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Regulation in 2026

The direction of EU financial legislation in 2026 is defined by several strategic priorities:

• Tightening control over financial markets and digital assets. European regulators (ESMA, EBA) are strengthening oversight of all types of financial instruments, including crypto assets and digital payment platforms. At COREDO we observe how the new MiCA requirements (Markets in Crypto-Assets Regulation) have already changed approaches to licensing and monitoring operations with digital assets.
• Expansion of transparency and reporting requirements. The AMLD directives and MiFID II in 2026 introduce new standards for disclosure of information about beneficiaries, transactions, and sources of funds. In practice COREDO confirms: preparing for these changes requires a review of internal policies and the implementation of automated reporting systems.
• Focus on digitization of financial services. The European market is rapidly moving to digital service channels, which is reflected in new regulations on cybersecurity (DORA) and digital identification (eIDAS 2.0). Solutions developed at COREDO for clients in the FinTech sector enable the integration of digital KYC tools and automated AML systems into daily operational activities.
• Strengthening international cooperation on the exchange of financial information. The EU is expanding participation in global data-sharing initiatives to combat financial crime and tax evasion. This leads to the need to synchronize compliance processes across different jurisdictions, which is especially relevant for COREDO clients doing business in multiple EU countries and Asia.

Impact of the EU 2026 budget on the financial sector

The EU budget for 2026 reflects funding priorities focused on innovation, support for small and medium-sized enterprises, and accelerated digitalization of financial services. According to the analysis by the European Court of Auditors, the share of investments in FinTech and startups will increase by 22% compared to 2024.

• Funding priorities: Special attention is paid to innovation support programs, the development of digital infrastructure and ESG projects. In practice, the COREDO team has implemented a number of company registration projects in the Czech Republic and Estonia, where clients gained access to grants and tax incentives thanks to proper business structuring and timely submission of applications.
• Simplifying company registration in Europe: New EU initiatives are aimed at reducing the timeframes for company registration and introducing a single digital window for submitting documents. Our experience at COREDO has shown that for clients opening a business in Slovakia or Cyprus, the registration process in 2025-2026 became more transparent and faster, while the requirements for disclosing beneficiary information have been strengthened.
• support for startups and FinTech projects: The EU’s budgetary priorities stimulate the development of the FinTech ecosystem, opening new opportunities for companies operating in digital financial services, payment solutions and cybersecurity. COREDO’s practice confirms: startups that adapt promptly to new requirements gain access to additional funding and accelerated licensing.

New rules for regulating the EU financial market

AMLD update and strengthened compliance

In 2026 the anti-money laundering legislation of the EU (AMLD VI) steps up to a new level. The list of entities subject to AML is expanding, including crypto service providers, P2P lending platforms and even certain categories of advisers. The solution developed by COREDO for clients in the United Kingdom and Estonia provides for the implementation of comprehensive KYC/AML programmes based on a risk-based approach and automated transaction monitoring.

• Tightening requirements for client due diligence and reporting: Companies are now required not only to identify but also to regularly re-verify client and beneficiary data using digital tools and external databases. At COREDO we implement solutions that allow integrating automated checks of PEPs and sanctions lists, which significantly reduces operational risks.
• Adoption of new technologies for transaction monitoring: Modern AML systems use artificial intelligence to detect anomalies and suspicious transactions. Our specialists at COREDO have supported projects implementing such systems in companies operating in the EU and Asian markets, which has helped improve compliance and reduce the likelihood of fines.

Impact of inflation and key interest rates on regulation

The economic situation in the eurozone in 2026 is characterised by moderate inflation and increased volatility of the ECB’s key rate. These factors directly affect regulatory requirements for capital, liquidity and companies’ investment activities.

• Adjustment of regulatory requirements: EU regulators are adapting requirements for financial institutions taking into account inflation and changes in interest rates. For example, at COREDO we advised clients on reviewing investment strategies and managing currency risks in the context of a rise in the ECB’s key rate.
• Impact of ECB rate changes on lending and investment conditions: Rate increases lead to more expensive borrowing and higher requirements for borrowers’ creditworthiness. For our clients, this means the need to revise financial models and implement hedging instruments.

Registration of legal entities in the EU

Changes in company registration procedures

In 2026, Registration of legal entities in the EU is becoming more technological and transparent. Simplified procedures are being introduced for small and medium-sized businesses, application review times are being reduced, and some processes are being moved to digital format.

• Simplification of the registration process: In the Czech Republic, Estonia and Slovakia company registration is now possible entirely online using digital identification and electronic signatures. The COREDO team has implemented projects under which clients launched businesses in the EU within days, minimizing bureaucratic costs.
• New requirements for documentation and verification of beneficiaries: Since 2025 all legal entities are required to disclose information about ultimate beneficiaries, which is stored in closed registers and available to regulators. COREDO’s practice shows that timely preparation of documents and proper structuring of ownership allow avoiding delays and refusals during registration.

Specifics for foreign investors

For foreign entrepreneurs and investors in 2026, additional requirements regarding directors’ residency and the company’s place of effective management remain in place. At COREDO we regularly advise clients on choosing the optimal jurisdiction taking into account tax, regulatory and operational risks.

• Residency and place-of-management requirements: In some EU countries (for example, Cyprus and Estonia) the requirement to have a local director or office remains. The solution developed by COREDO provides for appointing nominee directors and setting up a virtual office to meet formal criteria.
• Risks associated with changes in legislation: Regular updates to rules require constant monitoring and adaptation of corporate structures. COREDO’s experience confirms that asset diversification and flexibility in choosing a jurisdiction help minimize regulatory risks.
• Recommendations for choosing a jurisdiction: When choosing a country for registration it is important to consider not only tax rates but also reporting requirements, availability of licensing and the level of investment protection. At COREDO we help clients assess all parameters and select the optimal solution for international business.

The impact of sanctions and geopolitics on financial regulation

Consequences of sanctions for business

In 2026 the EU’s sanctions policy continues to have a significant impact on financial flows and deal structures. Restrictions on transactions with Russian companies are tightening, and scrutiny of the origin of funds is becoming more stringent.

• Restrictions on transactions and operations: Banks and financial institutions are required to conduct enhanced due diligence on all operations involving companies from sanctioned countries. The COREDO team has handled cases where clients had to restructure supply chains and financial flows to comply with the new requirements.
• Strengthening control over the origin of funds: In 2026 the focus shifts to analyzing sources of capital and verifying the legality of investment origins. COREDO’s solutions include implementing automated monitoring systems and preparing justifications for regulators.

Geopolitical risks and mitigation strategies

Geopolitical instability requires businesses to be flexible and ready to respond quickly to changes in the external environment.

• risk assessment for business: At COREDO we recommend conducting regular stress tests and audits of supply chains to promptly identify potential threats.
• Recommendations for diversifying assets and jurisdictions: COREDO’s experience shows that spreading assets across different countries and using multi-bank structures reduces the risk of account freezes and transaction restrictions.

How businesses can prepare for changes

Review and update internal procedures

• Audit of current compliance and AML processes: COREDO’s practice confirms that regular audits of internal procedures help identify weaknesses and correct them in a timely manner. For clients doing business in multiple jurisdictions, we develop tailored compliance programs that take into account local and European requirements.
• Updating employee training programs: Implementing new rules requires continuous professional development of staff. The COREDO team helps organize training sessions and develops interactive AML and compliance courses.

Choosing reliable partners and consultants

• selection criteria for consultants: As regulation tightens, the experience and reputation of legal and financial advisors become especially important. The solution developed by COREDO provides a comprehensive risk assessment and support at all stages: from registration to obtaining licenses and implementing AML procedures.
• The importance of international experience: For companies operating in the EU, Asia and the CIS markets, consultants’ experience in cross-border projects and knowledge of the specifics of different jurisdictions is critically important. COREDO’s experience covers project support in the Czech Republic, Estonia, Singapore, the United Kingdom and Dubai.

Using technology to meet compliance requirements

• Implementation of automated monitoring and reporting systems: Modern RegTech solutions allow automating KYC/AML processes, reducing human error and increasing the accuracy of controls. The COREDO team implements such solutions for clients handling large volumes of transactions.
• Use of digital client identification solutions: New EU rules encourage the use of digital platforms for client identification and verification. COREDO’s practice shows that integrating eIDAS and other digital identification systems speeds up onboarding processes and reduces costs.

Recommendations for entrepreneurs

Main risks and opportunities

Practical recommendations

• Regularly monitor changes in legislation. In an environment of constant regulatory change, the COREDO team recommends using specialized monitoring services and subscribing to analytical reviews from relevant EU organizations.
• Conduct internal audits and update procedures. Regular reviews and adaptation of internal policies enable timely detection and correction of non-compliance.
• Use modern technologies for compliance. Implementing automated AML systems, digital identification, and RegTech tools is becoming an integral part of effective compliance.
• Turn to experienced consultants to minimize risks. COREDO’s practice shows that professional support at all stages – from registration to obtaining licenses and implementing new procedures – significantly reduces regulatory and operational risks.

Financial regulation in the EU in 2026 will become the new standard for international business: the tightening of compliance, AML and transparency requirements is paired with the simplification of procedures for small and medium-sized businesses. Readiness for these changes, the use of modern technologies and cooperation with experienced consultants are the keys to sustainable growth and scaling the business under the new conditions.

Многие сталкиваются с бюрократическими барьерами, сложностями в коммуникации с банками и требованиями к отчетности, которые существенно отличаются от привычных стандартов СНГ и Азии. Актуальный вызов: не просто Company registration in Austria, а выстраивание долгосрочной стратегии выхода на рынок Австрии и масштабирование бизнеса в ЕС с учетом всех юридических и налоговых требований.

Если вы ищете не «универсальную инструкцию», а практическое руководство, основанное на опыте COREDO, – эта статья даст вам не только ответы, но и стратегические идеи для успешной интеграции в европейское бизнес-пространство. Рекомендую дочитать до конца: вы узнаете, как минимизировать риски, выбрать оптимальную корпоративную структуру и обеспечить прозрачность процессов.

Main forms of companies in Austria: GmbH and AG

Both forms require mandatory notarization of the founding documents and annual reporting, as well as compliance with European standards of corporate governance and transparency.

Company registration in Austria: step by step

Preparation and selection of the company name
The company name must be unique and correspond to the area of activity. Checks are carried out through the Austrian commercial register (Firmenbuch). It is important to note that the designation GmbH or AG must be included in the company name. The solution developed by COREDO for clients includes a preliminary availability analysis and legal expertise of the name, which helps avoid rejection at the document submission stage.

Determination of founders and directors
Founders can be individuals as well as legal entities, residents and non-residents of the EU. A GmbH requires only one shareholder; an AG requires a minimum of two shareholders. company registration with foreign founders in Austria is possible without restrictions, but identity verification and proof of the source of funds of each beneficiary will be required. In the case of registering a company with multiple shareholders or legal entities, the COREDO team conducts a multi-level ownership structure check and prepares the founders’ meeting minutes in accordance with Austrian law.

Choice of legal address
The company’s legal address in Austria must be confirmed by a lease agreement or ownership. It is permissible to use a nominee service if the company does not carry out active operational activities in the country. COREDO’s experience confirms: a correctly chosen legal address speeds up the registration process and reduces the risks of subsequent tax audits.

Formation of the share capital
Minimum capital for a GmbH: 35,000 euros (17,500 euros mandatory contribution prior to registration). For an AG: 70,000 euros. Payment of the share capital is made to a dedicated bank account before submitting documents to the commercial register. When registering a company with the minimum capital, it is important to documentarily confirm the legality of the source of funds. COREDO’s practice includes client support at the capital formation stage and preparation of supporting documents for banks and regulators.

Preparation and notarial certification of founding documents
The deed of incorporation, the company’s articles, the founders’ meeting minutes and the participants’ resolution: mandatory elements of the document package. All documents must be notarized by an Austrian notary. In the case of remote registration or registration by power of attorney, COREDO organizes video verification and an electronic signature using eIDAS or BankID, and also provides an apostille for documents if the founders are located outside the EU.

Opening a bank account and payment of share capital

Registration in the commercial register
After preparing and notarizing all documents, the company submits the package to the Austrian commercial register (Firmenbuch). Registration is accompanied by the publication of company details in the Wiener Zeitung. COREDO’s experience shows: a correctly prepared document package makes it possible to obtain an extract from the register within 5–10 business days.

Registration for tax purposes
The company must obtain a tax number and, if necessary, register as a VAT payer. An application is submitted to the tax authority, and the founding documents, information about the legal address and the bank account are provided. In the case of creating a tax group or integration with European tax systems, the COREDO team develops an individual strategy for optimizing the tax burden.

Registration of foreign founders

Reporting and audit requirements
Each company must keep financial statements according to Austrian standards, and under IFRS if necessary. An audit becomes mandatory for AGs and for GmbHs exceeding certain turnover or employee thresholds. COREDO’s practice: organizing processes for preparing reports and interacting with auditors, which allows clients to timely meet all requirements and avoid fines.

Austrian tax legislation
In 2024 the corporate income tax is 24%, the VAT rate is 20%. To optimize the tax burden, it is possible to create a tax group, integrate with European tax systems and use double taxation avoidance agreements. COREDO’s solutions include strategic tax structure planning, accounting for the features of parent and subsidiary companies, and analysis of the long-term consequences of registration for the business ROI.

Documents for company registration

Key findings and recommendations

• To minimize risks when registering a company in Austria, it is important to prepare a KYC file in advance, confirm sources of funds and choose a reliable legal partner.
• Comprehensive company registration taking into account AML/CTF, GDPR, FATCA, CRS and BEPS is the standard for international business aiming for maximum transparency and long-term sustainability.
• The solution developed by COREDO includes strategic planning of the corporate structure, tax optimization and integration with European regulations.
• COREDO’s practice confirms: the success of registration and subsequent business development in Austria depends on the quality of document preparation, choice of partners and competent management of corporate risks.

Comparison table of GmbH and AG

Conclusion of the article

AML compliance – is not a formality but a strategic necessity for any business seeking international expansion, obtaining financial licenses and long-term resilience. Violating requirements leads not only to fines and criminal liability, but also to loss of access to banking services, licenses and investments. The experience of the COREDO team shows that proper implementation of AML compliance becomes a key factor in successful registration of legal entities, obtaining licenses and protecting a business from sanctions.

Basics of AML Compliance: key concepts

Key elements of AML compliance include:

• Know Your Customer (KYC): identification and verification of customers, including legal entities and beneficial owners (Beneficial Ownership).
• Customer Due Diligence (CDD): in-depth customer screening taking into account a risk-based approach (Risk-Based Approach).
• Transaction Monitoring: monitoring of transactions to detect suspicious activity and preparation of Suspicious Activity Reports (SAR).
• Sanctions Screening: client screening against sanctions lists (OFAC, EU, UN).
• Politically Exposed Persons (PEP): identification of individuals with heightened political risk.
• Compliance Officer / MLRO: appointment of a person responsible for compliance and reporting.
• Anti-Terrorism Financing (ATF): integration of measures to combat terrorist financing.

Stages of implementing AML compliance in a company

Implementing AML compliance requires a phased approach based on analysis of the business model, risks, and jurisdiction-specific characteristics. The solution developed at COREDO for international clients includes the following steps:

1. Analysis of current processes and risks: Assessing vulnerabilities, identifying client and transaction types, analyzing compliance with global and local AML requirements.
2. Development of the company’s AML policy: Establishing an AML policy framework structure taking into account the risk assessment methodology and KYC, CDD and EDD procedures.
3. Appointment of a Compliance Officer / MLRO: Defining roles and responsibilities, training according to international standards.
4. Employee training: Developing compliance training programs, conducting workshops on detecting suspicious transactions, working with sanctions lists, and internal control.
5. Implementation of internal procedures: Creating a system of Internal Controls and Procedures, process automation for transaction monitoring and record keeping.
6. Maintaining reporting and documentation: Establishing Record Keeping and Reporting, configuring systems for data storage and transfer, ensuring Data Privacy in AML.
7. Conducting an independent audit: Organizing Independent Audit and Testing, preparing for regulatory inspections, adjusting policies based on audit results.

AML policy: structure and content

An effective AML policy for a company: is not just a set of documents, but a living tool for managing risks and complying with regulators’ requirements. COREDO’s experience shows that the structure of an AML Policy Framework should include:

• Definition of goals and objectives: Formulation of the AML program’s mission, description of key risks and strategic objectives.
• Customer and beneficial owner identification procedures: Step-by-step instructions for Legal Entity Identification, KYC, Beneficial Ownership, CDD and EDD.
• Risk assessment methodology: Use of Risk Assessment Methodology, definition of risk criteria, configuration of Risk Profiling.
• Transaction monitoring and detection of suspicious operations: Description of Transaction Monitoring, procedure for preparing and filing SAR.
• Reporting and record keeping: Record Keeping and Reporting regulations, requirements for data storage and protection.
• Interaction with regulators: Procedure for providing information, audit preparation, response to inquiries.

AML and KYC: how to integrate processes

В работе COREDO интеграция AML и KYC реализуется через:

• Customer Due Diligence (CDD): basic customer checks, collection and analysis of documents.
• Enhanced Due Diligence (EDD): in-depth checks for high-risk clients, including PEPs and complex beneficial ownership structures.
• Legal Entity Identification: analysis of a legal entity’s structure, identification of ultimate beneficiaries.
• Risk-Based Approach: tailoring verification procedures according to the risk level, automating processes using AML compliance Software Vendors.

AML processes: automation and technologies

Modern technologies are radically changing the approach to AML compliance. Automated AML solutions can reduce operating costs, increase accuracy and the scalability of an AML program.

Key technologies that COREDO implements for clients:

• Automated AML Systems: automatic screening against sanctions lists, integration with global databases.
• Machine Learning in AML: use of AI algorithms to analyze transactions, detect atypical patterns and prevent compliance fatigue.
• Transaction Monitoring: real-time transaction monitoring, setting triggers for SARs.
• Data Privacy in AML: protection of personal data and confidentiality of information during processing and storage.

AML compliance in Europe, Asia and Africa

Regulatory requirements for AML compliance vary by country, but the FATF global standards remain the foundation for all jurisdictions. COREDO’s experience covers company registration and obtaining licenses in the EU, Singapore, Dubai, the United Kingdom, where their own regulations and procedures apply.

• In Europe: strict requirements for beneficial ownership, mandatory Registration of legal entities, regular audits, integration with national and European sanctions lists.
• In Asia (Singapore, Dubai): emphasis on corporate structure transparency, fast registration procedures, mandatory maintenance of registers of controllers and nominee directors, licensing of corporate service providers.
• In Africa: the difficulty of implementing AML compliance due to insufficient digitization, limited access to global databases, and the need to adapt procedures to local conditions.

Training and AML staff audit

An effective AML program is impossible without regular staff training and independent audits. At COREDO, training is built on the principles of Compliance Training Programs, covering:

• Fundamentals of AML compliance and KYC.
• Working with sanctions lists and identifying PEPs.
• Risk assessment methodology and SAR preparation.
• Record keeping and data protection.

Independent AML audit (Independent Audit and Testing) includes:

• Reviewing the compliance of policies and procedures with international and local requirements.
• Analysis of the effectiveness of Transaction Monitoring and Record Keeping.
• Preparation for regulator inspections, and adjustment of processes based on audit results.

How to assess the effectiveness of an AML program

• Number of detected suspicious transactions (SARs).
• Speed and accuracy of customer verification (KYC, CDD, EDD).
• Proportion of automated processes in the AML program.
• Results of independent audits and compliance with regulatory requirements.
• Scalability of AML Programs: the system’s ability to adapt to business growth and new markets.

Practical steps for entrepreneurs

The COREDO team has developed a checklist for implementing AML compliance in an international company:

• Assess risks and identify types of clients, transactions, and jurisdictions.
• Develop an AML policy framework taking into account global and local requirements.
• Appoint a competent Compliance Officer / MLRO.
• Organize employee training on key aspects of AML and KYC.
• Implement automated AML solutions for transaction monitoring and screening against sanctions lists.
• Ensure proper record-keeping and regular reporting.
• Prepare for an independent audit and adjust processes based on audit findings.

AML compliance as the foundation of a sustainable business

AML compliance is not only protection against risks, but also a foundation for scalable, sustainable, and competitive business. Compliance with global AML standards, integration of automated solutions, regular employee training, and independent audit are key elements that allow companies to operate successfully in Europe, Asia, and Africa.

Key stages in implementing AML compliance

• AML compliance is a mandatory requirement for legally conducting business abroad.
• Implementing AML compliance requires a comprehensive approach: from policy development to employee training and process automation.
• Technology and automation help reduce risks and increase the effectiveness of the AML program.
• Particular attention should be paid to requirements in different jurisdictions and to regularly updating the AML policy.
• AML compliance is not only protection against risks but also a competitive advantage for the business.

In 2025 the market for investment platforms is undergoing a transformation comparable in scale to the digital revolution in the banking sector: according to international studies, more than 60% of new investment platforms in the EU and Asia face regulatory barriers already at the registration stage, and every third project fails due to mistakes in choosing the licensing format or compliance. Why, despite the availability of information, do entrepreneurs and managers continue to waste time and resources on typical mistakes? How can you ensure not only legal compliance but also the long-term sustainability of an investment platform amid tightening MiCA requirements, the introduction of the Platform Economy Act 2025 and the growth of global oversight of offshore jurisdictions?

If you want to understand how to choose the optimal licensing format for an investment platform, avoid fines and sanctions, and ensure transparency for investors and regulators, I recommend reading to the end. You will receive not only answers to pressing questions but also tools for making strategic decisions.

Licensing of investment platforms in Europe, Asia, and Africa

The main licensing formats for investment platforms in Europe, Asia and Africa are determined by a combination of local regulatory requirements, the profile of permissible operations and control features. Understanding the key differences between licensing formats across regions is important for a strategic choice of jurisdiction and the successful launch of an investment platform.

Overview of formats and differences

Licensing of investment platforms: a fundamental stage for entering international markets. In COREDO’s practice we distinguish three basic formats:

• Investment intermediary license (Investment Intermediary/Investment Firm) – the classic option for the EU, the United Kingdom, Cyprus, Estonia, where the platform can offer brokerage, dealer and custodial services.
• Investment platform operator license (Crowdfunding/Investment Platform Operator) – in demand for collective investment platforms, Pre-IPO projects, peer-to-peer and equity crowdfunding, especially in the Czech Republic, Slovakia, Singapore.
• License for providing payment/fintech services (Payment Institution, EMI, crypto licenses) – relevant for platforms integrating digital assets, smart contracts, multi-currency settlements.

Hybrid models are common in Asia and Africa, where a license may combine investment and fintech components, and requirements for minimum capital, governance structure and IT infrastructure differ significantly.

Comparison of regulator requirements

MiCA legislation and local regulations

Licensing of investment platforms in the EU under MiCA 2025

Licensing of investment platforms in Asia and Africa

In Asia the key jurisdictions (Singapore, Hong Kong, UAE) offer flexible licensing formats, but require a local director, a corporate address and strict compliance with AML/KYC procedures. For example, in Singapore company registration takes 1–3 days, but an investment platform will require an MAS license, minimum capital from S$50 000, as well as an annual audit of IT infrastructure and corporate reporting.

