding of events that lead to tax liabilities:

• Distribution of dividends: tax 22/78 of the amount + 2% to the security fund (from 2025). Payment is possible only after approval of the annual report and provided solvency is maintained.
• Salary payment: social tax 33%, income tax 22%, pension tax 2%, insurance contributions — in total the tax burden on salary reaches 59.4% in 2025.
• Representative expenses: the limit has been increased to 50 euros per month from 2025; anything above is taxed at 2% of the amount.
• Cross-border transactions: subject to price control, require special reporting and may entail additional assessments if transfer pricing rules are not followed.

Registration of a company in Estonia: step-by-step guide

Company registration in Estonia: a step-by-step guide for foreign entrepreneurs opens quick access to European markets and allows doing business fully online thanks to the e-Residency program. Before starting the registration, it is important to know the basic requirements for share capital and the set of documents for registering an LLC (OÜ) so that the process goes as transparently and efficiently as possible.

Requirements for share capital and documents for registering an LLC

The minimum share capital in Estonia is symbolic, only €0.01. On the other hand, COREDO’s practice shows: to increase trust from banks and business partners it is optimal to declare capital from €2,500. This reduces the risk of account blocking and makes KYC procedures easier. The capital must be paid before the first dividend distribution and entered in the Commercial Register, and also reflected in the TSD form (tax reporting).

To register a company you will need:

• Founder’s passport (or passports of all founders)
• Document proving payment of share capital
• Company articles (a standard template can be used)
• Decision to register (Minutes of Incorporation)

Registration stages: e-residency and account

The Estonian electronic company management system allows you to register a business completely remotely. The step-by-step process is as follows:
Step 1: Obtaining e-residency
For foreign founders, e-residency is a convenient tool for remote company management. The application is submitted online, verification takes 3–5 days, and the e-resident card is delivered by mail. Cost – €100–120.

Step 2: Online company registration
Access to the business register is via the e-resident card. The application is completed online, the state fee – €350 (since 2025). All documents are signed with a digital signature, registration takes 1 business day.

Step 3: opening a bank account
Banks (LHV, Wise, Revolut, etc.) require a full set of documents, completion of AML procedures and confirmation of sources of funds. Opening an account takes 3–10 days.

| Service | Cost | Note |
|————————-|—————|————————————|
| E-residency | €100–120 | Optional for foreigners |
| State fee (OÜ) | €350 | Mandatory |
| Legal address | €200–400/year | If the management is abroad |
| Accounting services | €500+/year | Depends on transaction volume |
| Total minimum | €850–1050 | Without accounting |

Nominee shareholders: risks and legality

Estonia follows civil law, and nominee services (nominee shareholder, director) are not enshrined in legislation. Using such schemes is associated with a number of risks:

• Loss of control over the company: a nominee shareholder may change the structure or block operations.
• Tax authorities may challenge the structure and require proof of real control and beneficial ownership.
• Banks require transparency of the structure, and when nominee schemes are detected they may refuse to open an account.
• Violation of AML/KYC requirements leads to account blocking and investigations.

Tax changes in Estonia 2025: how they affect businesses

Tax changes in Estonia for 2025 are one of the most notable events for entrepreneurs, as they affect several key areas of business tax regulation at once. The increase in the tax burden and changes in rates impact operating expenses, pricing strategy, and companies’ financial planning. Below we consider the most significant changes and their consequences for your business.

Increase in VAT from 22% to 24% from July 1, 2025

From July 1, 2025, the standard VAT rate in Estonia increases from 22% to 24%. This is the first increase in the last 10 years, and it affects all companies dealing with VAT. The increase will lead to a price rise for goods and services of approximately 1.6%. Companies must recalculate prices in advance, notify customers, and make changes to accounting systems.

Changes in taxation of dividends and social taxes

From 2025, the tax on dividends increases: the base rate 22/78 is supplemented by an additional 2% security fund levy. Social tax on wages remains at 33%, income tax at 22%, pension tax at 2%, insurance contributions 1.6% (employer) and 0.8% (employee). In total, the tax burden on wages amounts to 59.4%.

| Tax | Rate 2024 | Rate 2025 | Change |
|————————-|————-|————-|———–|
| VAT (standard) | 22% | 24% | +2% |
| Dividend tax | 22/78 | 22/78+2% | +2% |
| Social tax | 33% | 33% | |
| Income tax | 22% | 22% | |
| State fee (OÜ) | €265 | €350 | +€85 |

New tax regimes for small businesses: which to choose?

For companies with an annual turnover of up to €100,000 in the EU, the SME scheme and the special EX regime apply. The essence of the scheme is exemption from the need to register as a VAT payer in other EU countries provided thresholds are met. This reduces administrative costs and simplifies reporting: it’s sufficient to file an OSS declaration quarterly.

Conditions for application:

• Annual turnover in the EU does not exceed €100,000
• In any given country the turnover does not exceed the local VAT threshold
• Quarterly reporting is mandatory

Withdrawing dividends without tax: reality?

The question of whether it’s possible to withdraw dividends without tax remains controversial for many and gives rise to a lot of misconceptions. Understanding the current tax rates, the specifics of the 22/78 calculation scheme, and additional mandatory payments helps to tell where the myth ends and reality begins.

How the dividend tax works: the 22/78 rate

The myth of withdrawing dividends without tax in Estonia does not withstand practical scrutiny. The tax on distributed profit is calculated by the formula 22/78 of the dividend amount, and from 2025 an additional 2% for the security fund is added. For example, when paying €1000 in dividends the tax will be €280.77 (22/78 × 1000) plus €20 (2%).

Payment is possible only if the following conditions are met:

• Share capital is paid up and registered
• Annual report approved
• Financial year ended with a profit
• Equity is not below the minimum threshold
• The payment does not impair the company’s solvency

Dividends vs. profit in the company: how to minimize taxes

There are two main approaches to tax optimization:

Restrictions on transferring capital abroad

Placing capital outside Estonia requires permissive documentation and strict compliance with cross-border taxation rules. All operations must be documented, and the transaction structure must be transparent to tax authorities. Special attention is paid to transfer pricing control and reporting on international transactions.

AML and KYC: how to avoid tax risks

In the current environment AML requirements, KYC and legal support are becoming fundamental for any company striving to avoid tax risks and successfully conduct business in the chosen jurisdiction. Proper compliance with these standards not only minimizes the likelihood of financial and legal sanctions, but also ensures the company’s legitimacy and transparency of its activities at the registration stage and thereafter.

AML and KYC requirements for company registration

Estonia: one of the most transparent EU jurisdictions in terms of AML (Anti-Money Laundering) and KYC (Know Your Customer). When registering and conducting business it is necessary to:

• Identify all founders and beneficial owners
• Confirm sources of funds
• Document all transactions
• Annually reassess risks and update information
• File reports with the tax authorities

Tax risks and liability for violations of the law

Violation of Estonia’s tax legislation can lead to serious consequences:

• Fines for late reporting: from €500 to €5,000 and higher
• Inspections and audits by tax authorities
• Freezing of bank accounts
• Criminal liability for tax crimes
• Reputational damage and loss of partner trust

How to choose a legal partner for your business?

Choosing a legal partner is a key success factor. Criteria:

• At least 5 years of experience registering companies in Estonia
• Deep knowledge of EU and Estonian tax law
• License and registration with the relevant authorities
• Transparency of terms and pricing
• Positive reviews and recommendations
• Willingness to provide guarantees

Step-by-step action plan for the entrepreneur

Practical recommendations: this is your guide at every stage of launching a business. By following this step-by-step action plan for the entrepreneur, you will avoid common mistakes and resolve all organizational issues in advance. Before proceeding to company registration, check yourself against the checklist and make sure everything is prepared for a confident start.

Checklist before registering a company

Stage 1: Planning (1–2 weeks)

• Define the purpose of registration: tax optimization, scaling, localization
• Choose the form of company (OÜ)
• Calculate the minimum share capital (recommended €2500)
• Determine a tax optimization strategy (retaining profits vs. dividends)

Stage 2: Document preparation (1–2 weeks)

• Prepare passports of all founders
• Collect documents on sources of funds (AML)
• Prepare the company’s articles of association
• Determine the legal address

Stage 3: Choosing partners (1 week)

• Choose a law firm
• Choose a bank
• Choose an accountant

Stage 4: Registration (1–2 days)

• Submit an application to the business register
• Pay the state fee (€350)
• Sign documents with a digital signature
• Receive an extract from the register

Stage 5: Opening a bank account (3–10 days)

• Prepare documents for the bank
• Pass the AML check
• Get access to internet banking

Tax optimization strategy: how to maximize ROI

If you are planning to register a company in Estonia or already run a business in this jurisdiction, I recommend using this guide as a strategic roadmap. The COREDO team is always ready to share experience, offer individual solutions, and support your business at all stages: from registration to scaling and tax optimization.

Why choose Cyprus for international business? It combines attractive tax regimes, a stable legal environment, access to EU markets, an English-speaking infrastructure and a rapid adaptation to AML and compliance requirements. Yet it is precisely the complexity of the tasks: from company registration and obtaining a license to protecting intellectual property – that creates demand for deep expertise and a strategic approach to legal services.

In this article I will examine in detail which legal services in Cyprus are truly necessary for modern businesses, how they integrate with financial and investment consulting, and what solutions the COREDO team implements for clients from Europe, Asia and the CIS. If your goal is not just to open a company but to build a sustainable international structure with minimal risks and maximum transparency, I recommend reading to the end: you will get not only answers to common questions but also strategic ideas that have already proven effective in practice.

Key areas of legal services in Cyprus

The key areas of legal services in Cyprus cover the core fields of legal support in demand for both businesses and private individuals. Understanding these areas makes it possible to choose the optimal solution: from company registration and protection of commercial interests to support for complex transactions and litigation.

Corporate law: company registration

Company registration in Cyprus: it is not just a formal procedure, but a strategic choice that affects the tax burden, access to banking services and asset protection. In recent years the COREDO team has implemented dozens of projects to register Limited Liability Companies (LLC), public companies and branches for clients from the EU and Asia, taking into account the nuances of Cyprus corporate law and international standards.

Registration process: step by step

1. Choosing the legal form – the most in-demand are LLC and Public Company. For startups and fintech companies an LLC is optimal: minimal share capital, limited liability, flexibility in corporate governance.
2. Name check and reservation – carried out through the online register, takes 1–2 days.
3. Preparation of founding documents – memorandum and articles of association reflecting the objectives, structure and governance rules.
4. Compilation of the document package: passports of beneficiaries, proof of address, information about the ownership structure.
5. Application submission and registration: usually takes 5–10 working days.
6. Opening a corporate bank account requires a separate legal review and proof of source of funds.

Legal support for startups and foreign investors
COREDO’s experience shows that startups and technology companies face special requirements for corporate governance, intellectual property protection and tax optimization. We implement solutions that allow integrating a Cypriot structure into international holdings, ensuring compliance with GDPR and EU standards, as well as supporting investment rounds taking into account Cyprus and international contract law.

Tax law and international planning

Cyprus is known for its progressive tax system: corporate tax is 12.5%, there is no tax on dividends for non-residents, and more than 60 double tax treaties are in effect. However, the effectiveness of tax optimization depends on the proper structure and ongoing monitoring of changes in legislation.

# International tax planning: best practices

COREDO’s practice confirms that for clients from the EU and Asia the key is not only reducing the tax burden but also the legitimacy of the scheme. We build solutions based on international BEPS standards, analyze ownership chains, and use tax residency strategies and transfer pricing tools.

• Tax optimization for companies in Cyprus includes:
  • Structuring revenue flows through Cypriot holdings.
  • Utilizing benefits for IP-boxes and innovative companies.
  • Flexible profit allocation between jurisdictions in consideration of double tax treaties.
• Tax advisory covers:
  • Preparation and filing of tax returns.
  • Audit of tax risks.
  • Representation in disputes with tax authorities.

Business support and corporate governance

Comprehensive business support in Cyprus is not only legal, but also accounting, tax and compliance services. In COREDO’s international practice such services include:

• Accounting and payroll management.
• Preparation and audit of financial statements.
• Corporate secretariat and support for board meetings.
• Development and implementation of internal control and risk management systems.
• Compliance support: KYC, AML, transaction monitoring.

Legal services in Cyprus

Specialized legal services in Cyprus are in demand both among individuals and companies encountering the peculiarities of local legislation. Deep knowledge of Cypriot legal nuances allows our lawyers to effectively support you in key areas, among which real estate transactions and land law occupy a special place.

Real estate transactions and land law

Legal support for transactions in real estate in Cyprus is one of the most sought-after services among foreign investors. Here not only the registration of ownership rights is important, but also a comprehensive property check, risk analysis and protection of the client’s interests.

Legal due diligence when purchasing real estate

COREDO’s experience shows: a successful transaction is impossible without thorough Due Diligence, which includes:

• Verification of title documents and the property’s history.
• Analysis of encumbrances, legal disputes and usage restrictions.
• Assessment of the property’s compliance with urban planning and environmental regulations.
• Negotiation of the terms of the sale and purchase agreement taking into account the interests of both parties.

Inheritance and family law

Business owners and private investors often face issues of estate planning and drafting wills in Cyprus. Special inheritance rules apply here, and disputes can drag on for years without competent legal support.

# Inheritance and will formalities

The COREDO team develops individual estate planning strategies, including:

• Preparation and registration of wills taking into account private international law.
• Settlement of inheritance for non-residents and structures with foreign assets.
• Representation in inheritance disputes and divorce proceedings.

Litigation and court representation

The Cypriot judicial system is characterized by transparency, but requires deep knowledge of local legislation and procedures. COREDO lawyers successfully defend clients’ interests in civil, commercial and corporate disputes, as well as in enforcement proceedings.

Resolution of commercial and corporate disputes

• Preparation and filing of claims.
• Representation in courts of all instances.
• Negotiation and mediation.
• Enforcement of court decisions.

Immigration law and residence permits

Cyprus offers attractive immigration programs for business owners and investors: from Permanent Residence Permit to citizenship through investment. legal services include:

• Preparation and submission of documents for obtaining a residence permit.
• Support during property purchase for immigration purposes.
• Advice on tax residency and status issues.

AML, compliance and business protection

In the context of globalization, the effectiveness of AML, compliance and business protection becomes a key factor in companies’ resilience. Modern mechanisms make it possible to identify risks, ensure transparency of operations and minimize the likelihood of financial and reputational losses. For international companies this is especially relevant given the complex structure of transactions and the requirements of different jurisdictions.

AML and compliance for international companies

Compliance with AML and compliance requirements: a key factor for access to banking services and licensing in Cyprus. In recent years regulators have tightened control, and only a systematic approach allows businesses to minimize the risks of account blocking and fines.

How to ensure AML compliance

The COREDO team implements comprehensive AML and compliance solutions, including:

• Development and implementation of KYC and AMLP policies.
• Conducting staff training.
• Implementation of automated transaction monitoring systems.
• Preparation of reports for regulators.

Intellectual property protection: basics

trademark registration, patents, protection of trade secrets and M&A support are an integral part of legal services in Cyprus for international business. COREDO’s practice covers:

• Registration of trademarks and patents in Cyprus and the EU.
• Legal protection against unfair competition.
• Support for transactions involving transfer of IP rights and licensing.

How to choose a lawyer in Cyprus and evaluate the support

Choosing a lawyer in Cyprus for corporate law and business support requires not only expertise but also an understanding of the specifics of international standards and a multicultural environment. COREDO’s practice shows: the key metrics of effective legal support are speed of task resolution, transparency of processes, ROI (reduction of tax and legal burden), as well as quality of communication.

Innovative solutions and integration with financial consulting

Modern legal services in Cyprus are increasingly integrated with financial and investment consulting: compliance automation, digital legalization of documents (apostille), implementation of LegalTech platforms for risk management and corporate governance. At COREDO we implement such solutions for clients, which allows not only speeding up processes but also ensuring the highest level of business protection.

Sustainable development and long-term partnership

Legal services in Cyprus: it is not just company registration or transaction documentation, but a comprehensive system for protecting and growing a business. COREDO’s experience proves: only the integration of corporate, tax, compliance and AML consulting, as well as continuous monitoring of legislative changes, makes it possible to build sustainable international structures, minimize risks and effectively scale a business.

Why do some companies confidently scale in the EU, Asia and the Middle East while others are forced to wind down operations? How can you avoid the pitfalls and build a business that clients, partners and investors trust?

If you’re looking for practical solutions and strategic ideas rather than theory, read to the end. Here you’ll find answers to the questions that define the future of your business.

What is a financial services license?

Types of licensed financial organizations

• Microfinance organizations (MFOs, MFCs): Providing microloans and credit products requires a separate microfinance organization license. Regulators impose specific requirements on charter capital, transparency of ownership structure and internal control.
• Payment systems: Licensing of payment systems is a mandatory requirement for companies planning to carry out transfers, acquiring and electronic payments. Key attention is paid to the technological platform, scalability and security of operations.
• Brokers and securities dealers: To operate in the securities market a broker and dealer license is required, which includes requirements for staff qualifications, capital and risk management systems.
• Financial platforms and operators: Registering a financial platform requires a separate authorization, especially if it involves digital rights, crowdfunding or asset management.

Risks of operating without a license for businesses

• Legal sanctions: Violating regulatory requirements results in fines, revocation of a banking license, and in some countries, criminal liability.
• Reputational risks: Information about unlicensed activity spreads quickly among partners and clients, leading to loss of trust and refusal to cooperate.
• Restrictions on operations: Without a license it is impossible to legally open accounts, attract investments, work with major payment systems and enter international markets.

Regulatory requirements and licensing authorities

Regulatory authorities in jurisdictions

How to apply and processing times

• Preparation and submission of documents: founding documents, proof of capital, internal regulations, business plan, compliance policies.
• Application review: The regulator conducts a comprehensive check, including Due Diligence of beneficiaries and analysis of financial stability. In Singapore, for example, the standard application review time ranges from 15 minutes to 60 days depending on complexity and the need for additional licenses.
• License renewal and extension: In some countries the license requires annual confirmation of compliance with standards, regular reporting and undergoing an audit.

Financial and operational requirements for a license

COREDO’s expertise shows: successful licensing of financial organizations is impossible without comprehensive preparation across four key areas – capital, technological infrastructure, compliance and internal control.

Capital requirements in finance

Technological infrastructure and security

• Scalability and reliability of the platform: The system must ensure uninterrupted processing of transactions as load increases.
• Data protection and information security: Implementation of ISO 27001 standards, regular audits, protection against cyber threats.
• Contracts with technology partners: All service providers must comply with security and compliance standards.

Compliance and risk management

• anti-money laundering legislation (AML): Implementation of procedures to detect suspicious transactions, regular staff training, automation of monitoring.
• Customer identification (KYC): Use of digital platforms for verification, data storage in accordance with GDPR and local standards.
• Internal policies and audit: Development of compliance programs, regular internal and external audits, implementation of risk management systems.

How do I obtain a financial services license?

Company registration and obtaining a license for financial services is a step-by-step process that requires a systematic approach and a deep understanding of regulatory requirements.

What documents are required for the application?

Interaction with the regulator and review timelines

• Application review stages: preliminary check, due diligence, requests for revisions, final approval.
• Possible requests: Regulators may request additional information about ownership structure, sources of capital, and staff qualifications.
• Receiving the authorization document: After approval, a license is issued that confirms the right to operate.

AML/KYC control: how to organize?

• Implementation of AML and KYC procedures: development and implementation of standard operating procedures, automation of client identification.
• Staff training and audit: regular training, internal checks, preparation for external audit.
• Monitoring and reporting: continuous monitoring of operations, timely submission of reports to regulatory authorities.

Licensing in Europe, Asia and Africa

Licensing in Europe

Licensing in Asia

Licensing in Africa

Licensing: impact on business

The impact of licensing on business and competitiveness is manifested not only in reducing administrative barriers but also in creating conditions for rapid market entry and fostering innovation.

Competitive advantages of licensing

• Access to international markets: A licensed company can legally operate in different countries, open accounts, attract investment, and enter into partnerships with major players.
• Increased trust from clients and partners: A license confirms transparency, financial stability, and compliance with international standards.
• Investment attractiveness: Companies with a financial license are valued higher and are easier to sell or to attract a strategic investor.

Risks and sanctions: what they are and how to avoid them

• Freezing of accounts and assets
• License revocation and a ban on operating
• Substantial fines and legal claims
• Loss of business reputation and market trust

Trends in consolidation and regulation

Key findings and recommendations for entrepreneurs

• financial services license – a strategic tool that determines the legality, sustainability and investment attractiveness of a business.
• To successfully obtain a license it is important:
  • Prepare a complete set of documents, including founding documents, financial statements, internal AML policies/KYC.
  • Ensure sufficient capital and transparency of funding sources.
  • Implement a technology platform that meets security and scalability requirements.
  • Establish internal controls, regular audits and staff training.
• When choosing a jurisdiction, consider not only the cost and timing of obtaining a license, but also compliance requirements, opportunities for cross-border activity and recognition of the license in other countries.
• Minimize risks by automating compliance, regularly monitoring changes in legislation and working with professional advisors.

In 2025, according to the European Commission, the total volume of fines for violations of EU AML and KYC-AML requirements exceeded €6.5 billion, a record high in the history of regulation. At the same time, more than 40% of corporate account freezes in Europe are specifically linked to insufficient verification of EU counterparties and failure to meet compliance requirements in Europe. These figures are not just impressive: they signal fundamental changes in approaches to legal support for EU business and company registration in the EU.

Today no company operating in cross-border chains can afford to ignore Due Diligence in the EU. Regulators are tightening control, banks are implementing multi-level systems of risk-based approach and regulatory risk mapping, and businesses face real threats: from reputational losses to a complete freeze of operations.

Why has this become critical? The new EU directives (6AMLD, AMLR, eIDAS) require not just the formal collection of documents, but a deep assessment of risks, transparency of ownership structure and continuous compliance risk assessment. Without this, company registration in the EU and opening bank accounts become practically impossible.

