COREDO > Financial Licence in the Czech Republic

Financial Licence in the Czech Republic

Financial Regulation in the Czech Republic

The Czech Republic is a reliable European jurisdiction for obtaining financial licences, offering access to the EU single market and transparent regulation. The country provides a stable legal environment, advanced banking infrastructure, and favourable conditions for payment, investment, and fintech companies.

Since 2016, COREDO has been assisting clients with obtaining financial licences in the Czech Republic, providing full support — from selecting the appropriate licence to communication with regulators and business launch.

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Cost of the service
from 6 500 EUR

Regulatory Framework: ČNB and European Directives

The main supervisory authority in the field of financial services in the Czech Republic is Česká národní banka (ČNB) — the Czech National Bank. It is ČNB that carries out licensing, supervision and oversight of the activities of payment institutions, electronic money institutions, investment firms, banks and other supervised entities.

The key Czech legislative acts are based on European directives:

Act No. 370/2017 Coll. on Payment Services implements Directive PSD2 (2015/2366/EU) and regulates payment institutions (PI) and electronic money institutions (EMI). Minimum capital requirements for PI range from EUR 20,000 (money remittance) to EUR 125,000 (full range of services), and for EMI — EUR 350,000 in accordance with Directive EMD2 (2009/110/EC).
Act No. 256/2004 Coll. on Capital Market Undertakings (ZPKT) implements Directive MiFID II (2014/65/EU) and regulates the activities of investment firms, securities dealers and asset managers. Act No. 240/2013 Coll. on Investment Companies and Investment Funds (ZISIF) regulates alternative investment funds, including funds established under §15 — so-called “small” funds.
Act No. 257/2016 Coll. on Consumer Credit transposes Directive 2008/48/EC and regulates the activities of credit institutions providing consumer loans.

Types of Financial Licences in the Czech Republic

The Czech Republic offers a wide range of financial licences. Below is a summary table of the main types:

Licence Type	Legal Basis	Min. Regulatory Capital	Review Period	COREDO Price
SPI (Small PI)	PSD2, Act 370/2017	no minimum requirement	3–6 months	from EUR 40,000 + VAT
PI (Payment Institution)	PSD2, Act 370/2017	EUR 20,000–125,000	3–6 months	from EUR 65,000 + VAT
sEMI (Small EMI)	EMD2, Act 370/2017	no minimum requirement	3–6 months	from EUR 45,000 + VAT
EMI (Electronic Money Institution)	EMD2, Act 370/2017	EUR 350,000	6–12 months	from EUR 75,000 + VAT
ZISIF §15 (Alt. Investment Fund)	Act 240/2013 (ZISIF)	none	1–3 months	from EUR 8,500 + VAT
Securities Dealer / Investment Fund	MiFID II, ZPKT, ZISIF	EUR 50,000–500,000	6–12 months	from EUR 85,000 + VAT
Consumer Credit	Act 257/2016	individual	3–6 months	from EUR 65,000 + VAT
Forex Broker	MiFID II	EUR 730,000	6–12 months	from EUR 40,000 + VAT
Physical Currency Exchange	Act 277/2013	none	1–3 months	from EUR 6,500 + VAT
Crowdfunding	Reg. (EU) 2020/1503	none	3–6 months	from EUR 45,000 + VAT

PI, EMI and Securities Dealer licences are issued for an indefinite period and do not require annual renewal. This is a significant advantage compared to a number of other jurisdictions.

Advantages of Obtaining a Financial Licence in the Czech Republic

Access to the European passport.

PI and EMI licences obtained in the Czech Republic grant the right to passporting — a notification procedure allowing the provision of services across all 30 European Economic Area (EEA) states without the need to obtain an additional licence in each country. Legal basis: Art. 28 PSD2 (for PI) and Art. 3 EMD2 in conjunction with PSD2 (for EMI).

Stable legal system.

Czech legislation is transparent and predictable. ČNB is one of the most authoritative regulators in Central Europe, recognised by partners throughout the EEA.

Wide range of licence types.

The Czech Republic offers a unique set of financial permissions: from a simple physical currency exchange for EUR 6,500 to a full-scale EMI with passporting rights. This makes the jurisdiction attractive for businesses of varying scale.

Low operational costs.

The cost of office sublease, qualified specialists and administrative services in Prague is significantly lower than in Western Europe, with a comparable level of expertise.

Licence for an indefinite period.

PI, EMI and most other licence types are issued without a time limit and do not require annual renewal fees.

Strategic location.

Prague is an international financial and business centre. Proximity to CEE, EU and CIS markets provides a convenient geography for international financial business.