How do I choose the platform licensing format?

Choosing the appropriate licensing format for an investment platform is a key stage that determines not only legality but also the growth potential of your investment-attraction business. To make a well-founded decision, it is important to consider a number of criteria that directly affect the platform’s further operation and compliance with regulators’ requirements.

Choosing the format

Choosing the licensing format for an investment platform is a strategic decision that determines not only the speed of market entry but also the long-term prospects of the business. What to pay attention to:

• Business model: investment platforms Pre-IPO, crowdfunding, brokerage services, digital assets – each type has its optimal license format.
• Target audience and geography: if you target investors from the EU, compliance with MiCA and European AML/KYC standards will be required; for Asian markets: integration with local requirements and corporate registers.
• Minimum capital and financial guarantees: in the EU and Singapore – from €50 000 to €730 000; in Africa, from $25 000, but regulatory risks are higher.
• IT infrastructure and technological resilience: modern platforms require not only a secure architecture but also regular internal audits, compliance automation, and integration with government registers.
• Long-term consequences of jurisdiction choice: errors at the start can lead to account blocks, sanctions, or inability to scale.

Impact of the format on compliance and liability

Legal risks when choosing a license

The most common mistakes encountered in COREDO’s practice:

• Underestimating minimum capital requirements: attempting to register a platform with insufficient capitalization leads to license denial or subsequent inspections.
• Using offshore structures without considering global oversight: since 2025 most regulators require disclosure of beneficiaries and a transparent ownership structure.
• Ignoring AML/KYC procedures: lack of automation in investor verification or a formal approach to internal audit is a direct route to fines and account freezes.
• Legal risks of smart contracts: incorrect integration or lack of legal expertise when implementing smart contracts can lead to transactions being declared invalid.

Practical recommendations for choosing a format

• Business plan and internal documents: preparing a detailed business plan, AML/KYC policy, conflict-of-interest management procedures, and internal audit is a mandatory condition for successful registration.
• Choosing a market-maker or STP broker model: for platforms with high asset volatility the STP broker model is preferable, minimizing conflicts of interest and increasing transparency.
• Organizing compliance: automation of KYC procedures, integration with government and industry registers, regular internal audits of IT infrastructure.
• Choosing a legal advisor: COREDO’s experience confirms that licensing support by a team with international expertise helps avoid common mistakes and speeds up the registration process.

Registration and Licensing of an Investment Platform 2025

The procedure for registering and licensing an investment platform in 2025: it is a multi-stage process that requires not only proper preparation of documents but also full compliance with current regulator requirements. Each stage — from registering a legal entity to submitting an application and obtaining a license — is important for the legal and successful operation of the platform in the investment market in 2025.

Step-by-step algorithm

1. choice of jurisdiction and license format: analysis of requirements, preparation of a business plan, determination of the governance structure.
2. Preparation of corporate documents: articles of association, internal rules, AML/KYC policies, internal audit procedures.
3. Submission of the application and documents to the operators’ register: in the EU — via national regulators and European registers, in Asia — via local portals (for example, BizFile+ in Singapore).
4. Compliance checks: IT infrastructure audit, investor verification, corporate structure review.
5. obtaining the license and registration in government and industry registers.
6. Post-licensing compliance: regular reporting, internal and external audits, updating procedures as legislation changes.

How do I submit documents to the register?

In the EU and the UK, transparency of corporate documents and disclosure of beneficial owners is of key importance. In Singapore, company registration and document submission are fully digitized, but appointment of a local director and an annual audit are required. In Africa, special attention is paid to disclosing ownership structures and compliance with FATF requirements.

Compliance, AML and KYC procedures for investment platforms

Compliance, as well as AML (anti-money laundering) and KYC (know your customer) procedures are becoming a key element of the regulatory framework for investment platforms. These tools not only minimize the risks of financial crime, but also enable platforms to comply with international requirements and best practices. Below we will look at the standards underlying these procedures and how they are implemented at the global level.

International standards and best practices

• Automation of investor verification procedures (eKYC, integration with government databases)
• Regular internal audits and updates to AML/KYC policies
• Appointment of an independent compliance officer and staff training
• Implementation of transaction monitoring systems and corporate risk management

Legal liability for violations

Scaling an investment platform: long-term development

Scaling and long-term development of an investment platform require not only a strategic approach but also strict compliance with ever-changing regulation. To successfully enter new markets or expand functionality, it is important to establish a reliable legal foundation to ensure sustainable growth without breaching the law.

Scaling without breaking the law

Scaling an investment platform requires not only a flexible IT architecture but also ongoing compliance with changing regulatory requirements. Solutions implemented by the COREDO team for platforms in the EU and Singapore include:

• Regular profitability assessments taking into account licensing and compliance costs
• Implementation of tools to ensure technological resilience (backups, cybersecurity, IT infrastructure audits)
• Integration with international compliance and transparency standards

Impact of global oversight and reporting

Key findings and recommendations for businesses

• The choice of licensing format should be based on the business model, target audience, minimum capital requirements and long-term implications for scaling.
• Common mistakes — underestimating capital requirements, a formal approach to AML/KYC, attempts to use offshore structures without considering global standards.
• Document preparation: a detailed business plan, internal policies, internal audit procedures and conflict-of-interest management.
• Choosing a jurisdiction: analyze not only the license cost but also requirements for corporate structure, IT infrastructure, transparency and reporting.
• Legal support: engaging consultants with international expertise and experience working with investment platforms in the EU, Asia and Africa.

FAQ: Answers to questions

• Underestimating local director requirements, a formal approach to AML/KYC, attempts to use offshore structures without disclosing beneficiaries.

• Minimum capital, a transparent governance structure, automation of AML/KYC, regular reporting and internal audit.

• Regular audit of IT infrastructure, implementation of cybersecurity systems, backups, integration with government registries.

• Detailing the business model, cash flows, AML/KYC procedures, internal controls and risk management.

If you are choosing a licensing format for an investment platform or planning to scale your business in the EU, Asia or Africa, the COREDO team’s experience will help you avoid common mistakes and implement a strategy that meets the strictest international standards.

Imagine that you can register a company in the EU that will become your reliable shield for international business, provide access to European markets, and allow you to optimize taxes on a lawful basis. This is not fiction: it is a reality for thousands of entrepreneurs who choose incorporation in Luxembourg. According to World Bank Doing Business 2025, Luxembourg consistently ranks among the top 10 countries in the world for ease of doing business, and by foreign direct investment per capita it ranks first in Europe.

But behind this success lies a complex system of legal requirements, corporate law, and international compliance standards. Many entrepreneurs from Europe, Asia and the CIS find that Company registration in Luxembourg seems confusing, and the requirements for documents, the articles of association, and compliance insurmountable.

In this article I, Nikita Veremeev, CEO and founder of COREDO, share the practical experience of our team, which since 2016 has been helping entrepreneurs and investors successfully register companies in Luxembourg, Singapore, Dubai, the Czech Republic, Slovakia, Cyprus, Estonia and the United Kingdom. We will break down the step-by-step procedure for company registration in Luxembourg, explain the key requirements for the articles of association, compliance and taxes, and provide practical recommendations for minimizing risks and optimizing business structure.

Incorporation in Luxembourg: key steps

Incorporation in Luxembourg is not just a formality but a strategic decision that requires a deep understanding of Luxembourg corporate law, international compliance standards and tax planning. The company registration process in Luxembourg is governed by the Code de commerce, as well as by the requirements of the financial regulator CSSF (Commission de Surveillance du Secteur Financier) for companies connected with financial services.

The main legal steps of incorporation in Luxembourg include:

• Choosing the company’s legal form (SARL, SA, SOPARFI, etc.)
• Preparation of the articles of association (Statuts) and the deed of incorporation (Acte Constitutif)
• Conducting Due Diligence and vetting the reliability of founders and directors
• Notarial certification of documents
• Registration of the company in the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés, RCS)
• Opening a corporate bank account and confirming payment of the share capital
• Ensuring compliance and AML (anti-money laundering) requirements

COREDO’s practice shows that successful incorporation in Luxembourg is only possible with a comprehensive approach that includes legal support, financial advisory and strategic planning. We help clients not only complete the registration process, but also build a sustainable, scalable and compliant business structure.

Choice of legal form and articles of association

Choosing the legal form of a company is the first step on the way to conducting business legally; it determines not only the management structure but also the requirements for founding documents, including the articles of association. The right decision affects scalability, the liability of founders, and compliance with legislation. Let’s consider the features of one of the most popular forms: the limited liability company.

Limited liability company (LLC)

SARL (Société à responsabilité limitée): this is the most popular company form for international business in Luxembourg. The minimum share capital for an SARL is €12 500, which must be fully paid up at registration. The articles of association (Statuts) of an SARL must include information on the amount and structure of capital, the rights and obligations of members, as well as the company’s management procedures.

Features of SARL:

• Limited liability of members
• Possibility to create an SARL with a single member (SARL-S)
• Flexibility in management and profit distribution
• Reporting and audit requirements

Public limited company (SA)

SA (Société Anonyme) is a company form suitable for large projects and raising capital. The minimum share capital for an SA is €30 000, of which 25% must be paid at registration. An SA can issue registered and bearer shares, which provides legal anonymity for owners.

Features of SA:

• Ability to raise capital through the issuance of shares
• Mandatory board of directors
• Requirements for shareholder meetings and audit
• Stricter corporate governance requirements

Forms and their application

In addition to SARL and SA, in Luxembourg it is possible to register holding structures through SOPARFI (Société de Participations Financières), which provide tax advantages for companies managing assets. It is also possible to register companies for foreign investors with 100% foreign ownership.

Company registration in Luxembourg

The step-by-step procedure for registering a company in Luxembourg includes a number of mandatory stages, from choosing the legal form to obtaining all necessary permits. Each step, from preparing documents to having them notarized, requires compliance with local requirements and careful verification for conformity with the country’s legislation.

Document preparation and notarization

To register a company in Luxembourg, it is necessary to prepare a set of documents, including the articles of association, the deed of incorporation, proof of capital payment, and the documents of the founders and directors. All documents must be notarized by a notary (Notaire) in Luxembourg.

Role of the notary:

• Verification of the authenticity of documents
• Ensuring compliance with corporate law requirements
• Preparation and notarization of incorporation documents

Filing documents with the RCS (Commercial Register)

After notarization, the documents are submitted to the Registre de Commerce et des Sociétés (RCS). Company registration in Luxembourg usually takes from 1 to 3 business days. After successful registration, the company receives a certificate of incorporation (Certificate of Incorporation).

Opening an account and confirming capital

To open a corporate bank account in Luxembourg, you must confirm payment of the share capital and undergo due diligence and AML compliance procedures. Banks require documents confirming the source of funds, as well as information about the beneficial owners.

Tax planning during incorporation

Tax planning and compliance during incorporation determine a company’s financial stability and legal transparency from the earliest stages of registration. A competent approach to tax structure and the fulfillment of corporate requirements makes it possible to take advantage of Luxembourg’s incentives and minimize risks in subsequent activities.

Tax benefits for companies in Luxembourg

Tax planning in Luxembourg includes optimizing the tax burden by using tax benefits for holding companies, investment funds, and international agreements to avoid double taxation (OECD). Companies in Luxembourg can take advantage of low corporate tax rates and special regimes for holding structures.

Compliance and AML requirements

Compliance and AML requirements in Luxembourg include obligations to disclose information about beneficial owners, conduct due diligence, and comply with international standards of the FATF and OECD. The role of the local representative when registering a company is to ensure adherence to compliance and corporate governance requirements.

Registration of companies with foreign capital

company registration with 100% foreign participation in Luxembourg allows conducting cross-border business, structuring holdings and managing assets through SOPARFI. Luxembourg provides access to European markets and international investment funds.

Legal risks during incorporation

Practical recommendations for incorporation

• Choose the optimal company structure for international business
• Ensure compliance with regulatory and AML requirements
• Optimize your tax burden by using tax incentives and double taxation treaties
• Use comprehensive legal support to minimize risks and ensure successful incorporation in Luxembourg

Incorporation in Luxembourg is a strategic decision that requires a deep understanding of corporate law, tax planning and international compliance standards. With COREDO, you gain a reliable partner for successful incorporation and the long-term development of your business.

Imagine that you are ready to complete a major merger or acquisition deal, having spent months on negotiations, financial analysis and business valuation. And at the very last moment it turns out that the target company has hidden lawsuits that could cost you millions. According to a PwC study, nearly 40% of M&A deals encounter serious legal surprises after closing that directly affect the value and sustainability of the business. Why does this happen? Because many deal participants underestimate the role of one of the most powerful protection tools: Legal Opinion.

Legal Opinion is not just a formal document, but an independent legal opinion that analyzes the legal status of the target company, identifies hidden risks and confirms the legality of the transaction. In the context of increasing complexity of international deals, tightening compliance requirements and high market volatility, a Legal Opinion becomes a mandatory element for any serious investor or buyer.

In this article I will explain why a legal opinion is needed in company mergers, how Legal Opinion reduces risks in M&A deals, which legal risks it identifies, and how to properly use it to protect your interests. You will learn when a Legal Opinion is mandatory, how to prepare it for purchasing a company, and what documents are needed to draft it. We will review practical examples, strategic and financial aspects, as well as features of Legal Opinion in international transactions and different jurisdictions. This article is your practical guide to Legal Opinion in M&A deals, which will help you make informed strategic decisions and minimize risks.

Legal Opinion in M&A transactions, what is it and why is it needed?

# Definition and content of Legal Opinion

Unlike Due Diligence, which is a comprehensive review of the financial, legal and operational aspects of a company, Legal Opinion focuses specifically on legal risks and legal status. Legal Opinion includes analysis of the corporate structure, verification of licensing status, assessment of tax liabilities, analysis of contractual obligations, review of intellectual property rights and identification of hidden legal risks.

A Legal Opinion can be prepared for either the buyer or the seller, and is used to confirm the legality of the transaction, protect the parties from legal risks and minimize post-transaction financial losses.

The importance of a Legal Opinion for deal participants

A Legal Opinion plays a key role in M&A transactions, protecting the interests of all parties. For the buyer, a Legal Opinion is a tool for risk minimization, confirming the legality of the transaction and protecting investments. For the seller, a Legal Opinion helps confirm the company’s legal status, increase investor confidence and speed up the transaction process. For investors, a Legal Opinion is an independent legal opinion that confirms the company’s investment attractiveness and reduces the risk of investment loss.

A Legal Opinion is used in representations & warranties and in a disclosure letter, which allows the parties to be protected from legal issues and minimize risks after the closing of the transaction.

When and why a Legal Opinion is required in M&A transactions

A Legal Opinion is required in mandatory and recommended cases. In mandatory cases, a Legal Opinion is necessary to confirm the legality of the transaction, obtain financial licenses, comply with regulatory requirements and protect the interests of the parties. In recommended cases, a Legal Opinion is used to minimize risks, increase investor confidence and accelerate the transaction process.

A Legal Opinion affects the structure and terms of the transaction, helps in price negotiations, defines the terms of post-closing obligations and protects the parties from legal risks. A Legal Opinion is also used to confirm compliance with AML/KYC requirements, verify licensing status and analyze the corporate structure.

Legal risks in M&A and Legal Opinion

Main types of legal risks in mergers and acquisitions transactions

These risks can significantly affect the value and resilience of a business, and can also lead to post-transaction financial losses.

Legal Opinion also verifies compliance with AML requirements/KYC, analyzes the company’s litigation history and identifies potential fines and sanctions.

Methods of Risk Assessment and Identification in a Legal Opinion

Legal Opinion integrates with Legal Due Diligence (LDD) and other checks, allowing a multi-level Due Diligence to be conducted and identifying all possible legal risks. Legal Opinion analyzes the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks. Legal Opinion also verifies compliance with AML/KYC requirements, analyzes the company’s litigation history and identifies potential fines and sanctions.

Legal Opinion uses various methods for assessing and identifying risks, including legal audit (Legal Audit), multi-level Due Diligence, corporate Due Diligence, financial Due Diligence, tax Due Diligence, compliance checks, AML compliance assessment, analysis of financial regulation, deal structuring and legal analysis of the counterparty.

Practical examples of identified risks and their impact on a deal

For example, when buying a company involved in litigation, Legal Opinion helps identify potential litigation claims and lawsuit risks, which helps minimize post-transaction financial losses. When buying a company with a problematic corporate history, Legal Opinion helps uncover hidden legal risks, obligations to affiliated parties, and license revocation risks.

Legal Opinion also assists in the acquisition of licensed businesses (fintech, crypto), identifying risks of legal non-compliance, compliance risks (AML/KYC), license revocation risks and obligations to affiliated parties. Legal Opinion provides protection when purchasing a company with obligations to affiliated parties by uncovering hidden legal risks and liabilities. Legal Opinion also analyzes specific risks in real estate transactions, identifying property ownership risks, regulatory breach risks and risks of contractual non-performance.

Legal Opinion in M&A transactions

Stages of preparing a legal opinion

The process of preparing a Legal Opinion includes several stages: collection and analysis of documents, interaction with the seller’s and buyer’s teams, preparation of the legal opinion and its approval. Collection and analysis of documents includes corporate documentation, contracts, transactional documents, disclosure letter, representations & warranties, inspection reports. Interaction with the seller’s and buyer’s teams makes it possible to obtain all necessary data and documents for preparing the Legal Opinion.

The preparation of the legal opinion includes analysis of the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks. The approval of the Legal Opinion takes place after its preparation and review by all parties to the transaction.

Documents and data required to prepare a Legal Opinion

To prepare a Legal Opinion, the following documents and data are required: corporate documentation, contracts, transactional documents, disclosure letter, representations & warranties, inspection reports. Corporate documentation includes the company’s charter, meeting minutes, shareholder registers. Contracts include agreements with counterparties, lease agreements, loan agreements. Transactional documents include sale and purchase agreements, merger agreements, acquisition agreements. The disclosure letter contains information on disclosure, representations & warranties contain the parties’ representations and warranties, inspection reports contain the results of the legal review.

Timing and cost of preparing a legal opinion

The timing and cost of preparing a Legal Opinion depend on the complexity of the transaction, the volume of documents, regulator requirements and the jurisdiction. On average legal opinion preparation takes from several days to several weeks. The cost of a Legal Opinion depends on the scope of work, transaction complexity and jurisdiction. For large international transactions the cost of a Legal Opinion can be significant, but it is offset by the risks identified and the minimization of post-transaction financial losses.

Impact of Legal Opinion on M&A Strategy

How a Legal Opinion Helps in Negotiations and Deal Structuring

A Legal Opinion helps in negotiations over the transaction price, deal structuring and defining the terms of post-closing obligations. A Legal Opinion allows minimizing risks, adjusting the transaction price, defining the terms of post-closing obligations and protecting parties from legal issues. A Legal Opinion is also used to confirm the legality of the transaction, protect the parties from legal risks and minimize post-closing financial losses.

The Role of Legal Opinion in Purchase Decisions and Long-Term Business Sustainability

A Legal Opinion helps protect investments, assess ROI, enhance the strategic advantages of the deal and increase market share. A Legal Opinion also helps minimize the risk of investment loss, increase investor confidence and speed up the deal process.

Use of legal opinion in representations and warranties and in the disclosure letter

A Legal Opinion is used in representations & warranties and the disclosure letter to protect parties from legal issues and minimize risks after the closing of the deal. Representations & warranties contain the parties’ statements and guarantees, the disclosure letter contains information for disclosure. A Legal Opinion allows confirming the legality of the transaction, protecting the parties from legal risks and minimizing post-closing financial losses.

Legal Opinion in International Transactions

Accounting for differences in the laws of Europe, Asia, Africa, and the CIS

Legal Opinion takes into account differences in the laws of Europe, Asia, Africa and the CIS. Legal Opinion analyzes the corporate structure, the legal status of the target company, licensing status, tax obligations, contractual obligations, intellectual property rights and hidden legal risks in accordance with the legislation of each jurisdiction. Legal Opinion also checks compliance with AML/KYC requirements, analyzes the company’s litigation history and identifies potential fines and sanctions.

Specific risks and requirements in international M&A transactions

International M&A transactions are associated with specific risks and requirements, including regulatory requirements, AML/KYC, Licensing, and currency control. Legal Opinion helps identify these risks by analyzing the corporate structure, the legal status of the target company, licensing status, tax obligations, contractual obligations, intellectual property rights and hidden legal risks. Legal Opinion also checks compliance with AML/KYC requirements, analyzes the company’s litigation history and identifies potential fines and sanctions.

Legal Opinion for specialized sectors: fintech, crypto, real estate, startups

Legal Opinion for specialized sectors (fintech, crypto, real estate, startups) includes additional checks and analysis of specific risks. Legal Opinion for fintech and crypto companies analyzes risks of legal non-compliance, compliance risks (AML/KYC), risks of license revocation and obligations to affiliates. Legal Opinion for real estate analyzes risks of property ownership, legal non-compliance and risks of breach of contractual obligations. Legal Opinion for startups analyzes risks of legal non-compliance, compliance risks (AML/KYC), risks of license revocation and obligations to affiliates.

Recommendations for Entrepreneurs and Investors

How to Effectively Use a Legal Opinion to Minimize Risks

Legal Opinion is a powerful tool for risk mitigation in M&A transactions. To effectively use a Legal Opinion, it is necessary to conduct multi-level Due Diligence, analyze the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks. A Legal Opinion also helps in negotiations on the transaction price, deal structuring and defining the terms of post-closing obligations.

Best Practices for Working with Legal Advisors

To work effectively with legal advisors, it is necessary to provide all required documents and data, clearly formulate goals and objectives, regularly update information and documents, and promptly respond to requests from legal advisors. Best practices for working with legal advisors help speed up the preparation of a Legal Opinion and minimize risks.

Common Mistakes When Preparing and Using a Legal Opinion and How to Avoid Them

Common mistakes when preparing and using a Legal Opinion include an insufficient volume of documents, incorrect formulation of goals and objectives, lack of regular updates to information and documents, and failure to respond promptly to requests from legal advisors. To avoid these mistakes, it is necessary to conduct multi-level Due Diligence, analyze the corporate structure, the legal status of the target company, licensing status, tax liabilities, contractual obligations, intellectual property rights and hidden legal risks.

Recommendations for Integrating a Legal Opinion into a Company’s Risk Management System

A Legal Opinion should be integrated into the company’s risk management system to minimize risks, increase investor confidence and speed up the transaction process. A Legal Opinion helps identify hidden legal risks, obligations to affiliated parties, risks of license revocation and obligations to affiliated parties. A Legal Opinion also helps in negotiations on the transaction price, deal structuring and defining the terms of post-closing obligations.

Conclusion

Legal Opinion is a key tool for protecting the interests of parties in M&A transactions. Legal Opinion helps identify hidden legal risks, obligations to affiliated persons, risks of license revocation and obligations to affiliated persons. Legal Opinion also helps in negotiations on the deal price, deal structuring and in defining the terms of post-closing obligations. Legal Opinion should be integrated into the company’s risk management system to minimize risks, increase investor confidence and accelerate the transaction process.

For timely and professional legal support of transactions, contact the experts at COREDO. We are ready to help you prepare a Legal Opinion, conduct Due Diligence, structure the deal and minimize risks.

