COREDO > Financial Licence in Estonia

Financial Licence in Estonia

Estonia is one of Europe’s leading jurisdictions for fintech and financial companies, offering advanced digital infrastructure and transparent regulation. Estonian financial licences provide access to the EEA market through the passporting mechanism, while the country’s tax system makes it an attractive jurisdiction for international business.

Since 2016, COREDO has been assisting clients with obtaining financial licences in Estonia, providing full support — from company incorporation to communication with the regulator and post-licensing assistance.

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Cost of the service
from 25 000 EUR

Regulatory Framework

Financial supervision in Estonia is carried out by Finantsinspektsioon (Financial Inspectorate of Estonia, EFSA) — an independent authority whose powers extend to credit institutions, payment institutions, electronic money institutions, investment firms and other financial organisations. Official regulator website: fi.ee.

The regulatory framework is based on the following regulatory acts:

EMD2 (Directive 2009/110/EC)

regulates the activities of electronic money institutions (EMI), establishes minimum initial capital requirements and the passporting procedure in the EEA.

PSD2 (Directive (EU) 2015/2366)

defines requirements for payment institutions (PI), authorisation procedures, client fund protection and the passporting notification mechanism.

MiFID II (Directive 2014/65/EU)

regulates the activities of investment firms, securities dealers and forex brokers.

CRD IV (Directive 2013/36/EU)

applies to credit institutions (banks).

Law on Payment Service Providers and Electronic Money Institutions (MERAS)

national act implementing PSD2 and EMD2 into Estonia’s legal system.

Securities Market Act (VPTS)

transposes MiFID II provisions, regulates the securities market and investment firm activities.

As of 18 March 2026, applications for payment institution or electronic money institution licences are submitted exclusively through the Finantsinspektsioon electronic portal.

Types of Financial Licences in Estonia

Finantsinspektsioon issues several types of licences depending on the planned financial services:

Licence Type	Description	Min. Regulatory Capital	Processing Time
EMI (Electronic Money Institution)	Issue of electronic money, settlement services, payment account management	€350,000	3–6 months
PI (Payment Institution) — full scope	Full range of payment services under PSD2	€125,000	3–6 months
PI (Payment Institution) — payment initiation	Payment transaction initiation	€50,000	3–4 months
PI (Payment Institution) — money transfers	Money transfer services	€20,000	3–4 months
Investment Firm / Securities Dealer	Investment services, securities trading, portfolio management	€50,000–€730,000	up to 6 months
Forex Broker (MiFID II)	Forex market trading, derivatives	€730,000	up to 6 months
Credit Institution (Bank)	Full range of banking services	€5,000,000	6–12 months

Note: Regulatory capital is a mandatory requirement of EU legislation (EMD2, PSD2, MiFID II) and is not the cost of COREDO’s services. COREDO’s services pricing for licensing is stated in the “COREDO Services Pricing” section below.

Jurisdiction Advantages

Passporting in the EEA.

An EMI or PI licence issued by Finantsinspektsioon gives the right to provide financial services in all 30 European Economic Area states without the need to obtain separate approvals in each country. The notification procedure involves only submitting a request through the home regulator (Finantsinspektsioon) to the host regulator of the host country (PSD2, Art. 28; EMD2, Art. 3).

Zero Tax on Retained Earnings.

Estonia applies a unique corporate taxation system: if a company reinvests its profits, they are not taxed. Corporate income tax is levied only at the moment of dividend distribution. This significantly reduces the tax burden during the business growth phase.

Digital State and e-Residency.

Estonia is a global leader in e-governance. Most interactions with government bodies, including company registration and communication with Finantsinspektsioon, are conducted online via e-Government. The e-Residency programme allows non-residents to remotely manage Estonian companies, which is especially important for international fintech.

Predictable Timeframes and Transparent Requirements.

Finantsinspektsioon establishes clear procedural timeframes: from 3 to 6 months from the submission of a complete document package. The regulator practices preliminary consultations with applicants, which allows for early identification and elimination of potential issues.

Mature Fintech Ecosystem.

Estonia has developed an advanced infrastructure for fintech companies: specialised law firms, experienced AML officers and compliance specialists, availability of qualified personnel. According to Fintech in Baltic, the e-Residency programme generated EUR 125 million in government revenue in 2025, confirming high business activity in the jurisdiction.