Due Diligence in the EU: types and definition

Due Diligence in the EU: this is a comprehensive verification procedure that enables businesses to identify and mitigate risks, as well as confirm the legality and transparency of potential deals or partnerships. There are different types of due diligence, each addressing its own tasks and applied in specific situations, ranging from client checks to the analysis of corporate and legal risks. Below we will consider the main types of such checks and the features of their implementation.

Customer Due Diligence: basic level of verification

COREDO’s practice confirms that digital onboarding and remote verification can shorten verification times to 1–2 days, provided documents are prepared correctly. It’s important to note that CDD requires not only personal data but also information about ownership structure, especially when it comes to legal entities. CDD is usually completed within 5 working days; however, if inconsistencies are found the process may be prolonged.

Enhanced Due Diligence – screening of high-risk clients

Enhanced Due Diligence in the EU applies to clients from high-risk countries, PEPs (politically exposed persons), as well as to structures with opaque ownership. Beneficiary checks in the EU have become mandatory: disclosure of ultimate beneficial owners and analysis of sources of funds (source of wealth) are key elements of EDD.

The COREDO team has implemented projects where EDD included not only standard checks against FATF and OECD lists, but also in-depth jurisdictional analysis, assessment of reputational risks and PEP monitoring. For this, international databases, OSINT and HUMINT methods are used, as well as analysis of court decisions and media mentions. Important: EDD requires documentary proof of the origin of assets and transparency of the ownership chain.

Risk-based approach to each client

The solution developed by COREDO allows building standardized risk scoring based on regulatory risk mapping and compliance risk assessment. For low-risk clients basic CDD is sufficient, for medium-risk clients an enhanced check is required, and for high-risk clients a full EDD with regular monitoring. Such a layered due diligence model ensures a balance between speed and depth of the review.

EU Requirements 2025: What Has Changed

In 2025 the EU regulatory framework is changing radically: new requirements for the regulation of financial institutions are being introduced and controls are being tightened to combat money laundering and terrorist financing. These changes affect key directives, including the AMLR and the updated 6AMLD, setting new standards for all market participants.

AMLR and 6AMLD: Key Directives

AMLR (Anti-Money Laundering Regulation) and 6AMLD (Sixth Anti-Money Laundering Directive) are the main documents defining EU AML checks and EU KYC-AML requirements. In 2025 new criteria were introduced for checks under AMLR and 6AMLD: mandatory disclosure of beneficiaries, automated AML filters, regular compliance audits and reporting of suspicious EU transactions.

eIDAS and digital identification

For companies operating in multiple jurisdictions, it is important to consider levels of assurance (eLoA) – from low to high, depending on transaction volume and risk level. COREDO’s practice confirms: a properly chosen EU eKYC platform can reduce errors and speed up verification.

EU Sanctions Lists and FATF

The COREDO team implements systems that not only identify matches but also carry out false-positive resolution procedures, which significantly reduce the risk of erroneous transaction blocking.

Due Diligence check: step-by-step process

The step-by-step process of undergoing a Due Diligence check includes sequential stages, each aimed at a comprehensive and objective assessment of a company or asset. At every stage it is important to work through the details thoroughly to identify potential risks and make informed decisions. Below we consider the first steps, starting with the preparation of the necessary documents and information.

Preparation of documents and information

I recommend organizing documents in a digital archive with a compliance audit trail, which facilitates the review and speeds up the company registration process in the EU.

Electronic identification and digital onboarding

From COREDO’s practice: the main mistake is discrepancies in document data and the absence of up-to-date addresses. It is important to check the accuracy of all information in advance.

Screening against sanctions lists and AML filters

AML checks in the EU include automatic screening against EU sanctions lists, FATF, and OECD using AML filters and scoring systems. If a match with a sanctions list occurs, the procedure requires an immediate internal investigation and, if necessary, filing an automated report (SAR).

AI monitoring of EU transactions enables the detection of suspicious patterns and the prevention of risks before a transaction is executed.

Reputation checks and source of funds

Reputational risks can lead to refusal of company registration or account opening, so the COREDO team recommends conducting a preliminary reputational assessment before submitting an application.

Analysis of business structure and beneficiaries

Verification of EU beneficiaries and business structure requires analysis of the ownership chain, identifying ultimate owners, and checking trusts, funds, and other complex structures. The layered due diligence model helps reveal hidden risks and ensure transparency for regulators.

Screening of high-risk jurisdictions

Screening of high-risk countries for the EU is conducted based on updated lists (July 2025). It is important to consider the criteria for inclusion in AML and tax lists, as well as the enhanced requirements for transactions with such countries.

The COREDO solution includes automatic synchronization with FATF and OECD recommendations, which minimizes the risk of errors when working with cross-border structures.

Monitoring of PEPs and related persons

Enhanced requirements for control and regular monitoring of transactions apply to PEPs.

Specialized types of Due Diligence

Specialized types of Due Diligence make it possible to identify risks more deeply and accurately in specific areas of a company’s activity that go beyond a standard review. These types include analysis of environmental, social, governance and other specific aspects, which is especially important for companies operating in high-risk or regulated industries.

ESG Due Diligence: ESG risk assessment

ESG Due Diligence in the EU is becoming a standard for large companies and investment projects. EU ESG risk reviews include analysis of carbon footprint, labor practices, and corporate governance. Integrating ESG due diligence into COREDO processes allows identifying sustainability risk and minimizing long-term threats to the business.

Counterparty cybersecurity due diligence

EU counterparty cybersecurity checks include digital maturity assessment, data protection assessment, and GDPR compliance. Cyber risk assessment, an integral part of compliance due diligence for cybersecurity, is especially important when working with cloud and fintech platforms.

Due Diligence: sanctions risk assessment

Sanctions Due Diligence involves expanded checks across all sanctions lists of the EU, US, UN, OECD, as well as analysis of indirect sanctions risks. In 2025 the 18th EU sanctions package came into force, requiring updates to internal compliance policies and licensing procedures.

Due Diligence for CBI/RBI investment programs

Due Diligence for EU CBI/RBI programs (Citizenship/Residence by Investment) requires a layered due diligence model, verification of source of funds and compliance with harmonized FATF 2025 standards. Documentation and reporting for investment programs – a separate area in which COREDO has accumulated significant experience.

Technologies and Automation of Due Diligence in the EU

Technologies and automation of Due Diligence have become the foundation of modern compliance in the European Union, allowing companies to scale counterparty checks and reduce the risks of financial crime. implementation of artificial intelligence, automated scoring systems and integration with international databases speed up decision-making, reducing verification time from weeks to hours. Such solutions not only improve the quality of analysis through a multichannel approach but also help European entities comply with tightening regulatory requirements for proper due diligence.

AI monitoring and automated systems

Automated SAR reports and scoring systems minimize the human factor, while key decisions are always made by an expert.

Blockchain and smart contracts for compliance

EU blockchain technology checks and the implementation of smart contracts make it possible to track traceable funds pathways, automate compliance due diligence and increase the transparency of financial flows. Blockchain for compliance is not only a trend but also a tool for reducing risks in complex international structures.

Compliance technology stack, choice of tools

The choice of a compliance technology stack depends on the scale of the business and the specifics of operations. COREDO’s solution includes integration of eKYC, AML filters, transaction monitoring, which allows optimizing the compliance workflow and achieving a high ROI from automation.

Role of the Compliance Officer: organizational requirements

The role of the Compliance Officer and organizational requirements come to the forefront amid tightening regulation and growing reputational risks. The competent structuring of this function determines not only compliance with internal and external standards but also the resilience of the business when legislative requirements change. Below we consider the key responsibilities of the Compliance Officer in 2025 and the organizational aspects of implementing an effective compliance system.

Responsibilities of the Compliance Officer in 2025

Whistleblowing systems and internal policies

Compliance Audit and company inspections

EU compliance audits involve regular risk assessment, identifying gaps (compliance gap analysis), documenting results and implementing a remediation plan. The frequency of audits depends on the level of risk and the specifics of the business.

Practical recommendations and checklists

Practical recommendations and checklists help structure and simplify preparation for complex procedures such as Due Diligence. The following subitems and checklists will help you go through all the key stages of the review step by step and avoid common mistakes, allowing only well-considered decisions going forward.

Checklist for preparing for Due Diligence

Common mistakes and how to avoid them

• Incomplete document preparation – use checklists and internal audits.
• Ignoring high-risk jurisdictions: regularly update lists and conduct jurisdictional analysis.
• Insufficient beneficiary verification – implement a layered due diligence model.
• Lack of documentation – use a compliance audit trail.
• Untimely updating of information – set up scheduled re-screening.

Timing and cost of due diligence

Regular due diligence monitoring

Regular monitoring and updating of Due Diligence not only allow identifying new risks, but also enable timely responses to changes in counterparties’ activities or in the regulatory environment. This approach ensures the relevance of collected data and effective risk management throughout the entire period of cooperation.

Continuous due diligence and post-monitoring

Monitoring does not end after the initial check: regular scheduled re-screening, transaction monitoring EU and updates to beneficiary information become standard. Compliance monitoring dashboard and automated systems make it possible to detect suspicious transactions and respond promptly.

Reporting on suspicious transactions

Due Diligence in EU countries: regional specifics

Regional specifics of Due Diligence across different EU countries require a deep understanding of local legislation, verification standards and approaches to assessing integrity. In different EU jurisdictions not only the list of required documents may differ, but also the evaluation criteria and the extent of involvement of state and international bodies. Below we will consider the key differences in country-specific requirements.

Differences in requirements by country

Multi-jurisdictional compliance requires taking into account both the unified EU requirements and national specifics (for example, in Luxembourg, the Netherlands, Malta, Cyprus). Jurisdictional analysis and cross-border due diligence allow processes to be adapted to a specific country.

Characteristics of financial institutions versus non-financial companies

Compliance due diligence for financial institutions is stricter: automated systems, regular audits and reporting are mandatory. For non-financial companies the requirements are simpler, but the thresholds for checks are lower.

Due diligence in business processes

Integration of Due Diligence into business processes makes it possible not only to identify risks at early stages but also to build transparent, manageable processes within the company. Such integration makes it easier to adapt the workflow and increase the efficiency of key operations, especially when preparing for deals and attracting investment.

Workflow optimization: integration into operations

Embedding Due Diligence into account opening processes, integration with CRM and automation of routine operations help increase the scalability of compliance processes and reduce the burden on employees. Staff training – a mandatory element of compliance workflow optimization.

Documentation and audit trail

All stages of Due Diligence must be documented: compliance audit trail, storage of documents in secure archives, preparation for regulatory inspections. The use of modern document management systems simplifies the process.

Practical recommendations and key takeaways

Key conclusions and practical recommendations will help entrepreneurs focus on the truly important aspects of the business and make decisions more consciously. This section presents the main insights and concrete steps capable of improving a company’s efficiency and competitiveness.

Main insights for entrepreneurs

• Due Diligence: this is not a one-time check but a continuous process: Regular monitoring and updating of information are the cornerstone of long-term business security.
• Automation saves time and money: Modern RegTech solutions can speed up checks by 3-5 times, and ROI is achieved within 12-18 months.
• Risk-based approach is the key to efficiency: Not all clients require the same level of scrutiny; proper segmentation saves resources and reduces risks.

Paradox: more than 70% of new companies in Liechtenstein are international structures, and the average time to open a corporate account here is up to 3 weeks, which is faster than in most European banks. Still, behind these figures lie real challenges: tightening AML, new tax rules of 2025, complex compliance and pre-approval procedures for bank accounts. How to ensure transparency, maintain confidentiality and not lose efficiency?

Liechtenstein for international business: why choose it?

Liechtenstein for business is more than just a catchy phrase. Behind it lies a unique combination of political and economic stability, flexible corporate law and access to EU and Swiss markets. In recent years the COREDO team has completed dozens of company formation projects in Liechtenstein for holding companies, IT firms, investment funds and family offices.

AAA credit rating and bank security

The AAA credit rating is not just a formal indicator but a real guarantee of the safety of funds. Liechtenstein’s banking system is recognized as one of the most resilient in the world, and client assets are protected at a level comparable to Switzerland. In practice this means no currency controls, instant international transfers and a high level of trust from investors and counterparties.

Access to EU and Swiss markets

Liechtenstein is a member of the European Economic Area (EEA) and a participant in the customs union agreement with Switzerland. This is a unique position: by registering a company here you gain a springboard for scaling your business through a European jurisdiction, as well as direct access to EU and Swiss markets without additional barriers. A solution developed by COREDO for one fintech client enabled it to enter the markets of both regions within 6 months, minimizing costs for Licensing and certification.

Tax advantages for companies in Liechtenstein

Taxes in Liechtenstein are a separate topic for strategic planning. Liechtenstein corporate law allows flexible choice of tax structure, and the tax rate in Liechtenstein is one of the lowest in Europe.

Corporate tax 12.5% — one of the lowest in Europe.

Tax incentives for investment funds

Agreements to prevent double taxation

Liechtenstein has signed more than 20 agreements to prevent double taxation, including with EU countries, the United Kingdom, Singapore, Cyprus and Estonia. This allows avoiding double taxation of dividends, interest and royalties, as well as using advantageous cross-border financing schemes. A solution implemented by the COREDO team for an international IT group reduced the overall tax burden by 15% through the proper allocation of flows between subsidiaries.

Tax changes 2025: what you need to know

From 2025 new rules concerning the taxation of holdings and investment funds come into force: requirements for real presence (substance) are being tightened, control over transfer pricing is being strengthened, and additional incentives are being introduced for innovative companies. COREDO recommends conducting a corporate structure audit in advance and making the necessary changes to preserve tax advantages.

Company registration in Liechtenstein: types and requirements

company registration in Liechtenstein is possible in several forms: public limited company (AG), Anstalt, Stiftung and offshore companies. The choice depends on the goals, type of business and confidentiality requirements.

Public limited company (AG) for international business

AG is the most sought-after form for international holdings and investment projects. Share capital requirements: a minimum of 50,000 Swiss francs; the management structure includes a board of directors and a shareholders’ meeting. The registration procedure takes about 1 week, and the document package includes the articles of association, information about beneficiaries and proof of capital contribution.

Institution — a structure for asset management

Anstalt is a unique form that combines features of a company and a foundation. It is ideally suited for asset management, family offices and holding structures. Advantages: flexibility in management, tax benefits, a high level of confidentiality. COREDO solutions for family offices are often built on the basis of an Anstalt, which allows effective asset protection and risk minimization.

Liechtenstein offshore companies: status and limitations

An offshore company in Liechtenstein is a structure that conducts activities exclusively outside the country, without employees or an office in Liechtenstein. Advantages include possible exemption from corporate income tax, no property tax, and medium registration complexity. It is important to strictly comply with activity and documentation requirements, otherwise the status may be lost.

Shelf companies: quick start

Shelf companies are already registered legal entities that do not conduct any business activity. Buying one allows you to start operations within 1-2 days, which is especially relevant for urgent projects or participation in tenders. COREDO’s experience has shown that this approach is effective for international contracts requiring immediate legalization of a business.

Requirements for statutory capital and registration

Requirements for statutory capital in Liechtenstein are transparent: for an AG – a minimum of 50,000 Swiss francs; for an Anstalt, from 30,000. Capital contributions can be made in cash or in kind, and Liechtenstein banks accept deposits in major currencies.

Minimum statutory capital: CHF 50,000

Step-by-step registration for foreign investors

1. Determining the structure and preparing the articles of association
2. Contributing the statutory capital
3. Registration in the commercial register
4. Obtaining a trading license (if required)
5. Registration with tax authorities

Timeframe — from 1 to 2 weeks. For non-residents, registration can be done remotely using a power of attorney and apostilled documents.

Apostille of documents and legal support

Legalization and apostilling of constitutive documents are mandatory for international structures. Legal business support in Liechtenstein includes not only registration, but also provision of nominee services, secretarial services, and advice on corporate governance. COREDO’s experience shows: a reliable legal partner significantly reduces risks and speeds up processes.

Banking services and account opening in Liechtenstein

company bank account in Liechtenstein: a key element of the infrastructure. The country’s banking system is characterized by a high level of asset protection, transparency and flexibility.

Pre-approval and compliance: mandatory stages

AML requirements: how to comply

To successfully pass an AML check, it is important to provide documents confirming the source of funds, as well as to undergo the KYC (Know Your Customer) procedure. COREDO’s experience shows that preparation for compliance starts already at the company registration stage, which helps to avoid refusals and delays.

Choosing a bank: how to pick the right one?

Asset protection and privacy

Tax privacy and asset protection are among the main reasons entrepreneurs choose Liechtenstein for business. The jurisdiction provides a high level of protection against lawsuits and hostile takeovers.

Funds as a tool for asset protection

Privacy of owners and beneficiaries

Liechtenstein has restricted access to the register of beneficiaries. Information about owners is protected from public disclosure, while complying with international transparency standards (FATCA, CRS). This allows for a balance between confidentiality and compliance requirements.

Special tax regimes for IT businesses

Tax incentives for innovative and IT companies: an important stimulus for startups and technological projects. In 2025 new regimes come into force, providing for a reduced tax rate and expedited obtaining licenses for companies investing in sustainable development and digitalization.

Investments in innovation and sustainable development for residency

Asset management through Liechtenstein

Liechtenstein: a recognized center of international tax planning and asset management. Corporate and holding structures allow optimizing taxation, reducing risks and ensuring long-term capital protection.

Holding structures: taxes and asset management

Investment funds: features and advantages

investment funds in Liechtenstein: an instrument for collective investing and raising capital. They are exempt from most taxes, and the registration process takes up to 4 weeks. COREDO’s solutions for funds allow attracting international investors and managing assets with maximum efficiency.

Risks and limitations: what to consider

Despite the obvious advantages, opening a company in Liechtenstein involves several risks: tightening requirements for offshore companies, the need for strict adherence to AML and compliance requirements, and annual reporting and audits.

Requirements for offshore status in 2025

Licensing and registration with tax authorities

Certain types of activities require obtaining a trade license and mandatory registration with the tax authorities. COREDO supports clients at all stages, from choosing a license to preparing reports.

Compliance with FATCA and CRS standards

Liechtenstein is integrated into the system of international transparency standards: FATCA, CRS, AML. This means mandatory reporting and the exchange of information with tax authorities of other countries. To minimize risks, COREDO recommends preparing documentation in advance and undergoing an internal audit.

Comparison of Liechtenstein with other European jurisdictions

Opening a Company in Liechtenstein: Step-by-Step Plan

Practical approach: the step-by-step plan for opening a company in Liechtenstein begins with careful preparation: the success of the process largely depends on attention to detail from the outset. Below is a phased plan that will help structure each action and avoid common mistakes on the path from idea to official company registration.

Phase 1: Preparation (1–2 weeks)

• Determining the company structure
• Preparation of the articles of association and founding documents
• Choosing a legal partner
• Checklist: passport, proof of address, information about beneficiaries, business plan

Phase 2: Registration (1 week)

• Submission of documents to the commercial register
• Deposit of the share capital into a temporary account
• Obtaining the certificate of registration

Banking services (2–4 weeks)

• Choosing a bank
• Preparation of documents for pre-approval
• Undergoing a compliance check
• Opening an account

Ongoing project support

• Annual reporting and audit
• Tax planning
• Updating founding documents
• Consultations on business development

Choosing a reliable partner: what to pay attention to

Choosing a reliable partner is a strategic decision that directly affects the success of your business and the minimization of legal risks. What you pay attention to when evaluating a law or consulting firm determines the quality of services received, the speed of problem resolution, and the effectiveness of legal protection. Let’s look at the key criteria that will help you choose a truly reliable partner, rather than encounter unscrupulous professionals.

Criteria for evaluating law firms

• Experience in company registration in Liechtenstein
• Knowledge of tax and corporate legislation
• Connections with banks and regulators
• Reputation and client reviews
• Transparency of service costs

Services included in the package

• Company registration and legal address
• Secretarial and nominee services
• Tax consulting and support
• Banking assistance and compliance support

Key findings and recommendations

In 2025 Cyprus continues to surprise: according to the European Banking Federation, more than 250 financial companies are registered on the island, and transaction volumes in the electronic money and payment services segment have grown by 37% over the past two years. Why do so many entrepreneurs from the EU, Asia and the CIS choose Cyprus specifically to register financial companies? The answer lies in a unique combination of factors:

• Access to the EU market: Cypriot financial license opens a direct path to the European financial space, allowing you to work with clients from the EU without the need for re-licensing.
• Tax incentives: one of the most attractive corporate tax rates in Europe (12.5%), a developed network of double taxation avoidance agreements, and no dividend tax for non-residents.
• Infrastructure and regulatory support: the Central Bank of Cyprus and other financial services regulators in Cyprus have built a transparent and predictable licensing system, which is especially valuable for startups, fintech companies and international payment services.
• Reputation and flexibility: Cyprus demonstrates consistent compliance with international AML, KYC and GDPR standards, as confirmed by regular reports from FATF and the EU AMLD.

If you are looking for a jurisdiction where you can quickly and transparently launch a financial business, Cyprus: a solution that deserves the utmost attention. In this article I will explain in detail how to obtain a financial license in Cyprus, what nuances to consider and how to avoid common mistakes. I recommend reading to the end – you will receive not only a step-by-step algorithm, but also strategic insights based on COREDO’s experience.

Main types of financial licenses in Cyprus

Cyprus offers several key types of licenses for financial companies:

• EMI (Electronic Money Institution): A license for electronic money in Cyprus allows issuing electronic money, opening customer accounts, making payments and international transfers. It is an optimal choice for fintech startups focused on innovative payment solutions.
• PSP (Payment Service Provider): A license for payment services in Cyprus grants the right to process payments, receive and transfer funds, and work with corporate and private clients, including international payments.
• Money transfer license: Targeted at companies specializing in cross-border transfers, including serving clients from the EU, Asia and the CIS.
• Currency exchange license: Allows legally conducting exchange operations, which is relevant for companies with high turnover and international settlements.
• license to conduct business with cryptocurrencies in Cyprus: The cryptocurrency regulator in Cyprus imposes special requirements for working with digital assets, including mandatory AML compliance and KYC procedures.

