COREDO > Licensing > Financial Licences in the EU

Financial Licences in the EU

Obtaining Financial Licences in the EU, United Kingdom, and Other Jurisdictions

A financial license is required to operate in payments, investments, lending, and crypto. COREDO provides end-to-end licensing support—from choosing the jurisdiction to regulatory approval (EU, UK, Switzerland, Canada, Singapore). We select the optimal setup for your business model, prepare documentation, and guide the entire process.

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Types of Financial Licences: Our Licensing Services

EMI — Electronic Money Institution Licence

An Electronic Money Institution licence permits issuing electronic money, managing e-wallets, issuing payment cards, and conducting payment transactions. Governed by Directive 2009/110/EC (EMD2) and Directive 2015/2366 (PSD2). Minimum share capital is EUR 350,000. The licence grants passporting rights — the ability to provide services across all EU/EEA countries under a single licence.

Popular jurisdictions for EMI licences include Lithuania (Lietuvos Bankas), Estonia, Cyprus, and the United Kingdom (FCA). Processing timeframes range from 6 to 18 months depending on jurisdiction and applicant readiness.

PSP — Payment Service Provider Licence

A Payment Service Provider (Payment Institution) licence authorizes payment services: transfers, acquiring, payment instrument issuance, payment initiation (PISP), and account information services (AISP). Governed by PSD2 (Directive 2015/2366). Minimum capital depends on service types: from EUR 20,000 (for PISP) to EUR 125,000 (for full payment service offerings).

Several jurisdictions offer simplified regimes: SPI in Poland and Agent model in Lithuania. These regimes suit companies with limited transaction volumes.

SPI threshold in Poland: average monthly payment volume must not exceed EUR 1,500,000, with customer account balances capped at EUR 2,000.

When thresholds are exceeded, SPI must apply for National Payment Institution (NPI) licence within 30 days.

Banking Licence

A credit institution licence authorizes deposit-taking, lending, and full banking services. This is the most heavily regulated financial licence type with the highest capital requirements: minimum EUR 5,000,000 according to CRD IV (Directive 2013/36/EU, Article 12), and higher in some jurisdictions. Requirements extend to corporate governance, IT infrastructure, and compliance systems.

Banking licence acquisition is among the longest processes: ECB assessment typically takes up to 12 months, with total timeline including documentation preparation ranging from 12 to 24 months. COREDO assists with documentation, business planning, and regulator engagement.

Investment Activity Licence

Permits managing investment funds, client portfolios, and providing investment advisory services. Regulation varies by jurisdiction: in Czech Republic under ZISIF (Zákon o investičních společnostech a investičních fondech), and EU-wide under MiFID II (Directive 2014/65/EU). Capital requirements vary depending on activity type and fund structure.

Forex Broker Licence

Enables currency market operations: brokerage services, client order execution, market-making. Governed by MiFID II (Directive 2014/65/EU). Requirements include minimum capital, risk management systems, client fund segregation, and regulatory reporting.

Securities Trader Licence

Permits securities trading: stocks, bonds, derivatives. Governed by MiFID II (Directive 2014/65/EU). Requirements are similar to forex broker licences: minimum capital, compliance systems, and regulatory reporting.

Trust and Fund Management Licence

Enables establishing and managing trusts and funds for clients. Licensing requirements depend on jurisdiction and fund structure. In Czech Republic, Alternative Investment Fund (AIF) activities are regulated under ZISIF §15 — offering simplified regime for sub-threshold funds.

Crypto Licence (CASP)

The Markets in Crypto-Assets Regulation (MiCA) requires companies working with crypto-assets to obtain a CASP licence. MiCA replaces national regimes with a unified European standard.

Requirements include minimum capital (from EUR 50,000 to EUR 150,000), AML/CFT procedures, and customer protections.

CASP licence project costs via COREDO: from EUR 29,000 + VAT in Czech Republic, EUR 34,000 + VAT in Lithuania/Estonia, EUR 56,400 + VAT in Poland.

Jurisdictions

COREDO obtains financial licences across multiple jurisdictions. Selection depends on licence type, capital requirements, processing timeframes, and your target markets. Primary offerings: EMI licences available in Lithuania, Czech Republic, Estonia, United Kingdom, Canada; PSP licences in Lithuania, Estonia, Czech Republic, Poland, Latvia; CASP licences (MiCA) in Czech Republic, Lithuania, Estonia, Poland.

