Licensing

LICENSING IN SWITZERLAND

Switzerland is known as a global leader in facilitating financial transactions. It actively implements reforms in the legislation, taking into account the development trends of the cryptocurrency market, and creates favourable conditions for cryptocurrency companies’ activities. Particular attention is paid to ensuring the legitimacy and transparency of the industry.

Companies directly interacting with clients’ money are considered banking structures in Switzerland. However, a financial license is also required for FinTech organisations, cryptocurrency structures, payment service providers, e-money issuers, etc.

Swiss authorities closely monitor all innovations in the FinTech services market, promptly responding to them, and regularly adjusting the legislative framework.

Companies wishing to engage in financial activities must obtain appropriate permission. In Switzerland, a financial license is issued by the Financial Market Supervisory Authority (FINMA). The same body controls and regulates the services provided.

LICENSING IN POLAND

Polish legislation is famous for its transparency and loyalty, and doing business is not restricted in Poland. Therefore, registering a company here is much easier than in other European countries. This rule applies not only to local investors but also to foreign ones.

However, it is essential to consider that some activities require a special permit. There are five types of authorising documents in Poland depending on the type of activity: license, concession, permit, consent, and registry. Those who plan to conduct financial activities need to obtain a license.

LICENSING IN LATVIA

It became possible to obtain a financial license in Latvia after the 2009 EU Directive adoption. Such a document is issued by a specialized Commission and it allows working with foreign agents. The license is valid throughout the European Union, however, it is necessary to first inform the Commission and go through passportization (if necessary).

LICENSING IN CYPRUS

Yet, in order to provide financial services, a licensing procedure must be undergone.

The state regulator in Cyprus is the Securities and Exchange Commission (CySEC), and licenses are issued by the Central Bank of Cyprus. All financial organizations are included in the Unified State Register.

LICENSING IN ITALY

Italy has a developed economy with further growth prospects and high living standards. In addition, a convenient geographical position ensures effective interaction with other countries and the strengthening of trade ties.

No wonder Italy is the “promised land” for opening a financial company for many entrepreneurs. However, one should not start doing business here without obtaining the required permits, as the AAMS and other government regulators strictly monitor compliance with the rules in the country.

LICENSING IN GREECE

Greece features a wide range of business opportunities and less stringent control among the European Union member states. In addition, even non-residents can open a company here. Yet, the precondition is that the owner has a business plan, and the funds are received legally.

Businessmen planning to engage in financial activities must first contact the Hellenic Capital Market Commission or the Bank of Greece to obtain a license.

LICENSING IN FRANCE

The French economy ranks seventh in the world, and Paris is known as the largest financial center of the European Union. This country is closely integrated into the world economy and is open to foreign investors. Therefore, many companies seek to open a business in France, especially in the financial sphere. However, in order to carry out such financial activities, it is required to obtain a license.

LICENSING IN GERMANY

Germany holds a leading position in technological and industrial sectors, it ranks fifth in terms of living standards. Therefore, it is a prestigious place for doing business.

Among others, German businessmen focus on the service sector, especially financial ones.

LICENSING IN THE UK

To conduct financial activities in the UK, you must obtain the appropriate permission. Also in the UK, financial licenses for cryptocurrency transactions are issued, although the legislative regulation of digital business is in its infancy.

EU LICENSING

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.

ADVANTAGES OF OBTAINING A LICENCE IN SINGAPORE

Registering a payment system in Singapore provides many opportunities for conducting a successful international business. The company is eligible to do business both in Asia and in the European Union. Singapore licences are very popular because of the loyalty of the regulatory authorities to the business. The attractiveness of Singapore also lies in the fact that new companies are provided with various incentives in the form of reduced taxes on first profits, tax deductions, and others.

Over the past decade, the Czech Republic has evolved into a country with a well-developed and sophisticated financial system as well as transparent legislation. The financial regulation in the Czech Republic, which is standardized according to the EU requirements, enables to conduct reliable businesses that clients are willing to trust. One of the standards is to obtain the financial licence that allows an institution to provide services to its clients.