In 2024 the global financial services market faced an unprecedented rise in fines for anti-money laundering violations: in Europe alone the total amount of sanctions exceeded €6 billion, and the average fine for financial institutions increased by 45% compared with the previous year. But the numbers are only the tip of the iceberg. Behind every fine are frozen accounts, loss of access to international payments, blocked transactions and, most importantly, severe reputational costs that can be fatal to a business.

Companies like ZISIF15, operating at the intersection of traditional and digital finance, are particularly vulnerable: their activities are under the scrutiny of regulators in the EU, Asia and the CIS, and requirements for transparency and transaction controls are tightened every year. In these circumstances AML audit becomes not just a formal procedure, but a strategic tool for protecting the business, minimizing risks and increasing investment attractiveness.

Essentially, an AML audit for ZISIF15 companies is a comprehensive review for compliance with international and local requirements in anti-money laundering and countering the financing of terrorism (CFT), including analysis of KYC processes, transaction monitoring, risk assessment and readiness to interact with regulators. Such an approach makes it possible not only to avoid fines and blocks, but also to build trusting relationships with banks, investors and partners.

AML audit for ZISIF15 in 2025

International standards in the field of AML compliance are constantly evolving. In 2025, the key benchmarks for ZISIF15 companies remain the FATF recommendations, as well as the EU directives: 4AMLD, 5AMLD and 6AMLD, which set standards for customer identification, transaction monitoring and reporting. In Asia and the CIS, requirements are increasingly being aligned with European and international norms, while local regulators introduce their own supervisory mechanisms.

COREDO’s practice confirms: for ZISIF15 companies it is critically important not only to have a formal AML program but also for it to be actually operational. Regulators require:

• The presence and regular updating of AML policies and procedures reflecting the specifics of the business and risks.
• Implementation of effective KYC procedures and beneficiary verification tools.
• Continuous AML monitoring of operations and control of suspicious transactions, including cryptocurrency operations.
• Preparation and storage of AML reporting (including SAR – Suspicious Activity Report) in accordance with the requirements of FATF and local regulators.
• Appointment of a person responsible for AML, internal controls and regular staff training.

Company AML audit: step-by-step process

Preparation for the AML audit

First step: a thorough review of KYC procedures and client Due Diligence mechanisms. COREDO’s experience shows that it is at this stage that the main vulnerabilities are revealed: outdated questionnaires, insufficient verification of beneficiaries, absence of a client’s digital profile.

Transaction monitoring and control

Reporting and interaction with regulators

A comprehensive AML review makes it possible to identify and eliminate gaps in advance, minimizing the likelihood of fines and sanctions. In case suspicious transactions are detected: promptly initiate an internal investigation and, if necessary, freeze accounts until the circumstances are clarified.

AML audit of cryptocurrency transactions

• AML monitoring of transactions using blockchain graph analysis algorithms and risk scoring of crypto addresses.
• Automated AML screening of cryptocurrency taking into account transaction specifics (mixers, privacy coins, DeFi).
• Use of RegTech solutions to integrate data from external sources (sanctions lists, databases of suspicious addresses).

How to scale an AML program during expansion

Expanding business into new markets requires adapting the AML program to the requirements of each jurisdiction. COREDO’s practice shows: there are no universal solutions, and a successful strategy is built on flexibility and deep localization.

• For the EU, compliance with 6AMLD, implementation of eKYC, and automation of reporting are critical.
• In Asia – consideration of national standards, integration of local registries, and staff training on the specifics of regional risks.
• In the CIS – regular auditing of current procedures, updating policies, and moving from manual monitoring to automated systems.

When registering companies in Europe and Asia, the COREDO team always conducts a preliminary AML audit to identify potential gaps between corporate standards and local requirements. This approach helps avoid delays in opening bank accounts, reduce operational risks, and ensure sustainable scaling.

AML audit in international companies – best practices

• Integration of KYC/AML/KYT into a single platform, enabling monitoring of the entire customer and transaction lifecycle.
• Regular AML training for staff that reflects new threats and changes in legislation.
• Use of artificial intelligence and RegTech solutions to automate monitoring, transaction analysis and reporting.
• Conducting stress tests and scenario modelling to assess the resilience of the AML program.

How to evaluate the effectiveness of an AML program

Evaluating the effectiveness of an AML program: the key to increasing ROI and reducing operating costs. At COREDO we recommend using the following metrics:

• Number of detected and prevented suspicious transactions.
• Incident response time and SAR preparation speed.
• Ratio of false positives to confirmed alerts.
• Level of automation and integration with external data sources.
• Number and quality of trained staff.

Implementing a comprehensive AML system not only reduces the likelihood of fines, but also increases trust from banks, investors and partners. In the long term, this directly affects the company’s value and its competitiveness in the international market.

Comparison of AML audits in the EU, Asia, the CIS and Africa

Guide for ZISIF15 Leaders: Practical Steps

• Conduct a preliminary AML audit involving external experts to identify weaknesses.
• Update KYC procedures and implement digital onboarding.
• Implement automated AML systems for transaction monitoring and graph-based transaction analysis.
• Appoint a person responsible for AML and internal control, and regularly train the team.
• Ensure transparency of ownership structure and sources of funds.
• Develop and implement procedures for preparing and submitting SARs.
• Conduct regular stress tests and update AML policy in accordance with changes in legislation.

How an AML audit affects a company’s strategy

In today’s environment, an AML audit is not just a regulatory requirement but a strategic tool for risk management, enhancing transparency and trust. Companies that invest in developing AML compliance gain a competitive edge: access to international markets, the trust of investors and partners, reduced costs for internal investigations, and a lower likelihood of fines.

Legal Opinion for crypto projects – what it is and why it’s needed

Legal opinion in the crypto industry

Legal Opinion for Crypto Business: Objectives and Advantages

• Protect investors’ rights in a crypto project by providing a transparent classification of the token and a description of fund return mechanisms.
• Provide legal protection to crypto investors, minimizing the risk of claims and litigation.
• Formalize the token’s status, which is critical for access to banking services, insurance of crypto assets, and interaction with financial institutions.

Legal Opinion: attracting investments and partner trust

Features of a legal opinion for crypto projects

Analysis of legislation and jurisdiction

Token classification and the Howey Test

Features of a Legal Opinion for ICOs and DeFi

Compliance and AML/KYC in the preparation of the opinion

Legal risks of crypto projects and how to minimize them

Risks of token classification and regulation

Risks of money laundering and terrorism

Risks of lawsuits for investors

Technical and operational risks of an exchange: volatility, attacks, bankruptcy

Environmental and reputational risks of mining and stablecoins

The process of obtaining a legal opinion: stages and key points

How to choose a lawyer for a legal opinion?

• Deep knowledge of international cryptocurrency legislation.
• Experience in supporting projects in the chosen jurisdiction.
• Experience working with regulators and financial institutions.

Analysis of facts and documents

Preparation of the Legal Opinion

• Official status and confirmation of the token’s status.
• Description of the applicable law and jurisdiction.
• Analysis of compliance with legislation, including AML/KYC and compliance.
• Recommendations for risk minimization and further actions.

Timeframe and cost of obtaining a Legal Opinion

International Regulation of Legal Opinion

Cryptocurrency regulation in the EU, Asia and the CIS

Choice of law and arbitration in crypto contracts

Registration and licensing of crypto projects by jurisdiction

Practical recommendations for entrepreneurs

How to minimize legal risks of a crypto project

• Regular audit of the business model and documentation.
• Implementation of compliance procedures and transaction monitoring.
• Updating the Legal Opinion when legislation or business strategy changes.

How to ensure compliance and investor protection

• Crypto exchange compliance and AML/KYC checks should be integrated into every stage of the project’s lifecycle.
• Legal protection of investors is achieved through transparent refund mechanisms, insurance of crypto assets and implementation of corporate governance standards.

Choosing a lawyer for your crypto business and legal support

What should I do if the legal opinion is negative?

• Conduct a repeat legal review.
• Adjust the business model and documentation.
• Use mechanisms for judicial protection of crypto investors and pre-trial settlement.

Comparison of key tests for token classification

Major legal risks of crypto projects and their mitigation

Stages of obtaining a Legal Opinion for a crypto project

1. Analysis of the business model and project objectives
2. Selection of jurisdiction and applicable law
3. Collection and audit of documents
4. Token classification and risk analysis
5. AML check/KYC and compliance
6. Preparation and approval of the Legal Opinion
7. Implementation of recommendations and updating documentation

In this article I will describe in detail how the COREDO team helps investors not only to register a company in the Czech Republic, but also to build an optimal tax and corporate structure, using all available benefits, subsidies and capital protection tools. If you are looking not just for an overview but for a practical guide to effective investing in the Czech Republic – I recommend reading to the end: you will get answers to key questions and learn about strategies that really work.

Main taxes for investment companies in the Czech Republic

In COREDO’s practice we regularly encounter questions about the tax structure in the Czech Republic. Understanding tax obligations is the foundation for making strategic decisions.

Corporate tax rates and features for 2025

COREDO’s experience shows: by properly structuring a business and using international agreements on the avoidance of double taxation, you can significantly reduce the effective tax burden, particularly for holding and investment structures.

Value Added Tax (VAT) for investors

A solution developed by COREDO for a number of clients allowed them to optimize their supply structure and achieve regular VAT refunds within 30–45 days, which significantly improved cash flow and increased the investment attractiveness of the business.

Tax on dividends and capital gains

COREDO’s practice confirms: proper structuring of share ownership and timely obtaining of parent company status can significantly minimize taxes on dividends and capital gains, which is especially important for investment funds and holdings.

Tax incentives for foreign investors

Czech legislation offers a wide range of tax benefits and incentives aimed at attracting long-term investments, especially in innovative and technological projects.

Profit tax exemption for up to 10 years

The solutions implemented by the COREDO team have already allowed several clients to obtain tax holidays for the entire investment cycle, which has significantly increased their competitiveness in the market.

Subsidies for technological equipment and scientific research

Our experience at COREDO has shown: with proper document preparation and process support, the probability of subsidy approval exceeds 80%.

Preferential loans from the state fund: grants for future investments

The amount and lending terms depend on the sector and investment volume, but in some cases the loan rate can be significantly below market. The COREDO team accompanied clients at all stages of obtaining such loans, from preparing the application to monitoring the targeted use of funds.

Taxation of income from investments

For effective tax planning, it is important to consider the specifics of taxation of different investment instruments.

Taxation of income from the sale of securities and unit certificates

, However, when reinvesting funds into Czech assets, tax deductions may be available. Solutions implemented by COREDO have allowed clients to structure transactions so as to maximize tax exemptions and minimize liabilities upon exit from investments.

Tax consequences of holding shares and stakes in companies

Holding stakes in Czech companies through a parent company structure (with a stake of at least 10% and a holding period of at least 12 months) allows taking advantage of the participation exemption. This allows not paying tax on dividends and capital gains when the stakes are later sold. This approach is widely used in international practice and has proven effective in COREDO’s cases.

Changes in Czech Tax Legislation 2025

The 2025 developments require special attention in strategic investment planning.

Introduction of a minimum tax for large companies

For investment structures this means the need for a thorough assessment of the tax burden and a review of corporate strategies. COREDO’s experience shows that with the right choice of holding jurisdiction and the use of international agreements, it is possible to maintain a competitive tax rate even under the new rules.

Increase in social and health insurance contributions

For entrepreneurs using the simplified tax system, it is important to take the new contribution ranges into account and plan the budget considering these changes.

Updates to the simplified tax system

New tax brackets and fixed rates for small entrepreneurs are being introduced, which simplifies administration but requires regular monitoring of changes. COREDO’s solutions allow clients to adapt promptly to new requirements and avoid penalties for untimely fulfillment of tax obligations.

Registration of an investment company in the Czech Republic

Company registration in the Czech Republic: is a strictly regulated process that requires attention to detail and compliance with all formal requirements.

Registration stages and required documents

• Preparation of founding documents and selection of a unique company name.
• Determination of the structure of shareholders and directors.
• Submission of documents to the Commercial Register and tax authorities.
• obtaining a license to carry out investment activities (if necessary).

The COREDO team supports clients at every stage, ensuring the correct preparation of documents and minimizing registration times.

Disclosure requirements for foreign investors

Foreign investors are required to provide an expanded set of documents confirming the source of funds and ownership structure. Our experience at COREDO shows: transparency and timely disclosure of information significantly reduce the risks of account freezes and claims from regulators.

Tax risk management and compliance

In today’s environment, effective management of tax risks has become an integral part of an investment strategy.

Data protection and GDPR compliance

COREDO’s solutions provide for the implementation of comprehensive data protection policies and regular audits of procedures, which minimizes the risk of fines and reputational damage.

Control of foreign tax rates and avoidance of double taxation

For investors, this is a key tool for tax optimization. COREDO’s practice shows that the proper application of international agreements can significantly reduce the overall tax burden and avoid double taxation on cross-border investments.

Practical steps for investors to reduce taxes

Moving from theory to practice, I will outline the key tools and solutions that enable investors to use the tax advantages of the Czech Republic as effectively as possible.

Using tax reliefs and incentives

The COREDO team has implemented projects where the overall tax burden was reduced by more than 30% through the effective use of these tools.

Application of the participation exemption regime

This approach is particularly effective for holding structures and investment funds operating with portfolios of Czech assets.

Accounting for foreign taxes and double taxation treaties

When planning international investments, it is important to take into account not only Czech but also foreign tax obligations. COREDO’s solutions provide for a comprehensive analysis of tax treaties and optimization of ownership structures to minimize the overall tax base.

Key takeaways for investors

• The Czech Republic remains one of the most transparent and stable jurisdictions for investment business in the EU.
• The corporate tax (21%) and the minimum tax regime (15% for large companies) require strategic planning, but with proper structuring and the use of incentives the effective tax burden can be significantly reduced.
• Using investment passports, tax holidays, subsidies, and international agreements enables establishing an effective investment and tax strategy.
• COREDO’s practice confirms: investment success in the Czech Republic depends on a comprehensive approach, from proper company registration to continuous monitoring of legislative changes and managing tax risks.

Comparison of taxes and incentives for investment companies in the Czech Republic, 2025

Conclusion

Investing in the Czech Republic: it is not just access to the EU market, but also an opportunity to build a business with an optimal tax structure, transparent rules of the game and access to government incentives. company registration in the Czech Republic and sound tax planning allow investors to implement long-term strategies, minimize risks and increase the profitability of projects. COREDO’s experience proves: success in the Czech Republic is achieved thanks to a comprehensive approach, expert support and continuous monitoring of changes in legislation.

In the practice of COREDO we have repeatedly encountered situations where entrepreneurs underestimated the regulatory function of the license, perceiving it as a formality. In reality, a license – is not only the legal basis for conducting activities, but also a key element of financial regulation that determines access to banking infrastructure, international payment systems (Visa, MasterCard, UnionPay), as well as to technology partners and investors.

Licensing: functions and benefits

Licensing of payment operations performs three strategic tasks:

• Prevention of illegal circulation of financial resources: A license requires the implementation of a comprehensive AML/CTF policy, which minimizes the risks of money laundering and terrorist financing.
• Stability of the settlement infrastructure: Regulatory requirements for authorized capital and the financial stability of the payment system operator ensure the reliability and uninterrupted operation of the payment gateway.
• Competitive advantages: Having a payment system license significantly increases customer trust, allows cooperation with leading banks, integration with international payment services, and expansion of the business’s geographic reach.

License requirements for payment gateways

Financial requirements and share capital

The key barrier to obtaining a payment system license is the financial requirements. In different jurisdictions the minimum share capital for a payment license varies significantly: in Estonia: from €350,000 for an EMI license, in the Czech Republic: from €125,000, in Cyprus – from €200,000. For a Payment Service Provider license (PSP) requirements may be lower, but the payment operator’s financial stability and the transparency of funding sources are always assessed.

Organizational and personnel requirements

The company’s structure and the qualifications of the payment system’s managers: another critical aspect. Regulators require:

• A transparent ownership and governance structure.
• Qualified directors and managers with experience in financial services and payment operations.
• The presence of a separate branch or virtual office in the licensing jurisdiction (for example, for Singapore: a mandatory local director and a registered legal address).

AML/KYC requirements and data protection

Modern regulation of payment systems is impossible without strict compliance with AML/CTF policies and the implementation of KYC procedures. The payment system operator must:

• Develop and implement internal rules for combating money laundering.
• Ensure client identification and verification (KYC).
• Organize the protection of payment system users’ data in accordance with international standards (GDPR, PDPA, etc.).
• Implement a system for monitoring suspicious transactions and managing fraud risks.

Process of obtaining a payment system license

Preparation of documents and business plan

The first stage is preparing the complete package of documents for registering a payment system. It includes:

• Constituent documents, company charter, meeting minutes.
• Financial statements and a business plan for obtaining the payment license.
• Documents confirming the lawful origin of funds.
• AML/CTF policies, internal KYC and data protection regulations.
• Certificates confirming the integrity and reliability of owners and management.

Submission of the application and interaction with the regulator

The application is submitted to the authorized financial authority or the central bank of the relevant jurisdiction. Regulatory requirements for payment systems include:

• Verification of the integrity and reliability of the payment system owners (Due Diligence).
• Analysis of the company structure and management qualifications.
• Assessment of AML/CTF policies’ compliance with international standards.

Timelines and stages of the application review

The timeline for obtaining a payment license depends on the jurisdiction and the complexity of the structure. On average:

• Document preparation: 1–2 months.
• Application review and integrity checks: 3–6 months.
• Interaction with the regulator and audit of the payment system: up to 9 months.

Licensing in the EU, Asia and Africa: specifics

EMI license in Europe: requirements

In the EU the main form of licensing is the EMI license (Electronic Money Institution), which allows issuing electronic money, conducting payment transactions and integrating with SEPA, SWIFT, Visa, MasterCard. Main requirements:

• Minimum share capital: from €350,000.
• Compliance with payment activity regulations (PSD2, EMD2).
• Strict AML requirements/KYC and personal data protection (GDPR).

Key differences between Asian and African markets

In Asia (for example, in Singapore) requirements for payment licenses are regulated by the Monetary Authority of Singapore (MAS). Key features:

• Mandatory presence of a local director and a registered address.
• Minimum share capital: from SGD 100,000 for a standard license.
• Strict control over AML/CTF policies and cross-border payments.

Choosing a jurisdiction for registering a payment operator

jurisdiction choice – a strategic decision affecting cost, timelines and scaling potential. It is important to consider:

• Financial and regulatory conditions (requirements for capital, structure, reporting).
• The possibility of opening a virtual office for the payment license.
• The reputation of the jurisdiction among international banks and partners.

Licensed payment gateways: technological and operational aspects

Integration and security of payment systems

A modern payment gateway is not just software but a comprehensive payment infrastructure integrated with banks, international payment networks and third-party services. Critical aspects:

• API integration with banks and partners.
• Protection of payment system users’ data using encryption and multi-layer authentication.
• Cybersecurity of payment systems, a mandatory requirement for passing audits and meeting regulator requirements.

Choosing partners and infrastructure

The successful operation of a payment gateway is impossible without reliable technology partners and infrastructure providers. Key points:

• Assess partners’ experience and reputation in the market.
• Choose cloud payment solutions that provide scalability and fault tolerance.
• Enter into transparent agreements with providers, taking into account the regulator’s requirements for data storage and processing.

Technology compliance with regulatory requirements

The technological infrastructure must not only provide fast and convenient payments but also meet the requirements for risk management in payment systems:

• Implementation of a system for monitoring suspicious transactions.
• Regular vulnerability testing and security audit.
• Compliance with payment operation regulations and cybersecurity standards.

Risks and risk management when working with a payment license

Key risks for payment operators

Payment system operators face three groups of risks:

• Operational risks: service disruptions, technical errors, human factors.
• financial risks: insufficient capital, losses due to fraud.
• Reputational risks: data breaches, regulatory non-compliance.

AML/KYC compliance and data protection

To meet AML/CTF requirements and protect personal data, it is necessary to:

• Continuously update internal policies and procedures.
• Conduct regular training for staff.
• Use automated KYC procedures and transaction monitoring systems.

Monitoring and auditing of the payment system

Effective compliance monitoring includes:

• Conducting regular audits of the payment system.
• Monitoring changes in regulatory acts and adapting internal procedures.
• Planning crisis management and recovery after failures.

Practical recommendations for entrepreneurs

How to prepare for licensing

• Assemble a team with relevant experience and qualifications.
• Prepare a complete set of documents, including a business plan, AML/KYC policies, and proof of funding sources.
• Conduct preliminary due diligence on owners and executives.

How to choose a jurisdiction and a partner

• Assess capital requirements, company structure, and reporting obligations across different countries.
• Consider opening a virtual office for the payment license.
• Choose technology partners with experience integrating payment systems and complying with security standards.

How to minimize risks and pursue long-term development

• Implement a risk management system in payment systems with regular audits and monitoring.
• Plan the scaling of the payment system with the requirements of new markets in mind.
• Invest in team training and updating compliance procedures for the long-term development of the payment system.

Conclusions and next steps

• Prepare a complete package of documents and a business plan in line with regulator requirements.
• Choose an appropriate jurisdiction, taking into account financial and regulatory conditions.
• Ensure AML compliance/KYC and protection of user data.
• Take care when selecting technology partners and infrastructure.
• Plan risk management and audits for sustainable business development.

If you want to go through the payment system licensing process without unnecessary risks and delays, the COREDO team is ready to become your strategic partner at every step: from choosing a jurisdiction to building a scalable payment infrastructure.

Corporate Structure and Asset Management

Structuring international investments through ZISIF §15

ZISIF Section 15 for family offices and investors

Legal and compliance risks when using ZISIF

Practical steps for creating and managing ZISIF §15

Main findings and recommendations

Comparative table of investments under ZISIF §15

In this article I will reveal the complete roadmap for registering an investment fund in Europe – from choosing the optimal jurisdiction to opening a bank account and launching operational activities. You will learn which documents to prepare, which AML/KYC requirements to comply with, how to structure fund governance and how to avoid mistakes that cost entrepreneurs time and money. The article is structured as a practical guide and at the same time as an analytical overview that will help you make strategic decisions at every stage.

Private Equity fund in the EU: what is it and why register it?

Definition of a Private Equity fund and its role in the European economy

But a Private Equity fund is not just a company that manages investors’ money. It is a regulated financial structure that is subject to strict European legal requirements. Each fund must have a license for asset management, comply with requirements for disclosing information about beneficiaries, ensure the protection of investors’ rights and adhere to AML/KYC standards. Ignoring these requirements risks fines, license refusal and even criminal liability.

Registration and licensing — why are they needed?

Investor protection. Regulators require funds to disclose information about their investment strategy, risks, fees and governance structure. This enables investors to make informed decisions and protects their rights.

Prevention of money laundering and terrorist financing. AML/KYC requirements ensure that funds do not become tools for illegal operations. Regulators require verification of sources of funds, identification of beneficial owners and monitoring of suspicious transactions.

Financial system stability. Licensing and supervision prevent the creation of unregulated funds that could pose systemic risk.