Obtaining an EMI license in Cyprus: step-by-step

Preparation for submitting the application

At this stage it is critically important to comply with the requirements of the Central Bank of Cyprus and the Cyprus electronic money regulator. Key points:

• Founders and directors: The regulator requires confirmation of experience in the financial sector, an impeccable business reputation and no criminal records. In COREDO’s practice we recommend forming a board of directors in line with international MiFID and PSD2 standards.
• financial stability: The minimum share capital for an EMI in Cyprus is €350,000. Sources of funds must be transparent and their origin documented. Demonstrating financial stability for an EMI in Cyprus is one of the frequent reasons for regulator queries, so the COREDO team pays special attention to this.
• Business plan and activity development plan for an EMI in Cyprus: The document must include financial forecasts, a description of target markets, an AML/KYC strategy and IT infrastructure development. In one of COREDO’s cases for an EU fintech startup we integrated a detailed risk model into the business plan, which sped up approval by the regulator.

Collection and preparation of documents

The document package includes:

• Passport details and CVs of all participants.
• Business plan, financial forecasts, confirmation of share capital.
• Documents confirming the company’s legitimacy and sources of funding.
• Certificates of no criminal record, bank references.

Submitting the application and interaction with the regulator

The application is submitted to the Central Bank of Cyprus. Payment of state fees for an EMI in Cyprus is made at the same time as the document submission. The processing time for an EMI license in Cyprus usually ranges from 6 to 12 months; however, with proper preparation and active interaction with the regulator this period can be minimized.

Reporting and Audit Requirements for EMI in Cyprus

Reporting deadlines and formats

Every company with an EMI license is required to comply with EMI Cyprus accounting and reporting requirements. Key statements:

• Annual balance sheet, profit and loss statement, cash flow statement.
• Deadlines for submitting financial statements to EMI Cyprus: no later than 6 months after the end of the financial year.

The Cyprus financial services regulator imposes strict requirements on the transparency and completeness of reporting, in line with international EMIR and SFTR standards.

Audit of financial statements

The audit of financial statements for EMI Cyprus is mandatory for all companies, regardless of turnover. Requirements for the EMI Cyprus auditor include having a license within the EU and experience working with financial institutions. The audit opinion must be submitted within the same deadlines as the annual financial statements.

Crypto and Innovation Licensing in Cyprus

License for startups and fintech companies

For a fintech startup, Cyprus offers flexible conditions: a sufficiently substantiated business plan, product innovativeness, and a transparent capital structure. A license for innovative financial products in Cyprus is particularly sought after by teams working with artificial intelligence, blockchain technologies, and digital assets.

License for working with cryptocurrencies and blockchain technologies

The cryptocurrency regulator in Cyprus requires strict compliance with KYC/AML, maintaining separate reporting for digital assets, and regular audits. A license to operate with digital assets in Cyprus and a license to operate with blockchain technologies in Cyprus imply the implementation of in-house or outsourced solutions for transaction monitoring and client identification.

International standards for licenses in Cyprus

AML, KYC and international standards

A license for AML compliance in Cyprus and a license for KYC procedures in Cyprus require implementing policies aligned with FATF, EU AMLD, PSD2, GDPR, MiFID, MiFIR, EMIR and SFTR standards. The Cypriot regulator for international AML standards regularly updates requirements, necessitating ongoing monitoring of changes.

Working with clients from the EU, Asia and the CIS

A Cyprus license for international payments allows working with clients from the EU, Asia and the CIS, but each segment has its own AML/KYC, turnover and risk-profile requirements. Licenses for corporate clients in Cyprus and for private clients in Cyprus require individual tailoring of internal policies.

Practical steps for entrepreneurs

How to minimize risks and speed up the licensing process

• Choosing a reliable legal partner in Cyprus: COREDO’s practice confirms that support from an experienced team significantly reduces the risk of rejection and speeds up the licensing process.
• Preparation of documents and a business plan: The more thoroughly financial models, risks and AML/KYC strategies are developed, the higher the chances of quick approval.
• Interaction with banks and the regulator: Regular communication and transparency in responses to requests from the Central Bank of Cyprus expedite the process and build trust.

Table: Comparison of major financial licenses in Cyprus

Key findings and recommendations

In 2025 Greece surprises not only with its ancient history but also with the statistics: over the past three years the number of new companies with foreign capital has grown by more than 40%. Why are entrepreneurs from Europe, Asia and the CIS increasingly choosing to start businesses in Greece? The answer lies in a combination of tax incentives, access to the EU market and the steady liberalization of procedures.

Key changes came into effect in 2025:

• The minimum share capital for ΙΚΕ (LLC) has been reduced to 24 000 EUR, and for partnerships to a symbolic 1 EUR. This opens the way for companies with minimal investment and lowers the financial entry threshold for startups.
• For technological and innovative projects, simplified company registration procedures apply in Greece, including a fast-track for startups, remote document submission and electronic identification of founders.
• Strengthened AML requirements/KYC: now all participants in the process undergo enhanced due diligence, and banks and notaries are required to request confirmation of the source of funds and KYC questionnaires even for non-residents.

If you’re looking not just for instructions but for strategic insight on how to open a business in Greece taking into account the new requirements and avoid pitfalls, this article will provide answers you won’t find in public sources. I recommend reading to the end: this is not theory, but practical solutions proven by COREDO’s experience.

Organizational and legal form of a company in Greece

Choosing the organizational and legal form of a company in Greece is not just a formality but a strategic decision that affects taxes, management structure, share capital requirements and even reputational risks.

Main types of companies

Α.Ε. (Joint-stock company) is suitable for large projects requiring investment and a more complex management structure. At least two founders and a board of directors are required here.

ΟΕ (Partnership): a solution for companies where flexibility and minimal administrative costs are important, but one should take into account the unlimited liability of the partners.

In COREDO’s practice, we often encounter cases where ΙΚΕ becomes the optimal form for foreign founders and companies with remote management: it combines flexibility, simplicity of registration and minimal compliance risks. For tech startups and international holdings we also recommend ΙΚΕ, since this form allows registering a company with a single founder, a foreign director and even an agent-representative, which significantly simplifies management.

Company registration in Greece: step-by-step guide

legal registration steps of a company in Greece require not only a competent choice of legal form, but also the sequential completion of all procedures provided for by local legislation. This step-by-step guide will help you understand which stages to go through and which documents to prepare for successful business registration in Greece.

General registration process

Key stages:

1. Choosing the legal form and preparing the founding documents.
2. Collecting and formalizing the package of documents for registering a company in Greece.
3. Submitting an application to the Hellenic Commercial Registry (GEMI) and Γ.Ε.ΜΗ.
4. Obtaining a tax identification number (ΑΦΜ) and a VAT number.
5. opening a bank account for the company in Greece.
6. Registration with the social insurance fund (EFKA/IKA/OAEE).
7. Choosing the company’s legal address in Greece.
8. Obtaining the company seal.
9. Publication of the articles of association in the national gazette.
10. Payment of the capital concentration tax (1%).
11. Registration with the Chamber of Commerce and Industry.

Preparation of documents for company registration in Greece

The set of documents depends on the chosen form, but typically includes:

• Founding agreement (katastato) in Greek.
• Company charter.
• Passport details of founders and directors.
• Certificate of no criminal record for the director.
• Certificate of no tax arrears (Form A7).
• Proof of source of funds (bank statements, declarations).
• KYC questionnaires.
• Documents confirming the legal address.
• For foreigners: notarization, apostille, translation into Greek.

Obtaining a Tax Identification Number (AFM) and VAT number for a company in Greece

• ΑΦΜ (tax identification number) is obtained by all founders and the company. The procedure includes a personal or remote application to the tax office, providing a passport, founding documents and a KYC questionnaire.
• A VAT number is required for companies conducting trade or other taxable activities. The process for obtaining it is similar but requires additional business details.

Opening an account for a company in Greece

The solution developed by COREDO for remote account openings includes preparing an extended dossier and assisting with negotiations with banks that work with non-residents. This is especially relevant for companies without residence permits and with foreign directors.

Registration in the Hellenic Commercial Registry (GEMI)

Registration with EFKA/IKA and OAEE in Greece

Registration with EFKA/IKA is mandatory for all companies with employees.

• For entrepreneurs and partnerships – registration with OAEE (Organization for the Insurance of the Self-Employed).
• The document package includes founding documents, employee data and payroll statements.
• For companies without employees, the procedure is simplified, but registration is mandatory to comply with regulatory requirements.

Choosing a legal address in Greece

• For foreigners it is possible to register a company with a local legal address; using a foreign address is allowed only if there is an agent-representative.
• COREDO recommends using verified addresses to minimize legal and reputational risks.

Obtaining the company seal in Greece

Publication of the articles of association and the capital concentration tax (1%)

• The articles of association must be published in the official national gazette.
• At the same time, the capital concentration tax (1%) is paid on the amount of the share capital.
• At COREDO, we support this stage to avoid delays and misunderstandings with the tax authorities.

Registration with the Chamber of Commerce and Industry of Greece

Chamber membership: a mandatory requirement for most types of activity.

• Documents are submitted after receiving the registration certificate.
• For companies with remote management, electronic interaction is possible.

Company registration in Greece for foreigners

Risk minimization and AML/KYC when registering a company in Greece

Команда COREDO разрабатывает индивидуальные compliance-решения:

• Selection of the optimal legal form and ownership structure to minimize tax and legal risks.
• Preparation of the complete document package for banks and regulators.
• Assistance throughout the registration process in compliance with all AML/KYC requirements.

Recommendation: do not skimp on due diligence: transparency and accuracy of documents help avoid delays and reputational damage.

Conclusions and recommendations

Registering a company in Greece is not only a formal process but also a strategic task that requires a comprehensive approach to choosing the form, preparing documents, and ensuring compliance. COREDO’s experience shows:

• For startups and international structures, the ΙΚΕ form is optimal, with minimal share capital and the possibility of remote management.
• The key success factor is proper document preparation, including KYC, due diligence, and proof of the source of funds.
• To minimize risks, choose verified legal addresses, work with banks that are friendly to foreign founders, and engage professional agent-representatives.

For consultation and support, contact us directly. COREDO’s practice is not only knowledge but also real cases where every detail matters for your success.

When it comes to vetting crypto projects, the statistics are sobering: according to Chainalysis, in 2024 more than $1.7 billion was lost by investors due to unscrupulous or technically vulnerable blockchain startups. Even more telling: about 70% of cryptocurrency listing applications on major exchanges are rejected precisely because of errors or inconsistencies discovered during the Due Diligence stage. Why do so many promising projects fail the review despite innovative ideas and strong teams?

In reality, a comprehensive review of blockchain projects is not just a formality but a strategic tool for protecting investments and increasing the chances of a successful listing. Due diligence for crypto projects allows you to identify legal, financial, and technical risks, assess the transparency of tokenomics, verify the legality of operations, and ensure compliance with international standards. For teams, it is an opportunity to demonstrate business maturity; for investors, to reduce the likelihood of losing funds; and for exchanges, to ensure the security of the ecosystem.

At COREDO we encounter cases every day where properly conducted due diligence becomes the decisive factor for a project’s entry into the global market. I invite you to read the article to the end: here you will find practical recommendations, strategic ideas, and checklists that will help you pass due diligence for a crypto project as effectively as possible – from preparing documents to assessing risks and interacting with exchanges.

Main stages of cryptocurrency project due diligence

The main stages and process of checking cryptocurrency projects (due diligence) imply a phased and systematic assessment of all key aspects of a project to reduce risks and enable informed decisions. From the outset it is important to clearly define the objectives of the review and prepare for each subsequent stage in order to identify weaknesses of the cryptocurrency project and assess its real potential.

Setting objectives and preparing for due diligence

Due diligence for crypto projects begins with a clear formulation of goals: determine legal compliance, assess financial stability, identify technical risks and prepare the project for listing or an investment round. In practice COREDO has shown that setting KPIs and a timeline for the review significantly speeds up the process and makes it transparent for all parties.

The terms of reference should include a list of aspects for analysis: corporate structure, tokenomics, smart contracts, sources of financing, KYC/AML mechanisms. It is important to select a team of experts with experience in international jurisdictions: as implemented by COREDO when working with projects for the EU, Singapore, Dubai and the United Kingdom.

Gathering and organizing documents

An effective comprehensive review of blockchain projects is impossible without proper organization of an electronic data room. The solution developed by COREDO allows documents to be structured by category: charter, corporate agreements, licenses, whitepaper, roadmap, financial reporting, smart contract audit reports.

Key documents for due diligence of a crypto project:

• Charter, corporate agreements, ownership structure
• Financial statements, bank statements, project budget
• Whitepaper, technical documentation, description of tokenomics and vesting mechanisms
• Licenses for cryptocurrency operations, confirmation of AML/KYC compliance
• Roadmap, reports on MVP implementation, test protocols

Legal audit of a crypto project

Important aspects of legal review:

• Analysis of the legal structure of the crypto issuer and ownership structure
• Review of corporate agreements, shareholder agreements, presence of offshore elements
• Assessment of the token’s status: whether it is classified as a security according to the Howey Test, MiCA, SEC or FCA
• Sanctions screening of crypto projects through international databases, analysis of political connections and reputation
• Checking KYC/AML procedures for token sale participants: compliance with FATF, EU, MAS (Singapore) and other standards

The solution developed by COREDO integrates automated tools for verification against government registries, which minimizes the human factor and speeds up the audit.

Financial review and risk assessment

A financial review of a blockchain startup includes analysis of inflows and outflows, assessment of the fair price of the token, scenario modeling and identification of critical risks. COREDO’s experience confirms that scenario analysis of crypto projects enables investors to make decisions based on objective data rather than just marketing forecasts.

Key steps of financial due diligence:

• Analysis of financial flows: sources of revenue, expenses, budget structure
• Assessment of financial stability: adequacy of reserves, balance sheet transparency, absence of hidden liabilities
• Scenario modeling: calculation of worst-case and best-case scenarios, risk matrix
• Verification of funding sources: legality, transparency, absence of sanctions restrictions
• Preparation of a risk report and strategies for their mitigation (insurance, reserving, diversification)

At COREDO we use international standards of financial audit, which allows adapting the review to the requirements of the EU, Singapore, Dubai and other jurisdictions.

Technical audit and smart contract review

Technical due diligence includes:

• Smart contract audit: security review, vulnerability testing, execution logic analysis
• Validation of the MVP and the working protocol: confirmation of the presence of a working product, not just a concept
• Technical integration of cryptocurrencies on exchanges: compliance with API standards, configuration of trading pairs, ensuring compatibility
• Assessment of the blockchain solution architecture: scalability, fault tolerance, compliance with security standards (ISO, OWASP)

The COREDO team uses independent technical auditors and automated tools for testing smart contracts, which allows identifying risks at an early stage and correcting the project’s architecture before market launch.

How to pass due diligence for a cryptocurrency listing

Preparing for listing: requirements and documents

Main requirements:

• Whitepaper with a detailed description of the technology, tokenomics, team, and roadmap
• Documents confirming legal compliance: charter, licenses, corporate agreements
• Information about the team: biographies, experience, public profiles, proof of qualifications
• Tokenomics setup: vesting mechanism, token distribution, holders’ rights, inflationary and burn mechanisms
• Reports on technical audits, smart contract testing, confirmation of an MVP

Common mistakes and how to avoid them

Mistakes in documentation are one of the main reasons for rejection when listing a cryptocurrency. In COREDO’s practice, the most common are:

• Mismatch of information between the whitepaper, roadmap and the actual state of affairs
• Insufficient tokenomics detail: lack of a vesting mechanism, unclear token distribution
• Gaps in legal documents: missing licenses, outdated corporate agreements
• Smart contract vulnerabilities: no audit performed, logical errors found
• Lack of transparency in financial flows: unclear funding sources, no reporting

Sanctions screening before listing

Key steps:

• Check for matches against international sanctions lists (OFAC, EU, UN)
• Analysis of differences in regulatory requirements across jurisdictions: MiCA (EU), MAS (Singapore), FCA (United Kingdom), DFSA (Dubai)
• Conducting KYC procedures/AML for token sale participants: collection and verification of data, checking sources of income, documenting good faith
• Execution of NDAs and confidentiality agreements to protect confidential information

COREDO’s solution for automating sanctions screening and integrating with international databases minimizes risks and speeds up the listing process.

Assessment of the team and governance of a crypto project

Analysis of the team’s qualifications and reputation

Important aspects:

• Verification of founders’ experience in the blockchain industry: completed projects, publications, participation in industry events
• Checking conflicts of interest: transparency of governance structure, presence of independent directors
• Analysis of corporate agreements: role distribution, rights and responsibilities of participants, dispute resolution mechanisms

At COREDO we use international databases and industry rankings to objectively assess the team’s reputation.

How to evaluate community activity?

Metrics of crypto community activity and a project’s reputation in the crypto community are an important indicator of a startup’s prospects. COREDO’s solution for analyzing social networks and marketing campaigns makes it possible to distinguish organic growth from artificial.
Key metrics:

• Community size and activity: number of members, discussion frequency, engagement
• Organic growth vs artificial: analysis of dynamics, detection of bots and fake accounts
• Project reputation: reviews in industry media, participation in relevant events
• Quality of marketing strategy: transparency of communications, interaction with investors, availability of educational content

Key Steps of Due Diligence

• Forming a working group and setting the review objectives
• Collecting and structuring documents in an electronic data room
• Conducting preliminary legal, financial, and technical audits
• Preparing explanations and supporting information for investors and exchanges
• Preparing NDAs and non-disclosure agreements

The due diligence timeline for crypto projects, implemented by the COREDO team, usually ranges from 3 to 8 weeks depending on the complexity of the structure and jurisdictional requirements. The cost of listing a cryptocurrency on an exchange ranges from $10,000 to $250,000, including expenses for audit, legal review, and document preparation.

Interaction with investors and exchanges should be built on principles of openness, transparency, and readiness for additional questions. COREDO’s experience has shown that projects prepared for due diligence in advance pass the review faster and with lower costs.

Key takeaways and steps for entrepreneurs

• Successful completion of due diligence for a crypto project requires a comprehensive approach: legal, financial and technical audits must be integrated into a single strategy.
• Transparency of processes, compliance with regulatory requirements and proper structuring of documents: the key to investors’ and exchanges’ trust.
• Due diligence helps protect investments, minimize the risk of rejection and accelerate entry into global markets.
• Checklist questions for self-assessment before starting due diligence: Are all documents prepared? Has a smart contract audit been conducted? Are corporate agreements formalized? Have funding sources and compliance with sanctions requirements been checked? Has the community activity been assessed?

Stages of due diligence and key tasks

This article is a practical guide that reflects the many years of experience of the COREDO team in international legal and financial consulting for crypto projects. Here you will find tools, strategies and solutions that will help you pass due diligence and take your project to a new level of trust and resilience.

How to go through this process quickly, safely and with maximum benefit for the business? In this article I share a practical guide based on COREDO’s experience and recent industry data so that you receive not only answers to key questions but also strategic tools for long-term success. Read the article to the end – here you will find a step-by-step guide, analytical recommendations and real case studies that will help a non-resident open an account in the UK and minimize risks.

Main types of bank accounts for non-residents in the UK

Personal or corporate account: pros and cons

• A personal account at a British bank for a foreigner is suitable for sole proprietors, investors, and expats. Pros: ease of opening, minimal document requirements, quick access to online banking. Cons — limits on transactions, inability to conduct corporate transactions, and risk of account freezes if business activities are suspected.
• A corporate account in the UK for a non-resident is a tool for companies, branches, and holdings. Pros: expanded capabilities for managing funds, multi-currency operations, access to international payment systems, integration with accounting. Cons: stricter document requirements, comprehensive checks of beneficiaries and sources of income, and a lengthy approval process.

Types of accounts: multi-currency, investment, basic

• A multi-currency account allows working with GBP, EUR, USD and other currencies, reducing currency risk and optimizing international settlements.
• An investment account is used for operations with securities, real estate, and corporate bonds.
• A basic bank account for non-residents: a solution for startups and small companies that need minimal functionality without complex requirements.

UK Banks’ Requirements for Non-Residents

Overview of KYC, AML, CDD, EDD regulatory framework

• Know Your Customer (KYC): mandatory identity verification, document checks, analysis of income sources and company structure.
• Anti-Money Laundering (AML) — transaction monitoring, sanctions-list screening, risk assessment of the client.
• Customer Due Diligence (CDD): basic verification of information, transaction history, and company reputation.
• Enhanced Due Diligence (EDD): in-depth checks for high-risk clients, including beneficiaries from countries with elevated AML risks.

COREDO’s experience confirms: successful completion of compliance procedures in British banks is possible only with proper document preparation and a transparent business structure.

The role of the FCA and PRA in financial regulation

• FCA, the main regulator overseeing compliance with KYC/AML standards, Licensing of financial services and the protection of customers’ rights.
• PRA — is responsible for the resilience of the banking system, financial transparency, and risk management.

Documents required to open an account in England

Opening a bank account in England requires strict adherence to procedures and preparation of a complete set of documents. Below is the full list of documents needed to open an account in England, which will be required for successful identity verification and subsequent banking services.

Identity verification documents

• Passport (national or international) – the primary document required to open an account.
• ID card or driving licence, additional identity documents.
• Biometric Residence Permit – for residents with long-term status.
• Apostille and notarisation, required for documents issued outside the UK.

Proof of address for the account

• Utility bill: no older than 3 months.
• Tenancy agreement – signed by the landlord and stating the address.
• Council Tax notice (Council Tax): an official document from the local authorities.

Proof of income sources

• Bank statement for the last 6 months: confirms the stability of financial flows.
• Tenancy agreement, income statement and declared dividends – to confirm the legality of income.

Documents for opening a corporate account

• Company registration certificate in the UK
• Memorandum and articles of association of the legal entity
• Details of the company’s directors and beneficial owners
• Notarised power of attorney to open the account
• Apostille for documents for British banks

Our experience at COREDO has shown that a correctly prepared package of corporate documents is a key factor in successfully opening a corporate account in the United Kingdom for a non-resident.

Verification of a UK bank account

Verification, a multistage process requiring precision and transparency at every step.

