COREDO > Financial Licence in France

Financial Licence in France

France is one of the leading financial centres in the European Union, with a highly developed banking system, strong regulatory framework, and high level of trust from international businesses. French financial licences allow companies to provide payment, investment, and other regulated services across the entire EEA through the passporting mechanism.

Since 2016, COREDO has been assisting clients with obtaining financial licences in France, providing full support — from selecting the appropriate licence to liaising with regulators and securing authorisation.

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Cost of the service
from 100 000 EUR

Regulatory Framework

Financial activities in France are regulated by two key authorities. The Autorité de contrôle prudentiel et de résolution (ACPR) — an independent body under the Banque de France — is responsible for issuing licences and prudential supervision of banks, insurance organisations, payment institutions and electronic money issuers. The Autorité des marchés financiers (AMF) oversees financial market regulation, investor protection and supervision of investment activities.

The French regulatory system is based on the following key European legislative acts:

PSD2 (Directive (EU) 2015/2366) regulates the provision of payment services and defines requirements for payment institutions (Payment Institutions). The directive was transposed into French law and came into force on 13 January 2018. PSD2 introduced two new types of regulated services: account information services (AIS) and payment initiation services (PIS).
EMD2 (Directive 2009/110/EC) establishes rules for Electronic Money Institutions (EMI), including the requirement for a minimum initial capital of EUR 350,000.
MiFID II (Directive 2014/65/EU) defines the framework for the provision of investment services. In France, the investment firm licence is issued by ACPR after obtaining an opinion from AMF regarding the programme of activities.
CRD IV (Directive 2013/36/EU) and CRR (Regulation (EU) No 575/2013) regulate banking activities and establish minimum capital requirements for credit institutions.
IFR (Regulation (EU) 2019/2033) and IFD (Directive (EU) 2019/2034), introduced from June 2021, define a new prudential regime for investment firms with differentiated capital requirements.

Since 2016, ACPR has also supported fintech initiatives through its specialised Fintech Innovation Unit, which provides advisory assistance to innovative projects in the field of financial services.

Types of Financial Licences

There are several main types of financial licences in France, each regulating a specific type of activity:

Licence Type	Regulator	Directive / Regulation	Min. Initial Capital	Estimated Review Period
EMI (Electronic Money Institution)	ACPR	EMD2 (2009/110/EC)	EUR 350,000	6–12 months
Payment Institution — full range	ACPR	PSD2 (2015/2366)	EUR 125,000	3–12 months
Payment Institution — money transfers	ACPR	PSD2 (2015/2366)	EUR 20,000	3–12 months
Payment Institution — payment initiation	ACPR	PSD2 (2015/2366)	EUR 50,000	3–12 months
Simplified Payment Institution	ACPR	PSD2 / CMF Art. L522-11-1	Below standard	3–6 months
Investment Firm	ACPR + AMF	MiFID II / IFR/IFD	EUR 75,000–750,000	6–12 months
Credit Institution	ACPR + ECB	CRD IV / CRR	EUR 5,000,000	6–18 months
Finance Company	ACPR	CMF	Determined by ACPR	6–12 months

The Simplified Payment Institution is available to companies whose volume of payment operations does not exceed EUR 3,000,000 on average per month, provided the company does not plan to carry out money transfer services. This licence type provides reduced prudential requirements but does not grant the right to a European passport.

Investment firms are classified into three categories under IFR/IFD: Class 1 (systemically important, equivalent to credit institutions), Class 2 (medium-sized firms) and Class 3 (small, non-interconnected firms), with minimum permanent capital ranging from EUR 75,000 to EUR 750,000 depending on the range of services provided.

Advantages of the Jurisdiction

France offers a number of significant advantages for obtaining a financial licence.

The Largest Financial Hub in the EU

Paris is the leading financial center of the European Union, hosting a high concentration of banks, investment funds, and asset management companies.

Regulatory Support for Fintech Projects

The dedicated Fintech Innovation Unit assists innovative companies and facilitates communication with regulators throughout the licensing process.

Access to the European Market Through Passporting

Licensed entities can provide services across the European Economic Area without obtaining additional licenses in each jurisdiction.

