Licensing

NPI is a national payment institution that can provide a full range of payment services. Unlike an SPI (small payment institution), an NPI registered in Poland can operate throughout the European Union without the need for additional licensing. Accordingly, the extension of the SPI licence to NPI allows to significantly expand the scope of activities and increase the number of services provided. Licensing of financial institutions in Poland is handled by the Financial Supervision Authority (KNF).

Business features and benefits of an NPI licence

As mentioned above, NPI can provide payment services throughout the EU, so its activities are more strictly regulated. But the possibilities of the national payment institution are also broader. Among them we can mention:

• wider range of services provided;
• absence of statutory limits on transactions;
• absence of restrictions on the amount of funds stored on the client’s account.

It is possible to expand the capabilities of a small payment institution by applying for an NPI licence both immediately after its registration/purchase and in the course of its operation. In accordance with legal requirements, SPIs are obliged to apply for an NPI licence as soon as their transaction limits exceed EUR 1,500,000 per month. The filing period is 30 days. The SPI can then immediately operate as an NPI without waiting for formal confirmation of the updated status throughout the application process and beyond.

SPI or Small Payment Institution in Poland is engaged in the provision of a wide range of payment services. The law considers such activities as regulated, therefore it requires a licence from the Polish Financial Supervision Authority (KNF). The SPI licence is a convenient solution for small companies, start-ups wishing to enter the financial market, to test their technical solutions and the demand for services within one jurisdiction.

Advantages of obtaining an SPI licence in Poland

Having an SPI licence allows a company to provide a limited range of payment services in Poland, but the regulatory framework for small payment organisations is less strict than for national payment organisations. This simplifies registration and subsequent reporting. In addition, fintech companies will have no problem finding qualified employees in Poland, whose salaries are lower than the European average.

An important advantage of obtaining an SPI licence is the absence of minimum start-up capital requirements. This allows even small start-ups from the Fintech industry to start operating in Europe.

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.