Stages of the sanctions screening process

– Submission of the application – online or through a COREDO representative.
– Identity verification, document upload, client video verification, biometric identification.
– Address verification – automated document processing, cross-checking with databases.
– Sanctions list screening, checking the client against international sanctions and PEP lists.

Which banks open accounts for non-residents in the United Kingdom?

Choosing a bank is a strategic step that determines the speed of account opening and the quality of service.

Overview of banks and fintech solutions

• HSBC (United Kingdom): international transfers, corporate solutions, a high level of oversight.
• Barclays Bank, fast verification, flexible terms for startups and small businesses.
• Lloyds Banking Group, NatWest Group, Santander UK, Virgin Money: traditional banks with an extensive branch network and online banking.
• Wise (international transfers), Revolut (fintech solutions): multi-currency and business accounts, low fees, ability to open online.

Minimum balance and fees in a UK bank

Financial terms are one of the key factors when choosing a bank.

• The minimum balance in an account at a UK bank ranges from £0 (Wise, Revolut) to £1,000 (HSBC).
• Account maintenance fees: from £1/month (Wise) to £20/month (HSBC), plus additional charges for international transfers and foreign exchange transactions.

Managing AML risks when a foreign national opens an account

AML is the main challenge for non-residents opening an account in a UK bank.

Which payments are considered suspicious

• Large transactions without a confirmed intended purpose.
• Transfers to/from countries with high AML risk.
• Frequent cryptocurrency transactions without a transparent history.

Monitoring suspicious activity and sanctions lists

• Automated systems for client risk assessment.
• Regular audit of transactions and updating of compliance procedures.

Open an account in the UK online: practical steps

Step-by-step guide based on COREDO’s practice:

1. Registering on the bank’s online portal, choosing the account type, filling in the application form.
2. Submitting documents – uploading scans of passport, proof of address, sources of income.
3. Identity verification: video verification, biometric identification, digital signing of documents.
4. Address verification, automated checks, requesting additional documents if necessary.
5. Sanctions-list screening – checks against international databases.
6. Account activation, receiving account details, enabling online banking and the mobile app.

Timeframes for opening a corporate account in the UK

• Standard processing time: from 3 to 15 business days, depending on the bank and the completeness of the documents.
• Expedited process: possible with the involvement of a professional provider, prior agreement on the document package, and the use of electronic identification systems.

Taxes when opening an account in the United Kingdom

Opening a bank account in the UK for a non-resident entails a number of tax considerations:

• Taxation of income on the account depends on the company’s jurisdiction, tax residency status and the type of transactions.
• Tax treaties and FATCA: the United Kingdom participates in international agreements on the exchange of tax information, including FATCA and CRS, which require transparency of income sources and regular reporting.

Key findings and recommendations

Checklist for a non-resident to open an account in the UK:

• Prepare a complete set of documents: passport, proof of address, sources of income, corporate documents.
• Choose the optimal account type (personal vs. corporate) considering business goals.
• Assess the bank’s requirements regarding client reliability and AML risks.
• Use professional support to speed up the process and minimize the risk of rejection.
• Ensure transparency of the company’s structure and sources of income.

Frequently Asked Questions

Comparison of banks for non-residents

Conclusion

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.

For companies operating in the EU, this is not only a legal obligation but also a key factor of trust from partners, banks and investors. The practice of COREDO confirms: the absence of transparent Customer Due Diligence (CDD) procedures and an ineffective risk-based approach lead to account freezes, denial of service and even criminal liability.

Key concepts of AML, KYC, Compliance

At the core: KYC procedures (Know Your Customer), including identification, verification and ongoing monitoring of clients. Compliance in Europe: it is not only about meeting formal requirements, but also about creating an internal culture where risk management is integrated into every business operation.

Objectives of countering money laundering in the EU

To this end, the EU implements unified standards, guided by FATF recommendations and strengthens control over cross-border transactions, crypto-assets and new digital services.

EU Regulatory Requirements on AML 2025–2027

At the center of these changes are tighter controls and the harmonization of processes based on updated legislative acts, such as 6AMLD and the new AML Regulation.

Key legislative acts: 6AMLD and the AML Regulation

From 2025, key changes come into force: 6AMLD (Sixth Anti-Money Laundering Directive) and the new AMLR (EU Single Rulebook). These documents unify rules for all EU countries, introduce clear criteria for identifying beneficiaries, expand the list of obliged entities and strengthen requirements for the compliance regulatory framework.

Role of the European Anti-Money Laundering Agency and launch timelines

From 2026, control over compliance will transfer to the European Anti-Money Laundering Agency (AMLA), which will become the centralized supervisory authority. The solution developed by COREDO for clients already takes into account new procedures for interacting with AMLA, including preparation for centralized inspections and unified reporting.

Expansion of persons and sectors under AML supervision

Now under AML control are not only banks and payment organizations, but also crypto platforms, marketplaces, digital wallet providers, as well as services working with digital identification. In a recent COREDO project for a fintech company from the Czech Republic we integrated cross-border compliance taking into account the new requirements for providers of virtual assets.

Impact of MiCA on AML in crypto-assets

With the adoption of the MiCA Regulation (Markets in Crypto-Assets), crypto companies are required to implement full KYC/KYT procedures, transaction monitoring and automated risk analysis. Our experience at COREDO has shown: adapting internal policies to MiCA and AMLR not only helps avoid fines but also increases trust from European banks.

KYC procedures 2025: how to meet the requirements

It becomes critically important for businesses to comply with the new KYC requirements in order to preserve reputation, avoid fines and operate successfully in the market amid increasing international regulation.

Overview of KYC procedures in AML compliance

KYC procedures: the fundamental element of AML compliance for businesses. They include collecting and verifying client data, analyzing sources of funds, monitoring transactions and detecting suspicious activity. Without clear KYC processes it is impossible to ensure compliance with the new EU standards.

New KYC standards 2025: eKYC and onboarding

From 2025 the focus shifts to eKYC and digital onboarding: digital identification, remote verification of clients and integration with state registers (eIDAS). Solutions implemented by the COREDO team for clients in Estonia and Slovakia allow reducing verification time from several days to hours, cutting costs and increasing conversion.

Enhanced due diligence: risk-based approach

For clients from high-risk jurisdictions or when working with large transactions Enhanced Due Diligence (EDD) is applied. This is an in-depth check of sources of funds, ownership structure and links to politically exposed persons. In one of COREDO’s case studies for a British investment platform we implemented a risk-based approach with automatic reassessment of the risk level whenever the client’s profile changed.

KYC automation and analytics integration

Modern KYC procedures are impossible without automation.

At COREDO we assess the ROI from implementing such solutions by reducing manual errors and accelerating compliance processes.

Transaction monitoring and AML: practical aspects

Transaction monitoring and fulfilling AML reporting obligations are key elements of the system to combat financial abuse in modern business. Practical aspects of this work include continuous risk assessment, monitoring of transactions, and preparing reports in accordance with regulators’ requirements. Below we review the main requirements for transaction monitoring and identifying suspicious activity.

Transaction monitoring and detection of suspicious activity

Transaction monitoring: the key to timely detection of suspicious transactions. In 2025 the requirements for automated analysis are rising: systems must not only flag anomalies but also explain the logic behind their decisions (explainable AI). In COREDO’s work for a platform in Dubai we deployed a module that uses graph neural networks to uncover complex chains of transactions among related parties.

AML obligations: deadlines, forms, liability

Companies must file reports on suspicious activities (Suspicious Activity Reporting) to national FIUs (Financial Intelligence Units) within 24–48 hours of detection.

COREDO’s solution includes automation of report generation and integration with government portals.

Use of graph neural networks and confidential machine learning

The implementation of confidential machine learning (FHE) and continual learning enables analysis of large volumes of data without exposing personal data, which is critical for GDPR compliance. For example: for an international payment provider, the COREDO team implemented a collaborative risk analysis with partners from different countries without transferring raw data, using homomorphic encryption technologies.

Interaction with FIUs and sanctions control

At COREDO we set up automatic checks of customers and transactions for matches against sanctions lists, minimizing the risk of inadvertent violations.

Fines for AML non-compliance: how to avoid them

Failure to comply with AML requirements entails serious fines and risks for businesses — from financial sanctions to a complete suspension of activity. To avoid sanctions, it is important to understand what types of liability are provided by law and how they are applied in practice.

Main fines for AML violations in the EU

Since 2025 the minimum fine for violating AML in the EU is €1 million or 10% of the company’s annual turnover, depending on which amount is higher. For repeat violations, executives may face criminal liability.

Examples of global investigations and cases

COREDO’s practice shows: regular compliance regulatory audits and stress-testing of internal procedures make it possible to identify vulnerabilities before regulators take interest.

The impact of 6AMLD on stricter liability

6AMLD expands the list of predicate offences, introduces the concept of “aiding and abetting,” and tightens the standards for proving guilt. Liability now extends not only to the company but also to specific employees involved in violations. At COREDO we adapt clients’ internal regulations to the new standards, reducing the risk of personal liability for executives.

Managing compliance risks in business

Effective compliance risk management requires not only the implementation of technology but also regular staff training, procedure reviews, and independent audits. COREDO’s solution includes checklists for assessing the maturity of the compliance system and tools for rapid incident response.

Implementing AML compliance in a company: recommendations

Implementing AML compliance in a company requires a systematic approach and a clear understanding of current regulatory requirements. Practical recommendations will help adapt internal regulations to the new EU rules and the 6AMLD, ensuring effective anti-money laundering and legal compliance.

Adapting regulations to EU requirements and the 6AMLD

The first step is reviewing and adapting internal policies in accordance with the 6AMLD and AMLR. The COREDO team develops tailored compliance programs, taking into account industry specifics, business structure and the geography of operations.

Scaling and automation of compliance processes

Scalability is a key challenge for fast-growing companies. Automation of KYC, transaction monitoring and reporting reduces costs and increases the speed of response to incidents. In one of COREDO’s projects for an international marketplace we implemented a compliance workflow integration module, which made it possible to process three times more clients without increasing headcount.

Training staff in a culture of compliance

Effective compliance training: not a one-off event, but an ongoing process. At COREDO we pay special attention to developing a compliance culture: regular training sessions, incident simulations, and experience sharing between departments. This reduces the risk of human error and fosters a responsible approach to risk management.

ROI of implementing AML systems: cost savings and risk reduction

Implementing modern AML systems is an investment with measurable ROI. In COREDO’s case for a payment provider from Cyprus, the automation of KYC and monitoring reduced operating costs by 40% and cut client processing time from 2 days to 30 minutes. But most importantly, the minimization of the risk of fines and account blocks, which ensures business resilience in the long term.

AML compliance in the EU: key steps

In the context of tightening regulatory requirements, AML compliance in the EU is becoming a key issue for businesses. New directives, the digitalization of procedures and greater transaction transparency require not only formal fulfillment of obligations but also real implementation of advanced compliance standards. Below are the key findings and practical steps that will help entrepreneurs and executives prepare for changes and ensure the sustainable development of the company.

Recommendations for entrepreneurs and managers

• Conduct an audit of current procedures and identify gaps in compliance with 6AMLD and AMLR.
• Implement digital KYC and automated transaction monitoring.
• Organize regular staff training and stress-testing of the compliance system.
• Use modern analytics platforms to detect complex money laundering schemes.

Heading analysis

Preparing for new AML requirements

1. Assess the maturity of the compliance system using the COREDO checklist.
2. Update internal regulations and implement eKYC, digital onboarding.
3. Integrate automated monitoring and reporting tools.
4. Set up cooperation with FIUs and sanctions lists.
5. Regularly review procedures taking into account changes in EU legislation.

How to choose a partner for legal support and compliance?

When choosing a partner, pay attention to experience with international projects, availability of case studies on AML system implementation, expertise in adapting to different jurisdictions and the ability to integrate technologies (Chainalysis, Elliptic, GNN). COREDO’s practice is not only consulting, but also comprehensive end-to-end implementation of compliance processes.

Useful resources and AMLA contacts

• Official AMLA portal: current requirements, reporting forms, recommendations for businesses.
• EU Beneficial Owners Register: for checking ownership structures.
• Platforms for monitoring sanctions and risks: Chainalysis, Elliptic, international FIUs.

Table of changes to AML requirements under the directives

The solutions that the COREDO team implements for clients in Europe, Asia and the CIS not only enable compliance with the new requirements, but also create a resilient, transparent and scalable business ready for future challenges.

Who needs a PSP license?

Over the past years the COREDO team has implemented dozens of projects for fintech companies, startups, payment aggregators, e-money providers and international payment services. PSP license for business is necessary for those who:

• Develop fintech products, payment platforms and aggregators.
• Provide e-wallets, payment gateways and services for digital transfers.
• Are focused on international operations and working with individuals and legal entities worldwide.
• Implement solutions for integration with banks and banking partnerships.
• Conduct transactions involving e-money, cryptocurrencies and digital services.

Benefits of a PSP license

The solution developed by COREDO for international clients demonstrates that a PSP license in the EU provides unique advantages:

• Legality: compliance with strict regulatory requirements.
• Passporting: the ability to operate in all EU/EEA countries without obtaining separate licenses.
• Access to banking partnerships: integration with leading banks and financial institutions.
• Expansion of the customer base: serving individuals and legal entities, scaling the business.
• Reduction of operational costs: process optimization, no need for multiple licenses.

Main requirements for obtaining a PSP license

Financial requirements and minimum capital

In different jurisdictions the minimum capital for a PSP license varies significantly. Below is a table reflecting the current requirements:

Corporate requirements and governance

To register a PSP in most countries, the following are required:

• At least two directors (often one must be a resident of the country).
• A clear corporate governance system.
• Distribution of responsibilities among governing bodies.
• Implementation of procedures to oversee operational risks.
• An official procedure for handling customer complaints.
• An IT monitoring system.

Staff and insurance requirements

Regulators require:

• Hiring qualified staff with experience in financial services.
• Mandatory professional insurance.
• Checks of competence and business reputation of executives.

Reporting and audit requirements

To obtain a license for payment services the following are required:

• Timely financial reporting.
• Audit by a licensed auditor.
• Regular audits and compliance with international standards (IFRS, GAAP).

Documents and Business Plan for a PSP License

Legal Documents

Clients of COREDO receive a detailed checklist that includes:

• Memorandum of Association (MOA), Articles of Association (AOA).
• Certificate of company registration.
• Identity documents of shareholders and directors.
• Information on beneficial owners.
• Professional and personal references for executives.

Financial Documents

In each COREDO case, emphasis is placed on:

• Audited financial statements.
• Proof of sufficient capital (bank statements).
• Demonstration of net asset value.
• Transparency of financial operations.

3-Year Business Plan

The PSP business plan, a strategic document reflecting:

• Description of payment services.
• Methods of service delivery.
• Target markets and customer base.
• Financial forecasts and expected transaction volumes.
• Revenue and cost structure.
• Growth scenarios and risk management.

Program Document and Description of Activities

In each project COREDO prepares a program of activities that includes:

• Methods of service delivery.
• Description of internal procedures and policies.
• Security policy and incident response mechanisms.

AML and KYC Documents

To successfully obtain a PSP license the following are required:

• Detailed AML procedures and CFT.
• Evidence of meeting compliance requirements.
• Risk management plans.

Technological Documents

Special attention is paid to:

• Description of software and technological infrastructure.
• Ensuring the security of payment gateways.
• Data protection and reliability of payment processing.

Obtaining a PSP license by jurisdiction: step-by-step

Obtaining a PSP license in the EU

A PSP license in the EU is an opportunity to operate in all EU/EEA countries thanks to the passporting principle. A unified regulatory framework reduces operating costs and simplifies scaling. In COREDO’s practice the most in-demand jurisdictions for registering PSPs and obtaining a license for cross-border operations are Liechtenstein, Malta and Cyprus.

PSP license in Liechtenstein: Guide

Regulator – FMA (Financial Market Authority). The process consists of:

1. Preparation of documentation: operating program, three-year business plan, confirmation of authorized capital, organizational chart, security policy.
2. Submission of the application: gathering the full document package and submitting it to the FMA.
3. Checks and analysis: document assessment, compliance review, analysis of the business reputation of executives.
4. Receiving the decision: issuance of a decision to grant the license.
5. Registration: inclusion in the FMA’s official register.

Obtaining a PSP license in Belize

Regulator: IFSC. The process includes:

1. Company registration with a memorandum of association (MOA) reflecting the activities.
2. Preparation and submission of documents: legal documents, financial statements, business plan, proof of address, references for executives, AML and CFT procedures.
3. Structural requirements: at least two directors (one local), qualified personnel, insurance, a physical office.
4. Financial requirements: €20,000–€125,000 depending on the type of services.
5. Review and approval: IFSC document review, obtaining the license.

Obtaining a PSP license in Dubai

Regulator: Central Bank of the UAE. License categories differ by capital and type of services.

1. Assessment of operational activity: compliance with local laws.
2. Compliance criteria: company registration, infrastructure, capital.
3. Preparation of documents: business plan, confirmation of AML/KYC, incorporation documents, personal data of shareholders and directors.
4. Application submission: sending to the Central Bank.
5. Review and approval: application analysis, obtaining the PSP license.
6. Compliance with requirements: regular audits, reporting, compliance.

PSP license in Mauritius

Regulator: Financial regulator of Mauritius.

1. Preliminary preparation: business model analysis, compliance with requirements, strategic plan.
2. Document collection: business plan, financial statements, information on beneficial owners and directors.
3. Compliance and financial checks: proof of financial stability, capital, risk management, audit.
4. Description of internal procedures: AML/CFT policies, technological infrastructure.
5. Application submission: sending documents, review, obtaining the license.

PSP Licensing by Jurisdiction

Comparison Table of Jurisdiction Parameters

Advantages and Disadvantages of Jurisdictions

• Liechtenstein (EU)
  • Passporting to the EU/EEA, high level of regulation, access to European banks.
  • Significant resources and a complex licensing process are required.
• Belize
  • Low capital requirements, fast process, low costs.
  • No passporting, less international trust, a physical office is required.
• UAE (Dubai)
  • Strategic location, developed infrastructure, high level of regulation.
  • High capital requirements, office maintenance costs, lack of passporting.
• Mauritius
  • Strategic position, developed system, low costs.
  • Limited access to European banks, no passporting.

Choosing a Jurisdiction for Business

• For operating in Europe — Liechtenstein or EU countries.
• For Asia and the Middle East — UAE (Dubai).
• For Africa — Mauritius.
• For startups with limited budgets — Belize.
• For international operations: a combined approach.

Special requirements for payment services

PSP license for money transfers

PSP license for e-wallets

PSP license for payment aggregators and gateways

PSP license for cryptocurrencies

PSP license for individuals and legal entities

Timelines, costs, and mistakes of PSP licensing

Timelines for obtaining a PSP license by country

• Liechtenstein: 3–6 months.
• Belize: 2–4 months.
• UAE: 2–6 months.
• Mauritius: 3–6 months.

Cost of a PSP license and its maintenance

• Government fees: €3,000–€15,000.
• Consulting services: individually.
• Office maintenance, insurance, audit – from $3,000 to $10,000 per year.

Common mistakes when applying for a PSP license

• Incomplete document preparation.
• Insufficient capital.
• Weak business model.
• Inaccurate description of activities.
• Absence of AML/KYC procedures.
• Choosing the wrong jurisdiction.
• Underestimating regulator requirements.

How to avoid a license refusal

• Thorough preparation of documents.
• Consultation with COREDO experts.
• Choosing the optimal jurisdiction.
• Demonstrating financial stability.
• Developing a reliable business model.
• Compliance with all regulator requirements.

PSP license or EMI license: which to choose?

PSP and EMI: what’s the difference?

PSP (Payment Service Provider) — a payment services provider not required to hold clients’ funds. EMI (Electronic Money Institution) — an electronic money institution that can issue and hold electronic money, subject to higher capital and security requirements.

PSP and EMI comparison table

When COREDO advises international companies on the registration of legal entities and financial licensing, one of the first priorities is building an effective compliance system. By compliance I mean not only formal adherence to the law, but also a set of internal procedures that ensure a business’s transparency, ethical conduct, and sustainability. A compliance audit is a structured review of a company’s internal activities to ensure they comply with external regulatory requirements and internal regulations.

Such an audit helps identify weaknesses in the control system, minimize the risk of legal violations, and increase trust from partners, investors, and regulators.

Mandatory compliance audit for businesses

According to recent research by the European Commission, up to 68% of large companies have faced sanctions due to non-compliance with compliance requirements, and the average fine in the EU financial sector in 2024 exceeded €1.2 million.

The COREDO team has executed projects where a competent compliance audit helped prevent litigation and avoid account freezes when working with foreign banks. Compliance violations can lead to fines, criminal liability for management, loss of licenses, and the inability to enter new markets. That is why regular compliance audits become a strategically important element of managing corporate risks and ensuring financial transparency and reporting.

When is a compliance audit mandatory?

A compliance audit is not just a recommendation but a mandatory requirement for organizations operating in strictly regulated sectors and subject to various regulatory grounds. Understanding exactly when a company must carry out such an inspection depends not only on the type of activity but also on geographic location and the applicable legislation. Let’s examine which practical grounds and standards in different regions require a mandatory compliance audit.

Legislative requirements in Europe, Asia and the CIS

In different jurisdictions the concept of a mandatory compliance audit is enshrined at the legislative level. In the EU the key standards are ISO 27001 (information security), GDPR (personal data), AML (Anti-Money Laundering) directives, as well as national laws and GOST standards. In the Czech Republic, Slovakia and Estonia special attention is paid to data protection and financial monitoring, while the United Kingdom has its own sanctions and AML control system.

In Asia, for example, when registering a company in Singapore, the obligation to maintain a register of controllers and to file annual reporting is established at the level of ACRA (Accounting and Corporate Regulatory Authority). In 2025 new requirements for corporate service providers were introduced, and violations of compliance obligations are subject to fines of up to 50 000 SGD and criminal liability. For companies providing financial services or working with government contracts, AML audit is mandatory, and sanctions compliance becomes critically important amid tightening international restrictions.