Access to investors. Without a license you will not be able to attract capital from professional investors, pension funds and other institutional investors who require regulated structures.

Key requirements of AIFMD and EU directives

According to the AIFMD, each fund must:

• Have a licensed management company (AIFM) that is responsible for investment decisions and risk management.
• Appoint an independent depositary that holds the fund’s assets and monitors compliance with requirements.
• Disclose information about the fund’s beneficial owners in accordance with the 2025 requirements, which have been tightened.
• Comply with AML/KYC requirements, including verification of sources of funds and investor identification.
• Provide annual reports to the regulator and investors.
• Manage liquidity risks and ensure that the fund can meet its obligations to investors.

In addition to the AIFMD, funds must comply with the requirements of the European Securities and Markets Authority (ESMA), national regulators (for example, CySEC in Cyprus, MFSA in Malta, the Bank of Lithuania) and the requirements for digital identification of founders (eIDAS), which came into force in 2025.

Choosing a jurisdiction for a Private Equity fund in the EU

choice of jurisdiction for registering a Private Equity fund in the EU is a strategically important decision that affects tax burden, investor protection and access to the European market. Different countries offer unique conditions for fund formation, so it is important to compare key European jurisdictions, taking into account regulatory, tax and infrastructure requirements.

Comparison of European jurisdictions

Choosing a jurisdiction is a strategic decision that affects licensing timelines, cost, tax burden and management flexibility. COREDO’s practice has shown that there is no universal jurisdiction for all funds — the choice depends on fund size, investment strategy and target investors.

Lithuania, an optimal choice for mid-sized funds (50–500 mln EUR). The Bank of Lithuania is known for its professionalism and transparency of process. Licensing timelines: 3–6 months, which is faster than Luxembourg but slower than Cyprus. Minimum capital: 125,000 EUR. Lithuania offers a good balance between speed, cost and reputation.

Cyprus: a leader in licensing speed, especially for RAIF (Regulated Alternative Investment Fund), which are registered in 2–3 months. CySEC (Cyprus Securities and Exchange Commission) has experience working with international funds. Cyprus also offers tax incentives and management flexibility. At the same time, Cyprus’s reputation has improved in recent years, but it remains less attractive to conservative investors compared to Luxembourg.

Malta, the fastest jurisdiction for licensing (4–8 weeks). The MFSA (Malta Financial Services Authority) is known for its efficiency. Malta offers tax incentives and flexibility. It is a good choice for funds that want to enter the market quickly.

Luxembourg, a premium jurisdiction for large funds (over 500 mln EUR). Luxembourg has the highest reputation globally, attracts conservative investors and offers tax benefits. On the other hand, licensing timelines are 6–12 months and minimum capital is 1,250,000 EUR. Luxembourg suits funds that are ready to invest in reputation and long-term development.

Selection criteria: taxes, speed, flexibility

When choosing a jurisdiction, several criteria should be considered:

Tax residency of the investment fund. Different jurisdictions offer different tax regimes. For example, funds in Cyprus and Malta can obtain incentives on investment income. Luxembourg offers a participation exemption system that helps avoid double taxation. Lithuania offers a standard tax regime with possible optimization. The choice of jurisdiction should be coordinated with the fund’s tax planning.

Licensing speed. If you want to enter the market quickly, choose Malta (4–8 weeks) or Cyprus (2–3 months). If you have time and are willing to wait, Luxembourg offers the best reputation but requires more time.

Management flexibility. Cyprus and Malta offer greater flexibility in fund structuring and asset management. Luxembourg is more conservative and requires adherence to strict rules.

Capital requirements. Luxembourg requires a minimum of 1,250,000 EUR, which may be a barrier for startups. Lithuania, Cyprus and Malta require less capital.

Reputation and investor trust. Luxembourg has the highest reputation, but Lithuania, Cyprus and Malta have also earned investor trust through professional regulation and transparency.

Risks of different jurisdictions

Each jurisdiction has its own risks and features that should be considered:

Lithuania. Risk — political instability in the region (although Lithuania is a member of the EU and NATO). Feature: high compliance requirements and documentation. The Bank of Lithuania requires a detailed description of investment strategy and risk management.

Cyprus. Risk — reputational issues related to past financial scandals. Feature — flexibility in management and tax incentives. CySEC requires thorough verification of sources of funds and identification of beneficiaries.

Malta. Risk: small jurisdiction size and a limited investor base. Feature: fast licensing and tax incentives. MFSA requires adherence to high compliance standards.

Luxembourg. Risk: high capital requirements and long licensing timelines. Feature: premium reputation and attractiveness to conservative investors. CNPD requires compliance with strict governance and reporting rules.

Documents for registering an investment fund in Europe

Documents for registering an investment fund in Europe are the foundation for a successful launch and subsequent operation of your fund. A correctly prepared and complete set of documents is necessary to pass all stages of registration, obtain a license and comply with the requirements of European regulators. Below is an up-to-date checklist of documents required to register an investment fund in 2025.

Complete checklist of documents for 2025

Here is the complete checklist of documents required by regulators:

Fund constitutive documents:

• The articles of association of the investment fund (Articles of Association), which describe the fund’s structure, governance and rules.
• Investment memorandum (Offering Memorandum), which discloses the investment strategy, risks, fees and investment terms.
• Risk and liquidity management policy.
• AML/KYC policy, which describes investor verification procedures and monitoring of suspicious transactions.

Documents on management structure:

• Agreement with the management company (AIFM Agreement), which defines the rights and obligations of the management company.
• Agreement with the depositary, which sets out the depositary’s rights and obligations regarding asset custody and control.
• Agreement with the administrator, which defines procedures for NAV (Net Asset Value) calculation and administration.
• Agreement with the auditor, which defines audit and reporting procedures.

Documents on digital identification of founders (eIDAS):

• Electronic signatures of founders executed in accordance with the eIDAS standard.
• Video verification of founders (in some jurisdictions).
• Proof of the fund’s legal address (for example, a utility bill or lease agreement).
• Proof of sources of funds (bank statement, documents on the origin of capital).

Beneficiary documents:

• Disclosure of information about the fund’s beneficiaries in accordance with the 2025 requirements. This includes names, addresses and ownership shares of all persons who control the fund.
• Beneficiary declaration signed by the founders.

Business plan documents:

• Fund business plan, which describes the investment strategy, target investment objects, expected income and expenses.
• Financial forecasts for 3–5 years.
• Description of target investors and capital raising strategy.

2025 requirements for digital identification of founders

Electronic signatures (eIDAS). All documents must be signed with electronic signatures that comply with the eIDAS standard (Regulation (EU) No 910/2014). This means signatures must be made using a qualified certificate and have legal force.

Video verification. In some jurisdictions (for example, in Cyprus and Malta) regulators require video verification of founders. This means the founder must undergo a video call with a regulator representative or a licensed company that confirms their identity.

Proof of legal address. Regulators require proof of the fund’s legal address. This can be a utility bill, lease agreement or a letter from a bank.

Proof of sources of funds. Regulators require proof of the sources of funds that will be invested in the fund. This can be a bank statement, documents on the origin of capital or a letter from an investor.

Preparing the investment memorandum

The investment memorandum (Offering Memorandum) is a key document that discloses to investors information about the fund, its investment strategy, risks and investment terms. It is not just a marketing document, but a legal document that regulators scrutinize.

The investment memorandum should include:

• Description of the fund. Type of fund (AIF, RAIF, QIF), jurisdiction of registration, management company, depositary, administrator.
• investment strategy. Description of target investment objects, geographic regions, economic sectors, investment time horizon, expected returns.
• Risks. A detailed description of the risks associated with investing in the fund, including market risks, credit risks, liquidity risks, and operational risks.
• Fees and expenses. Description of all fees charged by the fund, including management fees, performance fees, and administrative expenses.
• Terms of investment. Minimum investment size, entry and exit conditions, frequency of NAV calculations, fund liquidation terms.
• Qualified investor criteria. Description of who can invest in the fund (professional investors, qualified investors, retail investors).
• Investor protection. Description of mechanisms to protect investors’ rights, including voting rights, information rights, and rights to judicial protection.

Step-by-step procedure for licensing AIF

The step-by-step procedure for licensing an alternative investment fund involves a series of consecutive formal steps, starting with the preparation and registration of the company and ending with obtaining all necessary permits. Each stage requires attention to detail and strict compliance with regulatory requirements, which ensures the legality and transparency of the fund’s future activities.

Preparation and company registration

The first stage is the preparation and registration of the company that will act as the fund. This stage includes several key steps:

• Choice of jurisdiction and fund type. As discussed above, the choice of jurisdiction is critical. You also need to choose the fund type: AIF (alternative investment fund), RAIF (Regulated Alternative Investment Fund) or QIF (Qualified Investor Fund). Each type has different requirements and licensing timelines.
• Reservation of the fund name. You must reserve the fund name in the national company register. The name must be unique and meet the regulator’s requirements. For example, the name should include words that indicate it is a fund (for example, “Fund”, “Fonds”, “Fondas”).
• Preparation of the charter and incorporation documents. You must prepare the fund’s charter (Articles of Association), which describes the fund’s structure, governance and rules. The charter must comply with national legislation and AIFMD.
• Registration of the company in the local register. After preparing the documents you must register the company in the local company register. This usually takes 1–2 weeks.

Preparation of documents for the regulator

The second stage is the preparation of the full package of documents for the regulator. This stage includes:

• Preparation of the investment memorandum. As discussed above, the investment memorandum must be detailed and professional. The regulator will thoroughly review each section.
• Development of risk management and liquidity policies. You must develop policies that describe how the fund will manage risks and liquidity. These policies must be aligned with the fund’s investment strategy.
• Preparation of AML/KYC policies. You must develop policies that describe how the fund will verify investors and monitor suspicious transactions. These policies must comply with the EU Anti-Money Laundering Directive (AMLD5).
• Appointment of key persons. You must appoint a management company (AIFM), an administrator, a depositary and an auditor. Each of these parties must be licensed and experienced in working with investment funds.

Submitting the application to the regulator

The third stage is submitting the application to the regulator. This stage includes:

• Assembling the full package of documents. You must collect all the documents required by the regulator and submit them in the prescribed format.
• Submission of the application to the national regulator. You must submit the application to the national regulator (for example, CySEC in Cyprus, MFSA in Malta, the Bank of Lithuania). The application is usually submitted via an online portal.
• Responses to regulator queries. After submitting the application, the regulator may ask questions or request additional documents. You must respond to these requests within the specified time (usually 2–4 weeks).
• obtaining a license or a registration number. After the application is approved the regulator issues a license or registration number confirming that the fund is registered and may begin operations.

Opening a bank account: operational launch

The fourth stage is opening a bank account and operational launch. This stage includes:

• Preparation of documents for the bank. You must prepare the documents required by the bank, including a copy of the license, the fund’s charter, digital identification documents of the founders, and proof of source of funds.
• Opening a corporate account. You must open a corporate account at a bank that will hold the fund’s assets. The bank may require a video call with a fund representative to verify identity.
• Deposit of the minimum capital. You must deposit the minimum capital into the fund’s bank account. The amount of minimum capital depends on the jurisdiction and fund type.
• Launching a marketing campaign. After obtaining the license and opening the bank account you can start attracting investors.

The Role of Legal Opinions in Minimizing Legal Risk

Legal Opinion in Due Diligence

Key elements of a Legal Opinion for investment companies

Mandatory sections of a Legal Opinion

Specifics of a Legal Opinion on AML and finance

Common mistakes when preparing:

• Insufficient detail in AML procedures
• Lack of references to applicable legislation
• Vague wording without concrete conclusions

Legal Opinion in international transactions

Legal Opinion for venture capital investments

Legal Opinion for M&A

Legal opinion on obtaining financial licenses

Step-by-step algorithm for preparing a Legal Opinion

Common mistakes when preparing a legal opinion

Legal Opinion in different jurisdictions

Legal Opinion for the EU

Legal Opinion for Asia

Legal Opinion for Africa

The impact of a Legal Opinion on attracting investment

Checklist: what to include in a Legal Opinion

• Clear definition of the subject of the opinion and the addressee
• Brief summary of conclusions
• Description of factual circumstances and the company’s structure
• Analysis of applicable legislation (references to articles)
• Detailed analysis of AML and KYC procedures
• Analysis of corporate governance and ownership structure
• risk assessment of non-compliance with financial regulation
• Analysis of contractual obligations and potential disputes
• Assessment of compliance with data protection requirements (GDPR)
• Clear conclusions and recommendations
• Limitations and disclaimers
• Signature of a qualified lawyer, date, contacts
• References to sources and documents
• Appendices (copies of key documents)

Practical recommendations

What is the real risk for businesses? Why can even formally missing deadlines threaten not only six-figure fines, but also account freezes, license revocations and the loss of partners?

Здесь: не только аналитика, но и практические шаги, чек-листы и стратегические идеи, которые команда COREDO успешно реализует для клиентов в самых сложных юрисдикциях. Прочитайте статью до конца, чтобы не допустить критических ошибок и выстроить устойчивую систему AML compliance.

What is an AML audit for businesses in the Czech Republic

In the context of tightening regulatory requirements, it is precisely the AML audit that helps companies not only comply with the law but also minimize the risks of financial sanctions and reputational damage.

Definition of an AML audit and its role in compliance requirements

Internal audit allows identifying gaps in procedures, assessing the effectiveness of current measures, while an external audit provides independent expertise and preparation for regulatory inspections. COREDO’s practice confirms: regular auditing reduces the risk of fines, account blocking and loss of licenses, and also increases the trust of banks and partners.

New AML requirements in 2025

From 2025, the FAU (Financial Analytical Office of the Czech Republic) tightened the requirements: the list of obliged entities has been expanded, mandatory registration of an AML contact person was introduced, procedures for identifying beneficial owners have been strengthened, and all processes must be documented and automated. The solution developed by COREDO for international clients includes integrating the new requirements into business processes and preparing for the deadline of 1 February 2025.

Penalties for AML violations in the Czech Republic

Violations are recorded in public registers, which leads to reputational losses and the severing of relationships with banks and investors. In COREDO’s practice there have been cases when late registration of an AML contact person led to the blocking of all outgoing payments until the violation was remedied.

AML audit in the Czech Republic, stages of implementation

Conducting an AML audit in the Czech Republic is not a one-time formality but a comprehensive process required for any business subject to anti-money laundering requirements. A step-by-step guide to the stages of an AML audit will help to understand the details of mandatory procedures, prepare the business for regulator inspections and build a compliance system that is resilient to risks and compliant with Czech legislation.

Preparation and planning of the AML audit

The first step is defining the scope of the audit and collecting all documentation: AML policies, KYC files, audit protocols, transaction registers. COREDO’s experience shows: thorough preliminary diagnostics make it possible to identify hidden risks and optimally allocate resources. At this stage the team is formed, key risk areas and audit priorities are determined.

Risk assessment and jurisdiction analysis

The COREDO team uses modern transaction analysis and client profiling tools, which makes it possible to detect anomalies and suspicious patterns at an early stage.

Review of client KYC procedures

The implementation of digital onboarding and remote verification, carried out by COREDO for fintech companies, speeds up the process and reduces the number of errors.

Analysis of transaction monitoring and suspicious operations

Modern transaction monitoring systems with AI support allow detecting suspicious operations in real time. It is important to assess the accuracy of anomaly detection, the level of false positives and the effectiveness of automated filters. In one of COREDO’s cases, the integration of AI modules reduced the number of false positives by 45% without loss of monitoring quality.

Review of sanctions screenings and PEP monitoring

Screenings must be integrated into the onboarding process and updated at least once a month. COREDO’s solution for the banking sector includes automatic matching with global lists and maintaining a history of checks.

Stage 6: Assessment of internal policies and documents

Internal AML policies must not only be formally approved but also regularly updated to reflect legislative changes. Special attention is paid to audit protocols, maintaining monitoring logs and the correctness of transaction registers. COREDO’s practice shows: a clear structure and allocation of responsibilities significantly increase the resilience of the compliance system.

Review of the suspicious transaction reporting system

It is important to ensure the completeness and quality of information, document all stages of preparation and analyze the history of submitted reports. In one of COREDO’s projects, automation of STR preparation reduced response time to 2 hours.

Assessment of AML competencies and personnel

Since 2025 the AML contact person must have confirmed qualifications and experience in the field of compliance. Assessing staff knowledge, regular training and testing are mandatory elements of an effective AML program. COREDO implements comprehensive training modules and retraining programs for clients from various industries.

Testing and verification of system effectiveness

Staff testing, analysis of previous incidents, internal audit and evaluation of training effectiveness make it possible to identify systemic problems and address them in a timely manner. The solution developed by COREDO provides for regular stress tests and an audit of the effectiveness of compliance processes.

Stage 10: Preparation of the Report and Recommendations

COREDO’s practice confirms: a clear follow-up audit plan increases the likelihood of successfully passing regulatory inspections.

AML compliance in the Czech Republic: requirements

Key requirements for AML compliance in the Czech Republic: these are not formal rules but a comprehensive system of measures that affects governance structure, internal processes and state supervision. New obligations came into force in 2025, including the appointment and registration of an AML contact person, without which companies risk facing serious sanctions and loss of trust from partners and regulators.

Appointment and registration of the AML contact person

Requirements include relevant education, experience in AML/compliance and timely updating of data via datová schránka. The contact person bears personal responsibility for interacting with regulators and the timely submission of STRs.

Requirements for internal AML policies

It is important to document all processes, allocate responsibilities and regularly update policies in accordance with new requirements.

Requirements for identification of beneficial owners

The tightening of requirements in 2025 requires the precise identification and disclosure of information about beneficial owners, regular verification of data and updating information when ownership structures change. All information must be entered into the register of beneficial owners and be available for inspection by regulators.

Requirements for KYC and Due Diligence procedures

All due diligence results are documented, and eKYC is integrated into onboarding processes to speed up and improve the accuracy of verification.

Transaction monitoring: detection of suspicious transactions

Criteria for identifying suspicious transactions must be formalized, and STRs must be submitted to the FAU within the established deadlines with a full package of information.

AML compliance solutions for the Czech Republic

Technological solutions for AML compliance in the Czech Republic are becoming increasingly sought after against the backdrop of tightening legislation and the rapid development of digital financial services. The integration of automated tools enables companies not only to meet regulatory requirements but also to significantly improve the efficiency of data processing and risk management. Below we will examine the key issues in choosing and implementing such solutions in practice.

Automation of AML processes: selection and implementation

For medium-sized companies, cloud-based transaction monitoring systems with the ability to integrate with CRM and ERP are optimal. Implementing such solutions, as COREDO’s experience has shown, makes it possible to reduce costs by 30–40% and increase the speed of transaction processing.

How AI detects suspicious transactions

AI and machine learning make it possible to detect complex anomalies, reduce false positives and analyze large volumes of data. The use of ML models in COREDO projects has shown an increase in the accuracy of detecting suspicious transactions to 98% and a reduction in the time to process STRs.

eKYC and digital onboarding: 2025 requirements

From 2025, eKYC and digital onboarding are becoming the standard for all companies subject to AML. The eIDAS regulation requirements include the use of biometric identification, remote verification and integration with government databases. COREDO’s solutions allow faster client onboarding and ensure full compliance with the new requirements.

Checklist for Preparing for an AML Audit in the Czech Republic

Requirements for different categories of companies

Specific requirements for different categories of companies determine the level of business responsibility and formal procedures under the law. For each sector of activity, not only the list of mandatory measures changes, but also the depth of control: this is particularly noticeable in the example of AML requirements for real estate agencies in the Czech Republic, where compliance rules and standards are updated annually.

AML requirements for real estate agents in the Czech Republic

Internal control and documentation of all operations are mandatory.

AML requirements for accounting and auditing firms

Accounting and auditing firms must implement internal AML control, train staff, record all suspicious operations and interact with the FAU upon their detection. In COREDO’s practice, automation of reporting has reduced the administrative burden by 25%.

AML requirements for financial and payment companies

Financial institutions supervised by ČNB are required to comply with enhanced requirements for licensing, capital, reserves and monitoring procedures. COREDO’s solutions include comprehensive preparation for licensing and support for interaction with ČNB and FAU.

Risk Management and Reputation

risk management and reputational security are the foundation for the resilience and development of modern business. An effective strategy in this area not only enables timely identification and mitigation of threats, but also strengthens the trust of clients, partners and investors. Below we will consider the key aspects of AML risk assessment and other important elements of a reputational security framework.

AML Risk Assessment in Business

The risk-based approach methodology involves regular risk assessments of customers, transactions, jurisdictions and products. The use of automated tools (for example, risk scoring platforms) allows COREDO to quickly identify and document critical risk areas.

Protection against Reputational Risks and Breaches

Violations of AML requirements lead to long-term consequences: loss of banks’ trust, contract terminations, and reduced investment attractiveness. Implementing whistleblowing procedures and fostering a culture of compliance are key elements of long-term business resilience.

Optimization of AML system costs

Optimizing operational costs when implementing AML systems has become a key factor in the long-term sustainability and efficiency of financial organizations. Today process automation of compliance allows significantly reducing the time, resources and costs related to combating money laundering, while reducing operational risks and increasing the transparency of business processes.

In this context, it is important to consider how to properly evaluate the ROI on investments in AML audit and automation, and which areas of optimization deserve attention.

Return on investment for AML audit and automation

According to COREDO’s experience, implementing automated AML systems pays off within 12–18 months through reduced operational costs, minimized fines and improved process efficiency. Performance metrics include TCO, onboarding speed and the percentage of detected suspicious transactions.

Outsourcing or an in-house compliance department

Outsourcing compliance functions is appropriate for small and medium-sized companies that need to rapidly scale AML operations. An in-house compliance department is necessary for large organizations with high transactional activity. Hybrid models implemented by COREDO enable optimal resource allocation and cost reduction.

Key Findings and Recommendations

For entrepreneurs:

• Appoint and register an AML contact person by 1 February 2025
• Conduct a full audit of procedures and address gaps
• Invest in monitoring automation
• Build a compliance culture through regular training

For executives and Compliance Officers:

• Develop an AML compliance development strategy with KPIs
• Use a risk-based approach to prioritize resources
• Integrate AML processes with CRM
• Conduct internal audits quarterly

For marketers and consultants:

• Emphasize experience working with the new requirements
• Create educational content
• Develop partnership programs with AML providers
• Showcase successful implementation cases

Universal 3-month checklist:

1. January 2025: audit, appointment of contact person, policy updates
2. February 2025: registration of the contact person with the FAU, implementation of automation
3. March 2025: staff training, KYC updates, internal audit

Additional resources and contacts

• Financial Analytical Office (FAU): AML regulator in the Czech Republic
• Czech National Bank (ČNB): supervision of financial companies
• European Commission – source of information on AMLD, 6AMLD
• COREDO consultants – expertise in legal and financial support for compliance projects

COREDO’s experience proves: a systematic approach, modern technologies, and professional support are the key to long-term success in the European market.

This article is not just a theoretical overview, but a practical guide based on the experience of COREDO in supporting fintech businesses in the markets of the EU, Singapore, the UK, the UAE and the CIS. I will explain how to build a Due Diligence system that will become not a burden, but a driver of growth and scaling. If your goal is to take the company to a new level, avoid fines and increase investment attractiveness, I recommend reading to the end: here you will find answers that really work.

