Nikita Veremeev
24.08.2025 | 6 min read
Updated: 24.08.2025
In 2025, more than 70% of transactions in global capital markets are conducted through licensed structures, and the cost of jurisdiction errors for an investment company can reach 15% of annual turnover: these are data rarely discussed publicly, but which the
COREDO team has encountered in real cases. Why has licensing of investment activities become not just a formality but a strategic success factor for businesses in the EU, Asia, and Africa? How do you choose the right type of investment license to not only meet international standards but also minimize risks, enhance transparency and access capital markets?
Today, entrepreneurs and leaders face increasing regulatory complexity, tightening requirements for AML and KYC, and the need to implement modern compliance technologies. Mistakes at the licensing stage can cost the company not only time and money but also its reputation. In this article, I will detail the main types of investment licenses, their differences and requirements in key jurisdictions, and share practical recommendations based on COREDO’s experience. If you are striving for strategic business development and want to avoid common mistakes: I recommend reading this guide to the end.
Types of Investment Licenses: Differences and Classification
Types of investment licenses differ in authority, requirements, and areas of application, defining their classification and specifics for obtaining. Understanding these differences is crucial for selecting the necessary permit for a specific type of investment activity: from asset management to investment advising. Next, we will discuss the features of specific types of licenses, starting with the CMS license for capital markets.
CMS License for Capital Markets
Keywords: capital markets services license, license for brokerage firms, license for asset managers, license for investment advisors, securities market regulation, investment broker
The Capital Markets Services (CMS) license is foundational for companies dealing with securities, derivatives, asset management, and investment consulting. Such a license is necessary for brokerage firms, asset managers, investment advisors, and depositaries. In various jurisdictions, CMS license requirements differ significantly: for instance, in Singapore, it is issued by the Monetary Authority of Singapore (MAS), while in the EU, by national regulators under ESMA supervision.
COREDO’s practice confirms: the CMS license is not merely a permit for activity but a tool for accessing international capital markets, enhancing trust among investors and partners. It is important to note that the license for brokerage firms and asset managers differs in the scope of permitted operations, capital requirements, and internal control structures.
Asset Management and Financial Services License
Keywords: financial services license, license for asset managers, license for investment funds, license for family office, fund management license, fiduciary management license
The financial services license encompasses a wide range of activities: from fund and family office management to fiduciary management and investment insurance. For investment funds and family offices, key criteria include ownership structure transparency, minimum statutory capital, and compliance procedures implementation.
Solutions developed at COREDO for international investment funds show: successful
Licensing requires not only well-prepared documents but also the establishment of a corporate governance system that aligns with international standards. For example, a fund management license in the EU mandates the presence of an independent auditor and the implementation of financial monitoring procedures.
License for an Investment Company
Keywords: license for fintech companies, license for SPV, license for private equity, investment platform licensing, license for investment apps, investment insurance license
Specialized licenses are essential for companies operating in fintech, private equity, SPV (Special Purpose Vehicle), investment platforms, and apps. Licensing investment platforms is particularly focused, where
AML, KYC, and due diligence requirements have significantly tightened in recent years.
COREDO’s experience in supporting fintech companies in Singapore and the EU shows: successful licensing requires integration of digital compliance tools, KYC process automation, and constant updating of procedures in line with new regulatory requirements. For SPV and private equity, transparency of beneficiaries and financial sustainability are key requirements.
Licenses for Securities and Alt-Assets
Keywords: securities operations license, futures trading license, tokenized assets issuance license, investment ICO/IEO licensing, cryptocurrency asset licensing, crowdfunding license
The modern market demands licensing not only for classic securities operations but also for work with alternative assets: tokenized assets, ICO/IEO, crowdfunding, and cryptocurrencies. In the EU and Asia, cryptocurrency asset and investment platform licensing have become distinct fields with specific
Due Diligence and financial monitoring requirements.
The COREDO team has executed projects for licensing crowdfunding platforms and tokenized asset issuance in Estonia and Singapore, where AML procedures and ownership structure transparency are of great importance. A futures trading and securities operations license mandates the implementation of automated risk monitoring systems and regular investment audits.
Licenses for Investments: EU, Asia, Africa
Investment licenses in the EU, Asia, and Africa differ significantly in requirements and regulatory characteristics. Choosing the appropriate jurisdiction directly affects the conditions for investment activities and the set of required documents for obtaining a permit. Next, we’ll dissect the key aspects of obtaining an investment license within the European Union’s territory.
License in the EU: Requirements and Features
Keywords: licensing in the EU, investment license requirements, minimum statutory capital, beneficiary transparency, AML, KYC, investment audit
In the European Union, the licensing of investment activities is governed by the MiFID II and AIFMD directives and national laws under ESMA supervision. To obtain a capital market or fund management license, a minimum statutory capital (starting at 125,000 EUR), full beneficiary transparency, and the implementation of stringent AML/KYC procedures are required.