Mandatory compliance audit: situations and industries

From COREDO’s experience, a mandatory compliance audit is required in the following cases:

• international companies, operating in multiple jurisdictions, especially when registering legal entities in the EU, Singapore or Dubai.
• Organizations working with government contracts or financial institutions, where oversight of regulatory compliance is mandatory.
• Sectors with increased compliance risks: finance, the crypto industry, IT, platform economy, export-import operations.
• Companies obtaining licenses for banking, forex, payment or crypto services, where AML services and sanctions-list audits become mandatory components.

Stages of a compliance audit: from preparation to remediation

The stages of conducting a compliance audit — from preparation to remediation — structure the process of ensuring the company’s adherence to key requirements and standards. At each stage, from the preparatory phase to remediation, conditions for an effective review are created, risk areas are identified, and solutions are developed to ensure the resilience of business processes and the transparency of internal control.

Preparatory stage

An effective compliance audit begins with a clear definition of objectives, scope and resources for the review. The solution developed at COREDO includes a preliminary risk analysis, the collection of the regulatory framework (international standards, local laws, internal regulations and company policies), as well as forming a working group involving the compliance manager, lawyers and IT specialists.

It is important to systematize internal documentation: AML and KYC policies, anti-corruption procedures, data protection instructions, internal acts and procedures for monitoring compliance with regulatory requirements.

Review and analysis

At this stage compliance control and checks are carried out: documents are analyzed, employees are interviewed, technical diagnostics of IT systems are conducted, monitoring procedures are tested and objects of information security control are categorized.

COREDO’s practice shows that special attention is paid to verifying compliance with internal regulations, conformity to corporate ethics, and analyzing the effectiveness of compliance process automation. In international companies, an audit for AML requirements and counterparty due diligence for sanctions risks become mandatory.

How to prepare a report and recommendations

A detailed report is produced describing the identified non-conformities, pointing out gaps in procedures and risks of non-compliance with standards. At COREDO, it is customary to develop specific recommendations for eliminating compliance deficiencies, as well as a roadmap of corrective measures with timelines and responsible persons.

The next step is to monitor the implementation of recommendations, organize a follow-up audit and monitor the effectiveness of changes. This approach allows not only the elimination of current violations but also increases the maturity of the compliance system.

Compliance audit for risk management and business efficiency

A compliance audit is a key tool through which a business can not only timely identify and minimize legal and financial risks, but also optimize internal processes, increasing its resilience and efficiency. In the current environment, a competent compliance check becomes an integral part of strategic management and the company’s long-term growth.

Risk management through compliance

A compliance audit is a key tool for assessing and managing compliance risks, minimizing fines and litigation. In one of COREDO’s cases for a European fintech startup, the audit revealed vulnerabilities in the KYC procedure, which prevented account freezes and ensured successful passage of the regulator’s inspection.

Metrics and KPIs for assessing the compliance system

Assessing the effectiveness of a compliance system requires the implementation of clear KPIs: number of identified non-compliances, speed of their remediation, level of process automation, ROI from compliance implementation. COREDO uses internal audit and monitoring tools that allow tracking dynamics and responding promptly to new risks.

ROI can be calculated by comparing the costs of implementing compliance with prevented losses (fines, legal expenses, missed opportunities). This approach makes it possible to justify investments in developing a compliance culture to shareholders and investors.

Integration of compliance, legal support and AML

Effective risk management is possible only with close integration of compliance with companies’ legal support and AML procedures. The compliance manager becomes the connecting link between the business, the legal department and external auditors. Automation and scaling of the compliance system make it possible to maintain compliance with requirements even during rapid business growth and expansion into new markets.

Mandatory compliance audit: international activities

Mandatory compliance audit for companies with international activities is not just a formal requirement of regulators, but a critically important risk management mechanism in the context of business globalization. Financial and legal regulators in the EU, Asia and other regions are synchronizing their approaches by implementing common standards and directives, so companies operating in multiple markets must take into account the local specifics of each jurisdiction when building a unified compliance system. Successful completion of a compliance audit affects not only the avoidance of fines, but also the stability of business processes, reputation and the ability to carry out international activities unhindered amid ever-tightening requirements for transparency and risk management.

Impact of compliance on business registration and legalization by region

Registration of legal entities in the EU, Singapore, the United Kingdom or Dubai is impossible without confirmation of compliance with local and international compliance standards. For example, in Singapore, from 2025 requirements for maintaining a register of controllers and annual reporting have been tightened. In the EU, company registration requires checks for compliance with AML directives and the GDPR.

Sanctions and AML risks in business

In 2025, sanctions risks are becoming particularly relevant for companies with international activities. A compliance audit allows timely identification and prevention of violations related to working with counterparties from high-risk jurisdictions.

AML audit and counterparty due diligence are mandatory elements for companies dealing with financial transactions, cryptocurrencies and export-import operations. At COREDO, methodologies for assessing compliance with AML and sanctions compliance requirements have been developed, which allows clients to minimize the risks of account blocking and fines.

Mandatory compliance audit: recommendations for conducting

Practical recommendations for preparing and conducting a mandatory compliance audit help companies not only meet regulatory requirements but also minimize risks associated with non-adherence to compliance principles. Proper preparation for the audit is the first step in identifying vulnerable processes and building a reliable system of internal control.

Preparing for the audit: checklist and steps

• Systematize internal documentation: AML and KYC policies, anti-corruption procedures, internal instructions.
• Appoint responsible persons: compliance manager, legal department, IT specialists.
• Conduct a preliminary self-assessment of the maturity of the compliance system and categorize control objects.
• Ensure staff training and the implementation of a compliance culture at all levels.

How to remediate non-compliances and minimize risks

• Develop and implement corrective measures to address identified violations.
• Update internal regulations and procedures, taking into account changes in legislation and international standards.
• Organize regular monitoring and follow-up audits to control the effectiveness of changes.
• Implement automation of compliance processes to improve transparency and reduce operational risks.

Selecting an external auditor and follow-up reviews

• Assess the auditor’s experience and specialization in your industry and jurisdiction.
• Check for international certifications and successful case studies in conducting compliance audits.
• Set up independent monitoring of the implementation of recommendations and oversight of remediation of non-compliances.

Key takeaways and steps for entrepreneurs and executives

• Mandatory compliance audit: a strategic tool for minimizing legal, financial, and reputational risks.
• Regular review and updating of compliance procedures are necessary for the successful registration of legal entities in the EU, Asia, and the CIS, obtaining financial licenses, and entering new markets.
• Effective integration of compliance with legal support and AML procedures ensures business resilience and transparency.
• Implementation of a compliance culture, process automation and regular internal audit: the key to long-term success and trust from partners, investors, and regulators.

Comparison of regulations by region

COREDO’s experience shows: timely identification and elimination of nonconformities is the key to sustainable growth, financial transparency, and trust from all market participants.

Regulation in 2026

The direction of EU financial legislation in 2026 is defined by several strategic priorities:

• Tightening control over financial markets and digital assets. European regulators (ESMA, EBA) are strengthening oversight of all types of financial instruments, including crypto assets and digital payment platforms. At COREDO we observe how the new MiCA requirements (Markets in Crypto-Assets Regulation) have already changed approaches to licensing and monitoring operations with digital assets.
• Expansion of transparency and reporting requirements. The AMLD directives and MiFID II in 2026 introduce new standards for disclosure of information about beneficiaries, transactions, and sources of funds. In practice COREDO confirms: preparing for these changes requires a review of internal policies and the implementation of automated reporting systems.
• Focus on digitization of financial services. The European market is rapidly moving to digital service channels, which is reflected in new regulations on cybersecurity (DORA) and digital identification (eIDAS 2.0). Solutions developed at COREDO for clients in the FinTech sector enable the integration of digital KYC tools and automated AML systems into daily operational activities.
• Strengthening international cooperation on the exchange of financial information. The EU is expanding participation in global data-sharing initiatives to combat financial crime and tax evasion. This leads to the need to synchronize compliance processes across different jurisdictions, which is especially relevant for COREDO clients doing business in multiple EU countries and Asia.

Impact of the EU 2026 budget on the financial sector

The EU budget for 2026 reflects funding priorities focused on innovation, support for small and medium-sized enterprises, and accelerated digitalization of financial services. According to the analysis by the European Court of Auditors, the share of investments in FinTech and startups will increase by 22% compared to 2024.

• Funding priorities: Special attention is paid to innovation support programs, the development of digital infrastructure and ESG projects. In practice, the COREDO team has implemented a number of company registration projects in the Czech Republic and Estonia, where clients gained access to grants and tax incentives thanks to proper business structuring and timely submission of applications.
• Simplifying company registration in Europe: New EU initiatives are aimed at reducing the timeframes for company registration and introducing a single digital window for submitting documents. Our experience at COREDO has shown that for clients opening a business in Slovakia or Cyprus, the registration process in 2025-2026 became more transparent and faster, while the requirements for disclosing beneficiary information have been strengthened.
• support for startups and FinTech projects: The EU’s budgetary priorities stimulate the development of the FinTech ecosystem, opening new opportunities for companies operating in digital financial services, payment solutions and cybersecurity. COREDO’s practice confirms: startups that adapt promptly to new requirements gain access to additional funding and accelerated licensing.

New rules for regulating the EU financial market

AMLD update and strengthened compliance

In 2026 the anti-money laundering legislation of the EU (AMLD VI) steps up to a new level. The list of entities subject to AML is expanding, including crypto service providers, P2P lending platforms and even certain categories of advisers. The solution developed by COREDO for clients in the United Kingdom and Estonia provides for the implementation of comprehensive KYC/AML programmes based on a risk-based approach and automated transaction monitoring.

• Tightening requirements for client due diligence and reporting: Companies are now required not only to identify but also to regularly re-verify client and beneficiary data using digital tools and external databases. At COREDO we implement solutions that allow integrating automated checks of PEPs and sanctions lists, which significantly reduces operational risks.
• Adoption of new technologies for transaction monitoring: Modern AML systems use artificial intelligence to detect anomalies and suspicious transactions. Our specialists at COREDO have supported projects implementing such systems in companies operating in the EU and Asian markets, which has helped improve compliance and reduce the likelihood of fines.

Impact of inflation and key interest rates on regulation

The economic situation in the eurozone in 2026 is characterised by moderate inflation and increased volatility of the ECB’s key rate. These factors directly affect regulatory requirements for capital, liquidity and companies’ investment activities.

• Adjustment of regulatory requirements: EU regulators are adapting requirements for financial institutions taking into account inflation and changes in interest rates. For example, at COREDO we advised clients on reviewing investment strategies and managing currency risks in the context of a rise in the ECB’s key rate.
• Impact of ECB rate changes on lending and investment conditions: Rate increases lead to more expensive borrowing and higher requirements for borrowers’ creditworthiness. For our clients, this means the need to revise financial models and implement hedging instruments.

Registration of legal entities in the EU

Changes in company registration procedures

In 2026, Registration of legal entities in the EU is becoming more technological and transparent. Simplified procedures are being introduced for small and medium-sized businesses, application review times are being reduced, and some processes are being moved to digital format.

• Simplification of the registration process: In the Czech Republic, Estonia and Slovakia company registration is now possible entirely online using digital identification and electronic signatures. The COREDO team has implemented projects under which clients launched businesses in the EU within days, minimizing bureaucratic costs.
• New requirements for documentation and verification of beneficiaries: Since 2025 all legal entities are required to disclose information about ultimate beneficiaries, which is stored in closed registers and available to regulators. COREDO’s practice shows that timely preparation of documents and proper structuring of ownership allow avoiding delays and refusals during registration.

Specifics for foreign investors

For foreign entrepreneurs and investors in 2026, additional requirements regarding directors’ residency and the company’s place of effective management remain in place. At COREDO we regularly advise clients on choosing the optimal jurisdiction taking into account tax, regulatory and operational risks.

• Residency and place-of-management requirements: In some EU countries (for example, Cyprus and Estonia) the requirement to have a local director or office remains. The solution developed by COREDO provides for appointing nominee directors and setting up a virtual office to meet formal criteria.
• Risks associated with changes in legislation: Regular updates to rules require constant monitoring and adaptation of corporate structures. COREDO’s experience confirms that asset diversification and flexibility in choosing a jurisdiction help minimize regulatory risks.
• Recommendations for choosing a jurisdiction: When choosing a country for registration it is important to consider not only tax rates but also reporting requirements, availability of licensing and the level of investment protection. At COREDO we help clients assess all parameters and select the optimal solution for international business.

The impact of sanctions and geopolitics on financial regulation

Consequences of sanctions for business

In 2026 the EU’s sanctions policy continues to have a significant impact on financial flows and deal structures. Restrictions on transactions with Russian companies are tightening, and scrutiny of the origin of funds is becoming more stringent.

• Restrictions on transactions and operations: Banks and financial institutions are required to conduct enhanced due diligence on all operations involving companies from sanctioned countries. The COREDO team has handled cases where clients had to restructure supply chains and financial flows to comply with the new requirements.
• Strengthening control over the origin of funds: In 2026 the focus shifts to analyzing sources of capital and verifying the legality of investment origins. COREDO’s solutions include implementing automated monitoring systems and preparing justifications for regulators.

Geopolitical risks and mitigation strategies

Geopolitical instability requires businesses to be flexible and ready to respond quickly to changes in the external environment.

• risk assessment for business: At COREDO we recommend conducting regular stress tests and audits of supply chains to promptly identify potential threats.
• Recommendations for diversifying assets and jurisdictions: COREDO’s experience shows that spreading assets across different countries and using multi-bank structures reduces the risk of account freezes and transaction restrictions.

How businesses can prepare for changes

Review and update internal procedures

• Audit of current compliance and AML processes: COREDO’s practice confirms that regular audits of internal procedures help identify weaknesses and correct them in a timely manner. For clients doing business in multiple jurisdictions, we develop tailored compliance programs that take into account local and European requirements.
• Updating employee training programs: Implementing new rules requires continuous professional development of staff. The COREDO team helps organize training sessions and develops interactive AML and compliance courses.

Choosing reliable partners and consultants

• selection criteria for consultants: As regulation tightens, the experience and reputation of legal and financial advisors become especially important. The solution developed by COREDO provides a comprehensive risk assessment and support at all stages: from registration to obtaining licenses and implementing AML procedures.
• The importance of international experience: For companies operating in the EU, Asia and the CIS markets, consultants’ experience in cross-border projects and knowledge of the specifics of different jurisdictions is critically important. COREDO’s experience covers project support in the Czech Republic, Estonia, Singapore, the United Kingdom and Dubai.

Using technology to meet compliance requirements

• Implementation of automated monitoring and reporting systems: Modern RegTech solutions allow automating KYC/AML processes, reducing human error and increasing the accuracy of controls. The COREDO team implements such solutions for clients handling large volumes of transactions.
• Use of digital client identification solutions: New EU rules encourage the use of digital platforms for client identification and verification. COREDO’s practice shows that integrating eIDAS and other digital identification systems speeds up onboarding processes and reduces costs.

Recommendations for entrepreneurs

Main risks and opportunities

Practical recommendations

• Regularly monitor changes in legislation. In an environment of constant regulatory change, the COREDO team recommends using specialized monitoring services and subscribing to analytical reviews from relevant EU organizations.
• Conduct internal audits and update procedures. Regular reviews and adaptation of internal policies enable timely detection and correction of non-compliance.
• Use modern technologies for compliance. Implementing automated AML systems, digital identification, and RegTech tools is becoming an integral part of effective compliance.
• Turn to experienced consultants to minimize risks. COREDO’s practice shows that professional support at all stages – from registration to obtaining licenses and implementing new procedures – significantly reduces regulatory and operational risks.

Financial regulation in the EU in 2026 will become the new standard for international business: the tightening of compliance, AML and transparency requirements is paired with the simplification of procedures for small and medium-sized businesses. Readiness for these changes, the use of modern technologies and cooperation with experienced consultants are the keys to sustainable growth and scaling the business under the new conditions.

Многие сталкиваются с бюрократическими барьерами, сложностями в коммуникации с банками и требованиями к отчетности, которые существенно отличаются от привычных стандартов СНГ и Азии. Актуальный вызов: не просто Company registration in Austria, а выстраивание долгосрочной стратегии выхода на рынок Австрии и масштабирование бизнеса в ЕС с учетом всех юридических и налоговых требований.

Если вы ищете не «универсальную инструкцию», а практическое руководство, основанное на опыте COREDO, – эта статья даст вам не только ответы, но и стратегические идеи для успешной интеграции в европейское бизнес-пространство. Рекомендую дочитать до конца: вы узнаете, как минимизировать риски, выбрать оптимальную корпоративную структуру и обеспечить прозрачность процессов.

Main forms of companies in Austria: GmbH and AG

Both forms require mandatory notarization of the founding documents and annual reporting, as well as compliance with European standards of corporate governance and transparency.

Company registration in Austria: step by step

Preparation and selection of the company name
The company name must be unique and correspond to the area of activity. Checks are carried out through the Austrian commercial register (Firmenbuch). It is important to note that the designation GmbH or AG must be included in the company name. The solution developed by COREDO for clients includes a preliminary availability analysis and legal expertise of the name, which helps avoid rejection at the document submission stage.

Determination of founders and directors
Founders can be individuals as well as legal entities, residents and non-residents of the EU. A GmbH requires only one shareholder; an AG requires a minimum of two shareholders. company registration with foreign founders in Austria is possible without restrictions, but identity verification and proof of the source of funds of each beneficiary will be required. In the case of registering a company with multiple shareholders or legal entities, the COREDO team conducts a multi-level ownership structure check and prepares the founders’ meeting minutes in accordance with Austrian law.

Choice of legal address
The company’s legal address in Austria must be confirmed by a lease agreement or ownership. It is permissible to use a nominee service if the company does not carry out active operational activities in the country. COREDO’s experience confirms: a correctly chosen legal address speeds up the registration process and reduces the risks of subsequent tax audits.

Formation of the share capital
Minimum capital for a GmbH: 35,000 euros (17,500 euros mandatory contribution prior to registration). For an AG: 70,000 euros. Payment of the share capital is made to a dedicated bank account before submitting documents to the commercial register. When registering a company with the minimum capital, it is important to documentarily confirm the legality of the source of funds. COREDO’s practice includes client support at the capital formation stage and preparation of supporting documents for banks and regulators.

Preparation and notarial certification of founding documents
The deed of incorporation, the company’s articles, the founders’ meeting minutes and the participants’ resolution: mandatory elements of the document package. All documents must be notarized by an Austrian notary. In the case of remote registration or registration by power of attorney, COREDO organizes video verification and an electronic signature using eIDAS or BankID, and also provides an apostille for documents if the founders are located outside the EU.

Opening a bank account and payment of share capital

Registration in the commercial register
After preparing and notarizing all documents, the company submits the package to the Austrian commercial register (Firmenbuch). Registration is accompanied by the publication of company details in the Wiener Zeitung. COREDO’s experience shows: a correctly prepared document package makes it possible to obtain an extract from the register within 5–10 business days.

Registration for tax purposes
The company must obtain a tax number and, if necessary, register as a VAT payer. An application is submitted to the tax authority, and the founding documents, information about the legal address and the bank account are provided. In the case of creating a tax group or integration with European tax systems, the COREDO team develops an individual strategy for optimizing the tax burden.

Registration of foreign founders

Reporting and audit requirements
Each company must keep financial statements according to Austrian standards, and under IFRS if necessary. An audit becomes mandatory for AGs and for GmbHs exceeding certain turnover or employee thresholds. COREDO’s practice: organizing processes for preparing reports and interacting with auditors, which allows clients to timely meet all requirements and avoid fines.

Austrian tax legislation
In 2024 the corporate income tax is 24%, the VAT rate is 20%. To optimize the tax burden, it is possible to create a tax group, integrate with European tax systems and use double taxation avoidance agreements. COREDO’s solutions include strategic tax structure planning, accounting for the features of parent and subsidiary companies, and analysis of the long-term consequences of registration for the business ROI.

Documents for company registration

Key findings and recommendations

• To minimize risks when registering a company in Austria, it is important to prepare a KYC file in advance, confirm sources of funds and choose a reliable legal partner.
• Comprehensive company registration taking into account AML/CTF, GDPR, FATCA, CRS and BEPS is the standard for international business aiming for maximum transparency and long-term sustainability.
• The solution developed by COREDO includes strategic planning of the corporate structure, tax optimization and integration with European regulations.
• COREDO’s practice confirms: the success of registration and subsequent business development in Austria depends on the quality of document preparation, choice of partners and competent management of corporate risks.

Comparison table of GmbH and AG

Conclusion of the article

AML compliance – is not a formality but a strategic necessity for any business seeking international expansion, obtaining financial licenses and long-term resilience. Violating requirements leads not only to fines and criminal liability, but also to loss of access to banking services, licenses and investments. The experience of the COREDO team shows that proper implementation of AML compliance becomes a key factor in successful registration of legal entities, obtaining licenses and protecting a business from sanctions.

Basics of AML Compliance: key concepts

Key elements of AML compliance include:

• Know Your Customer (KYC): identification and verification of customers, including legal entities and beneficial owners (Beneficial Ownership).
• Customer Due Diligence (CDD): in-depth customer screening taking into account a risk-based approach (Risk-Based Approach).
• Transaction Monitoring: monitoring of transactions to detect suspicious activity and preparation of Suspicious Activity Reports (SAR).
• Sanctions Screening: client screening against sanctions lists (OFAC, EU, UN).
• Politically Exposed Persons (PEP): identification of individuals with heightened political risk.
• Compliance Officer / MLRO: appointment of a person responsible for compliance and reporting.
• Anti-Terrorism Financing (ATF): integration of measures to combat terrorist financing.

Stages of implementing AML compliance in a company

Implementing AML compliance requires a phased approach based on analysis of the business model, risks, and jurisdiction-specific characteristics. The solution developed at COREDO for international clients includes the following steps:

1. Analysis of current processes and risks: Assessing vulnerabilities, identifying client and transaction types, analyzing compliance with global and local AML requirements.
2. Development of the company’s AML policy: Establishing an AML policy framework structure taking into account the risk assessment methodology and KYC, CDD and EDD procedures.
3. Appointment of a Compliance Officer / MLRO: Defining roles and responsibilities, training according to international standards.
4. Employee training: Developing compliance training programs, conducting workshops on detecting suspicious transactions, working with sanctions lists, and internal control.
5. Implementation of internal procedures: Creating a system of Internal Controls and Procedures, process automation for transaction monitoring and record keeping.
6. Maintaining reporting and documentation: Establishing Record Keeping and Reporting, configuring systems for data storage and transfer, ensuring Data Privacy in AML.
7. Conducting an independent audit: Organizing Independent Audit and Testing, preparing for regulatory inspections, adjusting policies based on audit results.