EU and EEA Membership.

Estonia is a full member of the European Union since 2004 and is part of the Schengen area. An Estonian licence is recognised throughout the EU, opening access to a market of more than 450 million consumers.

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General Requirements for Licence Acquisition

Regardless of the type of licence, Finantsinspektsioon has a number of universal requirements:

Corporate Structure.

For an EMI licence, the company must be registered in Estonia as a public limited company (AS) or a private limited company (OÜ). A registered physical (real) office presence in Estonia is required.

Management Requirements.

The board of an EMI must consist of at least two members. All directors must have an impeccable business reputation, appropriate education and experience managing financial organisations. At least one of the key managers must be an Estonian resident or have sufficient connections to the jurisdiction.

Minimum Capital.

The amount of own capital must comply with the requirements of the applicable EU directive and remain above the established threshold throughout the entire period of operation.

AML/KYC Compliance.

Development and implementation of internal procedures for anti-money laundering and counter-terrorist financing (AML/CFT) in accordance with the Money Laundering Act (RahaPTS) are mandatory. A responsible officer is appointed — MLRO (Money Laundering Reporting Officer).

IT Infrastructure and Security.

The Financial Inspectorate assesses the applicant’s technical capabilities: transaction processing systems, client data protection mechanisms, business continuity plans.

Business Plan.

A detailed business plan is required describing planned services, financial forecasts, risk management strategy and marketing model.

Safeguarding (Client Fund Protection).

PI and EMI are required to ensure client fund preservation through an insurance system or segregated accounts in one of the EU credit institutions.

COREDO Services Pricing

The cost of COREDO’s services for obtaining a financial licence in Estonia depends on the licence type. The table below shows prices for the main types of licences:

Service	COREDO Cost	Note
EMI Licence (Electronic Money Institution)	from EUR 40,000 + VAT	Includes company registration, preparation of complete document package, support with Finantsinspektsioon
PI / Securities Dealer (Payment Institution / Securities Dealer)	from EUR 25,000 + VAT	Includes corporate documentation and legal support
Investment Licence	from EUR 60,000 + VAT	Complete package for investment firm in accordance with MiFID II
Forex Broker	from EUR 25,000 + VAT	Licensing based on MiFID II, MiFIR

Prices are stated excluding regulatory capital, government fees and related expenses (notarisation services, apostille, document translation). The final cost is determined after a preliminary consultation.

For comparison: the minimum licensing cost in neighbouring jurisdictions is from EUR 50,000 in Latvia and from EUR 60,000 in Lithuania — Estonia remains one of the most accessible EU jurisdictions for obtaining a financial licence.

Payment Terms

Payment for COREDO’s services is made in stages, which reduces the financial burden on the client:

40%

advance payment when the contract is concluded (document preparation, company registration, preliminary review);

40%

after preparation and agreement of the complete document package for submission to Finantsinspektsioon;

20%

after receiving a positive decision from the regulator to issue the licence.

This payment structure reflects the breakdown of work by stages and allows the client to monitor the project progress. By agreement, an individual financing scheme is possible.

Document List

To submit an application for a financial licence in Estonia, the following categories of documents will be required:

Corporate documents — articles of association, certificate of registration, resolutions on the election of governing bodies;

Business plan — description of planned services, target markets, 3-year financial forecasts;

Financial plan — initial balance sheet, forecast of income and expenses, liquidity calculation;

Documents on ownership structure — information on shareholders, beneficial owners (UBO), data on owners with a share of 10% or more;

Personal documents of directors and key employees — CV, diplomas, confirmation of business reputation, certificates of no criminal record;

Capital documents — confirmation of share capital payment, bank statement;

AML/CFT Programme — internal policies and procedures for anti-money laundering, KYC/KYB policy, transaction monitoring procedures;

Description of IT Systems and Technological Infrastructure — payment system architecture, description of software used, information security policy;

Risk Management System — risk matrix, procedures for risk identification and mitigation;

Contracts with IT Providers and Operational Partners — SLA, description of outsourcing relationships;

Safeguarding Policy — description of the mechanism for protecting client funds;

Documents on Registered Office — lease agreement or other document confirming physical presence in Estonia;

Organisational Chart — company structure, functional roles, reporting structure;

Additional Industry-Specific Documents — depending on the type of licence (for example, service prospectus, tariff policy, product description).