Due diligence for fintech companies: what does it mean?

Due Diligence is not just a check, but a comprehensive systemic assessment of the financial, legal, technical and operational condition of a business. In fintech, Due Diligence takes on special significance due to the high market dynamics, the specifics of digital products and multi-level regulatory requirements.
In COREDO’s practice we distinguish several key types of Due Diligence:

• Financial Due Diligence: an in-depth analysis of financial statements, cash flows, debt load and investment risks.
• Legal Due Diligence – examination of licenses, contracts, ownership structure, litigation risks and compliance with standards (GDPR, AML, PSD2, etc.).
• Technical Due Diligence – audit of IT infrastructure, cybersecurity, platform scalability, technical debt.
• Operational Due Diligence – assessment of business processes, internal controls, corporate governance and compliance.

Why Due Diligence matters for fintech

COREDO has repeatedly encountered cases where lack of proper due diligence led to payment blocks, investigations by regulators and the collapse of M&A deals.

Components of Due Diligence in Fintech

The key components of Due Diligence in fintech are the foundation of a comprehensive review that helps investors and partners objectively assess a business, identify hidden risks, and ensure transparency across all processes. In fintech, individual review blocks take on particular importance, each revealing a critically important aspect of a company’s resilience and reliability.

Financial Due Diligence: analysis of stability

Financial Due Diligence begins with an in-depth analysis of financial statements: the balance sheet, the profit and loss statement, and the cash flow statement. At COREDO we apply methods to assess debt burden, analyze creditworthiness, identify hidden liabilities, and evaluate ROI metrics for each project.
We pay special attention to financial modeling and forecasting: this allows us to identify potential cash gaps, assess investment profitability, and prepare the company for scaling or capital raising.

Legal Due Diligence: protection against risks

Legal Due Diligence covers the review of licenses, permits, analysis of corporate agreements, ownership structure, litigation, as well as compliance with GDPR and AML requirements.
Solutions developed at COREDO include intellectual property audits, corporate governance analysis, and identification of potential legal obligations across different jurisdictions.

Technical due diligence: evaluation of IT infrastructure

Technical Due Diligence in fintech is not just an audit of IT systems, but a comprehensive assessment of architecture, cybersecurity, scalability, and technical debt.
The COREDO team has implemented projects where technical audits identified critical vulnerabilities that could lead to data breaches and violations of ISO 27001 or SOC 2 standards.

Due Diligence: Analysis of Business Processes

Operational Due Diligence includes analysis of key business processes, internal control systems (ERM), compliance, human resources management, as well as evaluation of suppliers and partners.

A comprehensive assessment of business processes makes it possible to identify weaknesses and optimize corporate governance.

AML and KYC in Due Diligence for fintech

Anti-money laundering procedures: mandatory requirements

Fintech Due Diligence at COREDO always includes the implementation of anti-money laundering standards, monitoring of suspicious activity, and client identification and verification.
In the EU and Singapore, regulators require not only the implementation of AML procedures, but also regular reporting, cooperation with regulators, and compliance with international standards (FATF, 6AMLD).

Know Your Customer (KYC): client verification

COREDO implements automated solutions for KYC, including biometric verification, big data analysis, and integration with international databases.

Stages of Due Diligence in Fintech

Stage 1: Planning and Preparation

Any Due Diligence begins with strategic planning: defining objectives, the scope of the review, assembling a team of experts, and developing a plan that takes industry specifics into account.

Information Gathering and Vulnerability Assessment

At this stage we collect and analyze financial, legal, and technical documentation, test IT systems, interview key personnel, and analyze the competitive environment.

Risk Analysis and Assessment

All identified risks are classified by category: financial, legal, operational, reputational, tax.
COREDO’s solutions allow assessing the severity and likelihood of each risk, matching them with potential threats, and setting priorities for corrective measures.

Stage 4: Documentation and Reporting

Final stage: preparing a detailed report describing identified issues, assessing their severity, and providing recommendations for remediation.

Due Diligence when registering a company in the EU and Asia

Key aspects of due diligence when registering in the EU

Registration of legal entities in the EU requires strict compliance with GDPR, AML and compliance procedures.
COREDO supports clients at every stage: from selecting the optimal jurisdiction to licensing and implementing corporate governance systems.

Due Diligence when entering Asian markets

In Asia (Singapore, Hong Kong, Japan) licensing and AML requirements may differ in details, but they are always stringent.
The COREDO team has implemented projects where special attention was paid to counterparty due diligence, analysis of currency and tax risks, and working with local consultants to meet the specific requirements of each jurisdiction.

Due Diligence for companies in Africa

COREDO helps build AML processes, combat terrorist financing, analyze the risks of working with local partners and consultants.
Special attention is paid to licensing financial services and checking the reputation of counterparties.

Due Diligence for investors and M&A transactions

Due Diligence for investments in fintech

Investors require transparency and full disclosure of information: financial statements, ownership structure, compliance, assessment of investment risks and ROI metrics.
В COREDO мы готовим компании к инвестиционным раундам, формируем документацию, отвечаем на типичные вопросы инвесторов и сопровождаем переговоры до закрытия сделки.

Due Diligence in M&A transactions

Legal expertise COREDO helps minimize risks related to integration and subsequent corporate governance.

Due Diligence when preparing for an IPO

An IPO is impossible without comprehensive Due Diligence: preparation of financial statements, review of corporate governance, mitigation of risks and interaction with investment banks and regulators.

Due Diligence Automation: tools and technologies

Artificial intelligence and machine learning in Due Diligence

Modern AI solutions allow automating the analysis of financial documents, detecting anomalies, analyzing contracts using natural language processing, and forecasting risks based on Big Data.
COREDO implements tools that reduce Due Diligence time by 2–3 times and increase the accuracy of risk detection.

Big Data and analytics in Due Diligence

Big data analytics tools make it possible to integrate information from different sources, identify patterns, visualize risks and conduct real-time monitoring.

Due diligence platforms: automation

The market offers platforms that integrate financial, legal, and technical Due Diligence, enabling companies to reduce costs and increase automation ROI.
COREDO helps choose and implement the optimal tools taking into account the specifics of the business.

Due Diligence for startups: what is it?

Due Diligence for fintech startups

COREDO recommends simplified Due Diligence procedures for startups: documenting processes, preparing for the first funding round, minimizing common mistakes.

Due Diligence for scaling

Due Diligence allows assessing the risks when entering new markets, selecting reliable partners, adapting management processes and integrating Due Diligence into corporate governance.

Verification of Counterparties and Partners

Counterparty Checks in Fintech

Counterparty checks are not only an analysis of financial stability, but also an assessment of reputation, compliance with regulatory requirements, creditworthiness, and ongoing monitoring.
COREDO implements automated systems that enable comprehensive partner checks in the EU, Asia, and the CIS.

Due Diligence with International Partners

COREDO’s experience confirms: working with local consultants and experts helps minimize risks and increase the effectiveness of Due Diligence in international transactions.

Practical recommendations and conclusions

Practical recommendations and key conclusions help increase the effectiveness of the Due Diligence process and account for potential risks at each stage of the review. Below are the most common mistakes to avoid so that Due Diligence results truly reflect an objective picture of the business.

Common mistakes in due diligence

• Insufficient depth of analysis
• Ignoring operational and technical risks
• Incorrect assessment of regulatory requirements
• Lack of monitoring after the review is completed
• Insufficient attention to security
• Wrong choice of experts

Best practices for due diligence in fintech

• Comprehensive approach: financial, legal, technical and operational Due Diligence
• Use of automated tools and AI
• Engaging qualified experts
• Documenting all stages
• Regular monitoring
• Integrating Due Diligence into corporate governance

How to choose a Due Diligence consultant

• Assess experience, qualifications and reputation
• Check the portfolio and case studies
• Evaluate cost and ROI
• Agree on timelines and scope of work
• Maintain continuous communication at all stages

Comparative Due Diligence Table

Practical steps for implementing Due Diligence in fintech

Implementing Due Diligence in a fintech company requires a systematic approach and detailed planning of each stage. The practical steps described below will help the company minimize risks, increase process transparency, and comply with regulatory requirements.

Defining Due Diligence objectives

• Choose the type of review (financial, legal, technical, comprehensive)
• Define the timeline and budget
• Form a team of experts

Prepare documentation

• Collect financial statements for 3–5 years
• Prepare legal documents (contracts, licenses, incorporation documents)
• Document the IT infrastructure and security processes

How to conduct the analysis

• Financial analysis (cash flows, debts, profitability)
• Legal review and compliance check
• Audit of technical systems and security

How to identify and assess risks?

• Classify risks by category
• Assess severity and likelihood
• Prioritize corrective measures

Prepare the report and recommendations

• Document identified issues and risks
• Propose recommendations
• Develop an action plan

Implementing the results

• Implement measures to mitigate risks
• Set up monitoring systems
• Integrate Due Diligence into corporate governance

Key takeaways for entrepreneurs

COREDO’s experience proves: systematic Due Diligence is an investment in transparency, trust and sustainable growth for your fintech business. If you’re ready to take your company to the next level and minimize risks in any jurisdiction, the COREDO team is always ready to become your strategic partner.

In 2025 more than 70% of new European fintech companies choose Lithuania or Estonia to obtain an E-money license and launch international payment services. Why? Competition for speed to market and regulatory flexibility in the EU is reaching a historic high: in the context of tightening AML requirements and the implementation of MiCAR, the right choice of jurisdiction becomes not just a matter of savings: it is a strategic factor for the survival and scaling of the business. But where are the conditions for registering a fintech company and obtaining an EMI license truly optimal: in Lithuania or Estonia? How not to make the wrong choice between the “digital state” and the “fintech hub of Europe”?

I encounter this question every day: entrepreneurs, executives and investors expect not abstract comparisons but concrete, practice-tested solutions. That is why I invite you to go through this path together, from analyzing key parameters to strategic choice scenarios. In this article you will find not only an expert comparison of EMI vs PSP in the two leading EU jurisdictions, but also practical recommendations based on the experience of COREDO and current international standards. If you want to obtain an EMI license quickly, transparently and with minimal risks, read to the end: here you will find all the necessary information to make a well-informed decision.

Lithuania and Estonia, leaders in EU fintech licensing

Lithuania and Estonia have become real leaders in EU fintech licensing thanks to a combination of progressive regulation, fast procedures and support for innovation. These countries attract fintech companies from around the world by offering transparent conditions and access to the European market.

Lithuania as Europe’s fintech hub

Lithuania confidently holds leading positions in the number of issued EMI licenses and payment service licenses in the EU. Over the past five years the COREDO team has implemented more than 30 projects for registering fintech companies in Lithuania, and each time the high speed and transparency of procedures has been noted. The Bank of Lithuania has implemented a progressive regulatory framework fully compliant with EU directives, which allows rapid adaptation to new requirements, including PSD2 and MiCAR.

The state actively supports fintech startups: tax holidays are in effect, innovation funding programs, and special grants for R&D. Lithuania’s developed fintech ecosystem brings together banks, payment institutions, compliance providers and technology platforms, creating a favourable environment for scaling a business. COREDO’s experience confirms: for companies aiming for a rapid market entry into the EEA and cost optimisation, Lithuania is one of the most attractive options.

Estonia, digital technologies and leadership

Estonia: a global benchmark for digitalisation: 99% of financial transactions here are carried out online, and government services are available around the clock through a single digital portal. The e-residency program offers foreign entrepreneurs a unique opportunity to manage a business completely remotely, using a digital ID to sign documents, open accounts and integrate with global payment systems (PayPal, Stripe, virtual cards).

The Bank of Estonia has created a flexible regulatory sandbox that allows testing innovative fintech products in real conditions with minimal bureaucratic barriers. The solution developed at COREDO for one of its clients — a startup in the API payments field — allowed the service to be fully integrated with European banks and to complete all stages of licensing online within three months.

Comparison of EMI licenses: Lithuania and Estonia

EMI licenses in Lithuania and Estonia are two popular choices for fintech companies seeking access to the European payments market. Both jurisdictions offer key advantages for fintech development, but they differ in licensing timelines, capital requirements and regulatory conditions. Let’s review the main parameters of these two countries to understand which jurisdiction is better suited for your project.

How to obtain a license?

COREDO’s experience shows that Lithuania provides a faster licensing process thanks to optimized procedures at the Bank of Lithuania and a clear communication system with the regulator.

Minimum capital requirements

Cost of obtaining an EMI license

Lithuania:

• State fee: €500–€1,000
• Legal support: €3,000–€8,000
• Preparation of compliance documents: €2,000–€5,000
• Total cost: €5,500–€14,000

Estonia:

• State fee: €600–€1,200
• Legal support: €3,500–€9,000
• Preparation of compliance documents: €2,500–€6,000
• Total cost: €6,600–€16,200

Regulatory framework and compliance

The regulatory framework defines a structured set of policies, procedures and control measures that organizations must implement to comply with legal requirements and industry standards. The crypto and traditional financial sectors have encountered new challenges that require rethinking approaches to risk management and regulatory compliance. The move to MiCAR and CASP regulation represents an evolution in financial rules, where organizations need to adapt their management, control and audit systems to new requirements and regulators’ expectations.

MiCAR and CASP: how to adapt

Lithuania is actively adapting the regulatory environment to MiCAR requirements and provides clear guidance for the transition of VASPs to CASP status by June 1, 2025. The Bank of Lithuania publishes transparent criteria, which minimizes risks for companies working with crypto assets. In one of COREDO’s cases, a client was able to complete the entire process from VASP registration to obtaining a CASP license in less than 8 months, thanks to competent preparation of compliance documents and close cooperation with the regulator.

Estonia has already fully implemented MiCAR and DORA, imposing higher requirements on risk management and corporate governance. This creates an additional burden on compliance teams but ensures a high level of digital resilience and security.

PSD2 and Open Banking: What You Need to Know?

In both jurisdictions, the PSD2 directive is fully implemented, allowing provision of API payments, open banking and cross-border payments across the entire EEA. Lithuania has a more flexible approach to PSD2 integration, which is convenient for companies developing their own open banking models. Estonia emphasizes digital security and integration with digital ID for user authentication.

AML and KYC requirements

Taxes for startups: benefits and support

Tax advantages and startup support have become key tools for the rapid growth of new companies, reducing financial barriers at the start and stimulating technological innovation. Many European countries are developing special measures, from tax holidays to grants and R&D incentives, – making the launch and development of a startup significantly more accessible and predictable.

Lithuania: tax holidays and R&D incentives

Lithuania offers unique tax holidays for fintech startups and a triple deduction of R&D expenses. For example, a company with €100,000 in research expenses can deduct €300,000 from its taxable base, resulting in savings of €60,000–€90,000 per year. COREDO has repeatedly assisted clients in structuring R&D projects to maximize these incentives, reducing the tax burden and accelerating return on investment.

Estonia: digital infrastructure and costs

Estonia focuses on cutting administrative costs: e-residency allows managing a company online, and integration with PayPal, Stripe and virtual cards lowers banking service costs. According to COREDO’s estimates, savings on administrative expenses can reach €3,000–€5,000 per year, especially for distributed teams and companies without a physical office.

Passport rights and access to the EEA market

Passport rights directly determine the possibilities of movement and legal residence in the countries of the European Economic Area (EEA). Thanks to new digital rules and border control systems, access to the EEA market is becoming more transparent and regulated, and holders of member state passports receive special advantages.

Lithuania: passport rights in 30 EEA countries

An EMI license obtained in Lithuania grants the right to provide e-money and payment services in all 30 EEA countries without the need to obtain additional licenses. This opens up opportunities for scaling, launching cross-border payments, remittance services, e-wallets and digital banking products with minimal barriers.

Estonia: passport rights and digital capabilities

An Estonian EMI license also provides full access to the EEA market, but the key advantage is the digital infrastructure that allows rapid business scaling and integration with international payment systems through API-based payments and open banking.

Types of EMI licenses: how to choose optimally?

Types of EMI licenses determine the range of capabilities and restrictions for financial organizations in Europe. Choosing the right license option is a key step when launching a payment service, affecting the scale of operations and regulatory requirements. Let’s look at the main differences between a full and a limited EMI license.

Limited Activity EMI vs Full EMI license

In Lithuania two models are available: a full EMI license to operate across the EEA and a Limited Activity EMI for startups with limited turnover operating only in Lithuania. The latter option allows reducing capital and governance requirements, which is ideal for testing an MVP. Estonia has a similar structure with a focus on digital testing and the possibility of using a regulatory sandbox.

EMI solutions for different business models

Specialized EMI solutions open up new opportunities for various business models, allowing flexible adaptation of financial services to specific market needs. With tailored approaches, companies can effectively scale their services and offer customers modern payment tools.

EMI for e-wallet and digital banking

EMI and CASP licensing for crypto platforms

Lithuania is actively implementing MiCAR and provides clear conditions for transitioning VASPs to CASP status. Estonia has already completed the full transition, imposing strict requirements on risk management and digital security. For companies focused on crypto services, the choice depends on the readiness for stricter compliance (Estonia) or flexibility and speed (Lithuania).

EMI for international payments

Both countries support SEPA and international payment networks. Lithuania stands out with a more flexible approach to structuring remittance operations, as evidenced by COREDO’s successful projects launching cross-border services for clients from Asia and Europe.

EMI for B2B and API payments

In Lithuania it’s easier to implement flexible B2B solutions with minimal documentation requirements, while Estonia specializes in API-based payments and full integration with digital ID for corporate clients.

Registration and Obtaining a License

The process of company registration and obtaining a license in Lithuania are mandatory steps for starting a legal business. Understanding the step-by-step procedure will help avoid mistakes and accelerate market entry.

Step-by-step process in Lithuania

1. Preparation (1–2 недели): company registration, preparation of incorporation documents, gathering information about the structure and business plan.
2. Application submission (1 неделя): forming a complete package for Bank of Lithuania, including a compliance plan, risk management framework, corporate governance structure, proof of capital.
3. Review (6–9 месяцев): preliminary check, information requests, compliance audit, final approval.
4. obtaining a license (1–2 недели): registration in the EMI register, start of operational activities.

Step-by-step process in Estonia

1. E-residency (2–3 недели, опционально): obtaining a digital ID.
2. Company registration (1–2 дня): online via e-services, digital signing of documents.
3. preparation for licensing (2–3 недели): preparation of documents for Bank of Estonia, DORA-compliant risk management.
4. Review (8–12 месяцев): emphasis on digital security and DORA compliance.
5. Obtaining a license (1 неделя): integration with the Estonian regulatory system.

Infrastructure and technologies: what are they?

Infrastructure and technological support form the necessary foundation for the development of innovative businesses and the attraction of investment. Thanks to a strong ecosystem, specialized zones and support programs, Lithuania creates favorable conditions for technology companies and testing new solutions.

Lithuania: an ecosystem for startups

Lithuania offers a developed fintech ecosystem, a regulatory sandbox for testing innovations, government grants and banking support for EMI companies. In one of COREDO’s cases a client managed to test a new remittance service in the sandbox and receive feedback from the regulator within 4 months, which allowed them to quickly refine the product and enter the market.

Estonia: digital infrastructure and innovation

Estonia: a world leader in digitization, with full integration of digital ID and the ability to manage a business entirely online. The regulatory sandbox and e-residency make Estonia an ideal platform for digital banking and API payments. COREDO’s solution for one client made it possible to launch a B2B platform with integration into European banks in less than 5 months.

Comparison table: Lithuania and Estonia

Practical scenarios for choosing a jurisdiction

choosing a jurisdiction for your business, a task that requires considering many factors: from a startup’s budget to growth goals and market specifics. Below are practical scenarios to help determine which jurisdiction to choose depending on your situation and priorities.

Startup with a limited budget

Recommendation: Lithuania

Lithuania: an optimal choice for startups due to low licensing costs, tax holidays and the Limited Activity EMI option. The regulatory sandbox allows testing the product without significant expenses, and state support and grants reduce risks at the launch stage.

Practical steps:

1. Register a company (€265–€500)
2. Apply for Limited Activity EMI
3. Take advantage of tax holidays and R&D deductions
4. After the pilot, scale the business across the EEA

Company focused on digital innovations

Recommendation: Estonia
For digital banking, API payments, virtual cards and running a company online, Estonia offers the best conditions: advanced digital infrastructure, e-residency, integration with digital ID and minimal administrative costs.

Practical steps:

1. Obtain e-residency (2–3 weeks)
2. Register the company online
3. Prepare licensing documents with emphasis on DORA compliance
4. Launch the product with integration of digital ID and API payments

The choice between Lithuania and Estonia is a strategic decision that determines the speed, cost and scalability of your fintech business in the EU. COREDO’s experience shows: both jurisdictions can become a reliable platform for international growth if chosen taking into account the specifics of the business model and scaling objectives.

In 2024, Ireland became one of the three global leaders in fintech sector growth, and its 12.5% corporate tax rate is one of the lowest in Europe. According to World Bank Doing Business, Ireland ranks in the top 5 countries for ease of doing business, and venture investments in fintech here grew by 40% year-on-year. But why do most international fintech startups choose Ireland to register a company? And how can you avoid the mistakes that annually lead to loss of licences and account freezes?

If you are looking for a jurisdiction to scale your business, minimize tax burden and quickly enter the EU market – this guide will give you not only answers, but also concrete steps tested in practice by the COREDO team. Read to the end: you will learn how to use tax incentives, obtain grants up to €320 000 and ensure full compliance with the requirements of the Central Bank of Ireland.

Why Ireland is the best jurisdiction for fintech

Let’s look at the key advantages that make Ireland an attractive choice for fintech businesses, starting with the corporate tax rate of 12.5% as a significant competitive advantage.

Ireland’s 12.5% corporate tax as an advantage

Access to the EU market from Ireland

Ireland’s EU membership provides protection of intellectual property, unified compliance standards, and the possibility of integration with European payment systems. EU legislation and its influence on fintech companies in Ireland are not only requirements but also strategic advantages for international business.

startup support in the innovation ecosystem

Tax incentives and regimes for fintech in Ireland

tax incentives and regimes for fintech companies in Ireland open up wide opportunities for effective tax planning and fostering innovation. Ireland offers special mechanisms, reduced rates and unique tax initiatives that make it one of the most attractive jurisdictions for fintech business. Let’s consider the key preferential tax regimes that benefit technological and innovative companies.

KDB tax regime: rate 6.25%

R&D tax credits: how to get them?

To optimize taxes it is important to properly document expenses and meet the qualification criteria. Registering a fintech company in Ireland with a focus on R&D opens access to additional grants and support from government agencies.

International double taxation treaties

Registration of a fintech company in Ireland

Registration of a fintech company in Ireland: this is a multi-stage process where each step requires a careful approach and understanding of the nuances of local legislation and the business environment. In this step-by-step guide we will examine in detail the key stages of creating a fintech business, starting with choosing the optimal company structure and the subsequent preparation of documents.

Choosing a company structure for fintech in Ireland

The right choice of structure is the basis for successful company registration in Ireland. The most popular options for fintech are:

company registration in Ireland: documents and requirements

• Articles of association
• KYC documents of founders and directors
• Proof of address
• Qualified Electronic Signature for account opening

Registration timeframe – no more than 3 working days. The solution developed by COREDO allows completing all stages remotely, including identification via digital signature and remote account opening.