AML policy: structure and content

An effective AML policy for a company: is not just a set of documents, but a living tool for managing risks and complying with regulators’ requirements. COREDO’s experience shows that the structure of an AML Policy Framework should include:

• Definition of goals and objectives: Formulation of the AML program’s mission, description of key risks and strategic objectives.
• Customer and beneficial owner identification procedures: Step-by-step instructions for Legal Entity Identification, KYC, Beneficial Ownership, CDD and EDD.
• Risk assessment methodology: Use of Risk Assessment Methodology, definition of risk criteria, configuration of Risk Profiling.
• Transaction monitoring and detection of suspicious operations: Description of Transaction Monitoring, procedure for preparing and filing SAR.
• Reporting and record keeping: Record Keeping and Reporting regulations, requirements for data storage and protection.
• Interaction with regulators: Procedure for providing information, audit preparation, response to inquiries.

AML and KYC: how to integrate processes

В работе COREDO интеграция AML и KYC реализуется через:

• Customer Due Diligence (CDD): basic customer checks, collection and analysis of documents.
• Enhanced Due Diligence (EDD): in-depth checks for high-risk clients, including PEPs and complex beneficial ownership structures.
• Legal Entity Identification: analysis of a legal entity’s structure, identification of ultimate beneficiaries.
• Risk-Based Approach: tailoring verification procedures according to the risk level, automating processes using AML compliance Software Vendors.

AML processes: automation and technologies

Modern technologies are radically changing the approach to AML compliance. Automated AML solutions can reduce operating costs, increase accuracy and the scalability of an AML program.

Key technologies that COREDO implements for clients:

• Automated AML Systems: automatic screening against sanctions lists, integration with global databases.
• Machine Learning in AML: use of AI algorithms to analyze transactions, detect atypical patterns and prevent compliance fatigue.
• Transaction Monitoring: real-time transaction monitoring, setting triggers for SARs.
• Data Privacy in AML: protection of personal data and confidentiality of information during processing and storage.

AML compliance in Europe, Asia and Africa

Regulatory requirements for AML compliance vary by country, but the FATF global standards remain the foundation for all jurisdictions. COREDO’s experience covers company registration and obtaining licenses in the EU, Singapore, Dubai, the United Kingdom, where their own regulations and procedures apply.

• In Europe: strict requirements for beneficial ownership, mandatory Registration of legal entities, regular audits, integration with national and European sanctions lists.
• In Asia (Singapore, Dubai): emphasis on corporate structure transparency, fast registration procedures, mandatory maintenance of registers of controllers and nominee directors, licensing of corporate service providers.
• In Africa: the difficulty of implementing AML compliance due to insufficient digitization, limited access to global databases, and the need to adapt procedures to local conditions.

Training and AML staff audit

An effective AML program is impossible without regular staff training and independent audits. At COREDO, training is built on the principles of Compliance Training Programs, covering:

• Fundamentals of AML compliance and KYC.
• Working with sanctions lists and identifying PEPs.
• Risk assessment methodology and SAR preparation.
• Record keeping and data protection.

Independent AML audit (Independent Audit and Testing) includes:

• Reviewing the compliance of policies and procedures with international and local requirements.
• Analysis of the effectiveness of Transaction Monitoring and Record Keeping.
• Preparation for regulator inspections, and adjustment of processes based on audit results.

How to assess the effectiveness of an AML program

• Number of detected suspicious transactions (SARs).
• Speed and accuracy of customer verification (KYC, CDD, EDD).
• Proportion of automated processes in the AML program.
• Results of independent audits and compliance with regulatory requirements.
• Scalability of AML Programs: the system’s ability to adapt to business growth and new markets.

Practical steps for entrepreneurs

The COREDO team has developed a checklist for implementing AML compliance in an international company:

• Assess risks and identify types of clients, transactions, and jurisdictions.
• Develop an AML policy framework taking into account global and local requirements.
• Appoint a competent Compliance Officer / MLRO.
• Organize employee training on key aspects of AML and KYC.
• Implement automated AML solutions for transaction monitoring and screening against sanctions lists.
• Ensure proper record-keeping and regular reporting.
• Prepare for an independent audit and adjust processes based on audit findings.

AML compliance as the foundation of a sustainable business

AML compliance is not only protection against risks, but also a foundation for scalable, sustainable, and competitive business. Compliance with global AML standards, integration of automated solutions, regular employee training, and independent audit are key elements that allow companies to operate successfully in Europe, Asia, and Africa.

Key stages in implementing AML compliance

• AML compliance is a mandatory requirement for legally conducting business abroad.
• Implementing AML compliance requires a comprehensive approach: from policy development to employee training and process automation.
• Technology and automation help reduce risks and increase the effectiveness of the AML program.
• Particular attention should be paid to requirements in different jurisdictions and to regularly updating the AML policy.
• AML compliance is not only protection against risks but also a competitive advantage for the business.

In 2025 the market for investment platforms is undergoing a transformation comparable in scale to the digital revolution in the banking sector: according to international studies, more than 60% of new investment platforms in the EU and Asia face regulatory barriers already at the registration stage, and every third project fails due to mistakes in choosing the licensing format or compliance. Why, despite the availability of information, do entrepreneurs and managers continue to waste time and resources on typical mistakes? How can you ensure not only legal compliance but also the long-term sustainability of an investment platform amid tightening MiCA requirements, the introduction of the Platform Economy Act 2025 and the growth of global oversight of offshore jurisdictions?

If you want to understand how to choose the optimal licensing format for an investment platform, avoid fines and sanctions, and ensure transparency for investors and regulators, I recommend reading to the end. You will receive not only answers to pressing questions but also tools for making strategic decisions.

Licensing of investment platforms in Europe, Asia, and Africa

The main licensing formats for investment platforms in Europe, Asia and Africa are determined by a combination of local regulatory requirements, the profile of permissible operations and control features. Understanding the key differences between licensing formats across regions is important for a strategic choice of jurisdiction and the successful launch of an investment platform.

Overview of formats and differences

Licensing of investment platforms: a fundamental stage for entering international markets. In COREDO’s practice we distinguish three basic formats:

• Investment intermediary license (Investment Intermediary/Investment Firm) – the classic option for the EU, the United Kingdom, Cyprus, Estonia, where the platform can offer brokerage, dealer and custodial services.
• Investment platform operator license (Crowdfunding/Investment Platform Operator) – in demand for collective investment platforms, Pre-IPO projects, peer-to-peer and equity crowdfunding, especially in the Czech Republic, Slovakia, Singapore.
• License for providing payment/fintech services (Payment Institution, EMI, crypto licenses) – relevant for platforms integrating digital assets, smart contracts, multi-currency settlements.

Hybrid models are common in Asia and Africa, where a license may combine investment and fintech components, and requirements for minimum capital, governance structure and IT infrastructure differ significantly.

Comparison of regulator requirements

MiCA legislation and local regulations

Licensing of investment platforms in the EU under MiCA 2025

Licensing of investment platforms in Asia and Africa

In Asia the key jurisdictions (Singapore, Hong Kong, UAE) offer flexible licensing formats, but require a local director, a corporate address and strict compliance with AML/KYC procedures. For example, in Singapore company registration takes 1–3 days, but an investment platform will require an MAS license, minimum capital from S$50 000, as well as an annual audit of IT infrastructure and corporate reporting.

How do I choose the platform licensing format?

Choosing the appropriate licensing format for an investment platform is a key stage that determines not only legality but also the growth potential of your investment-attraction business. To make a well-founded decision, it is important to consider a number of criteria that directly affect the platform’s further operation and compliance with regulators’ requirements.

Choosing the format

Choosing the licensing format for an investment platform is a strategic decision that determines not only the speed of market entry but also the long-term prospects of the business. What to pay attention to:

• Business model: investment platforms Pre-IPO, crowdfunding, brokerage services, digital assets – each type has its optimal license format.
• Target audience and geography: if you target investors from the EU, compliance with MiCA and European AML/KYC standards will be required; for Asian markets: integration with local requirements and corporate registers.
• Minimum capital and financial guarantees: in the EU and Singapore – from €50 000 to €730 000; in Africa, from $25 000, but regulatory risks are higher.
• IT infrastructure and technological resilience: modern platforms require not only a secure architecture but also regular internal audits, compliance automation, and integration with government registers.
• Long-term consequences of jurisdiction choice: errors at the start can lead to account blocks, sanctions, or inability to scale.

Impact of the format on compliance and liability

Legal risks when choosing a license

The most common mistakes encountered in COREDO’s practice:

• Underestimating minimum capital requirements: attempting to register a platform with insufficient capitalization leads to license denial or subsequent inspections.
• Using offshore structures without considering global oversight: since 2025 most regulators require disclosure of beneficiaries and a transparent ownership structure.
• Ignoring AML/KYC procedures: lack of automation in investor verification or a formal approach to internal audit is a direct route to fines and account freezes.
• Legal risks of smart contracts: incorrect integration or lack of legal expertise when implementing smart contracts can lead to transactions being declared invalid.

Practical recommendations for choosing a format

• Business plan and internal documents: preparing a detailed business plan, AML/KYC policy, conflict-of-interest management procedures, and internal audit is a mandatory condition for successful registration.
• Choosing a market-maker or STP broker model: for platforms with high asset volatility the STP broker model is preferable, minimizing conflicts of interest and increasing transparency.
• Organizing compliance: automation of KYC procedures, integration with government and industry registers, regular internal audits of IT infrastructure.
• Choosing a legal advisor: COREDO’s experience confirms that licensing support by a team with international expertise helps avoid common mistakes and speeds up the registration process.

Registration and Licensing of an Investment Platform 2025

The procedure for registering and licensing an investment platform in 2025: it is a multi-stage process that requires not only proper preparation of documents but also full compliance with current regulator requirements. Each stage — from registering a legal entity to submitting an application and obtaining a license — is important for the legal and successful operation of the platform in the investment market in 2025.

Step-by-step algorithm

1. choice of jurisdiction and license format: analysis of requirements, preparation of a business plan, determination of the governance structure.
2. Preparation of corporate documents: articles of association, internal rules, AML/KYC policies, internal audit procedures.
3. Submission of the application and documents to the operators’ register: in the EU — via national regulators and European registers, in Asia — via local portals (for example, BizFile+ in Singapore).
4. Compliance checks: IT infrastructure audit, investor verification, corporate structure review.
5. obtaining the license and registration in government and industry registers.
6. Post-licensing compliance: regular reporting, internal and external audits, updating procedures as legislation changes.

How do I submit documents to the register?

In the EU and the UK, transparency of corporate documents and disclosure of beneficial owners is of key importance. In Singapore, company registration and document submission are fully digitized, but appointment of a local director and an annual audit are required. In Africa, special attention is paid to disclosing ownership structures and compliance with FATF requirements.

Compliance, AML and KYC procedures for investment platforms

Compliance, as well as AML (anti-money laundering) and KYC (know your customer) procedures are becoming a key element of the regulatory framework for investment platforms. These tools not only minimize the risks of financial crime, but also enable platforms to comply with international requirements and best practices. Below we will look at the standards underlying these procedures and how they are implemented at the global level.

International standards and best practices

• Automation of investor verification procedures (eKYC, integration with government databases)
• Regular internal audits and updates to AML/KYC policies
• Appointment of an independent compliance officer and staff training
• Implementation of transaction monitoring systems and corporate risk management

Legal liability for violations

Scaling an investment platform: long-term development

Scaling and long-term development of an investment platform require not only a strategic approach but also strict compliance with ever-changing regulation. To successfully enter new markets or expand functionality, it is important to establish a reliable legal foundation to ensure sustainable growth without breaching the law.

Scaling without breaking the law

Scaling an investment platform requires not only a flexible IT architecture but also ongoing compliance with changing regulatory requirements. Solutions implemented by the COREDO team for platforms in the EU and Singapore include:

• Regular profitability assessments taking into account licensing and compliance costs
• Implementation of tools to ensure technological resilience (backups, cybersecurity, IT infrastructure audits)
• Integration with international compliance and transparency standards

Impact of global oversight and reporting

Key findings and recommendations for businesses

• The choice of licensing format should be based on the business model, target audience, minimum capital requirements and long-term implications for scaling.
• Common mistakes — underestimating capital requirements, a formal approach to AML/KYC, attempts to use offshore structures without considering global standards.
• Document preparation: a detailed business plan, internal policies, internal audit procedures and conflict-of-interest management.
• Choosing a jurisdiction: analyze not only the license cost but also requirements for corporate structure, IT infrastructure, transparency and reporting.
• Legal support: engaging consultants with international expertise and experience working with investment platforms in the EU, Asia and Africa.

FAQ: Answers to questions

• Underestimating local director requirements, a formal approach to AML/KYC, attempts to use offshore structures without disclosing beneficiaries.

• Minimum capital, a transparent governance structure, automation of AML/KYC, regular reporting and internal audit.

• Regular audit of IT infrastructure, implementation of cybersecurity systems, backups, integration with government registries.

• Detailing the business model, cash flows, AML/KYC procedures, internal controls and risk management.

If you are choosing a licensing format for an investment platform or planning to scale your business in the EU, Asia or Africa, the COREDO team’s experience will help you avoid common mistakes and implement a strategy that meets the strictest international standards.

Imagine that you can register a company in the EU that will become your reliable shield for international business, provide access to European markets, and allow you to optimize taxes on a lawful basis. This is not fiction: it is a reality for thousands of entrepreneurs who choose incorporation in Luxembourg. According to World Bank Doing Business 2025, Luxembourg consistently ranks among the top 10 countries in the world for ease of doing business, and by foreign direct investment per capita it ranks first in Europe.

But behind this success lies a complex system of legal requirements, corporate law, and international compliance standards. Many entrepreneurs from Europe, Asia and the CIS find that Company registration in Luxembourg seems confusing, and the requirements for documents, the articles of association, and compliance insurmountable.

In this article I, Nikita Veremeev, CEO and founder of COREDO, share the practical experience of our team, which since 2016 has been helping entrepreneurs and investors successfully register companies in Luxembourg, Singapore, Dubai, the Czech Republic, Slovakia, Cyprus, Estonia and the United Kingdom. We will break down the step-by-step procedure for company registration in Luxembourg, explain the key requirements for the articles of association, compliance and taxes, and provide practical recommendations for minimizing risks and optimizing business structure.

Incorporation in Luxembourg: key steps

Incorporation in Luxembourg is not just a formality but a strategic decision that requires a deep understanding of Luxembourg corporate law, international compliance standards and tax planning. The company registration process in Luxembourg is governed by the Code de commerce, as well as by the requirements of the financial regulator CSSF (Commission de Surveillance du Secteur Financier) for companies connected with financial services.

The main legal steps of incorporation in Luxembourg include:

• Choosing the company’s legal form (SARL, SA, SOPARFI, etc.)
• Preparation of the articles of association (Statuts) and the deed of incorporation (Acte Constitutif)
• Conducting Due Diligence and vetting the reliability of founders and directors
• Notarial certification of documents
• Registration of the company in the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, RCS)
• Opening a corporate bank account and confirming payment of the share capital
• Ensuring compliance and AML (anti-money laundering) requirements

COREDO’s practice shows that successful incorporation in Luxembourg is only possible with a comprehensive approach that includes legal support, financial advisory and strategic planning. We help clients not only complete the registration process, but also build a sustainable, scalable and compliant business structure.

Choice of legal form and articles of association

Choosing the legal form of a company is the first step on the way to conducting business legally; it determines not only the management structure but also the requirements for founding documents, including the articles of association. The right decision affects scalability, the liability of founders, and compliance with legislation. Let’s consider the features of one of the most popular forms: the limited liability company.

Limited liability company (LLC)

SARL (Société à responsabilité limitée): this is the most popular company form for international business in Luxembourg. The minimum share capital for an SARL is €12 500, which must be fully paid up at registration. The articles of association (Statuts) of an SARL must include information on the amount and structure of capital, the rights and obligations of members, as well as the company’s management procedures.

Features of SARL:

• Limited liability of members
• Possibility to create an SARL with a single member (SARL-S)
• Flexibility in management and profit distribution
• Reporting and audit requirements

Public limited company (SA)

SA (Société Anonyme) is a company form suitable for large projects and raising capital. The minimum share capital for an SA is €30 000, of which 25% must be paid at registration. An SA can issue registered and bearer shares, which provides legal anonymity for owners.

Features of SA:

• Ability to raise capital through the issuance of shares
• Mandatory board of directors
• Requirements for shareholder meetings and audit
• Stricter corporate governance requirements

Forms and their application

In addition to SARL and SA, in Luxembourg it is possible to register holding structures through SOPARFI (Société de Participations Financières), which provide tax advantages for companies managing assets. It is also possible to register companies for foreign investors with 100% foreign ownership.

Company registration in Luxembourg

The step-by-step procedure for registering a company in Luxembourg includes a number of mandatory stages, from choosing the legal form to obtaining all necessary permits. Each step, from preparing documents to having them notarized, requires compliance with local requirements and careful verification for conformity with the country’s legislation.

Document preparation and notarization

To register a company in Luxembourg, it is necessary to prepare a set of documents, including the articles of association, the deed of incorporation, proof of capital payment, and the documents of the founders and directors. All documents must be notarized by a notary (Notaire) in Luxembourg.

Role of the notary:

• Verification of the authenticity of documents
• Ensuring compliance with corporate law requirements
• Preparation and notarization of incorporation documents

Filing documents with the RCS (Commercial Register)

After notarization, the documents are submitted to the Registre de Commerce et des Sociétés (RCS). Company registration in Luxembourg usually takes from 1 to 3 business days. After successful registration, the company receives a certificate of incorporation (Certificate of Incorporation).

Opening an account and confirming capital

To open a corporate bank account in Luxembourg, you must confirm payment of the share capital and undergo due diligence and AML compliance procedures. Banks require documents confirming the source of funds, as well as information about the beneficial owners.

Tax planning during incorporation

Tax planning and compliance during incorporation determine a company’s financial stability and legal transparency from the earliest stages of registration. A competent approach to tax structure and the fulfillment of corporate requirements makes it possible to take advantage of Luxembourg’s incentives and minimize risks in subsequent activities.

Tax benefits for companies in Luxembourg

Tax planning in Luxembourg includes optimizing the tax burden by using tax benefits for holding companies, investment funds, and international agreements to avoid double taxation (OECD). Companies in Luxembourg can take advantage of low corporate tax rates and special regimes for holding structures.

Compliance and AML requirements

Compliance and AML requirements in Luxembourg include obligations to disclose information about beneficial owners, conduct due diligence, and comply with international standards of the FATF and OECD. The role of the local representative when registering a company is to ensure adherence to compliance and corporate governance requirements.

Registration of companies with foreign capital

company registration with 100% foreign participation in Luxembourg allows conducting cross-border business, structuring holdings and managing assets through SOPARFI. Luxembourg provides access to European markets and international investment funds.

Legal risks during incorporation

Practical recommendations for incorporation

• Choose the optimal company structure for international business
• Ensure compliance with regulatory and AML requirements
• Optimize your tax burden by using tax incentives and double taxation treaties
• Use comprehensive legal support to minimize risks and ensure successful incorporation in Luxembourg

Incorporation in Luxembourg is a strategic decision that requires a deep understanding of corporate law, tax planning and international compliance standards. With COREDO, you gain a reliable partner for successful incorporation and the long-term development of your business.

Imagine that you are ready to complete a major merger or acquisition deal, having spent months on negotiations, financial analysis and business valuation. And at the very last moment it turns out that the target company has hidden lawsuits that could cost you millions. According to a PwC study, nearly 40% of M&A deals encounter serious legal surprises after closing that directly affect the value and sustainability of the business. Why does this happen? Because many deal participants underestimate the role of one of the most powerful protection tools: Legal Opinion.

Legal Opinion is not just a formal document, but an independent legal opinion that analyzes the legal status of the target company, identifies hidden risks and confirms the legality of the transaction. In the context of increasing complexity of international deals, tightening compliance requirements and high market volatility, a Legal Opinion becomes a mandatory element for any serious investor or buyer.

In this article I will explain why a legal opinion is needed in company mergers, how Legal Opinion reduces risks in M&A deals, which legal risks it identifies, and how to properly use it to protect your interests. You will learn when a Legal Opinion is mandatory, how to prepare it for purchasing a company, and what documents are needed to draft it. We will review practical examples, strategic and financial aspects, as well as features of Legal Opinion in international transactions and different jurisdictions. This article is your practical guide to Legal Opinion in M&A deals, which will help you make informed strategic decisions and minimize risks.

Legal Opinion in M&A transactions, what is it and why is it needed?

# Definition and content of Legal Opinion

Unlike Due Diligence, which is a comprehensive review of the financial, legal and operational aspects of a company, Legal Opinion focuses specifically on legal risks and legal status. Legal Opinion includes analysis of the corporate structure, verification of licensing status, assessment of tax liabilities, analysis of contractual obligations, review of intellectual property rights and identification of hidden legal risks.

A Legal Opinion can be prepared for either the buyer or the seller, and is used to confirm the legality of the transaction, protect the parties from legal risks and minimize post-transaction financial losses.

The importance of a Legal Opinion for deal participants

A Legal Opinion plays a key role in M&A transactions, protecting the interests of all parties. For the buyer, a Legal Opinion is a tool for risk minimization, confirming the legality of the transaction and protecting investments. For the seller, a Legal Opinion helps confirm the company’s legal status, increase investor confidence and speed up the transaction process. For investors, a Legal Opinion is an independent legal opinion that confirms the company’s investment attractiveness and reduces the risk of investment loss.

A Legal Opinion is used in representations & warranties and in a disclosure letter, which allows the parties to be protected from legal issues and minimize risks after the closing of the transaction.