Transparent and Predictable Regulatory Framework

French legislation provides a comprehensive legal framework and clearly defined requirements for licensed financial institutions.

Operating Within the Eurozone

France’s membership in the Eurozone simplifies euro-denominated transactions and integration with European payment systems, including SEPA and TARGET2.

Large Domestic Market

France has a population of more than 67 million consumers, offering significant opportunities for business growth and expansion of financial services.

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General Requirements for Obtaining a Licence

When reviewing an application for a financial licence, ACPR examines a number of key criteria.

Corporate structure and legal presence

The company must be incorporated in France and maintain its registered office and central management within the country.

Capital adequacy

The level of initial capital and prudential funds must comply with the requirements for the relevant license type. For EMI, the minimum capital is EUR 350,000; for payment institutions, EUR 20,000 to EUR 125,000; for investment firms, EUR 75,000 to EUR 750,000; for credit institutions, EUR 5,000,000.

Management integrity and qualification

Directors and individuals responsible for financial activities must demonstrate good repute, adequate knowledge, experience, and professional competence.

Risk management and internal control system

The company must implement effective procedures for risk identification, management, and control, as well as an adequate internal control system, including accounting procedures.

AML/CFT compliance

A robust anti-money laundering and counter-terrorist financing framework must be in place in accordance with French legislation and ACPR requirements.

Business plan and ownership structure

The business plan must include a description of planned financial activities, technical and financial resources, as well as information on the identity and status of direct and indirect shareholders.

Cost of COREDO Services

COREDO offers comprehensive support for the process of obtaining a financial licence in France. The cost of services depends on the licence type and the complexity of the project:

Service	Cost
Financial licence EMI/PSP in France	from EUR 100,000 + VAT

The stated cost includes the full cycle of services: preliminary project analysis, preparation of the complete set of documents, development of internal policies and procedures (AML/CFT, risk management, internal control), preparation of the business plan and programme of activities, interaction with ACPR at all stages of the application review, as well as advisory support until the licence is obtained. The cost is indicative and may be adjusted following a preliminary analysis of a specific project.

Payment Terms

Payment for COREDO services is made in stages linked to key project milestones: 40% of the service cost is paid at the stage of contract conclusion and the start of work on the project, 40% — at the stage of submitting the application to ACPR, and 20% — upon obtaining the licence. This payment scheme allows the client to monitor the process and pay for services as specific results are achieved.

List of Documents

To submit an application for obtaining a financial licence in France, the following categories of documents must be prepared:

Incorporation documents of the company, including the articles of association (statuts), certificate of registration (extract from the Registre du Commerce et des Sociétés), documents confirming the legal form and registered office on the territory of France.

Business plan (programme d’activité), containing a detailed description of planned activities, target markets, revenue and expense projections for three years, as well as a description of the technical infrastructure.

Documents confirming the availability of initial capital in accordance with the requirements for the specific licence type.

Information on the ownership structure: data on shareholders (direct and indirect), their financial position and business reputation, confirmation of the origin of capital.

Information on managers and key employees: CVs, diplomas, confirmation of work experience, criminal record certificates, documents confirming professional competence.

AML/CFT policies and procedures: internal rules for anti-money laundering, customer identification (KYC), transaction monitoring and filing of suspicious activity reports with Tracfin (Traitement du renseignement et action contre les circuits financiers clandestins).

Risk management policy and internal control system: description of the organisational structure, control functions, procedures for managing operational and financial risks.

Description of IT infrastructure and measures for ensuring the security of payment operations (Banque de France opinion on payment instrument security).

Client fund protection policy (safeguarding), describing the mechanisms for storing and segregating client funds.

Personal data processing policy in accordance with GDPR.

Business continuity plan (BCP) and disaster recovery plan (DRP).

Audited financial statements (for existing companies) or projected financial statements (for new companies).

Licence Acquisition Procedure

The process of obtaining a financial licence in France includes several sequential stages.

Preliminary consultation with ACPR is conducted.