The main supervisory authority responsible for regulating financial and banking services is the Czech National Bank (CNB).

ADVANTAGES OF OBTAINING A LICENCE IN THE CZECH REPUBLIC

Registering a payment system in the Czech Republic provides many opportunities for conducting a successful international business. This licence entitles a company to do business throughout the European Union, making its services available almost all over the world. 

The Czech Republic has the advantage of relatively low labour costs, transparency of the tax system and proximity to the CIS countries, both mentally and geographically.

ADVANTAGES OF OBTAINING A LICENCE IN LITHUANIA

Registering a payment system in Lithuania opens up many new prospects for international businesses development. This licence makes it possible to conduct business throughout the Eurozone, which means that a company has the potential to promote its services or products almost all over the world.

No licence is required for most business activities in this country. However, it is definitely needed for establishing:

• investment company;
• credit institution;
• financial institution.

ADVANTAGES OF OBTAINING A LICENCE IN SPAIN

Registering a payment system in Spain provides many opportunities for conducting a successful international business. This licence entitles a company to do business throughout the European Union, making its services available almost all over the world. 

The advantages of Spain are the relatively low cost of labour and transparent tax system.

The last decade has seen an ever-increasing interest in Portugal, not only in terms of tourism, but also entrepreneurship, including business in the financial sector. The country provides quite favourable conditions for setting up and registering new companies as well as obtaining the necessary financial permits. The main requirement is to fulfil the precisely defined conditions set by the relevant authorities. The regulators of the financial sector in this country are the Bank of Portugal and the CMVM (Portuguese Securities Market Commission), which is a special commission for the securities market.

In order to establish a company in Portugal, including one that will provide various financial services, you have to:

• prepare statutory and other documents, namely: passport copies, specimen signatures and completed special forms for company registration;
• confirm the existence of a registered office located on the territory of Portugal;
• appoint an accountant;
• open a bank account in this country;
• pay the relevant fees.

Financial market analysts consider the banking system in Canada to be one of the most robust and rapidly growing. Canada has successfully overcome all the turbulences associated with the international crisis and today its economy is one of those that meets all the basic requirements in terms of, for example, securities markets, taxation, levels of corruption and innovative technologies.

The Canadian government has set reasonable requirements for companies that want to do business in the financial sector, which is very positive. An MSB (Money Services Businesses) licence is required to operate in the financial sector of this country.

MSB LICENCE: GENERAL INFORMATION

MSB licence involves enrolling in a dedicated registry for businesses offering payment services. It is overseen by the Canadian regulator, the Financial Transactions and Reports Analysis Centre of Canada – FINTRAC, the country’s financial intelligence unit (FIU). The Centre plays a crucial role in identifying, preventing, and discouraging money laundering and terrorism financing. To prevent these crimes, MSBs in Canada must satisfy particular requirements outlined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations.

There are two types of MSB licence:

• Canadian Money Services Business: This pertains to an entity that provides at least one money services business (MSB) service and maintains a place of business in Canada.
• Foreign Money Services Business: This designation applies to an entity engaged in delivering at least one MSB service to clients or entities in Canada but possesses no physical place of business within the country.

ADVANTAGES OF OBTAINING A LICENCE IN ESTONIA

Registering a payment system in Estonia provides many opportunities for conducting a successful international business. This licence entitles a company to do business throughout the European Union, making its services available almost all over the world. 

Estonia has the advantages of relatively low labour costs, transparency of the tax system and proximity to the CIS countries, both mentally and geographically. No profit tax: if a company has made profits and reinvested them in its development, then this company is exempt from tax – in other words, as long as the profits remain undistributed among shareholders, no tax has to be paid.

The excellent example of a digital state is the e-Governance system, which allows most formalities to be carried out electronically and reduces interaction with government agencies to a minimum.