Requirements for resident directors and company management

Alternative solutions include appointing a nominee director or using professional management services.

Account opening and fintech solutions

• KYC documents
• Qualified Electronic Signature
• Proof of company registration

Licensing of fintech companies in Ireland

Licensing and regulation of fintech companies in Ireland are built on a combination of European directives and national legislation, providing strict oversight by the Central Bank of Ireland (CBI). Before launching a fintech business, companies need to take into account the CBI’s requirements, which cover capital, structure, compliance and risk management procedures, as well as mandatory registration and adherence to AML/KYC standards.

Central Bank of Ireland requirements for fintech companies

• Prepare a business plan describing corporate risk management processes
• Appoint a compliance officer
• Implement AML/KYC procedures

KYC and AML requirements for fintech companies

The COREDO team implements KYC/AML processes taking into account EU and CBI requirements, ensuring legal compliance and protection from sanctions.

Licensing of virtual asset providers and crypto companies

• Confirmation of the origin of funds
• Implementation of AML policies
• Hosting servers in Ireland

Advantages of registering a company for crypto fintech in Ireland include access to the European market, protection of intellectual property and the ability to work with international investors. An EMI (Electronic Money Institution) license opens additional opportunities to scale the business.

Grants for fintech startups in Ireland

Financial support and grants play a key role in the development of fintech startups in Ireland, creating favorable conditions for launching and scaling innovative projects. Government agencies actively assist companies by offering targeted funding programs and grant support.

IDA Ireland and Enterprise Ireland grants

• Prepare a business plan
• Demonstrate the project’s innovation
• Meet the selection criteria

The COREDO team has assisted fintech startups at all stages of obtaining grants, including document preparation and interaction with government agencies.

Tax incentives for startups up to €320 000

A solution implemented by COREDO for one client allowed covering 40% of startup costs through tax benefits.

SEAI energy efficiency grants program

COREDO supports clients at all stages of the application process, including infrastructure audits and preparation of technical documentation.

Strategy and ROI of registration in Ireland

The strategic advantages and ROI of registration in Ireland are directly linked to a stable business environment, competitive taxation, and access to European markets. Choosing this jurisdiction not only reduces costs but also strengthens the company’s position internationally, which is important for long-term return on investment.

Ireland’s Index of Economic Freedom

Our experience at COREDO has shown that a high ease-of-doing-business ranking (Doing Business ranking) directly affects the speed of scaling and attracting investment.

Fintech venture funding in Ireland

COREDO advises on attracting venture financing, structuring funds, and optimizing tax burden.

Human capital and business infrastructure of Ireland

Risks, limitations and recommendations

risk management and compliance are key elements of a sustainable business, allowing the identification of potential threats, adherence to limitations and minimization of the consequences of breaches. Below are the main requirements that will help effectively organize a risk management and compliance system in the company.

Requirements for risk management and compliance

COREDO recommends preparing compliance and reporting processes in advance to avoid fines and account freezes.

Registration of non-resident companies

For companies with remote management in Ireland the “Mind & Management” requirement applies — having a resident director or locating key servers in the country. Alternative solutions include appointing professional managers and integrating with local service providers.

How to avoid mistakes when registering

Practical steps and conclusions

Practical steps and key takeaways are the foundation of a successful start for every entrepreneur. In this section we will outline a clear course of action: from shaping the idea to obtaining documents, so you can go through the registration process as consciously as possible and without unnecessary mistakes.

Checklist: from idea to registration for entrepreneurs

Recommendations for types of fintech companies

• payment systems: Private Company Limited by Shares, focus on AML/KYC and EMI licenses.
• Crypto companies: separate CBI license, hosting servers in Ireland, emphasis on AML.
• Investment funds: LLP, tax preferences for investors, venture financing.
• R&D centers: use of tax credits and the Knowledge Development Box.
• Companies with remote management: professional managers, digital identification, remote registration.

Key conclusions and recommendations

The CBI’s “Mind & Management” requirement demands either a resident director or locating key servers in Ireland: this should be considered when planning the structure.

Frequently Asked Questions (FAQ)

Due to low corporate tax, access to the EU market, a developed ecosystem, and startup support.

12.5% rate, Knowledge Development Box regime (6.25%), R&D tax credits (25%), tax incentives up to €320 000.

Via the CRO, using a digital signature; articles of association, KYC documents, proof of address are required.

Presence of a resident director or local server hosting, implementation of AML/KYC, a business plan, compliance procedures.

A 25% tax credit on qualifying expenditures, grants from IDA Ireland, the Knowledge Development Box regime.

compliance requirements, the need for a resident director, server hosting, strict oversight by the CBI.

Submit an application to the CBI, implement AML/KYC, host servers, pass source-of-funds checks.

Access to the EU market, venture funding, government grants, developed business infrastructure.

Resources for work

• Official website of the CRO (Companies Registration Office)
• Central Bank of Ireland (CBI)
• IDA Ireland: grants and support
• Enterprise Ireland: mentoring and funding
• Document templates for company registration
• contact details for COREDO legal and tax advisors

Success stories

If you plan to scale a fintech business: Ireland offers not just attractive conditions, but a strategic platform for growth. Solutions developed by COREDO make it possible to go from idea to entering the European market quickly, transparently, and with maximum support at every stage.

In 2024, more than 60% of transactions to purchase ready-made financial companies in Europe and Asia were accompanied by the discovery of hidden risks that could have resulted in losses of millions of euros, and that’s only the official statistics. Imagine: you acquire a business with a license, a track record and a client base, but a few months later you face account freezes, lawsuits or sudden demands from regulators. Why do even experienced entrepreneurs and chief financial officers fall into such traps? How can you distinguish a promising deal from a potential disaster? And most importantly – how do you implement a strategy for buying a ready-made financial company so that it becomes a growth driver rather than a source of problems?

As the founder of COREDO, I see every day how entrepreneurs from the EU, Asia and the CIS look for quick and effective ways to enter new markets through the acquisition of ready-made companies. But success here is impossible without a deep understanding of the risks, the nuances of legal support and modern AML compliance requirements. In this article I will examine in detail the advantages and pitfalls of purchasing a ready-made financial company, drawing on COREDO’s practice, international standards and real cases. If you want not just an overview but a strategic guide – read to the end.

Buying a Ready-Made Financial Company: Pros and Cons

Buying a ready-made financial company is a strategy that allows an entrepreneur to take advantage of an already operating business model and gain access to all necessary resources from day one. This approach offers a number of advantages: from an immediate start to minimizing the risks associated with launching a new venture. Below we will look at how buying an existing business differs from creating a company from scratch and what specific benefits it brings.

Advantages of Buying a Business Versus Creating One from Scratch

Buying a ready-made financial company is not just about shortening the time to market. It is an opportunity to obtain licenses, a customer base, refined business processes and a reputation that have been built up over years.

Key advantages of buying a ready-made business:

• Time savings: Registration of legal entities in the EU and obtaining licenses can take from 6 to 18 months, while buying a ready-made structure allows you to start almost immediately.
• Access to licenses: many jurisdictions are tightening requirements for new applicants, but ready-made companies often already comply with all regulatory standards.
• Stable business processes: by acquiring a company with a history, you obtain a refined management system, which is especially important for financial organizations.
• The advantages of buying a ready-made business include the ability to use existing bank accounts, IT infrastructure and contracts with partners.

Fast Registration and Start of Operations

In jurisdictions such as Singapore, company registration takes from 15 minutes to 3 days provided all documents are available and the ACRA requirements are met. In the Czech Republic, Slovakia and Cyprus the process can take up to a week. On the other hand, when buying a ready-made business, starting operations can be possible literally the next day after the change of owner.

Features of registering legal entities in the EU, Asia and Africa:

• In the EU – strict requirements for structure transparency, disclosure of beneficiaries and compliance with AML.
• In Asia, for example in Singapore, company registration through BizFile+ allows foreign investors to own 100% of the capital, and the minimum charter capital is only 1 SGD.
• In Africa, where many countries are introducing electronic registers, Company registration has become more transparent, but requires a deep understanding of local corporate law.

Retaining Clients and Reputation

Buying a ready-made company allows you not only to acquire assets, but also to retain the customer base, which significantly reduces risks when entering a new market.

Risk management when acquiring a ready-made business requires careful communication with key clients and partners, as well as analysis of the company’s reputational history.

Risks of buying a ready-made financial company

The risks of buying a ready-made financial company can turn out to be significantly higher than expected, since uncovering all hidden liabilities and debt traps can be difficult even during a detailed due diligence. To minimize the consequences of such risks, it is important to understand the key threats and the ways to detect and prevent them in advance.

Financial risks when buying a business: debts and liabilities

One of the main risks of buying a business is the presence of hidden debts, unrecorded obligations and off‑balance‑sheet operations.

To minimize financial risks when buying a business:

• It is necessary to carry out an in-depth financial audit and review of the reporting, including analysis of all bank transactions for the last 3–5 years.
• Assessment of the company’s liquidity and profitability should include the calculation of key financial metrics: EBITDA, net profit, debt burden, and the current liquidity ratio.
• Special attention should be paid to companies with a history of AML compliance issues: even minor violations can lead to account freezes and license revocations.

Legal risks of buying a business in Europe, Asia, Africa

Legal due diligence of an established business in the EU is not only an analysis of the incorporation documents, but also a comprehensive assessment of all contractual obligations, litigation and the compliance of corporate governance with regulator requirements.

registration specifics of a legal entity in Asia:

• In Singapore, registration in the register of controllers and disclosure of beneficiary information is mandatory.
• In some African countries, foreign investors are subject to special requirements on minimum capital and business localization.
• Legal aspects of buying a business in Europe include mandatory checks for sanctions, restrictions on changes of ownership and compliance with corporate law.

AML risks when acquiring financial companies

Reputational risks: one of the most difficult factors to assess. A company may have impeccable reporting but be involved in litigation or AML-related investigations.

Best AML practices when buying a financial company:

• Screening all beneficiaries and top managers against PEP lists and sanctions registers.
• Analysis of the internal AML policy, KYC procedures and reporting of suspicious transactions.
• Implementation of in-house AML services and internal controls immediately after the transaction is completed.

Tax risks and planning when buying a company

Tax planning and risks when buying a business are often underestimated. Different EU jurisdictions have their own rules on the taxation of profits, dividends and capital gains. In a number of COREDO cases, optimizing the deal structure made it possible to significantly reduce the tax burden by using double tax treaties and special tax regimes for holding companies.

Key tax risks:

• Unrecognized tax liabilities from prior periods.
• Changes in the company’s tax residency after a change of owner.
• Special reporting and disclosure requirements for foreign investors.

Company check prior to purchase

Inspection and evaluation of a ready-made company before purchase: is not a formality but a mandatory step that protects the buyer from hidden financial and legal risks.

A comprehensive approach to evaluating a business allows not only to avoid unpleasant surprises, but also to make a balanced investment decision by analyzing the company’s financial position, legal integrity, management structure and market position.

Comprehensive legal audit and due diligence

Comprehensive review of a ready-made company before purchase: is a multi-level process that includes:

• Legal audit of the ready-made business: analysis of founding documents, corporate structure, licenses, court disputes and obligations.
• Due Diligence: review of all agreements, contracts, debt obligations, as well as compliance of operations with AML requirements and other regulators.

Assessment of financial condition and reporting

Financial audit and review of reporting should include:

• Analysis of balance sheets, profit and loss statements, and cash flow statements for 3-5 years.
• Verification of real profits and hidden debts, including liabilities under court judgments and off-balance-sheet operations.
• Assessment of the company’s liquidity and profitability, calculation of ROI and other financial metrics to evaluate the ready-made business.

Valuation of intangible assets and goodwill

Valuing intangible assets when buying a business is no less important than analyzing financial indicators. Goodwill, the client base, IT developments, licenses and trademarks can account for up to 70% of the value of a financial company.

Verification of counterparties and partnerships

Verification of counterparties and partnership relations – is a mandatory step in supporting transactions with a ready-made business. It is important not only to confirm the reliability of key partners, but also to assess the risks related to existing contracts, obligations and potential legal claims.

Legal support for the purchase of a financial company

Legal transaction support for the purchase of a ready-made financial company is a comprehensive service aimed at ensuring the transparency, legality and security of transferring control over a business. At every stage, the assisting lawyers verify the company’s legal standing, prepare the necessary documents and protect the client’s interests, reducing risks in formalizing the transfer of the business.

What do transaction support and business transfer include?

Legal support for companies when purchasing a ready-made business – is not only the preparation and review of documents, but also comprehensive management of all stages of the transaction:

• Preparation of the SPA (Share Purchase Agreement), meeting minutes, and notifications to regulators.
• Formalizing the transfer of the business and change of ownership in accordance with the jurisdiction’s requirements.
• Re-registration of licenses, contracts with banks and partners.

Corporate law and transactions in the EU, Asia and Africa

Corporate law in the EU, Asia and Africa has its own specifics:

• In the EU, strict requirements for disclosure, corporate governance and reporting.
• In Asia: fast registration procedures, but special attention to business localization and the presence of resident directors.
• In Africa, emphasis on protecting the rights of foreign investors and complying with local regulations.

Resolving legal disputes after the purchase

Risk management when acquiring a ready-made business does not end at the transaction stage. It is important to establish a monitoring system that allows for the prompt identification and elimination of new risks related to legal disputes, counterparty claims, and changes in legislation.

If problems with counterparties arise after purchasing a company, COREDO’s practice recommends:

• Conduct a review of all active contracts.
• Implement dispute resolution procedures at the pre-litigation stage.
• If necessary, involve international arbitrators and specialized consultants.

Tax support and optimization

Tax support – is not only proper structuring of the transaction, but also optimization of the tax burden, taking into account tax residency specifics, preparing reports and interacting with tax authorities in different jurisdictions.

Registration of legal entities in different regions

registration of legal entities and the specifics of operating in different regions are a key step for bringing a business to international markets and for effective operation in new jurisdictions. Each EU country imposes its own requirements on the company registration process, and regional specifics can significantly affect future operations and business development prospects. Below we will look at how procedures and requirements for companies in the EU are arranged.

Registration of companies in the EU — features and requirements

Registration of legal entities in the EU requires compliance with strict standards of transparency, disclosure of beneficiary information and adherence to AML policies. In some countries, for example Estonia and Cyprus, electronic registry systems are in place, which speed up the process and increase its transparency.

Legal due diligence of a ready-made business in the EU should necessarily include an analysis of the compliance of corporate governance with European directives, as well as checks for sanctions and restrictions.

Business registration in Asia: step by step

Company registration in Asia and Africa is characterized by high speed and accessibility for foreign investors. In Singapore, for example, all procedures are fully digitized, and the minimum share capital is only 1 SGD.

Which documents to check when buying a ready-made company in Asia:

• Incorporation documents and licenses.
• Agreements with banks and payment systems.
• AML compliance certificates and internal KYC policies.

Registration and investment in African countries

The specifics of registering legal entities in African countries for foreign investors include requirements for minimum capital, mandatory participation of local partners, and compliance with national business localization programs.

Strategies for scaling a business after acquisition

Strategies for scaling and integrating a business after a purchase open up new growth opportunities but require a thoughtful approach to developing and aligning processes. The right choice and implementation of a strategy not only enable expansion of market presence but also increase the efficiency of the new entity after the deal.

How to scale a business after acquiring a company

Scaling a business after purchasing an established financial company requires strategic planning, integration of business processes, and development of new directions. COREDO’s experience shows: the most effective strategies combine organic growth with the introduction of innovative products and expansion into new markets.

Key steps:

• Developing a plan for integrating IT systems and business processes.
• Introducing new financial services and expanding the product line.
• Assessing investment attractiveness and ROI to attract further capital.

Personnel management and employee retention

personnel management and retention of key employees are a critical success factor after an ownership change. At COREDO we recommend developing individualized incentive programs, providing training and team integration to retain expertise and employee loyalty.

Optimization of business processes and company resilience

Analysis and optimization of business processes is a mandatory stage after acquiring a business.

How to buy an existing financial company?

• Buying an existing financial company is an effective tool for quickly entering new markets, but only if accompanied by thorough due diligence and professional legal support.
• Main advantages of buying an existing business: time savings, access to licenses, retention of the client base and reputation.
• Key risks: hidden debts, legal and tax liabilities, reputational and AML risks.
• Practical steps: comprehensive company due diligence, assessment of the financial condition, analysis of intangible assets, verification of counterparties and partners.
• To minimize risks, it is important to engage experts with experience in handling transactions in international jurisdictions and deep knowledge of corporate and tax law.
• Choosing a reliable partner for legal support is the key to successful integration and scaling of the business.

In 2025, more than 70% of new fintech companies in Europe and Asia face licensing delays, losing up to 18 months of operational time and hundreds of thousands of euros on additional approvals and repeated reviews. Behind this dry statistic lies a fundamental problem: most entrepreneurs and finance directors do not understand how a bank license in the EU fundamentally differs from a financial license, what opportunities and restrictions they bring to a business, and how to choose the optimal scaling path amid strict regulation and growing competition.

Why can obtaining a license in Luxembourg take twice as long as in Lithuania? What minimum capital is required for an EMI, PI or a universal bank? What risks and AML compliance costs should be budgeted to avoid sanctions and account freezes? And finally, which type of license will realistically give your fintech startup access to cross-border payments, lending and integration with VISA and MasterCard?

Banking license in the EU: key features

A banking license in the EU is an authorization issued by a national regulator or the European Central Bank (ECB) that allows carrying out classic banking activities: accepting deposits, lending, opening accounts for individuals and legal entities, issuing bank cards and integrating with international payment systems.

Main requirements for a banking license

• Minimum share capital: for a universal bank: from EUR 5 million; for specialized banks (for example, in Lithuania), from EUR 1 million. Capital must be supported by transparent sources of funding and comply with capital structure requirements.
• Top management qualifications: members of the board of directors and executives are required to have experience in the banking sector, a proven reputation and no conflicts of interest. At COREDO we always recommend preparing a separate dossier for each candidate, including certificates of good standing and references from previous employers.
• Office and residency requirements: the bank must have a physical office in the licensing country, and key persons must be residents or hold long-term visas. For example, in the United Kingdom at least one director must be a resident of the country, and in Luxembourg: having a real office and staff is a mandatory requirement.
• Internal audit and control systems: mandatory presence of departments for internal audit, AML compliance, risk management and disclosure of accepted risks.

Regulatory bodies and supervision

• European Central Bank (ECB): supervises systemically important banks and coordinates the Single Supervisory Mechanism (SSM) within the EU.
• National regulators: in Germany – BaFin, in the United Kingdom, FCA and PRA, in Luxembourg – CSSF. Each authority applies its own requirements to capital structure, management qualifications and Due Diligence procedures.
• Single banking license in the EEA: allows, after obtaining a license in one EU country, to open branches and provide services in all countries of the European Economic Area without re-licensing.

Examples of countries with banking licenses

• United Kingdom: a flexible system for digital banks, but strict residency and capital requirements.
• Germany: a high capital threshold, strict BaFin supervision, popular for large international banks.
• Luxembourg: developed infrastructure for private banking and wealth management, but a lengthy licensing process and strict physical presence requirements.

Financial license and its types in Europe

Financial license covers activities not related to classic banking: electronic payments, issuance of electronic money, mobile wallets, integration with VISA and MasterCard, processing payments and settlements.

Main types of financial licenses

• EMI license (Electronic Money Institution): allows issuing electronic money, opening accounts for clients, integrating payment cards, but does not allow accepting deposits or granting loans.
• PI license (Payment Institution): permits providing payment services (transfers, acquiring, payments via mobile and digital wallets), but not issuing electronic money or opening full-fledged accounts.

EMI and PI licenses: differences

Licensing in EU countries

• Lithuania: one of the fastest and most accessible jurisdictions for obtaining EMI and PI licenses, minimum capital 350,000 euros, review times from 3 to 6 months. A solution developed by COREDO for a fintech startup in Vilnius allowed the client to enter the market in 4.5 months, integrate payments with VISA and MasterCard and scale to 7 EEA countries.
• United Kingdom: strict requirements for physical presence, mandatory office and residency of key persons, but a developed infrastructure for integration with international payment systems.
• Luxembourg: high entry threshold, lengthy due diligence process, but a prestigious jurisdiction for large fintech companies.

Banking license vs financial license in the EU

Key differences and business impact

How can I obtain a license in the EU?

licensing process in the EU: a step-by-step guide — a set of formal and practical stages that companies must go through to operate legally in the European market. At each step there are a number of general requirements for the applicant that directly affect the likelihood of license approval and further interaction with the regulator.

General requirements for the applicant

• Documents: founding documents, business plan, capital structure, information on beneficiaries, resumes and references for the management.
• Company structure: transparent corporate structure, presence of qualified directors and shareholders, absence of offshore elements.
• Management qualifications: proven experience in the financial sector, references, no criminal convictions and no conflicts of interest.

Specifics of obtaining a banking license

• Verification of funding sources: the regulator requires disclosure of all sources of capital, proof of the legality of the origin of funds, analysis of capital structure and financing plans.
• Due diligence: comprehensive check of all participants, internal control procedures, AML systems and risk management.
• Internal audit: mandatory internal audit department, regular checks and reports for the regulator.

Obtaining EMI and PI licenses

• Minimum capital: for EMI, €350,000; for PI, from €20,000 to €125,000, depending on the volume of operations.
• Office and physical presence: mandatory office in the licensing country, presence of staff, residency of key persons.
• Review timelines: in Lithuania, from 3 to 6 months; in the United Kingdom: from 6 to 12 months; in Luxembourg, up to 18 months.
• Documents: application, business plan, financial forecasts, description of IT infrastructure, AML procedures and internal control.

Which jurisdictions should I choose?

• Luxembourg: high entry threshold, lengthy due diligence, strict requirements for physical presence, prestigious for private banking.
• Lithuania: fast process, minimal capital, popular for fintech startups.
• United Kingdom: developed infrastructure, strict supervision, mandatory office and residency.

Regulation and compliance: AML, financial monitoring, risks

Regulation and compliance in the field of AML, financial monitoring and risk management are becoming key tasks for financial organizations amid tightening legislative requirements and the constant complication of money laundering schemes. Effective implementation of core requirements allows not only to minimize legal and reputational risks, but also to build transparent internal control processes.

Main AML and financial monitoring requirements

• AML requirements: mandatory implementation of customer identification (KYC) procedures, transaction monitoring, reporting of suspicious operations, and regular staff training.
• Financial monitoring: automated control systems, integration with national and international registers, disclosure of information about risks and procedures for managing them.
• Internal audit: regular inspections, reports for the regulator, independent assessment of the effectiveness of AML and risk management procedures.

Impact of PSD2 and other regulatory acts

• PSD2: an EU directive regulating payment systems, opens access to banks’ APIs, strengthens requirements for security, transparency and protection of customer data.
• Sanctions and fines: for non-compliance with AML and financial monitoring – fines of up to 10% of annual turnover, account freezes, license revocation, prohibition from operating.