Lithuania — one of the most sought-after jurisdictions for EMI and PSP. Regulator: Lietuvos Bankas. Competitive processing timeframes and requirements. Project cost: from EUR 70,000.

Czech Republic — suitable for investment funds (ZISIF §15), EMI, and payment institutions. Regulator: ČNB (Česká národní banka). Project cost depends on licence type: PSP (standard payment licence) — from EUR 40,000, EMI — from EUR 45,000, alternative investment funds (ZISIF §15, simplified regime) — from EUR 8,500.

Poland — SPI (Small Payment Institution), PI. Regulator: KNF (Komisja Nadzoru Finansowego). SPI cost: from EUR 60,000, CASP from EUR 56,400 + VAT.

Estonia — popular for CASP licences (MiCA) and PI. Regulator: Finantsinspektsioon. CASP project cost: from EUR 34,000 + VAT.

Canada — MSB (Money Services Business) registration with FINTRAC. Cost: from EUR 25,000 + VAT.

United Kingdom — EMI, PI, crypto. Regulator: FCA (Financial Conduct Authority).

Singapore — payment licences through MAS (Monetary Authority of Singapore). Cost: from EUR 55,000.

Dubai/UAE — multi-regulator jurisdiction: DFSA (DIFC), ADGM FSRA (Abu Dhabi), CBUAE (mainland banking and insurance), SCA (securities), and VARA (virtual assets). Free zone financial licenses are especially attractive for fintech companies due to flexible regulatory frameworks. COREDO provides end-to-end support for DFSA, ADGM, and VARA licensing across all asset classes. Cost: from EUR 65,000 + VAT (depending on activity type and regulatory zone).

Financial Licences Acquisition Process

Consultation and Selection

We analyze your business model, determine the optimal financial licences type and jurisdiction, and discuss capital requirements, timeframes, staffing, and infrastructure needs.

01

Documentation Preparation

We prepare complete documentation: business plan, AML/CFT procedure descriptions, organizational structure, financial forecasts, founder and director documentation. For EMI/PSP — product descriptions and IT architecture documentation.

02

Application Submission

We submit documents to the regulator and manage the review process: responding to regulatory inquiries, implementing corrections, and supplementing documentation as needed.

03

Licence Acquisition

Following approval, we obtain the official licence and prepare for operational launch: opening accounts, connecting infrastructure, and establishing compliance processes.

04

Financial Licences Comparison Table

Licence	Min. Capital	Acquisition Timeline	EU Passporting	COREDO Project Cost
EMI	EUR 350,000 (EMD2 Art. 4)	6–18 months	Yes (EMD2)	from EUR 70,000 (Lithuania)
PSP / PI	EUR 20K–125K (PSD2 Art. 7)	3–12 months	Yes (PSD2 Art. 28)	from EUR 40,000 (Czech Republic)
SPI (Poland)	No requirement	1–3 months	No	from EUR 60,000
Banking	EUR 5,000,000 (CRD IV Art. 12)	12–24 months	Yes (CRD IV Art. 17–28)	Upon request
Investment Activity	Depends on class	6–12 months	Yes (MiFID II)	from EUR 8,500 (AIF Czech Republic)
CASP (MiCA)	EUR 50K–150K	3–6 months	Yes (MiCA)	from EUR 29,000 + VAT (Czech Republic)
Trust Fund	Depends on jurisdiction	6–12 months	No	Upon request

Our Experts

Financial licences for companies at COREDO are handled by specialists with extensive experience working with EU and international regulators.

Nikita Veremeev

Founder & NED. Leading COREDO since 2016. Strategic oversight of licensing projects across dozens of jurisdictions.

Pavel Kos

Head of Legal. Legal preparation of licensing applications and regulator engagement.

Grigorii Lutcenko

Head of Compliance. AML/CFT component preparation for licensing applications — policies, procedures, risk matrices.

Case Studies

Case 01Banking Licence in Lithuania.