It is recommended to contact the Secretariat of the Licensing Directorate (Secrétariat de la Direction de l’agrément) to arrange a meeting at which the project is presented and the planned schedule is discussed. For fintech companies, ACPR provides access to the specialised Fintech Innovation Unit.

01

Complete set of documents is prepared.

COREDO compiles all necessary documents, develops internal policies and procedures, prepares the business plan and ensures compliance with ACPR requirements.

02

Submitting the application to ACPR.

The dossier is sent electronically to the Licensing Directorate. ACPR checks the completeness of the application and may request additional documents or clarifications.

03

Review of the application.

The formal decision period for a payment institution application is three months from the date of receiving the complete set of documents. For EMI and credit institutions, the period may range from 6 to 18 months. During the review process, ACPR requests an opinion from the Banque de France on payment instrument security matters. For investment firms, an opinion from AMF is also required.

04

Obtaining the licence and commencing operations.

Upon approval of the application, ACPR issues the licence and the company is entered into the relevant register. The licensed company may submit a passporting notification to provide services in other EEA countries.

05

The overall duration of the process from the start of preparation to obtaining the licence in practice ranges from 6 to 18 months depending on the licence type, project complexity and completeness of the documentation provided.

Our Experts

The work of supporting clients in the process of obtaining financial licences in France is carried out by specialists of the COREDO legal team.

Pavel Kos

Head of Legal. Has been with COREDO since June 2017, heading the legal team since July 2020. Specialises in financial licensing, corporate law and M&A transaction support. Education — Master's degree from the University of Finance and Administration (Prague), specialisation in Finance.

Basang Ungunov

Lawyer. Has been with COREDO since June 2022. Specialises in legal support for financial licensing projects and preparation of legal opinions. Education — Master of Laws (LLM), Civil Law.

Frequently Asked Questions

Which regulator issues financial licences in France?

The primary regulator is ACPR (Autorité de contrôle prudentiel et de résolution) — an independent body under the Banque de France. For investment services, an opinion from AMF (Autorité des marchés financiers) is also required. Credit institutions are licensed jointly by ACPR and the European Central Bank (ECB).

What is the minimum capital for obtaining an EMI licence in France?

The minimum initial capital for an Electronic Money Institution (EMI) is EUR 350,000 in accordance with Directive 2009/110/EC (EMD2), Article 4. This requirement is pan-European and applies in all EU countries, including France.

How long does it take to obtain a payment institution licence?

The formal ACPR review period is three months from the date of receiving the complete set of documents. However, in practice, the process from the start of document preparation to obtaining the licence takes from 6 to 12 months, and in some cases even longer.

Can a French licence be used to operate in other EU countries?

Yes, EMI, payment institutions and investment firms licensed in France have the right to passport services to all countries of the European Economic Area (EEA). The procedure involves sending a notification from the French regulator (ACPR) to the regulator of the host country.

What is a Simplified Payment Institution?

This is a special licence type for companies with a volume of payment operations not exceeding EUR 3,000,000 per month (on average), which do not plan to carry out money transfer services. This status provides reduced requirements for capital and internal control but does not grant the right to a European passport.

What requirements are imposed on the management of a licensed company?

Persons who effectively manage the company must possess an impeccable business reputation, sufficient knowledge and professional experience in the field of financial services. ACPR verifies their qualifications, work experience and absence of criminal records.

What is the cost of COREDO services for obtaining a financial licence in France?

The cost of COREDO services for support in obtaining a financial EMI/PSP licence in France is from EUR 100,000 + VAT. The specific cost is determined following a preliminary analysis of the project.

What AML requirements apply in France?

France applies strict AML/CFT requirements in accordance with European directives and the national Monetary and Financial Code. Licensed companies are required to implement customer identification (KYC) procedures, transaction monitoring, risk assessment and filing of suspicious activity reports with Tracfin. Violations of requirements may result in fines of up to EUR 5,000,000 or 10% of annual turnover.

Contact COREDO

If you are planning to obtain a financial licence in France, COREDO specialists are ready to provide professional consultation and support at all stages — from preliminary analysis to licence issuance. The company has been operating since 2016 and has extensive experience in financial licensing across various EU jurisdictions.