Licensing of fintech startups in the EU

choice of license for a fintech startup determines not only the formal framework of the company’s operations but also opens up different scenarios for scaling the business in the EU. The specifics of regulation and licensing requirements in the European Union require startups to carefully choose between a banking license, an EMI and a PI — this choice determines the possible business model, time-to-market and the project’s future development.

Criteria for choosing a banking, EMI or PI license

• Business model: if the goal is lending and deposits, a banking license is required; for electronic payments, mobile wallets and issuance of electronic money: EMI; for acquiring and payment operations – PI.
• Capital costs: a banking license requires large investments; EMI and PI: minimal capital and a rapid market entry.
• Licensing speed: EMI and PI licenses can be obtained in 3–6 months, a banking license: from 12 to 24 months.

Examples of business models and licenses

• Payment platform: an EMI license is optimal, integration with VISA and MasterCard, issuance of electronic money, opening accounts for customers.
• Mobile wallet: EMI or PI license, fast launch, minimal capital requirements.
• Digital bank: banking license, access to lending, deposits, international expansion.

Cross-border expansion opportunities

• Passporting of licenses: after obtaining a license in one EEA country you can provide services in all countries of the area without re-licensing.
• Restrictions: for banks – practically none, for EMI and PI: restrictions on types of services and operational limits.

Minimizing costs and risks

Key findings and recommendations

Practical recommendations and key findings will help draw attention to the most important aspects of website optimization and facilitate the implementation of effective solutions. This section compiles the main differences in approaches and tips to consider for improving the site’s ranking and achieving stable results.

Summary of main differences and tips

• Banking license: for large projects with ambitions in lending and deposits, requires significant capital and a lengthy licensing process.
• EMI license, optimal for fintech startups, payment platforms and mobile wallets, minimal capital, fast time to market.
• PI license – suitable for acquiring, payment operations, integration with e-wallets.

Recommendations for licensing preparation

• Prepare a detailed business plan with financial forecasts, a description of IT infrastructure and AML procedures.
• Ensure a transparent capital structure and qualified management.
• Choose a jurisdiction with optimal requirements and review timelines.

Advice on AML and risk management

• Implement automated monitoring systems, train personnel, conduct regular internal audits.
• Disclose information about risks, integrate risk management procedures into operational activities.

How to choose a jurisdiction?

• Assess capital requirements, management qualification, review timelines and licensing costs.
• Lithuania: fast process, minimal capital, popular for startups.
• United Kingdom, developed infrastructure, strict supervision.
• Luxembourg – prestige, high entry threshold.

Appendices and FAQ

The “Appendices and FAQ” section was created to gather in one place structured supplementary materials and answers to frequently asked questions on the topic of licensing. Here you will find practical documents such as checklists for applying for an EMI/PI license, as well as clarifications on key stages and nuances of the process.

Document checklist for applying for an EMI/PI license

• Incorporation documents
• Business plan
• Financial forecasts
• Information on beneficial owners
• Management resumes
• Description of IT infrastructure
• AML and internal control procedures

Frequently Asked Questions

The modern market offers entrepreneurs and investors a wide range of legal structures for investment funds. The most in demand are SPV (Special Purpose Vehicle), unit investment funds (PIF), closed-end investment funds (ZPIF) and specialized forms, such as ZISIF. The choice of structure determines not only the tax burden and level of asset protection, but also the possibilities for scaling, attracting investors, risk management and compliance with international standards.

What is an SPV and why is it needed?

An SPV is a legal entity created to implement a specific investment task or to structure a transaction. In COREDO’s practice COREDO SPVs are often used to isolate risks for individual projects, to raise financing secured by specific assets or to create a platform for venture investments.

PIF and ZPIF: differences and types of funds

In a PIF, unit holders acquire a share (unit) in the overall asset pool, and management is carried out based on rules of trust management (PDU). Open PIFs provide high liquidity — a unit can be sold at any time and the entry threshold is minimal. For long-term and complex investment strategies, a closed-end investment fund (ZPIF) becomes the optimal instrument.

A ZPIF is characterized by a fixed term, a limited number of unit holders and the ability to invest in less liquid assets, real estate, venture projects, private companies and non-publicly traded securities. The entry threshold into a ZPIF is usually higher, and the liquidity of investment units is limited: they can be realized only at the end of the fund’s term or on the secondary market.

ZISIF and other forms of investment funds

Such structures are widespread in Luxembourg, Cyprus, Estonia and the Czech Republic. They allow flexible asset management, the use of mixed investment strategies and minimizing the tax burden through special regimes.

SPV or ZPIF: how to choose a structure?

ZPIF allows implementing complex investment strategies, integrating management of real estate, venture projects, and private companies. An SPV, on the other hand, is suitable for one-off transactions, securitization, managing individual assets, or time-limited projects.

In one of COREDO’s cases for an international development group a combined structure was implemented: an SPV was used to acquire and manage individual real estate properties, while a ZPIF was used to pool investments and distribute income among unitholders taking tax benefits into account.

Registration and support of an investment fund

The procedure for registering an investment fund varies significantly depending on the jurisdiction. In EU countries (for example, Luxembourg, Cyprus, Estonia) registering a fund requires approval of constitutional documents, trust management rules, engaging licensed management companies, a specialized depositary and a registrar of investment funds. In the United Kingdom there is an FCA licensing system, and in Singapore: MAS licences for management companies and funds.

Therefore, when registering an investment fund it is critically important to ensure the legal structuring of capital taking into account AML, KYC and the international standards of FATF.

Solutions implemented by the COREDO team in the Czech Republic and Estonia have shown: the integration of a professional depositary and an independent asset valuer minimizes risks and increases confidence from investors and regulators.

Asset management through ZPIF

Organizing asset management in a ZPIF requires a clearly structured governance framework: a management company, a specialized depository, a registrar, and an independent asset appraiser. Each element plays its role: the management company is responsible for the investment strategy, the depository for safekeeping and accounting of assets, the registrar for maintaining the unit-holders’ register, and the appraiser for regular valuation of assets.

A ZPIF allows investing in a wide range of assets: real estate as an asset, venture projects, private companies, and non-tradable securities. In COREDO’s practice, mixed investment funds are often implemented, combining several asset classes to diversify and increase the ROI of investments through a ZPIF.

How do closed-end unit investment funds (PIFs) work?

The entry threshold for a closed-end PIF is usually higher than for open-ended funds, which is due to the focus on qualified investors. Nevertheless, for certain strategies it is allowed to create a closed-end PIF for a single founder, which is in demand when structuring private capital or family offices.

Transfer of units to third parties is possible only with the consent of the management company or within the established rules. The fund’s term is fixed, but an extension of the closed-end PIF’s term or early liquidation of the closed-end PIF is possible upon the occurrence of certain conditions specified in the Trust Management Rules (PDU).

COREDO’s practice shows: well-drafted PDU allows avoiding most disputes and ensures the fund’s stability in the long term.

Tax optimization and investment protection through ZPIF

This allows structuring transactions through a ZPIF effectively, minimizing tax risks and providing legal protection for investments.

The COREDO team has repeatedly executed projects to structure transactions through ZPIFs for investments in private companies, real estate and venture projects.

Investment risks through a ZPIF are minimized thanks to asset diversification, independent valuation and strict oversight by the management company and regulators. An example from COREDO’s practice: for a fund investing in unlisted securities and startups, an internal compliance system and regular audits were established, which made it possible to attract institutional investors and reduce the cost of borrowed capital.

Key findings and recommendations for investors and entrepreneurs

• SPV – optimal for one-off transactions, securitization, and managing individual assets. ZPIF: a tool for long-term investments, trust management, tax optimization and capital protection.
• The choice of fund structure depends on investment goals, asset composition, liquidity requirements, investor makeup, and jurisdiction.
• Registering an investment fund requires careful legal packaging of capital, compliance with AML and KYC, and the engagement of professional management companies and a specialized depository.
• To minimize risks, it is important to develop rules of trust management, ensure regular asset valuation and operational transparency.
• When choosing a legal partner, pay attention to experience in international projects, knowledge of jurisdictional specifics, and the availability of comprehensive solutions for the registration, licensing, and support of investment funds.

SPV vs PIF vs ZPIF: comparison

Glossary of key terms

• PDU (Rules of Trust Management): the fund’s primary document defining unitholders’ rights, the procedure for management and liquidation.
• Trust management: the transfer of assets to the management of a professional company on the basis of the PDU.
• Specialized depository: an independent organization responsible for the safekeeping and accounting of the fund’s assets.
• Investment fund registrar: maintains the register of unitholders, ensuring transparency of operations.
• Qualified investor: an investor who meets the established criteria for experience, capital, and knowledge.
• Non-tradable securities: instruments not traded on an exchange (e.g., stakes in private companies).
• Interval mutual fund (IMF): a fund in which a unit can be redeemed only at specific intervals.

Frequently Asked Questions

1. How to choose the optimal legal structure for an investment fund?

   The choice depends on investment objectives, asset composition, liquidity requirements and tax optimization. For one-off projects an SPV is suitable; for long-term and diversified ones: ZPIF or ZISIF.

2. What are the requirements for registering a fund in the EU and Asia?

   Registration with the regulator is required, approval of the offering document (PDU), engagement of a management company, a depositary and a registrar, as well as compliance with AML/KYC.

3. How to ensure legal protection of investments?

   Use a multi-level infrastructure: a management company, a specialized depositary, an independent registrar, regular asset valuation, transparent trust management rules.

4. What risks are associated with investments through a ZPIF?

   Limited liquidity, the need for strict compliance with regulatory requirements, risks in asset valuation. COREDO’s practice shows that a sound structure and compliance minimize these risks.

5. What is the minimum entry threshold for a ZPIF?

   Depending on the jurisdiction and the fund’s strategy, the threshold can range from several thousand to hundreds of thousands of euros.

If you are planning to launch an investment fund, structure capital or optimize taxation, the COREDO team is ready to offer comprehensive solutions that take into account the specifics of your business and jurisdiction. A reliable legal infrastructure is the foundation of long-term success in the world of investments.

In 2026 Lithuania found itself at the center of attention in the European crypto market: according to the European Commission, in just the last year the volume of crypto-asset transactions in the country grew by more than 120%. This is not just a statistic: it is a challenge for anyone building or scaling a crypto business in the EU. Why? Because from 2026 cryptocurrency regulation in Lithuania is changing radically: MiCA (Markets in Crypto-Assets) comes into force, and national rules are becoming stricter and more transparent than ever before.

Today entrepreneurs face not only the need to register a crypto company in Lithuania, but also new requirements for licensing, capital, AML and corporate governance. A mistake at any stage, and a business risks losing access to EU markets, facing sanctions or fines, and in the worst case – being excluded from the legal field.

Are you ready for these changes? How can you use the CASP transitional period not only to survive but to gain a competitive advantage? What steps will ensure the transparency and security of crypto-asset operations in Lithuania in 2026?

In this article I, Nikita Veremeev, founder of COREDO, share practical strategies and the experience of our team so that you not only understand the essence of the changes, but also get a step-by-step guide to adapting to the new rules. Read to the end; you will find not only answers to pressing questions, but also tools to grow your crypto business in the new regulatory reality.

Changes in crypto regulation in Lithuania 2026

The year 2026 became a point of no return for the crypto asset industry in Lithuania. The entry into force of MiCA in Lithuania and national amendments completely reshaped the approach to licensing, registration and supervision of crypto businesses. Key changes affected not only legal entities but all crypto asset service providers (CASP and VASP).

• MiCA in Lithuania: From 2026 all crypto assets and related services are regulated at the EU level under unified standards. This provides transparency, investor protection and a level playing field for all market participants.
• Transition period for CASP in Lithuania: Until 1 January 2026 there was a transitional period that allowed operating companies to adapt to the new requirements without the risk of an immediate shutdown.
• registration of a crypto company in Lithuania 2026: The registration procedure has become stricter – now not only legal formalization is required, but also compliance with new criteria on capital, corporate governance and internal AML policies.

Implementation of MiCA in Lithuania: what’s new?

MiCA is not just another regulation, but a fundamental market overhaul. The main provisions of MiCA that are now mandatory for Lithuania:

• MiCA requirements for crypto companies in Lithuania: Any company providing crypto asset services (CASP, VASP) is required to obtain a license for crypto activities in Lithuania through the national regulator – the Bank of Lithuania.
• Licensing of VASP in Lithuania: Service categories (exchange, custody, portfolio management, advisory) are clearly defined for the first time, and each has specific minimum capital requirements and internal control procedure requirements.
• Unification of rules across the EU: Thanks to MiCA, Lithuania becomes part of the single European market, which simplifies license passporting and entry into the markets of other EU and EEA countries.

Transition period for CASP and its significance

The CASP transition period in Lithuania: it was a unique window of opportunity that ended on 1 January 2026. During this period companies could continue operating under the old rules while bringing their processes into compliance with MiCA.

• How to prepare a crypto business for MiCA requirements in Lithuania: The solution developed at COREDO included an audit of internal policies, updating KYC procedures and implementing transaction monitoring systems.
• Consequences of the end of the transition period: From 2026, lack of a license or non-compliance with new requirements leads to immediate suspension of activities and the risk of large fines.

Crypto Business Licensing in Lithuania under MiCA

С 2026 года лицензия крипто Литва стала обязательным условием для всех, кто планирует оказывать криптоуслуги в Литве 2026 и выходить на рынки ЕС. Банк Литвы выступает единым окном для подачи заявок и осуществляет надзор за соответствием компаний новым стандартам.

• VASP licensing in Lithuania: The process has become digital, transparent and standardized. Now each application undergoes a comprehensive review for compliance with MiCA requirements and national legislation.
• Capital requirements for crypto business in Lithuania: Minimum capital ranges from €50,000 to €125,000 depending on the type of services provided. This is a tightening compared to previous rules.
• The role of the Bank of Lithuania in crypto regulation: The regulator not only issues licenses but also conducts regular supervision, including checks of corporate governance, internal controls and compliance.
• Passporting rights of the license in the EU: A Lithuanian CASP license grants the right to provide services in all EU and EEA countries without the need to obtain additional permits.

How to obtain a crypto license in Lithuania under MiCA?

COREDO’s practice shows that licensing success depends on thorough preparation and understanding of all stages of the process:

1. Document collection and assessment criteria: You must prepare the incorporation documents, a business plan, descriptions of internal AML policies, information about beneficiaries and the capital structure.
2. Electronic application submission: All documents are submitted through the Bank of Lithuania’s electronic “single window” system, which speeds up the process and minimizes bureaucracy.
3. Internal compliance and AML procedures: To obtain a license, it is mandatory to implement compliance standards, appoint a person responsible for AML and develop internal policies for client identification and transaction monitoring.

Capital and corporate governance requirements

MiCA and Lithuania’s national rules of 2026 have tightened capital and corporate governance requirements:

• Minimum capital thresholds: €50,000 for advisory services, €125,000 for custody of crypto assets and portfolio management.
• AML responsible manager: Mandatory appointment of a Lithuania-based resident with experience in AML/CFT.
• corporate governance: Implementation of an internal control system, regular audits, transparent ownership structure.

AML and Financial Crimes in Lithuania’s Crypto Sector

In 2026, Lithuania’s cryptocurrency AML regime reached a new level. The Anti-Money Laundering and Countering the Financing of Terrorism law (AML/CFT) has been integrated with MiCA, and supervision was strengthened by two bodies at once – the Bank of Lithuania and the Financial Crime Investigation Service of Lithuania (FCIS).

• Control of financial crimes in Lithuania’s crypto sector: the FCIS now has expanded powers to monitor operations, investigate suspicious transactions and impose fines.
• Internal AML policies for crypto companies in Lithuania: Every company is required to implement KYC procedures, transaction monitoring and risk assessments.
• The role of the Bank of Lithuania in crypto regulation: the regulator conducts regular inspections, requires reporting and confirmation of the effectiveness of internal AML policies.

Recommendations for AML and CFT Compliance

Effective AML and CFT compliance is not only a legal requirement but also the foundation of trust for customers and partners.

• Organizing KYC and transaction monitoring: Implement multi-level customer identification and regular verification of sources of funds.
• Risk assessment and reporting systems: Use automated tools to analyze transactions and submit timely reports to the FCIS and the Bank of Lithuania.
• Liability for non-compliance: Fines for violating AML standards can reach hundreds of thousands of euros, and in cases of systematic violations license revocation and criminal prosecution are possible.

Crypto business in Lithuania and the EU: new rules

The implementation of MiCA in Lithuania and the national changes has become a catalyst for scaling crypto business in the EU and increasing the sector’s investment attractiveness.

• Scaling crypto business in the EU: a CASP license obtained in Lithuania opens access to EU markets and the EEA, simplifying expansion into new jurisdictions.
• Risks and opportunities: strict capital and compliance requirements raise the barrier to entry but at the same time protect the market from bad actors.
• Comparison of crypto regulation in the EU and Asia: the European approach (MiCA) emphasizes transparency, investor protection and integration with banking infrastructure, while in some Asian countries regulation is less harmonized.
• Impact of MiCA on Lithuania’s crypto ecosystem: the new rules help form a resilient ecosystem, attract institutional investors and foster innovation.

Practical steps for crypto business leaders in Lithuania

In practice, successful adaptation to the new rules requires a systematic approach and attention to detail.

• preparation for licensing and audit: Conduct an internal audit of processes, update documentation, implement automated KYC/AML systems.
• Establishing internal compliance and AML policies: Develop and approve internal control procedures, appoint responsible persons, conduct staff training.
• Strategy for using the CASP transitional period: Use the remaining time to test new procedures, adjust the business model, and prepare for the Bank of Lithuania’s audit.
• Ensuring transparency and security of operations: Integrate your business with the payment infrastructure, use modern monitoring and reporting tools.
• Choosing reliable partners and consultants: COREDO’s experience shows that working with professional consultants can minimize risks and accelerate the licensing process.

Practical recommendations and key takeaways

The year 2026 was a turning point for cryptocurrency regulation in Lithuania. The implementation of MiCA in Lithuania, tightened licensing and AML requirements, and new corporate governance standards are shaping a new reality for the crypto business.

Checklist for launching and running a crypto business in Lithuania from 2026:

• Conduct an audit of business processes and internal documentation.
• Prepare a complete set of documents for CASP licensing.
• Implement modern KYC/AML systems and internal controls.
• Appoint compliance and AML officers and ensure their training.
• Integrate the business with the EU payment infrastructure.
• Ensure transparency and security of crypto asset operations.
• Take advantage of the CASP transitional period for adaptation.
• Work with professional advisors to accelerate the licensing process.

If you are looking for a reliable partner to register a crypto company in Lithuania in 2026, obtain a crypto license in Lithuania, or receive comprehensive support, the COREDO team is ready to offer solutions proven in practice and compliant with the strictest EU standards.

Comparison of MiCA requirements and Lithuania’s 2026 regulations

In 2024 the electronic money market in Europe exceeded €400 billion, and the number of new EMI companies registered in the Czech Republic grew by 30% year‑on‑year. Why is the Czech Republic becoming a magnet for FinTech entrepreneurs? Against a backdrop of tightening regulation and increasing transparency requirements, the choice of jurisdiction for launching an EMI company determines not only time‑to‑market but also the long‑term resilience of the business. Facing bureaucratic hurdles, AML/KYC challenges and the need to integrate with European payment systems, many entrepreneurs ask: is it possible to open an EMI company in the Czech Republic quickly, transparently and with minimal risk?

In this article I share a practical guide based on COREDO‘s experience in registering EMI companies, obtaining licenses and supporting FinTech projects in the Czech Republic, the EU and Asia. By reading the article in full, you will gain not only strategic ideas but also concrete tools for successfully launching and scaling an EMI business in Europe.

Main requirements for opening an EMI company in the Czech Republic

The Czech National Bank (CNB) imposes strict but transparent requirements on applicants for an EMI license, in line with EU standards. Key parameters:

• Minimum share capital, €350,000. Funds must be held in an account at a Czech bank and documented. In COREDO’s practice this stage requires special attention: the CNB carefully verifies the sources of the capital and its legality.
• registration of a legal entity, the optimal form is s.r.o. (limited liability company). This format provides management flexibility and compliance with CNB requirements.
• Office and staff: the presence of a physical office in the Czech Republic and qualified personnel, including managers with experience in the financial sector. The solution developed by COREDO for foreign clients includes recruiting local specialists and organizing office infrastructure.
• Management qualifications – the CNB requires that directors and key managers have relevant experience and an impeccable business reputation. COREDO’s practice confirms: successful completion of the compliance check depends on the transparency of biographical data and the availability of references from the financial sector.

Registration of a legal entity and opening an office

Registration of a legal entity and opening an office is the first step toward legally conducting business and establishing the company’s official presence. This section provides a step-by-step guide that will help you understand the main stages of company registration (s.r.o.) and the necessary formalities to start full-scale operations.

Step-by-step company registration (s.r.o.)

The COREDO team has completed dozens of s.r.o. registration projects for EMI companies. The process includes:

• Preparation of founding documents, selection of a unique company name, and agreement on the structure of shareholders and directors.
• For foreign founders, legalization of documents and proof of residence are particularly important. COREDO’s solution allows all steps to be completed remotely using electronic signatures and online services.
• A registered legal address and a physical office are mandatory requirements of the CNB. The company must be able to receive correspondence and carry out operational activities in the Czech Republic.
• opening a bank account: one of the most challenging stages for non-residents. Our experience at COREDO has shown that preparing a complete set of documents and a business plan in advance significantly speeds up the bank’s compliance review process.

Obtaining an EMI license in the Czech Republic

obtaining a license for electronic money: a multi-stage process requiring strategic planning and a deep understanding of CNB requirements.

• Application stages: document preparation, drafting a business plan, collecting criminal record certificates and financial statements, and preparing AML/KYC policies.
• List of documents: passport details of founders and management, proof of source of funds, a business plan with a 3-year financial forecast, internal AML/KYC procedures, description of technical infrastructure.
• Licensing timelines: on average 3–6 months, including company registration, document preparation and CNB application review. The COREDO team supports clients at every stage, minimizing the risk of delays.
• Process cost: consists of the CNB state fee, costs for legal support, business plan preparation and office setup.
• Importance of the business plan: the CNB requires a detailed business plan reflecting development strategy, financial modelling, revenue and expense forecasts, as well as a description of risk management mechanisms and protection of client funds.
• AML/KYC procedures: without clearly defined internal policies for anti-money laundering and customer identification it is impossible to obtain an EMI license. COREDO’s solution includes developing tailored AML/KYC procedures taking into account EU and CNB requirements.

Documentation and business plan requirements

• Documents: passport details, criminal record certificates, financial statements, resumes of executives, proof of source of funds, corporate documents, AML/KYC policies.
• Structure of the business plan: description of services, target audience, competitive analysis, a 3-year financial forecast, risk management strategies, technical infrastructure plan, measures to protect data and client funds.
• Preparation specifics: the CNB pays special attention to the detailing of financial models and the transparency of funding sources. In COREDO’s practice, successful cases are built on integrating international reporting and compliance standards.
• The role of IT and data security: the documentation must describe the IT system architecture, measures to ensure data security, plans to protect against cyber threats and compliance with GDPR requirements.

AML/KYC and risk management in EMI

An effective AML/KYC system is a key success factor for licensing and the subsequent operation of an EMI company.