A Lithuanian fintech startup planning a full-service neobank with lending and deposit products needed a banking licence with ECB oversight and EUR 5M capital confirmation. COREDO developed the business plan, DORA ICT risk management procedures, AML/CFT policies, governance documentation, and the full regulatory package for Lietuvos Bankas. Result: banking licence issued in 18 months, EU passporting activated.

Case 02Insurance Distribution Licence in Czech Republic.

A Czech insurance startup building a digital-first platform needed an insurance distribution licence under the IDD Directive (2016/97/EU) from ČNB. The challenge was establishing compliant consumer protection procedures and system audit protocols for digital sales. COREDO prepared the full IDD application, technology testing documentation, and internal compliance procedures. Result: IDD distribution licence issued within 4 months.

Case 03ECSP Licence in Estonia.

An Estonian crowdfunding platform sought ECSP (European Crowdfunding Service Provider) authorisation under Regulation (EU) 2020/1503 from Finantsinspektsioon to operate across EU member states. COREDO prepared investor risk disclosure documentation, project risk management framework, investor verification procedures, and cross-border notification packages. Result: ECSP licence issued in 6 months, enabling EU-wide passporting operations.

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COREDO Advantages

Complete Financial Licences Cycle.

From initial consultation through licence acquisition and operations launch. Single partner for entire project, including legal preparation, AML component, and regulator engagement.

Multi-Regulator Expertise.

COREDO works with Lietuvos Bankas, ČNB, KNF, Finantsinspektsioon, FCA, FINTRAC, and MAS. We understand each regulator’s procedures, typical inquiries, and expectations.

Transparent Pricing.

Fixed project cost determined at consultation stage. No hidden fees or additional charges for regulatory responses.

Compliance Expertise.

AML/CFT policies are critical to licensing applications. COREDO develops them through our in-house compliance team, not external consultants.

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Frequently Asked Questions

Can we start with a simplified licence and expand later?

Yes, this is a common strategy. For example, in Poland you can begin with SPI (Small Payment Institution) without minimum capital requirements and simplified registration procedures. As business grows (if monthly transaction volume exceeds EUR 1,500,000), SPI must apply for National Payment Institution (NPI) licence within 30 days. Similarly, Lithuania offers restricted activity EMI licences for companies with payment volumes up to EUR 1,000,000/year, with a minimum 2-month review period — upon reaching full operational volume, you can transition to full EMI licensing.

How long does licence acquisition take?

Timeframes depend on licence type and jurisdiction. EMI: 6–18 months (InnReg). PSP: 3 to 6 months in Lithuania (Bank of Lithuania with 3-month minimum review period absent defects) to 12 months in jurisdictions with stricter review. Banking licence: 12–24 months (including preparation). CASP under MiCA: 3 to 6 months (90–120 days in Lithuania), though regulatory delays and additional inquiries may extend timelines. All timeframes include documentation preparation and regulatory review.

Can we operate across the entire EU with one licence?

Yes, EMI and PSP benefit from passporting: a licence obtained in one EU/EEA country authorizes services across all 30 member states. This requires notifying the host country regulator. Banking licences also provide passporting under CRD IV (Directive 2013/36/EU, Articles 17–28), though notification procedures and host country requirements for credit institutions are more complex.

What documents are typically required for a financial licence application?

Core requirements include a detailed business plan with financial projections, ownership and beneficial owner documentation, CVs and fit & proper assessments for all directors and shareholders, AML/CFT policies and procedures manual, IT infrastructure and cybersecurity documentation, and an organisational chart. For EMI and PSP licences, product descriptions and safeguarding procedure descriptions are additionally required. COREDO assists in preparing, reviewing, and submitting all regulatory documentation packages.

What are the main reasons for licence denial?

Typical causes include incomplete or inadequate business plan, insufficient AML/CFT procedure development, applicant/director failure to meet fit & proper criteria (business reputation, qualifications, absence of criminal record), and inadequate share capital. Regulators also scrutinize IT infrastructure quality and competent compliance officer availability. COREDO conducts preliminary applicant readiness assessment to minimize denial risk.

Contact Us

Planning to acquire a financial licence? Contact COREDO for a free initial consultation. We’ll determine the optimal licence type, jurisdiction, and develop an action plan.

info@coredo.eu | +420 228 886 867