All companies providing financial services in the EU must obtain an appropriate license. This requirement applies primarily to the following activities: banking, insurance, provision of payment services (including e-money), cryptocurrency business (stock exchange, online currency exchangers), FinTech, etc.
The European Union imposes increased requirements for licensing, with particular attention to the control of the activities of financial institutions.
REQUIRED DOCUMENTS
To obtain a license, you should provide the following documents:
certified copies of passports of participating persons — directors/founders;
a document confirming the place of residence of the persons involved (utility bill);
a bank letter;
an account statement;
certificates of no criminal record of the participating persons — directors/founders;
education certificates — management of a financial company;
a document confirming the presence of equity capital and the origin of funds;
a memorandum of association;
a description of planned financial services and management mechanisms;
a business plan.
This list may vary depending on the country and type of financial license.
TYPES OF FINANCIAL LICENSE
There are several types of financial licenses:
brokerage;
investment;
banking;
payment;
forex.
COMPANY REQUIREMENTS
Licensing requirements may vary depending on the State, the scope of the planned activity, and the license type. The main requirements for all companies are a positive reputation, no criminal record of directors/shareholders, and proof of the source of income.
OFFICE REQUIREMENTS
In most countries, the physical presence of the applicants in the licensing country is mandatory.
PERSONNEL REQUIREMENTS
The staff requirements (total number of employees, number of residents, staff functions, management of the company) depend on the country and type of financial license.
REQUIREMENTS FOR THE TECHNICAL SOLUTION
The license applicants must indicate which software platform they plan to use. The choice must be made pursuant to the applicable directives of payment systems and data protection requirements.
STAGES OF LICENSING
The procedure for obtaining a license consists of several stages:
сompany registration;
preparation of necessary documents;
applying;
examining the information provided to the regulator;
request for additional information (if necessary);
issuance of a license.
The duration of the procedure can vary from a few months to two years. On average — 6–18 months.
It is essential to know that if the regulator asks to withdraw the application, it is unlikely that it will be possible to re-apply not only to the same country but also to another EU state. Therefore, it is better to avoid trying to obtain permission for financial activities on your own but turn to professionals for help.
COREDO specialists will answer all your questions and accompany you at all stages of licensing, from the preparation of documentation to obtaining a license.
Our experts are well acquainted with all the nuances of the licensing process in different countries and have many years of practical experience, which allows us to bypass all the “pitfalls” and bureaucratic mechanisms, cope with tasks of any complexity and get a positive result. With our help, you will be able to run a legal and successful business in the countries of the European Union.