Licence Acquisition Procedure

Obtaining a financial licence in Estonia is carried out through five main stages:

Preliminary Assessment and Licence Type Selection (1–2 weeks)

an analysis of the client’s business model and determines the optimal licence type. At this stage, the corporate structure and director requirements are agreed upon. If necessary, a preliminary meeting with Finantsinspektsioon is organised.

01

Company Registration and Document Preparation (4–8 weeks)

Registration of a legal entity in Estonia (OÜ or AS), opening of a bank account, deposit of share capital. In parallel, internal policies are developed (AML/CFT, KYC, risk management), business plan and financial plan. A complete package is prepared for submission to Finantsinspektsioon.

02

Application Submission (1–2 weeks)

As of 18 March 2026, applications are submitted through the Finantsinspektsioon electronic portal. COREDO accompanies the submission process and responds to technical requests from the regulator during the completeness check of the package (up to 30 days).

03

Application Review by the Regulator (3–6 months)

Finantsinspektsioon conducts a comprehensive assessment: review of business reputation and director qualifications, analysis of the AML programme, evaluation of the business plan and IT infrastructure. The regulator has the right to request additional documents or conduct interviews with key managers. COREDO conducts correspondence with the regulator and prepares responses to requests.

04

Licence Acquisition and Service Launch

After receiving a positive decision, the company is entered into the Finantsinspektsioon register and has the right to begin providing financial services. If necessary, COREDO organises notification passporting to EEA countries to expand the scope of operations.

05

Our Experts

Financial licensing projects in Estonia at COREDO are led by:

Pavel Kos

Head of Legal Pavel has been working at COREDO since 2017 and has headed the legal team since July 2020. He has extensive experience supporting licensing projects in various EU jurisdictions, including Estonia, Lithuania and Poland. Specialises in strategic planning, client project management and interaction with financial regulators.

Basang Ungunov

Lawyer Basang is a practicing lawyer at COREDO since 2022, specialising in financial and corporate law. Participates in the preparation of documentation for licensing applications, development of AML policies and legal opinions for financial companies.

Frequently Asked Questions

Who is the regulator that issues financial licences in Estonia?

All types of financial licences in Estonia are issued by Finantsinspektsioon (Financial Inspectorate of Estonia, EFSA). Official website: fi.ee.

What is the minimum cost of obtaining a financial licence in Estonia with COREDO?

COREDO’s service costs start from EUR 25,000 + VAT for a PI licence / securities dealer. EMI licence cost is from EUR 40,000 + VAT. The final price is determined after analysis of the business model.

Is a director-resident of Estonia required?

At least one of the key managers must have sufficient connections to Estonia or the EEA. Finantsinspektsioon assesses the reality of the company’s operational presence in the jurisdiction.

Is it necessary to open a physical office in Estonia?

Yes, to obtain an EMI or PI licence, a registered physical presence in Estonia is required — an office from which operations are actually managed.

Does an Estonian financial licence allow work in other EU countries?

Yes. Thanks to the passporting mechanism, EMI or PI licence holders can provide services in all 30 EEA states in a notification procedure (PSD2, Art. 28; EMD2, Art. 3) without obtaining separate licences in each country.

What is the minimum regulatory capital for EMI in Estonia?

The minimum initial capital for EMI is €350,000 in accordance with EMD2 (Directive 2009/110/EC, Art. 4). For PI, minimum capital ranges from €20,000 to €125,000 depending on the list of planned payment services (PSD2, Art. 7).

How long does it take to obtain a licence?

Finantsinspektsioon is obliged to make a decision within three months from receipt of a complete document package, but no later than six months from the application submission date. In practice, the entire process (including preparation) takes 5–9 months for EMI and 4–7 months for PI.

Are there tax benefits for financial companies in Estonia?

One of the key advantages is the corporate taxation system: corporate income tax is not levied until dividends are distributed to shareholders. Reinvested profits are not taxed, allowing the company to most effectively use resources for development.

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Ready to start the process of obtaining a financial licence in Estonia? COREDO specialists have since 2016 accompanied fintech companies, electronic money operators and investment firms throughout the entire journey — from structure selection to licence acquisition and passporting in the EEA.