When and why a Legal Opinion is required in M&A transactions

A Legal Opinion is required in mandatory and recommended cases. In mandatory cases, a Legal Opinion is necessary to confirm the legality of the transaction, obtain financial licenses, comply with regulatory requirements and protect the interests of the parties. In recommended cases, a Legal Opinion is used to minimize risks, increase investor confidence and accelerate the transaction process.

A Legal Opinion affects the structure and terms of the transaction, helps in price negotiations, defines the terms of post-closing obligations and protects the parties from legal risks. A Legal Opinion is also used to confirm compliance with AML/KYC requirements, verify licensing status and analyze the corporate structure.

Legal risks in M&A and Legal Opinion

Main types of legal risks in mergers and acquisitions transactions

These risks can significantly affect the value and resilience of a business, and can also lead to post-transaction financial losses.

Legal Opinion also verifies compliance with AML requirements/KYC, analyzes the company’s litigation history and identifies potential fines and sanctions.

Methods of Risk Assessment and Identification in a Legal Opinion

Legal Opinion integrates with Legal Due Diligence (LDD) and other checks, allowing a multi-level Due Diligence to be conducted and identifying all possible legal risks. Legal Opinion analyzes the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks. Legal Opinion also verifies compliance with AML/KYC requirements, analyzes the company’s litigation history and identifies potential fines and sanctions.

Legal Opinion uses various methods for assessing and identifying risks, including legal audit (Legal Audit), multi-level Due Diligence, corporate Due Diligence, financial Due Diligence, tax Due Diligence, compliance checks, AML compliance assessment, analysis of financial regulation, deal structuring and legal analysis of the counterparty.

Practical examples of identified risks and their impact on a deal

For example, when buying a company involved in litigation, Legal Opinion helps identify potential litigation claims and lawsuit risks, which helps minimize post-transaction financial losses. When buying a company with a problematic corporate history, Legal Opinion helps uncover hidden legal risks, obligations to affiliated parties, and license revocation risks.

Legal Opinion also assists in the acquisition of licensed businesses (fintech, crypto), identifying risks of legal non-compliance, compliance risks (AML/KYC), license revocation risks and obligations to affiliated parties. Legal Opinion provides protection when purchasing a company with obligations to affiliated parties by uncovering hidden legal risks and liabilities. Legal Opinion also analyzes specific risks in real estate transactions, identifying property ownership risks, regulatory breach risks and risks of contractual non-performance.

Legal Opinion in M&A transactions

Stages of preparing a legal opinion

The process of preparing a Legal Opinion includes several stages: collection and analysis of documents, interaction with the seller’s and buyer’s teams, preparation of the legal opinion and its approval. Collection and analysis of documents includes corporate documentation, contracts, transactional documents, disclosure letter, representations & warranties, inspection reports. Interaction with the seller’s and buyer’s teams makes it possible to obtain all necessary data and documents for preparing the Legal Opinion.

The preparation of the legal opinion includes analysis of the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks. The approval of the Legal Opinion takes place after its preparation and review by all parties to the transaction.

Documents and data required to prepare a Legal Opinion

To prepare a Legal Opinion, the following documents and data are required: corporate documentation, contracts, transactional documents, disclosure letter, representations & warranties, inspection reports. Corporate documentation includes the company’s charter, meeting minutes, shareholder registers. Contracts include agreements with counterparties, lease agreements, loan agreements. Transactional documents include sale and purchase agreements, merger agreements, acquisition agreements. The disclosure letter contains information on disclosure, representations & warranties contain the parties’ representations and warranties, inspection reports contain the results of the legal review.

Timing and cost of preparing a legal opinion

The timing and cost of preparing a Legal Opinion depend on the complexity of the transaction, the volume of documents, regulator requirements and the jurisdiction. On average legal opinion preparation takes from several days to several weeks. The cost of a Legal Opinion depends on the scope of work, transaction complexity and jurisdiction. For large international transactions the cost of a Legal Opinion can be significant, but it is offset by the risks identified and the minimization of post-transaction financial losses.

Impact of Legal Opinion on M&A Strategy

How a Legal Opinion Helps in Negotiations and Deal Structuring

A Legal Opinion helps in negotiations over the transaction price, deal structuring and defining the terms of post-closing obligations. A Legal Opinion allows minimizing risks, adjusting the transaction price, defining the terms of post-closing obligations and protecting parties from legal issues. A Legal Opinion is also used to confirm the legality of the transaction, protect the parties from legal risks and minimize post-closing financial losses.

The Role of Legal Opinion in Purchase Decisions and Long-Term Business Sustainability

A Legal Opinion helps protect investments, assess ROI, enhance the strategic advantages of the deal and increase market share. A Legal Opinion also helps minimize the risk of investment loss, increase investor confidence and speed up the deal process.

Use of legal opinion in representations and warranties and in the disclosure letter

A Legal Opinion is used in representations & warranties and the disclosure letter to protect parties from legal issues and minimize risks after the closing of the deal. Representations & warranties contain the parties’ statements and guarantees, the disclosure letter contains information for disclosure. A Legal Opinion allows confirming the legality of the transaction, protecting the parties from legal risks and minimizing post-closing financial losses.

Legal Opinion in International Transactions

Accounting for differences in the laws of Europe, Asia, Africa, and the CIS

Legal Opinion takes into account differences in the laws of Europe, Asia, Africa and the CIS. Legal Opinion analyzes the corporate structure, the legal status of the target company, licensing status, tax obligations, contractual obligations, intellectual property rights and hidden legal risks in accordance with the legislation of each jurisdiction. Legal Opinion also checks compliance with AML/KYC requirements, analyzes the company’s litigation history and identifies potential fines and sanctions.

Specific risks and requirements in international M&A transactions

International M&A transactions are associated with specific risks and requirements, including regulatory requirements, AML/KYC, Licensing, and currency control. Legal Opinion helps identify these risks by analyzing the corporate structure, the legal status of the target company, licensing status, tax obligations, contractual obligations, intellectual property rights and hidden legal risks. Legal Opinion also checks compliance with AML/KYC requirements, analyzes the company’s litigation history and identifies potential fines and sanctions.

Legal Opinion for specialized sectors: fintech, crypto, real estate, startups

Legal Opinion for specialized sectors (fintech, crypto, real estate, startups) includes additional checks and analysis of specific risks. Legal Opinion for fintech and crypto companies analyzes risks of legal non-compliance, compliance risks (AML/KYC), risks of license revocation and obligations to affiliates. Legal Opinion for real estate analyzes risks of property ownership, legal non-compliance and risks of breach of contractual obligations. Legal Opinion for startups analyzes risks of legal non-compliance, compliance risks (AML/KYC), risks of license revocation and obligations to affiliates.

Recommendations for Entrepreneurs and Investors

How to Effectively Use a Legal Opinion to Minimize Risks

Legal Opinion is a powerful tool for risk mitigation in M&A transactions. To effectively use a Legal Opinion, it is necessary to conduct multi-level Due Diligence, analyze the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks. A Legal Opinion also helps in negotiations on the transaction price, deal structuring and defining the terms of post-closing obligations.

Best Practices for Working with Legal Advisors

To work effectively with legal advisors, it is necessary to provide all required documents and data, clearly formulate goals and objectives, regularly update information and documents, and promptly respond to requests from legal advisors. Best practices for working with legal advisors help speed up the preparation of a Legal Opinion and minimize risks.

Common Mistakes When Preparing and Using a Legal Opinion and How to Avoid Them

Common mistakes when preparing and using a Legal Opinion include an insufficient volume of documents, incorrect formulation of goals and objectives, lack of regular updates to information and documents, and failure to respond promptly to requests from legal advisors. To avoid these mistakes, it is necessary to conduct multi-level Due Diligence, analyze the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks.

Recommendations for Integrating a Legal Opinion into a Company’s Risk Management System

A Legal Opinion should be integrated into the company’s risk management system to minimize risks, increase investor confidence and speed up the transaction process. A Legal Opinion helps identify hidden legal risks, obligations to affiliated parties, risks of license revocation and obligations to affiliated parties. A Legal Opinion also helps in negotiations on the transaction price, deal structuring and defining the terms of post-closing obligations.

Conclusion

Legal Opinion is a key tool for protecting the interests of parties in M&A transactions. Legal Opinion helps identify hidden legal risks, obligations to affiliated persons, risks of license revocation and obligations to affiliated persons. Legal Opinion also helps in negotiations on the deal price, deal structuring and in defining the terms of post-closing obligations. Legal Opinion should be integrated into the company’s risk management system to minimize risks, increase investor confidence and accelerate the transaction process.

For timely and professional legal support of transactions, contact the experts at COREDO. We are ready to help you prepare a Legal Opinion, conduct Due Diligence, structure the deal and minimize risks.

In 2024 the global financial services market faced an unprecedented rise in fines for anti-money laundering violations: in Europe alone the total amount of sanctions exceeded €6 billion, and the average fine for financial institutions increased by 45% compared with the previous year. But the numbers are only the tip of the iceberg. Behind every fine are frozen accounts, loss of access to international payments, blocked transactions and, most importantly, severe reputational costs that can be fatal to a business.

Companies like ZISIF15, operating at the intersection of traditional and digital finance, are particularly vulnerable: their activities are under the scrutiny of regulators in the EU, Asia and the CIS, and requirements for transparency and transaction controls are tightened every year. In these circumstances AML audit becomes not just a formal procedure, but a strategic tool for protecting the business, minimizing risks and increasing investment attractiveness.

Essentially, an AML audit for ZISIF15 companies is a comprehensive review for compliance with international and local requirements in anti-money laundering and countering the financing of terrorism (CFT), including analysis of KYC processes, transaction monitoring, risk assessment and readiness to interact with regulators. Such an approach makes it possible not only to avoid fines and blocks, but also to build trusting relationships with banks, investors and partners.

AML audit for ZISIF15 in 2025

International standards in the field of AML compliance are constantly evolving. In 2025, the key benchmarks for ZISIF15 companies remain the FATF recommendations, as well as the EU directives: 4AMLD, 5AMLD and 6AMLD, which set standards for customer identification, transaction monitoring and reporting. In Asia and the CIS, requirements are increasingly being aligned with European and international norms, while local regulators introduce their own supervisory mechanisms.

COREDO’s practice confirms: for ZISIF15 companies it is critically important not only to have a formal AML program but also for it to be actually operational. Regulators require:

• The presence and regular updating of AML policies and procedures reflecting the specifics of the business and risks.
• Implementation of effective KYC procedures and beneficiary verification tools.
• Continuous AML monitoring of operations and control of suspicious transactions, including cryptocurrency operations.
• Preparation and storage of AML reporting (including SAR – Suspicious Activity Report) in accordance with the requirements of FATF and local regulators.
• Appointment of a person responsible for AML, internal controls and regular staff training.

Company AML audit: step-by-step process

Preparation for the AML audit

First step: a thorough review of KYC procedures and client Due Diligence mechanisms. COREDO’s experience shows that it is at this stage that the main vulnerabilities are revealed: outdated questionnaires, insufficient verification of beneficiaries, absence of a client’s digital profile.

Transaction monitoring and control

Reporting and interaction with regulators

A comprehensive AML review makes it possible to identify and eliminate gaps in advance, minimizing the likelihood of fines and sanctions. In case suspicious transactions are detected: promptly initiate an internal investigation and, if necessary, freeze accounts until the circumstances are clarified.

AML audit of cryptocurrency transactions

• AML monitoring of transactions using blockchain graph analysis algorithms and risk scoring of crypto addresses.
• Automated AML screening of cryptocurrency taking into account transaction specifics (mixers, privacy coins, DeFi).
• Use of RegTech solutions to integrate data from external sources (sanctions lists, databases of suspicious addresses).

How to scale an AML program during expansion

Expanding business into new markets requires adapting the AML program to the requirements of each jurisdiction. COREDO’s practice shows: there are no universal solutions, and a successful strategy is built on flexibility and deep localization.

• For the EU, compliance with 6AMLD, implementation of eKYC, and automation of reporting are critical.
• In Asia – consideration of national standards, integration of local registries, and staff training on the specifics of regional risks.
• In the CIS – regular auditing of current procedures, updating policies, and moving from manual monitoring to automated systems.

When registering companies in Europe and Asia, the COREDO team always conducts a preliminary AML audit to identify potential gaps between corporate standards and local requirements. This approach helps avoid delays in opening bank accounts, reduce operational risks, and ensure sustainable scaling.

AML audit in international companies – best practices

• Integration of KYC/AML/KYT into a single platform, enabling monitoring of the entire customer and transaction lifecycle.
• Regular AML training for staff that reflects new threats and changes in legislation.
• Use of artificial intelligence and RegTech solutions to automate monitoring, transaction analysis and reporting.
• Conducting stress tests and scenario modelling to assess the resilience of the AML program.

How to evaluate the effectiveness of an AML program

Evaluating the effectiveness of an AML program: the key to increasing ROI and reducing operating costs. At COREDO we recommend using the following metrics:

• Number of detected and prevented suspicious transactions.
• Incident response time and SAR preparation speed.
• Ratio of false positives to confirmed alerts.
• Level of automation and integration with external data sources.
• Number and quality of trained staff.

Implementing a comprehensive AML system not only reduces the likelihood of fines, but also increases trust from banks, investors and partners. In the long term, this directly affects the company’s value and its competitiveness in the international market.

Comparison of AML audits in the EU, Asia, the CIS and Africa

Guide for ZISIF15 Leaders: Practical Steps

• Conduct a preliminary AML audit involving external experts to identify weaknesses.
• Update KYC procedures and implement digital onboarding.
• Implement automated AML systems for transaction monitoring and graph-based transaction analysis.
• Appoint a person responsible for AML and internal control, and regularly train the team.
• Ensure transparency of ownership structure and sources of funds.
• Develop and implement procedures for preparing and submitting SARs.
• Conduct regular stress tests and update AML policy in accordance with changes in legislation.

How an AML audit affects a company’s strategy

In today’s environment, an AML audit is not just a regulatory requirement but a strategic tool for risk management, enhancing transparency and trust. Companies that invest in developing AML compliance gain a competitive edge: access to international markets, the trust of investors and partners, reduced costs for internal investigations, and a lower likelihood of fines.

Legal Opinion for crypto projects – what it is and why it’s needed

Legal opinion in the crypto industry

Legal Opinion for Crypto Business: Objectives and Advantages

• Protect investors’ rights in a crypto project by providing a transparent classification of the token and a description of fund return mechanisms.
• Provide legal protection to crypto investors, minimizing the risk of claims and litigation.
• Formalize the token’s status, which is critical for access to banking services, insurance of crypto assets, and interaction with financial institutions.

Legal Opinion: attracting investments and partner trust

Features of a legal opinion for crypto projects

Analysis of legislation and jurisdiction

Token classification and the Howey Test

Features of a Legal Opinion for ICOs and DeFi

Compliance and AML/KYC in the preparation of the opinion

Legal risks of crypto projects and how to minimize them

Risks of token classification and regulation

Risks of money laundering and terrorism

Risks of lawsuits for investors

Technical and operational risks of an exchange: volatility, attacks, bankruptcy

Environmental and reputational risks of mining and stablecoins

The process of obtaining a legal opinion: stages and key points

How to choose a lawyer for a legal opinion?

• Deep knowledge of international cryptocurrency legislation.
• Experience in supporting projects in the chosen jurisdiction.
• Experience working with regulators and financial institutions.

Analysis of facts and documents

Preparation of the Legal Opinion

• Official status and confirmation of the token’s status.
• Description of the applicable law and jurisdiction.
• Analysis of compliance with legislation, including AML/KYC and compliance.
• Recommendations for risk minimization and further actions.

Timeframe and cost of obtaining a Legal Opinion

International Regulation of Legal Opinion

Cryptocurrency regulation in the EU, Asia and the CIS

Choice of law and arbitration in crypto contracts

Registration and licensing of crypto projects by jurisdiction

Practical recommendations for entrepreneurs

How to minimize legal risks of a crypto project

• Regular audit of the business model and documentation.
• Implementation of compliance procedures and transaction monitoring.
• Updating the Legal Opinion when legislation or business strategy changes.

How to ensure compliance and investor protection

• Crypto exchange compliance and AML/KYC checks should be integrated into every stage of the project’s lifecycle.
• Legal protection of investors is achieved through transparent refund mechanisms, insurance of crypto assets and implementation of corporate governance standards.

Choosing a lawyer for your crypto business and legal support

What should I do if the legal opinion is negative?

• Conduct a repeat legal review.
• Adjust the business model and documentation.
• Use mechanisms for judicial protection of crypto investors and pre-trial settlement.

Comparison of key tests for token classification

Major legal risks of crypto projects and their mitigation

Stages of obtaining a Legal Opinion for a crypto project

1. Analysis of the business model and project objectives
2. Selection of jurisdiction and applicable law
3. Collection and audit of documents
4. Token classification and risk analysis
5. AML check/KYC and compliance
6. Preparation and approval of the Legal Opinion
7. Implementation of recommendations and updating documentation

In this article I will describe in detail how the COREDO team helps investors not only to register a company in the Czech Republic, but also to build an optimal tax and corporate structure, using all available benefits, subsidies and capital protection tools. If you are looking not just for an overview but for a practical guide to effective investing in the Czech Republic – I recommend reading to the end: you will get answers to key questions and learn about strategies that really work.

Main taxes for investment companies in the Czech Republic

In COREDO’s practice we regularly encounter questions about the tax structure in the Czech Republic. Understanding tax obligations is the foundation for making strategic decisions.

Corporate tax rates and features for 2025

COREDO’s experience shows: by properly structuring a business and using international agreements on the avoidance of double taxation, you can significantly reduce the effective tax burden, particularly for holding and investment structures.

Value Added Tax (VAT) for investors

A solution developed by COREDO for a number of clients allowed them to optimize their supply structure and achieve regular VAT refunds within 30–45 days, which significantly improved cash flow and increased the investment attractiveness of the business.

Tax on dividends and capital gains

COREDO’s practice confirms: proper structuring of share ownership and timely obtaining of parent company status can significantly minimize taxes on dividends and capital gains, which is especially important for investment funds and holdings.

Tax incentives for foreign investors

Czech legislation offers a wide range of tax benefits and incentives aimed at attracting long-term investments, especially in innovative and technological projects.

Profit tax exemption for up to 10 years

The solutions implemented by the COREDO team have already allowed several clients to obtain tax holidays for the entire investment cycle, which has significantly increased their competitiveness in the market.

Subsidies for technological equipment and scientific research

Our experience at COREDO has shown: with proper document preparation and process support, the probability of subsidy approval exceeds 80%.

Preferential loans from the state fund: grants for future investments

The amount and lending terms depend on the sector and investment volume, but in some cases the loan rate can be significantly below market. The COREDO team accompanied clients at all stages of obtaining such loans, from preparing the application to monitoring the targeted use of funds.

Taxation of income from investments

For effective tax planning, it is important to consider the specifics of taxation of different investment instruments.

Taxation of income from the sale of securities and unit certificates

, However, when reinvesting funds into Czech assets, tax deductions may be available. Solutions implemented by COREDO have allowed clients to structure transactions so as to maximize tax exemptions and minimize liabilities upon exit from investments.

Tax consequences of holding shares and stakes in companies

Holding stakes in Czech companies through a parent company structure (with a stake of at least 10% and a holding period of at least 12 months) allows taking advantage of the participation exemption. This allows not paying tax on dividends and capital gains when the stakes are later sold. This approach is widely used in international practice and has proven effective in COREDO’s cases.

Changes in Czech Tax Legislation 2025

The 2025 developments require special attention in strategic investment planning.

Introduction of a minimum tax for large companies

For investment structures this means the need for a thorough assessment of the tax burden and a review of corporate strategies. COREDO’s experience shows that with the right choice of holding jurisdiction and the use of international agreements, it is possible to maintain a competitive tax rate even under the new rules.

Increase in social and health insurance contributions

For entrepreneurs using the simplified tax system, it is important to take the new contribution ranges into account and plan the budget considering these changes.

Updates to the simplified tax system

New tax brackets and fixed rates for small entrepreneurs are being introduced, which simplifies administration but requires regular monitoring of changes. COREDO’s solutions allow clients to adapt promptly to new requirements and avoid penalties for untimely fulfillment of tax obligations.

Registration of an investment company in the Czech Republic

Company registration in the Czech Republic: is a strictly regulated process that requires attention to detail and compliance with all formal requirements.

Registration stages and required documents

• Preparation of founding documents and selection of a unique company name.
• Determination of the structure of shareholders and directors.
• Submission of documents to the Commercial Register and tax authorities.
• obtaining a license to carry out investment activities (if necessary).

The COREDO team supports clients at every stage, ensuring the correct preparation of documents and minimizing registration times.

Disclosure requirements for foreign investors

Foreign investors are required to provide an expanded set of documents confirming the source of funds and ownership structure. Our experience at COREDO shows: transparency and timely disclosure of information significantly reduce the risks of account freezes and claims from regulators.

Tax risk management and compliance

In today’s environment, effective management of tax risks has become an integral part of an investment strategy.

Data protection and GDPR compliance

COREDO’s solutions provide for the implementation of comprehensive data protection policies and regular audits of procedures, which minimizes the risk of fines and reputational damage.

Control of foreign tax rates and avoidance of double taxation

For investors, this is a key tool for tax optimization. COREDO’s practice shows that the proper application of international agreements can significantly reduce the overall tax burden and avoid double taxation on cross-border investments.

Practical steps for investors to reduce taxes

Moving from theory to practice, I will outline the key tools and solutions that enable investors to use the tax advantages of the Czech Republic as effectively as possible.

Using tax reliefs and incentives

The COREDO team has implemented projects where the overall tax burden was reduced by more than 30% through the effective use of these tools.

Application of the participation exemption regime

This approach is particularly effective for holding structures and investment funds operating with portfolios of Czech assets.

Accounting for foreign taxes and double taxation treaties

When planning international investments, it is important to take into account not only Czech but also foreign tax obligations. COREDO’s solutions provide for a comprehensive analysis of tax treaties and optimization of ownership structures to minimize the overall tax base.