COREDO’s practice shows: successful licensing of an investment fund or platform in the EU is impossible without comprehensive investment audit, financial sustainability confirmation, and readiness for regular regulatory inspections. Special attention is given to corporate governance, independent auditing, and compliance process automation.
Therefore, investment activity licensing in the EU demands a comprehensive approach to compliance and corporate governance; approaches to licensing in key Asian jurisdictions significantly vary in structure and requirements.
Licensing in Asia: Main Markets
Keywords: licensing in Asia, license for fintech companies, crowdfunding license, tokenized asset issuance license, investment due diligence
In Asia, Singapore, Hong Kong, and the UAE remain key licensing centers. In Singapore, capital markets and fintech service licenses are issued by MAS, while in Hong Kong by the SFC. Here, investment due diligence, AML, and KYC requirements are considered some of the strictest globally.
The COREDO team has assisted in launching investment platforms and licensing crowdfunding services in Singapore, where particular importance is placed on digital compliance automation tools and financial monitoring. For fintech companies and crypto platforms, procedures for source of funds verification, regular audits, and innovative solutions for managing investment risks are mandatory.
Business Licensing in Africa
Keywords: licensing in Africa, investment license for international business, financial sustainability, investment risks
African jurisdictions, such as Mauritius and South Africa, are becoming increasingly attractive for international business due to flexible licensing requirements and relatively low entry thresholds. However, the regulatory specifics demand special attention to the financial sustainability of the company and management of investment risks.
COREDO’s experience in supporting clients in African markets shows: key success factors are ownership structure transparency, readiness for external audits, and implementation of financial monitoring procedures that comply with international standards.
Requirements for Investment Licenses in the EU, Asia, and Africa
| Criterion |
EU |
Asia (Singapore, Hong Kong) |
Africa (Mauritius, South Africa) |
| Minimum Capital |
from 125,000 EUR |
from 500,000 SGD |
from 50,000 USD |
| Time to Obtain |
3-9 months |
4-8 months |
2-6 months |
| AML/KYC Requirements |
Strict |
Very strict |
Average |
| Beneficiary Transparency |
Mandatory |
Mandatory |
Mandatory |
| Permitted Activities |
Wide range |
Wide range |
Limited |
| Key Regulators |
ESMA, national |
MAS, SFC |
FSC, FSCA |
Investment License: How to Obtain?
An investment license is an important permit that allows legal investment activity within the chosen jurisdiction. In this section, we will explore how to get an investment license, what stages and requirements to face, and what international companies should consider when choosing a country and license type.
Investment License for an International Company
Keywords: process of obtaining an investment license, stages of obtaining an investment license, due diligence investments, investment audit, compliance
- Analysis and choice of jurisdiction, assessment of business goals, license requirements, tax residency, and investment risks.
- Corporate structure preparation – forming a transparent ownership structure, appointing directors, determining the amount of statutory capital.
- Collection and preparation of documents: constituent documents, business plan, source of funds confirmation, AML/KYC procedures.
- Due diligence investments: verification of beneficiaries, source of capital, financial sustainability.
- Application submission and interaction with the regulator: processing the application, responding to inquiries, providing additional information.
- Investment audit and compliance – implementing financial monitoring procedures, preparing for external audit.
- obtaining the license and starting activities, registration in the registry, obtaining work permits, setting up internal compliance procedures.
Documents for an Investment License
Keywords: what documents are needed for an investment license, beneficiary transparency, minimum statutory capital, corporate governance
- Articles of association and founding documents of the company
- Information on beneficiaries and ownership structure
- Confirmation of minimum statutory capital
- Business plan describing the investment strategy
- AML/KYC policies and procedures
- Proof of qualifications of management and staff
- Contracts with independent auditors and compliance officers
COREDO’s corporate governance solutions enable clients not only to gather the required document package but also to build a transparent ownership structure, significantly speeding up the licensing process.
AML, KYC, and Financial Monitoring – What Are They?
Keywords: AML, KYC, financial monitoring, compliance, regulation of investment activities
Implementing AML and KYC procedures: a prerequisite for obtaining and maintaining an investment license in any jurisdiction. COREDO’s practice shows: automating client verification processes, integrating digital transaction monitoring tools, and regularly updating compliance policies help minimize risks and enhance business efficiency.
For companies dealing with crypto-assets or crowdfunding, the implementation of comprehensive financial monitoring systems complying with international FATF standards and local regulatory requirements is of particular importance.