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General Requirements for Obtaining a Financial Licence

Requirements vary depending on the licence type, however there are a number of common conditions imposed by ČNB on most applicants.

Company registration.

A Czech company is required to obtain a licence, typically in the form of an s.r.o. (limited liability company). The company must be registered in the Czech Republic and have a physical office on its territory.

Capital requirements.

For PI: from EUR 20,000 (money remittance) to EUR 125,000 (full range of payment services). For EMI: EUR 350,000. For ZISIF §15 and small institutions, there are no minimum share capital requirements, however ČNB assesses the applicant’s financial stability.

Management qualification.

Directors and key personnel must have experience in the financial sector, an impeccable reputation and meet fit and proper criteria. ČNB conducts individual assessment of each candidate.

AML/CFT compliance.

The company must have a developed and documented anti-money laundering and counter-terrorist financing programme, including internal policies, KYC/KYB procedures, a transaction monitoring system and a designated MLRO (AML officer). From 2027, Regulation AMLR (EU) 2024/1624 applies.

IT infrastructure and security.

ČNB verifies the availability of a reliable technical base for carrying out licensed activities: software, data protection systems, backup procedures and incident management.

Business plan.

A detailed business plan including a financial model for 1 year (for small institutions) or 3 years (for PI and EMI), description of products, target market and growth strategy.

COREDO Service Costs for Obtaining a Financial Licence in the Czech Republic

COREDO offers full support for the process of obtaining a financial licence in the Czech Republic: from preliminary analysis of the business model to interaction with ČNB and post-licensing support. All prices are quoted excluding VAT.

Service	COREDO Price	Source
PSP/EMI Licence — SPI (Small PI)	from EUR 40,000 + VAT	CP
PSP/EMI Licence — sEMI (Small EMI)	from EUR 45,000 + VAT	CP
PSP/EMI Licence — PI (Payment Institution)	from EUR 65,000 + VAT	CP
PSP/EMI Licence — EMI (Electronic Money Institution)	from EUR 75,000 + VAT	CP
Alternative Investment Fund ZISIF §15	from EUR 8,500 + VAT	CP
Securities Dealer / Investment Fund	from EUR 85,000 + VAT	Website
Consumer Credit	from EUR 65,000 + VAT	CP
Physical Currency Exchange	from EUR 6,500 + VAT	CP
Forex Broker (MiFID II)	from EUR 40,000 + VAT	Internal
Crowdfunding Licence	from EUR 45,000 + VAT	CP
CASP Licence (MiCA, from scratch)	from EUR 35,150 + VAT	CP

The specific cost depends on the complexity of the structure, the client’s documentation readiness and the selected set of additional services. COREDO offers a free preliminary consultation to evaluate the project and prepare an individual commercial proposal.

Payment Terms

Payment for COREDO’s services on licensing projects is made in three instalments:

40%

upon signing the agreement and commencement of documentation preparation;

40%

upon completion of the document package and submission of the application to ČNB;

20%

upon receipt of the licence and project completion.

For special products (ZISIF §15, currency exchange), terms may differ — please enquire when requesting a consultation.

List of Documents for Obtaining a Licence

The list of documents depends on the licence type. The standard list for PI/EMI includes:

Company registration documents (certificate, articles of association, registry extract);

Documents verifying the identity and confirming the clean reputation of directors and beneficial owners;

A current business plan with a financial model for 3 years;

Description of payment products and services, including the transaction flow diagram;

Technical description of IT infrastructure and software systems used;

AML/CFT policy, KYC/KYB procedures, internal audit programme;

Job descriptions of key personnel, including the MLRO;

Office sublease agreement or confirmation of physical presence in the Czech Republic;

Documents on the origin and adequacy of share capital;

Organisational chart of the company and group (if applicable);

Information on the shareholding structure and beneficial owners;

Information on outsourcing partners (if any);

Insurance policy or equivalent protection instruments (for certain types);

Description of the risk management and internal control system.

For small institutions (SPI, sEMI), the list of documents is reduced: the business plan is prepared for 1 year, and requirements for internal procedures are less detailed.

Procedure for Obtaining a Financial Licence in the Czech Republic

The licensing process takes place in several stages.

Preliminary analysis (2–4 weeks).

Evaluation of the business model, selection of the optimal licence type, preliminary discussion of the structure with COREDO experts. Signing of the agreement and commencement of work.

01

Company preparation (4–8 weeks).

If necessary — registration of a Czech company. Opening a corporate account, forming the management team, office sublease. Development of AML policy and internal procedures.

02

Application preparation (4–8 weeks).

Collection and preparation of the complete document package, development of the business plan and financial model, legal support.

03

Submission to ČNB and review.