Key takeaways for investors

• The Czech Republic remains one of the most transparent and stable jurisdictions for investment business in the EU.
• The corporate tax (21%) and the minimum tax regime (15% for large companies) require strategic planning, but with proper structuring and the use of incentives the effective tax burden can be significantly reduced.
• Using investment passports, tax holidays, subsidies, and international agreements enables establishing an effective investment and tax strategy.
• COREDO’s practice confirms: investment success in the Czech Republic depends on a comprehensive approach, from proper company registration to continuous monitoring of legislative changes and managing tax risks.

Comparison of taxes and incentives for investment companies in the Czech Republic, 2025

Conclusion

Investing in the Czech Republic: it is not just access to the EU market, but also an opportunity to build a business with an optimal tax structure, transparent rules of the game and access to government incentives. company registration in the Czech Republic and sound tax planning allow investors to implement long-term strategies, minimize risks and increase the profitability of projects. COREDO’s experience proves: success in the Czech Republic is achieved thanks to a comprehensive approach, expert support and continuous monitoring of changes in legislation.

In the practice of COREDO we have repeatedly encountered situations where entrepreneurs underestimated the regulatory function of the license, perceiving it as a formality. In reality, a license – is not only the legal basis for conducting activities, but also a key element of financial regulation that determines access to banking infrastructure, international payment systems (Visa, MasterCard, UnionPay), as well as to technology partners and investors.

Licensing: functions and benefits

Licensing of payment operations performs three strategic tasks:

• Prevention of illegal circulation of financial resources: A license requires the implementation of a comprehensive AML/CTF policy, which minimizes the risks of money laundering and terrorist financing.
• Stability of the settlement infrastructure: Regulatory requirements for authorized capital and the financial stability of the payment system operator ensure the reliability and uninterrupted operation of the payment gateway.
• Competitive advantages: Having a payment system license significantly increases customer trust, allows cooperation with leading banks, integration with international payment services, and expansion of the business’s geographic reach.

License requirements for payment gateways

Financial requirements and share capital

The key barrier to obtaining a payment system license is the financial requirements. In different jurisdictions the minimum share capital for a payment license varies significantly: in Estonia: from €350,000 for an EMI license, in the Czech Republic: from €125,000, in Cyprus – from €200,000. For a Payment Service Provider license (PSP) requirements may be lower, but the payment operator’s financial stability and the transparency of funding sources are always assessed.

Organizational and personnel requirements

The company’s structure and the qualifications of the payment system’s managers: another critical aspect. Regulators require:

• A transparent ownership and governance structure.
• Qualified directors and managers with experience in financial services and payment operations.
• The presence of a separate branch or virtual office in the licensing jurisdiction (for example, for Singapore: a mandatory local director and a registered legal address).

AML/KYC requirements and data protection

Modern regulation of payment systems is impossible without strict compliance with AML/CTF policies and the implementation of KYC procedures. The payment system operator must:

• Develop and implement internal rules for combating money laundering.
• Ensure client identification and verification (KYC).
• Organize the protection of payment system users’ data in accordance with international standards (GDPR, PDPA, etc.).
• Implement a system for monitoring suspicious transactions and managing fraud risks.

Process of obtaining a payment system license

Preparation of documents and business plan

The first stage is preparing the complete package of documents for registering a payment system. It includes:

• Constituent documents, company charter, meeting minutes.
• Financial statements and a business plan for obtaining the payment license.
• Documents confirming the lawful origin of funds.
• AML/CTF policies, internal KYC and data protection regulations.
• Certificates confirming the integrity and reliability of owners and management.

Submission of the application and interaction with the regulator

The application is submitted to the authorized financial authority or the central bank of the relevant jurisdiction. Regulatory requirements for payment systems include:

• Verification of the integrity and reliability of the payment system owners (Due Diligence).
• Analysis of the company structure and management qualifications.
• Assessment of AML/CTF policies’ compliance with international standards.

Timelines and stages of the application review

The timeline for obtaining a payment license depends on the jurisdiction and the complexity of the structure. On average:

• Document preparation: 1–2 months.
• Application review and integrity checks: 3–6 months.
• Interaction with the regulator and audit of the payment system: up to 9 months.

Licensing in the EU, Asia and Africa: specifics

EMI license in Europe: requirements

In the EU the main form of licensing is the EMI license (Electronic Money Institution), which allows issuing electronic money, conducting payment transactions and integrating with SEPA, SWIFT, Visa, MasterCard. Main requirements:

• Minimum share capital: from €350,000.
• Compliance with payment activity regulations (PSD2, EMD2).
• Strict AML requirements/KYC and personal data protection (GDPR).

Key differences between Asian and African markets

In Asia (for example, in Singapore) requirements for payment licenses are regulated by the Monetary Authority of Singapore (MAS). Key features:

• Mandatory presence of a local director and a registered address.
• Minimum share capital: from SGD 100,000 for a standard license.
• Strict control over AML/CTF policies and cross-border payments.

Choosing a jurisdiction for registering a payment operator

jurisdiction choice – a strategic decision affecting cost, timelines and scaling potential. It is important to consider:

• Financial and regulatory conditions (requirements for capital, structure, reporting).
• The possibility of opening a virtual office for the payment license.
• The reputation of the jurisdiction among international banks and partners.

Licensed payment gateways: technological and operational aspects

Integration and security of payment systems

A modern payment gateway is not just software but a comprehensive payment infrastructure integrated with banks, international payment networks and third-party services. Critical aspects:

• API integration with banks and partners.
• Protection of payment system users’ data using encryption and multi-layer authentication.
• Cybersecurity of payment systems, a mandatory requirement for passing audits and meeting regulator requirements.

Choosing partners and infrastructure

The successful operation of a payment gateway is impossible without reliable technology partners and infrastructure providers. Key points:

• Assess partners’ experience and reputation in the market.
• Choose cloud payment solutions that provide scalability and fault tolerance.
• Enter into transparent agreements with providers, taking into account the regulator’s requirements for data storage and processing.

Technology compliance with regulatory requirements

The technological infrastructure must not only provide fast and convenient payments but also meet the requirements for risk management in payment systems:

• Implementation of a system for monitoring suspicious transactions.
• Regular vulnerability testing and security audit.
• Compliance with payment operation regulations and cybersecurity standards.

Risks and risk management when working with a payment license

Key risks for payment operators

Payment system operators face three groups of risks:

• Operational risks: service disruptions, technical errors, human factors.
• financial risks: insufficient capital, losses due to fraud.
• Reputational risks: data breaches, regulatory non-compliance.

AML/KYC compliance and data protection

To meet AML/CTF requirements and protect personal data, it is necessary to:

• Continuously update internal policies and procedures.
• Conduct regular training for staff.
• Use automated KYC procedures and transaction monitoring systems.

Monitoring and auditing of the payment system

Effective compliance monitoring includes:

• Conducting regular audits of the payment system.
• Monitoring changes in regulatory acts and adapting internal procedures.
• Planning crisis management and recovery after failures.

Practical recommendations for entrepreneurs

How to prepare for licensing

• Assemble a team with relevant experience and qualifications.
• Prepare a complete set of documents, including a business plan, AML/KYC policies, and proof of funding sources.
• Conduct preliminary due diligence on owners and executives.

How to choose a jurisdiction and a partner

• Assess capital requirements, company structure, and reporting obligations across different countries.
• Consider opening a virtual office for the payment license.
• Choose technology partners with experience integrating payment systems and complying with security standards.

How to minimize risks and pursue long-term development

• Implement a risk management system in payment systems with regular audits and monitoring.
• Plan the scaling of the payment system with the requirements of new markets in mind.
• Invest in team training and updating compliance procedures for the long-term development of the payment system.

Conclusions and next steps

• Prepare a complete package of documents and a business plan in line with regulator requirements.
• Choose an appropriate jurisdiction, taking into account financial and regulatory conditions.
• Ensure AML compliance/KYC and protection of user data.
• Take care when selecting technology partners and infrastructure.
• Plan risk management and audits for sustainable business development.

If you want to go through the payment system licensing process without unnecessary risks and delays, the COREDO team is ready to become your strategic partner at every step: from choosing a jurisdiction to building a scalable payment infrastructure.

Corporate Structure and Asset Management

Structuring international investments through ZISIF §15

ZISIF Section 15 for family offices and investors

Legal and compliance risks when using ZISIF

Practical steps for creating and managing ZISIF §15

Main findings and recommendations

Comparative table of investments under ZISIF §15

In this article I will reveal the complete roadmap for registering an investment fund in Europe – from choosing the optimal jurisdiction to opening a bank account and launching operational activities. You will learn which documents to prepare, which AML/KYC requirements to comply with, how to structure fund governance and how to avoid mistakes that cost entrepreneurs time and money. The article is structured as a practical guide and at the same time as an analytical overview that will help you make strategic decisions at every stage.

Private Equity fund in the EU: what is it and why register it?

Definition of a Private Equity fund and its role in the European economy

But a Private Equity fund is not just a company that manages investors’ money. It is a regulated financial structure that is subject to strict European legal requirements. Each fund must have a license for asset management, comply with requirements for disclosing information about beneficiaries, ensure the protection of investors’ rights and adhere to AML/KYC standards. Ignoring these requirements risks fines, license refusal and even criminal liability.

Registration and licensing — why are they needed?

Investor protection. Regulators require funds to disclose information about their investment strategy, risks, fees and governance structure. This enables investors to make informed decisions and protects their rights.

Prevention of money laundering and terrorist financing. AML/KYC requirements ensure that funds do not become tools for illegal operations. Regulators require verification of sources of funds, identification of beneficial owners and monitoring of suspicious transactions.

Financial system stability. Licensing and supervision prevent the creation of unregulated funds that could pose systemic risk.

Access to investors. Without a license you will not be able to attract capital from professional investors, pension funds and other institutional investors who require regulated structures.

Key requirements of AIFMD and EU directives

According to the AIFMD, each fund must:

• Have a licensed management company (AIFM) that is responsible for investment decisions and risk management.
• Appoint an independent depositary that holds the fund’s assets and monitors compliance with requirements.
• Disclose information about the fund’s beneficial owners in accordance with the 2025 requirements, which have been tightened.
• Comply with AML/KYC requirements, including verification of sources of funds and investor identification.
• Provide annual reports to the regulator and investors.
• Manage liquidity risks and ensure that the fund can meet its obligations to investors.

In addition to the AIFMD, funds must comply with the requirements of the European Securities and Markets Authority (ESMA), national regulators (for example, CySEC in Cyprus, MFSA in Malta, the Bank of Lithuania) and the requirements for digital identification of founders (eIDAS), which came into force in 2025.

Choosing a jurisdiction for a Private Equity fund in the EU

choice of jurisdiction for registering a Private Equity fund in the EU is a strategically important decision that affects tax burden, investor protection and access to the European market. Different countries offer unique conditions for fund formation, so it is important to compare key European jurisdictions, taking into account regulatory, tax and infrastructure requirements.

Comparison of European jurisdictions

Choosing a jurisdiction is a strategic decision that affects licensing timelines, cost, tax burden and management flexibility. COREDO’s practice has shown that there is no universal jurisdiction for all funds — the choice depends on fund size, investment strategy and target investors.

Lithuania, an optimal choice for mid-sized funds (50–500 mln EUR). The Bank of Lithuania is known for its professionalism and transparency of process. Licensing timelines: 3–6 months, which is faster than Luxembourg but slower than Cyprus. Minimum capital: 125,000 EUR. Lithuania offers a good balance between speed, cost and reputation.

Cyprus: a leader in licensing speed, especially for RAIF (Regulated Alternative Investment Fund), which are registered in 2–3 months. CySEC (Cyprus Securities and Exchange Commission) has experience working with international funds. Cyprus also offers tax incentives and management flexibility. At the same time, Cyprus’s reputation has improved in recent years, but it remains less attractive to conservative investors compared to Luxembourg.

Malta, the fastest jurisdiction for licensing (4–8 weeks). The MFSA (Malta Financial Services Authority) is known for its efficiency. Malta offers tax incentives and flexibility. It is a good choice for funds that want to enter the market quickly.

Luxembourg, a premium jurisdiction for large funds (over 500 mln EUR). Luxembourg has the highest reputation globally, attracts conservative investors and offers tax benefits. On the other hand, licensing timelines are 6–12 months and minimum capital is 1,250,000 EUR. Luxembourg suits funds that are ready to invest in reputation and long-term development.

Selection criteria: taxes, speed, flexibility

When choosing a jurisdiction, several criteria should be considered:

Tax residency of the investment fund. Different jurisdictions offer different tax regimes. For example, funds in Cyprus and Malta can obtain incentives on investment income. Luxembourg offers a participation exemption system that helps avoid double taxation. Lithuania offers a standard tax regime with possible optimization. The choice of jurisdiction should be coordinated with the fund’s tax planning.

Licensing speed. If you want to enter the market quickly, choose Malta (4–8 weeks) or Cyprus (2–3 months). If you have time and are willing to wait, Luxembourg offers the best reputation but requires more time.

Management flexibility. Cyprus and Malta offer greater flexibility in fund structuring and asset management. Luxembourg is more conservative and requires adherence to strict rules.

Capital requirements. Luxembourg requires a minimum of 1,250,000 EUR, which may be a barrier for startups. Lithuania, Cyprus and Malta require less capital.

Reputation and investor trust. Luxembourg has the highest reputation, but Lithuania, Cyprus and Malta have also earned investor trust through professional regulation and transparency.

Risks of different jurisdictions

Each jurisdiction has its own risks and features that should be considered:

Lithuania. Risk — political instability in the region (although Lithuania is a member of the EU and NATO). Feature: high compliance requirements and documentation. The Bank of Lithuania requires a detailed description of investment strategy and risk management.

Cyprus. Risk — reputational issues related to past financial scandals. Feature — flexibility in management and tax incentives. CySEC requires thorough verification of sources of funds and identification of beneficiaries.

Malta. Risk: small jurisdiction size and a limited investor base. Feature: fast licensing and tax incentives. MFSA requires adherence to high compliance standards.

Luxembourg. Risk: high capital requirements and long licensing timelines. Feature: premium reputation and attractiveness to conservative investors. CNPD requires compliance with strict governance and reporting rules.

Documents for registering an investment fund in Europe

Documents for registering an investment fund in Europe are the foundation for a successful launch and subsequent operation of your fund. A correctly prepared and complete set of documents is necessary to pass all stages of registration, obtain a license and comply with the requirements of European regulators. Below is an up-to-date checklist of documents required to register an investment fund in 2025.

Complete checklist of documents for 2025

Here is the complete checklist of documents required by regulators:

Fund constitutive documents:

• The articles of association of the investment fund (Articles of Association), which describe the fund’s structure, governance and rules.
• Investment memorandum (Offering Memorandum), which discloses the investment strategy, risks, fees and investment terms.
• Risk and liquidity management policy.
• AML/KYC policy, which describes investor verification procedures and monitoring of suspicious transactions.

Documents on management structure:

• Agreement with the management company (AIFM Agreement), which defines the rights and obligations of the management company.
• Agreement with the depositary, which sets out the depositary’s rights and obligations regarding asset custody and control.
• Agreement with the administrator, which defines procedures for NAV (Net Asset Value) calculation and administration.
• Agreement with the auditor, which defines audit and reporting procedures.

Documents on digital identification of founders (eIDAS):

• Electronic signatures of founders executed in accordance with the eIDAS standard.
• Video verification of founders (in some jurisdictions).
• Proof of the fund’s legal address (for example, a utility bill or lease agreement).
• Proof of sources of funds (bank statement, documents on the origin of capital).

Beneficiary documents:

• Disclosure of information about the fund’s beneficiaries in accordance with the 2025 requirements. This includes names, addresses and ownership shares of all persons who control the fund.
• Beneficiary declaration signed by the founders.

Business plan documents:

• Fund business plan, which describes the investment strategy, target investment objects, expected income and expenses.
• Financial forecasts for 3–5 years.
• Description of target investors and capital raising strategy.

2025 requirements for digital identification of founders

Electronic signatures (eIDAS). All documents must be signed with electronic signatures that comply with the eIDAS standard (Regulation (EU) No 910/2014). This means signatures must be made using a qualified certificate and have legal force.

Video verification. In some jurisdictions (for example, in Cyprus and Malta) regulators require video verification of founders. This means the founder must undergo a video call with a regulator representative or a licensed company that confirms their identity.

Proof of legal address. Regulators require proof of the fund’s legal address. This can be a utility bill, lease agreement or a letter from a bank.

Proof of sources of funds. Regulators require proof of the sources of funds that will be invested in the fund. This can be a bank statement, documents on the origin of capital or a letter from an investor.

Preparing the investment memorandum

The investment memorandum (Offering Memorandum) is a key document that discloses to investors information about the fund, its investment strategy, risks and investment terms. It is not just a marketing document, but a legal document that regulators scrutinize.

The investment memorandum should include:

• Description of the fund. Type of fund (AIF, RAIF, QIF), jurisdiction of registration, management company, depositary, administrator.
• investment strategy. Description of target investment objects, geographic regions, economic sectors, investment time horizon, expected returns.
• Risks. A detailed description of the risks associated with investing in the fund, including market risks, credit risks, liquidity risks, and operational risks.
• Fees and expenses. Description of all fees charged by the fund, including management fees, performance fees, and administrative expenses.
• Terms of investment. Minimum investment size, entry and exit conditions, frequency of NAV calculations, fund liquidation terms.
• Qualified investor criteria. Description of who can invest in the fund (professional investors, qualified investors, retail investors).
• Investor protection. Description of mechanisms to protect investors’ rights, including voting rights, information rights, and rights to judicial protection.

Step-by-step procedure for licensing AIF

The step-by-step procedure for licensing an alternative investment fund involves a series of consecutive formal steps, starting with the preparation and registration of the company and ending with obtaining all necessary permits. Each stage requires attention to detail and strict compliance with regulatory requirements, which ensures the legality and transparency of the fund’s future activities.

Preparation and company registration

The first stage is the preparation and registration of the company that will act as the fund. This stage includes several key steps:

• Choice of jurisdiction and fund type. As discussed above, the choice of jurisdiction is critical. You also need to choose the fund type: AIF (alternative investment fund), RAIF (Regulated Alternative Investment Fund) or QIF (Qualified Investor Fund). Each type has different requirements and licensing timelines.
• Reservation of the fund name. You must reserve the fund name in the national company register. The name must be unique and meet the regulator’s requirements. For example, the name should include words that indicate it is a fund (for example, “Fund”, “Fonds”, “Fondas”).
• Preparation of the charter and incorporation documents. You must prepare the fund’s charter (Articles of Association), which describes the fund’s structure, governance and rules. The charter must comply with national legislation and AIFMD.
• Registration of the company in the local register. After preparing the documents you must register the company in the local company register. This usually takes 1–2 weeks.

Preparation of documents for the regulator

The second stage is the preparation of the full package of documents for the regulator. This stage includes:

• Preparation of the investment memorandum. As discussed above, the investment memorandum must be detailed and professional. The regulator will thoroughly review each section.
• Development of risk management and liquidity policies. You must develop policies that describe how the fund will manage risks and liquidity. These policies must be aligned with the fund’s investment strategy.
• Preparation of AML/KYC policies. You must develop policies that describe how the fund will verify investors and monitor suspicious transactions. These policies must comply with the EU Anti-Money Laundering Directive (AMLD5).
• Appointment of key persons. You must appoint a management company (AIFM), an administrator, a depositary and an auditor. Each of these parties must be licensed and experienced in working with investment funds.

Submitting the application to the regulator

The third stage is submitting the application to the regulator. This stage includes:

• Assembling the full package of documents. You must collect all the documents required by the regulator and submit them in the prescribed format.
• Submission of the application to the national regulator. You must submit the application to the national regulator (for example, CySEC in Cyprus, MFSA in Malta, the Bank of Lithuania). The application is usually submitted via an online portal.
• Responses to regulator queries. After submitting the application, the regulator may ask questions or request additional documents. You must respond to these requests within the specified time (usually 2–4 weeks).
• obtaining a license or a registration number. After the application is approved the regulator issues a license or registration number confirming that the fund is registered and may begin operations.

Opening a bank account: operational launch

The fourth stage is opening a bank account and operational launch. This stage includes:

• Preparation of documents for the bank. You must prepare the documents required by the bank, including a copy of the license, the fund’s charter, digital identification documents of the founders, and proof of source of funds.
• Opening a corporate account. You must open a corporate account at a bank that will hold the fund’s assets. The bank may require a video call with a fund representative to verify identity.
• Deposit of the minimum capital. You must deposit the minimum capital into the fund’s bank account. The amount of minimum capital depends on the jurisdiction and fund type.
• Launching a marketing campaign. After obtaining the license and opening the bank account you can start attracting investors.

The Role of Legal Opinions in Minimizing Legal Risk

Legal Opinion in Due Diligence

Key elements of a Legal Opinion for investment companies

Mandatory sections of a Legal Opinion

Specifics of a Legal Opinion on AML and finance

Common mistakes when preparing:

• Insufficient detail in AML procedures
• Lack of references to applicable legislation
• Vague wording without concrete conclusions

Legal Opinion in international transactions

Legal Opinion for venture capital investments

Legal Opinion for M&A

Legal opinion on obtaining financial licenses

Step-by-step algorithm for preparing a Legal Opinion

Common mistakes when preparing a legal opinion

Legal Opinion in different jurisdictions

Legal Opinion for the EU

Legal Opinion for Asia

Legal Opinion for Africa

The impact of a Legal Opinion on attracting investment

Checklist: what to include in a Legal Opinion

• Clear definition of the subject of the opinion and the addressee
• Brief summary of conclusions
• Description of factual circumstances and the company’s structure
• Analysis of applicable legislation (references to articles)
• Detailed analysis of AML and KYC procedures
• Analysis of corporate governance and ownership structure
• risk assessment of non-compliance with financial regulation
• Analysis of contractual obligations and potential disputes
• Assessment of compliance with data protection requirements (GDPR)
• Clear conclusions and recommendations
• Limitations and disclaimers
• Signature of a qualified lawyer, date, contacts
• References to sources and documents
• Appendices (copies of key documents)