Beneficiary Verification and Investment Audit
Keywords: how the audit is conducted when obtaining an investment license, beneficiary verification, investment audit
Regulators in the EU, Asia, and Africa focus heavily on beneficiary verification and investment audit. In practice, COREDO has encountered situations where delays in providing information about ultimate owners led to license denial or a substantial extension of the application review timeline.
For successful audit completion, it’s important to prepare all supporting documents in advance, maintain transparency in structure, and demonstrate the company’s financial sustainability.
Investment Licenses: Pros and Risks for Business
Investment licenses open new opportunities for businesses, allowing legal engagement in specific types of investment activities and entry into financial markets. However, obtaining them is associated with additional benefits as well as a range of risks and limitations, which are important to consider when developing a company strategy.
Impact of License on Capital Access
Keywords: capital market license, investment license for international business, return on investment, investment risks
An investment license opens access to international capital markets, boosts investor and partner trust, and enables business scaling through an expanded service range. COREDO’s experience shows: licensing directly affects return on investment (ROI), reducing operational and legal risks.
For international companies, a license becomes not only a compliance tool but also a strategic asset, allowing the attraction of funding, launching new products, and entering new markets.
Risks When Choosing a Jurisdiction
Keywords: risks when choosing jurisdiction for an investment license, tax residency, investment risks, license holder restrictions
Choosing a jurisdiction for obtaining an investment license is associated with various risks: from tax residency changes and currency control to restrictions on activity types and disclosure requirements. In COREDO’s practice, there have been cases where companies faced unforeseen limitations, such as the need for regular external audits or restrictions on attracting investments from specific countries.
To minimize risks, it’s essential to conduct thorough due diligence of the jurisdiction, analyze tax and operational implications, and consult experts with regional experience.
Licensing Technologies for Investment Activity
Keywords: new licensing technologies, cryptocurrency assets licensing, investment apps, digital compliance tools
Modern trends in licensing investment activities are tied to the implementation of digital tools, compliance process automation, and cryptocurrency asset regulation development. COREDO’s digital compliance solutions allow clients to expedite KYC, transaction monitoring, and regulatory reporting processes.
Special attention is given to licensing investment applications and platforms employing artificial intelligence for portfolio management and risk analysis. The introduction of new technologies not only ensures regulatory compliance but also enhances business competitiveness.
How to Get an Investment License
To begin legal investment activities, it is essential to understand how to get an investment license and what types of licenses exist. This process demands a grasp of financial legislation specifics and the right choice of license considering planned services and jurisdiction.
How to Choose an Investment License
Keywords: how to choose the type of investment license, license for fintech companies, license for family office, license for investment fund
Choosing the type of investment license depends on the company’s activity field, strategic goals, capital requirements, and jurisdiction specifics. COREDO’s experience shows: for fintech companies, jurisdictions with a developed digital infrastructure and flexible licensing requirements are optimal, while for family offices, regions offering high confidentiality and transparency protection are preferable.
For investment funds, key criteria include capital requirements, opportunities for international investment attraction, and double taxation avoidance agreements.
Due Diligence Practices and Transparency
Keywords: due diligence investments, ownership structure transparency, financial sustainability
Ensuring ownership structure transparency, conducting independent audits, and confirming financial sustainability are crucial for successful licensing. Solutions realized by COREDO include implementing automated systems for due diligence, preparing detailed business plans, and regularly updating beneficiary information.
These measures not only expedite the license acquisition process but also minimize rejection risks from the regulator.
Errors in Preparing for Licensing
Keywords: errors in preparing for licensing, investment consulting, corporate governance
The most common errors companies make when preparing for licensing include incomplete ownership structure transparency, insufficient corporate governance attention, and untimely AML/KYC procedure implementation. The COREDO team has often assisted clients in adjusting strategies after regulator rejections by implementing comprehensive corporate governance and compliance automation solutions.
To prevent errors, it is crucial to engage experts with international investment consulting experience and regularly update internal procedures in line with legislative changes.
Thus, minimizing errors in the licensing process requires a systematic approach and timely response to regulatory requirement changes, which will be further explored in the conclusions and practical recommendations for entrepreneurs.
Conclusions and Advice for Entrepreneurs
- The choice of investment license type should be based on business strategic objectives, capital requirements, and jurisdiction specifics.
- Transparency of ownership structure and the implementation of modern compliance procedures are key factors for successful licensing.
- Implementing digital tools for automating KYC, AML, and financial monitoring enhances business efficiency and lowers risks.
- Deep due diligence of the chosen jurisdiction allows avoiding unforeseen limitations and minimizing investment risks.
- Timely expert engagement and regular updates of corporate governance procedures ensure long-term stability and competitiveness in international markets.
COREDO’s practice confirms: a strategic approach to licensing investment activities is not just compliance with formal requirements but an investment in the future of your business.