Submission of the application to Česká národní banka. The regulator reviews the application within 3–6 months for small institutions and 6–12 months for PI, EMI and investment structures. During the process, ČNB may request additional documents or clarifications.

04

Licence receipt and launch.

Upon approval of the application, ČNB issues the licence. The company is entered into the regulator’s public register. If desired — passporting notification procedure to other EEA countries.

05

The total project timeline from the first consultation to licence receipt: from 5 to 12 months depending on the licence type and the client’s readiness.

Passporting: Operating Across the EEA

One of the key advantages of a financial licence obtained in the Czech Republic is the right to passporting within the European Economic Area. After obtaining a PI or EMI licence, the company may submit a notification to ČNB of its intention to provide services in another EEA country. ČNB notifies the host regulator, and upon completion of the notification procedure, the company is entitled to operate in the new market without obtaining a separate licence.

This possibility is based on Art. 28 PSD2 (for payment institutions) and Art. 3 EMD2 in conjunction with PSD2 (for EMI). Passporting extends to all 27 EU countries, as well as Norway, Iceland and Liechtenstein (EEA).

A similar procedure is provided for investment firms licensed under MiFID II (Art. 34–35 MiFID II) and for banks — in accordance with CRD IV (Art. 17–28).

Our Experts

Financial licensing projects in the Czech Republic at COREDO are led by a team of experienced lawyers who have been working with ČNB since 2016. The COREDO team has been supporting clients since 2016 — from initial business model analysis to licence acquisition and post-licensing support.

Pavel Kos

Head of Legal at COREDO. Has been with the company since June 2017, leading the legal team since July 2020. Specialises in financial licensing, M&A, corporate law and compliance. Fluent in English and Russian.

Basang Ungunov

Lawyer at COREDO. Has been with the company since June 2022. Specialises in legal services, legal opinion, licensing project support and corporate law.

Frequently Asked Questions

Which regulator issues financial licences in the Czech Republic?

The main supervisory authority in the field of financial services is Česká národní banka (ČNB), the Czech National Bank. It is ČNB that reviews applications for PI, EMI, investment and other financial licences, maintains the public register of licensed organisations and supervises their activities.

What is the minimum capital required for an EMI licence in the Czech Republic?

In accordance with Directive EMD2 (2009/110/EC), the minimum share capital for a full-scale EMI is EUR 350,000. For a small electronic money institution (sEMI), no minimum capital is established by law, however ČNB assesses the applicant’s financial stability.

Is it possible to operate in other EU countries on the basis of a Czech licence?

Yes. PI and EMI licences obtained in the Czech Republic grant the right to passporting — operating across all 30 EEA states through a notification procedure without the need to obtain a separate licence in each country. This is the main advantage of choosing the Czech jurisdiction for financial business.

How much does it cost to obtain a financial licence in the Czech Republic through COREDO?

COREDO’s service costs start from EUR 8,500 + VAT (ZISIF §15 — alternative investment fund). PI/EMI licensing costs from EUR 40,000 to EUR 75,000 + VAT depending on the institution type. For an exact price, we recommend requesting a free consultation.

How long is a financial licence valid in the Czech Republic?

PI, EMI and investment firm licences in the Czech Republic are issued for an indefinite period and do not require annual renewal. There is no annual renewal fee, which is a significant advantage compared to a number of other jurisdictions.

Is physical presence in the Czech Republic required to obtain a licence?

Yes. ČNB requires a physical office on the territory of the Czech Republic. The company must also be registered in the Czech Republic. Management must have a genuine connection to operational activities. COREDO can assist with company registration and organising the necessary presence.

What is the difference between PI and EMI?

A payment institution (PI) is entitled to provide payment services (money remittance, acquiring, payment initiation, etc.) but does not have the right to issue electronic money. An electronic money institution (EMI) is entitled to issue and store electronic money, as well as provide all PI payment services. EMI requires higher capital (EUR 350,000 versus EUR 20,000–125,000 for PI).

What is ZISIF §15 and who is it suitable for?

ZISIF §15 is a simplified form of registration for an alternative investment fund in the Czech Republic under Act No. 240/2013. Such a fund is not fully regulated and does not require a ČNB licence in the traditional sense — only registration. It is suitable for small investment structures, family offices and start-ups in the asset management sector. There are no minimum capital requirements, and COREDO’s service cost starts from EUR 8,500 + VAT.

Get Started with a Consultation

Obtaining a financial licence in the Czech Republic is a complex but well-structured process with the right support. The COREDO team has been helping clients since 2016: we know ČNB’s requirements, can select the optimal licence type and support the project from the first consultation through to launch.