• AML/KYC requirements: the CNB requires the implementation of customer identification procedures, transaction monitoring, and automated systems for detecting suspicious operations. COREDO’s practice confirms that integrating modern RegTech solutions reduces operational risks and increases transparency.
• Monitoring and prevention of financial crime: regular checks, automated transaction analysis, and maintaining registers of suspicious transactions.
• Internal control and audit: development of compliance policies, conducting internal audits, and staff training. The solution developed at COREDO includes establishing an independent compliance function and implementing internal control systems.
• Protection of client funds: use of segregated accounts, a clear policy on safeguarding client funds, and regular reporting to the CNB.

Implementation of IT security and infrastructure

• Technical requirements: the EMI company’s platform must ensure reliability, scalability, and compliance with security standards. COREDO has implemented projects for integrating cloud solutions, building resilient architectures, and introducing FinTech innovations.
• Integration of payment services: connection to international payment systems, API integration, and support for multi-currency operations.
• data security: use of cryptographic protection methods, GDPR compliance, and adherence to the CNB’s information security requirements.
• The role of IT infrastructure: the company’s technical readiness directly affects the success of licensing and further operation. In COREDO’s practice, implementing comprehensive IT solutions enables rapid business scaling and integration with European payment systems.

Legal support for an EMI company in the Czech Republic

• Legal support: at every stage of licensing and running a business, support from experienced lawyers familiar with CNB requirements and European standards is necessary. COREDO’s solution provides comprehensive support: from registration to daily compliance.
• Tax regime: the corporate tax in the Czech Republic is 19%. EMI companies are subject to special rules for recording income and expenses, as well as reporting and capital control requirements.
• Liability and CNB sanctions: for non-compliance with AML requirements, client fund protection or reporting, the CNB may suspend a license, impose fines or initiate an investigation. COREDO’s practice shows that timely implementation of internal control procedures minimizes legal risks.
• Legal risks: the main threats are errors in documentation, non-compliance with compliance requirements, and insufficient transparency of capital sources. The COREDO team regularly audits documents and processes to ensure compliance with international standards.

Scaling and international development of an EMI company

• Single European Passport: obtaining an EMI license in the Czech Republic opens access to the entire EU market without the need for re-licensing in other countries. This is a strategic advantage for scaling the business.
• Expansion into Asian and African markets: COREDO’s practice includes cases of integrating Czech EMI companies with payment systems in Singapore, Dubai and the United Kingdom. Strategic planning allows taking into account the specifics of local regulation and IT infrastructure requirements.
• Financial modeling and forecasting: successful growth requires accurate calculations of profitability, revenue and expense forecasts, and assessment of investment payback periods. COREDO’s solution includes the development of financial models that take into account the specifics of the European and Asian markets.
• Business profitability: according to COREDO, the average payback period for an EMI company in the Czech Republic is 2–3 years with proper risk management and effective marketing.

Practical recommendations and conclusions

• Checklist for opening an EMI company:
  • Prepare a detailed business plan and financial forecast.
  • Assemble a complete set of documents for the CNB, including AML/KYC policies.
  • Ensure the authorized capital is available in an account at a Czech bank.
  • Set up an office and hire qualified staff.
  • Implement IT infrastructure that meets security requirements.
  • Undergo compliance checks and internal audit.
• Main mistakes and risks:
  • Insufficient detail in the business plan.
  • Errors in documentation and non-compliance with CNB requirements.
  • Weak AML/KYC and internal control systems.
  • Insufficient technical readiness of the platform.
• tips for choosing partners and consultants:
  • Choose teams with experience in implementing EMI and FinTech projects.
  • Check for successful case studies and references.
  • Ensure transparency of processes and availability of comprehensive support.
• Final recommendations:
  • Strategic planning, professional legal and financial support, and implementation of modern IT solutions: the key factors for successful licensing and long-term development of an EMI company in the Czech Republic.

Key requirements and timelines for obtaining an EMI license in the Czech Republic

Imagine you’re ready to launch your fintech startup and are choosing among dozens of jurisdictions. Singapore is consistently in the top three destinations for international expansion, but the registration process can seem like a confusing maze of requirements and timelines. In fact, it’s one of the most transparent and fastest processes in the world: most companies get registered within 15 minutes to 3 days. However, between choosing a name and receiving the certificate lie many critical decisions that will determine the success of your business in the Asian market.

In this guide I will share the practical experience of the COREDO team, which in recent years has helped dozens of entrepreneurs from Europe, Asia and the CIS successfully register companies in Singapore and scale their operations. We will cover not only administrative procedures but also strategic aspects that novice entrepreneurs often overlook.

Singapore: Why It Attracts Business

Singapore holds a special place in the global business ecosystem. It is not just a low-tax jurisdiction; it is a strategic hub for accessing Asian markets, attracting investment, and building a global operations base.

Key advantages of Singapore for businesses:

• First, speed and ease of registration. The BizFile+ platform allows you to apply online, and in most cases approval comes within a few days. The minimum share capital is only 1 Singapore dollar (SGD), which makes market entry accessible even for early-stage startups.
• Second, 100% foreign ownership. Unlike many Asian countries, in Singapore foreigners can fully own a company without a requirement for a local partner. This is critically important for European and American entrepreneurs who want to retain full control over their business.
• Third, an attractive tax system. Corporate tax is 17%, but there are numerous incentives for startups, innovative companies, and companies operating in certain sectors. In addition, Singapore offers grant and subsidy programs for R&D and innovation.
• Fourth, a high level of corporate transparency and protection of rights. Regulation is carried out by ACRA (Accounting and Corporate Regulatory Authority), which is known for its professionalism and fairness. This creates trust among investors and partners.

Choosing the Right Business Structure

Before filing documents with ACRA, it is necessary to determine the optimal legal structure for your company. This decision affects taxation, liability, attracting investments and operational flexibility.

Main structure options:

• Private Limited Company (Pte Ltd): is the most preferred form for IT companies, fintech startups, and companies planning to attract investments. Pte Ltd provides limited liability (personal assets are protected), allows issuing shares and attracting investors, and has a clear management structure with directors and shareholders. COREDO’s practice confirms that more than 85% of our clients choose this form due to its versatility and investment appeal.
• Sole Proprietorship: is suitable for sole proprietors and micro-businesses. However, this form does not protect personal assets and does not allow attracting investors, so it is not recommended for serious businesses.
• Partnership: for companies founded by multiple partners. Requires a clear agreement between partners and carries the risk of personal liability.
• Limited Liability Partnership (LLP), a hybrid form combining elements of a company and a partnership. Suitable for professional services (consulting, legal services).

For most international entrepreneurs, especially those planning to scale and attract venture funding, Pte Ltd is the optimal choice.

How to register a company in Singapore?

The registration process consists of several clearly defined stages. Understanding each of them will help you avoid delays and mistakes.

Reserving a company name via BizFile+

The first step is to choose and reserve a company name. The name must be unique and comply with ACRA requirements.

Requirements for the name:

• Must be in English (or have an English translation)
• Must not contain words that require special permission (for example, “Bank”, “Insurance” without a license)
• Must not be similar to existing registered names
• Must end with “Pte Ltd” for a Private Limited Company

The reservation process is carried out through the online BizFile+ portal. The reservation fee is 15 SGD, and the name is reserved for 60 days. This gives you time to prepare the remaining documents.

Appointment of key persons in the company

To register a company in Singapore, you need to appoint the following key persons:

• Director (Director), at least one director who must be a natural person (not a company). A director may be a foreigner, but it is recommended to have at least one Singapore resident director to simplify operations.
• Shareholder (Shareholder): at least one shareholder. A shareholder can be an individual or a company, resident or non-resident.
• Company Secretary (Company Secretary), must be appointed. The secretary may be a director, a shareholder or a third party. Many companies appoint professional corporate service providers as secretaries.

Personnel requirements:

• The director must be over 18 years old
• The director must not be bankrupt or have a criminal conviction
• Documents proving identity and address must be provided

Document preparation: Step 3

The document package for submission to ACRA includes:

• Company incorporation application, completed via BizFile+
• Memorandum and Articles of Association: defines the management structure and shareholders’ rights
• Registered office address of the company, must be a real address in Singapore (you can use an office, co-working space or a corporate service provider’s address)
• Documents proving the identity of directors and shareholders – passports, birth certificates
• Documents proving addresses – utility bills, bank statements
• Declaration of compliance – confirmation that all requirements have been met

Submitting documents and obtaining approval

All documents are submitted through BizFile+ online. After submission and payment of the registration fee (300 SGD in 2025) ACRA reviews the application.

• In most cases: 15 minutes to 3 working days
• If additional checks are required: up to 60 days

After approval ACRA issues:

• Certificate of Incorporation, the official document confirming the company’s formation
• Unique Entity Number (UEN): required for all company transactions
• Extract from the company register: confirms the registration and key details

COREDO’s experience has shown that in 95% of cases approval is received within 1-3 days provided the documents are completed correctly and there are no issues with the company name or the identities of the directors.

Compliance requirements after registration

company registration, this is only the beginning. After receiving the certificate of incorporation you must comply with a number of ongoing compliance requirements of ACRA and other regulators.

Register of controllers (Beneficial Owners Registry)

The updated 2025 requirement is disclosure of beneficial owners (data not public). From 16 June 2025 every company is required to maintain a register of registrable controllers immediately after incorporation. This means you must identify and document all persons who control the company (directly or indirectly).

What is included in the register of controllers:

• Controller’s name and address
• Ownership share and method of control
• Date control began

Annual filing of returns

Each year the company must file the Annual Return with ACRA. This document contains information about directors, shareholders, the registered address and financial data.

Filing deadlines:

• For new companies: within 30 days after the first anniversary of incorporation
• For existing companies: within 30 days after the end of the financial year

Penalties for late filing:

• Up to 600 SGD for late filing of the Annual Return
• Additional penalties for each day overdue

Maintaining accounting records and reporting

The company must keep complete and accurate accounting records, including invoices, receipts, and contract documents. Financial statements must be prepared in accordance with the Singapore Financial Reporting Standards (SFRS).

Requirements:

• Keeping records for 5 years
• Preparation of annual financial statements
• Audit of financial statements (if the company exceeds certain thresholds for revenue or assets)

How to ensure tax compliance

The company must register with the tax authority (IRAS: Inland Revenue Authority of Singapore) and file tax returns annually.

Tax rates:

• Corporate tax: 17%
• GST (Goods and Services Tax): 9% (applies to certain services and goods)

Account opening and payment integration

After registering the company, you need to open a bank account. This is a critical step for operational activities.

Bank requirements for opening an account:

• Certificate of company registration
• Passports of directors and shareholders
• Proof of address documents
• Business plan or description of the company’s activities
• Documents proving the source of funds

COREDO’s experience shows that the account opening process can take between 1 and 4 weeks depending on the bank and the completeness of the documents. It is recommended to apply as soon as you receive the certificate of registration.

Singapore and other Asian jurisdictions – comparison

Although Singapore remains attractive, it is important to understand how it compares with other Asian jurisdictions for company registration.

Singapore stands out due to fast registration, regulatory transparency and support for fintech companies. Hong Kong, on the other hand, may be more attractive for companies targeting the Chinese market.

Practical tips and mistakes

Over the years of working with clients, the COREDO team has identified common mistakes that slow down the registration process or create problems after registration.

Common mistakes:

1. Mistake 1: Incorrect choice of company name. Many entrepreneurs choose names that contain reserved words or are similar to existing companies. This leads to rejection and the need to refile. Solution: check the name’s availability on the ACRA website before reservation.
2. Mistake 2: Incomplete document preparation. Missing documents confirming the addresses of directors or shareholders lead to delays. Solution: prepare all documents in advance and ensure they are up to date (no older than 3 months).
3. Mistake 3: Incorrect completion of the registration form. Typos in names, addresses, or dates of birth lead to rejection. Solution: double-check all data before submission.
4. Mistake 4: Ignoring the requirements for maintaining the register of controllers. Many companies forget to update the register of controllers in accordance with the new 2025 requirements. Solution: immediately after registration prepare and file the register of controllers.
5. Mistake 5: No compliance plan after registration. Companies often forget about the need for annual reporting and tax filings. Solution: create a calendar of compliance requirements and appoint a responsible person.

Singapore as a hub of international business

Company registration in Singapore: it is not just an administrative procedure, but a strategic decision that opens doors to Asian markets, attracts investment and enables global expansion. The speed, transparency and reliability of Singapore’s regulatory framework make it one of the best in the world.

At the same time, success depends not only on complying with registration procedures but also on understanding long-term compliance requirements, choosing the right business structure and preparing for operational activities. COREDO’s experience confirms that companies that invest time in proper preparation and choose a reliable adviser avoid costly mistakes and reach their business goals faster.

Fundamental differences: What onshore, offshore and midshore mean is directly related to the choice of business jurisdiction and determines the approach to taxation, regulatory requirements and transparency. Understanding these differences will help explain why companies choose onshore, offshore or midshore structures to conduct their business.

Onshore Jurisdictions: Definition and Characteristics

Typical examples: United Kingdom, Ireland, Switzerland, Thailand, Singapore. In these countries companies are required to:

• Maintain full accounting records and submit financial statements.
• Disclose information about beneficial owners and directors.
• Comply with economic substance requirements (presence of an office, employees, and real operations).
• Perform KYC and AML procedures when opening bank accounts.

Offshore jurisdictions: tax benefits

Key features:

• Tax incentives: corporate tax, 0–3%, no tax on dividends and capital gains.
• Confidentiality: beneficial owner registers are often closed to public access; nominee services are used.
• Minimal reporting requirements: often an annual declaration without audit is sufficient.
• Quick incorporation: company setup time – from 1 day to a week.
• No economic substance requirements (office, employees not required).

Midshores: what they are and how they differ from offshores and onshores

Midshore companies combine:

• Low corporate taxes (10–15%) and tax incentives for international operations.
• Ability to run a real business with access to European or Asian banking systems.
• Transparency and compliance with CRS, FATCA, BEPS standards.
• Substance requirements: office, employees, real operations.

Key differences in taxation

Tax burden in offshore and onshore jurisdictions

Reporting and documentation requirements

Onshore jurisdictions impose strict requirements:

• Annual financial statements, audit, tax return.
• Mandatory disclosure of information about beneficial owners and directors in public registers.
• Compliance with CRS standards, FATCA, and automatic exchange of information between jurisdictions.

Offshore jurisdictions – minimal requirements:

• Annual declaration, sometimes without audit.
• Beneficial owner registers are closed (but since 2023 BVI and other offshore jurisdictions have introduced mandatory disclosure to regulators).
• Compliance procedures when opening accounts are becoming stricter.

Administrative costs and maintenance expenses

COREDO’s practice shows: The ROI of an offshore structure depends on business goals, the volume of operations and compliance requirements. It is important to consider hidden costs, document legalization, account opening and compliance.

Privacy and asset protection

Privacy and asset protection remain key factors when choosing a jurisdiction for conducting business and managing capital. The level of transparency, anonymity and protection mechanisms varies significantly between offshore and onshore zones, which directly affects the security of information about owners and asset structures.

Privacy levels in offshore and onshore jurisdictions

Offshore jurisdictions traditionally provide a high level of confidentiality:

• Beneficial owner registers are closed to public access.
• Nominee services are used: nominee directors and shareholders.
• Business privacy is maintained, but from 2023–2025 access to registers has been broadened for regulators and banks.

Onshore jurisdictions: high level of transparency:

• Registers are open; owner information is available to government authorities and banks.
• Confidentiality is limited by CRS and FATCA standards.

Creditor protection through offshore structures

Holding companies and offshore trusts: effective asset protection instruments:

• Assets are structured through separate legal entities, which reduces the risk of creditor claims or seizure.
• Offshore trusts allow managing capital while protecting it from creditors and lawsuits.
• Passive structures in offshore jurisdictions are legal provided substance and transparency requirements are met.

Risks and challenges — what you need to know

The risks and challenges of offshore structures are relevant today for any business considering opportunities to operate in international markets. Using offshore structures can bring benefits, but it is associated with a number of significant risks that it is important to know in advance to avoid unexpected consequences.

Reputational risks of offshore structures

Offshore structures are often associated with money laundering and tax evasion, which leads to:

• Stigma among banks and partners.
• Problems opening bank accounts: many banks refuse services to offshore companies.
• Restrictions on participation in international tenders.

BEPS compliance risks: what you need to know

The BEPS initiative and OECD recommendations require:

• Real economic presence: office, employees, operations.
• Transparency of structure and disclosure of information about beneficiaries.
• Adapting offshore structures to new standards: automatic exchange of information, elimination of passive structures.

AML/CFT and sanctions restrictions

Offshore structures must comply with AML/CFT requirements:

• KYC procedures: client verification, beneficiaries, sources of funds.
• Checks for terrorist financing.
• Sanctions restrictions – companies from sanctioned jurisdictions face account blocking and refusal of service.

Comparison of tables and matrices

Practical comparison in table and matrix formats helps quickly see the key differences between the main types of jurisdictions and choose the most suitable solution for business. The following subsections illustrate in detail the differences between offshore and onshore jurisdictions based on structure, taxation, level of confidentiality and other significant criteria.

Offshore and onshore: a comparison

Jurisdiction selection matrix for business

Popular offshore and onshore jurisdictions 2025

Popular offshore and onshore jurisdictions in 2025 are becoming a key choice for companies seeking to optimally structure international business and minimize tax costs. In the context of tightening regulations and cross-border information exchange, it is especially important to know which offshore zones remain relevant and which jurisdictions are most in demand today for different business purposes.

Offshore zones: analysis and recommendations

• BVI – a classic offshore, but with increasing transparency requirements and reputational risks.
• Seychelles: ease of registration, low costs, but limited access to banking services.
• Gibraltar, a European alternative with a good reputation, suitable for financial companies.
• Georgia, a growing hub with an attractive tax regime for IT and trade.
• Cyprus: a midshore, access to the European system, in demand for holdings and investments.
• Luxembourg, the Netherlands, structures for holdings, investment and financial companies.
• Mauritius – stability, international recognition, optimal for family offices.
• Panama – a traditional offshore, but with compliance and banking service risks.

Onshore jurisdictions: stability and opportunities

• Thailand, an attractive regime for foreign investors, moderate taxation.
• Singapore: Asia’s financial center, fast registration process, strict compliance.
• Hong Kong – territorial taxation, flexible structure, high level of transparency.
• USA – stability, market access, developed infrastructure.
• United Kingdom, Ireland, European leaders for international business.
• Switzerland, privacy, stability, in demand for family offices and investments.
• Luxembourg, the Netherlands: tax optimization within the EU.

Choosing a Jurisdiction: How to Choose?

Step-by-step guide: How to choose the right jurisdiction — a practical instruction that allows you to make a strategically important decision for the future of your business consistently and without unnecessary risks. At each stage it is important to consider both your goals and the specifics of your project to select a jurisdiction that will provide optimal conditions for the company’s growth and stability.

Define your business goals

Answer the questions: Which markets are important for your business? What level of transparency is acceptable? What are the priorities: taxes, reputation, asset protection?

Assess reporting and compliance requirements

• Review the requirements of CRS, FATCA, and beneficial ownership disclosure.
• Assess the reporting burden, need for audits, and substance requirements.
• Estimate the budget for legal support and compliance.

Analyze reputational risks

• Check the jurisdiction’s status on international lists (OECD, FATF).
• Examine the availability of banking services and the requirements for opening accounts.
• Assess the impact on business reputation and relationships with partners.

How to calculate economic feasibility

• Compare the cost of registration, annual maintenance, and legal support.
• Estimate potential tax savings.
• Determine the breakeven point and long-term ROI.

Choose a business structure

• Holding companies: for managing assets and protecting against risks.
• Trusts: for inheritance, family offices, and wealth management.
• Operating companies: for international trade and investments.

Take into account requirements for real economic presence – office, employees, operations.

Solutions for specific situations

Special scenarios require flexible solutions, especially when it comes to international trade. Offshore entities become an effective tool for export and import, allowing companies to adapt to specific situations and minimize risks.

International trade: offshore entities for export and import

Investments and asset management

Offshore structures are sought after for investment diversification, family wealth management, and inheritance. Family offices and trusts in Mauritius and Luxembourg provide asset protection and management flexibility.

Protection against sanctions and political risks

• Choosing jurisdictions outside sanctions lists, creating structures with a genuine economic presence, and legal support: key tools for asset protection.

Current trends and changes in 2025

Current trends and changes in 2025 vividly reflect the strengthening of global cooperation in taxation and the emergence of new standards for international business. Over the coming year, the key catalyst of these changes will be the introduction of a global minimum tax, which affects the business conditions for large companies and influences the tax policies of entire countries.

Global minimum tax: impact and consequences

Transparency and reporting requirements

CRS and FATCA: automatic exchange of information, disclosure of beneficial owners, availability of registries. Offshore jurisdictions are forced to adapt, implementing new compliance and reporting procedures.

Development of new offshore centers

Recommendations and checklists

Practical recommendations and checklists allow you to take a step-by-step approach to choosing the optimal offshore jurisdiction, taking into account real objectives, risks and regulatory nuances. In this section you will find specific checklists and tips that will help structure the decision-making process and avoid common mistakes.

Checklist for choosing an offshore jurisdiction

1. Define the business objectives.
2. Review reporting and compliance requirements.
3. Assess reputational risks.
4. Calculate economic efficiency.
5. Check the jurisdiction’s status on international lists.
6. Assess availability of banking services.
7. Assess substance requirements.
8. Compare the cost of registration and maintenance.
9. Check licensing requirements.
10. Assess risks of sanctions.
11. Review requirements for disclosure of beneficial owners.
12. Conduct a compliance audit.
13. Prepare the document package.
14. Select a registered agent.
15. Plan a long-term strategy.

Document registration: how to complete the procedure

• Passport details of founders and directors.
• Proof of residential address.
• Resumes of directors and shareholders.
• Constitutional documents.
• Registration application.
• Company address.
• Secretary details (for Singapore – resident).
• Business plan (for licensing).
• Documents evidencing representatives’ authority (for legal entities).
• Registration fee.

The registration procedure includes a name check, submission of documents to the registry, obtaining corporate documents, legalization (apostille), opening a bank account and obtaining licenses (if necessary).

Compliance requirements after registration

• Annual reporting, audit (onshores, midshores).
• AML/CFT procedures, KYC checks.
• Disclosure of beneficial ownership information.
• Compliance with CRS, FATCA.
• Legal support, document updates, filing reports, compliance audit.

Frequently Asked Questions

Offshore or onshore: what to choose in 2025?

What taxes do offshore companies pay?

How to open an offshore company without risks?

Which banks open accounts for offshore companies?

How to avoid reputational risks when using an offshore?

Key findings and recommendations

Offshore vs onshore – this is not a choice between “good” and “bad”, but a strategic decision that requires a deep analysis of objectives, risks and opportunities. Each jurisdiction has its advantages and limitations, and in 2025 reputation and compliance come to the forefront.

Practical steps:

1. Determine priorities: tax savings, privacy, reputation, asset protection.
2. Conduct a cost and ROI analysis.
3. Evaluate compliance requirements and substance.
4. Choose a business structure that aligns with your goals.
5. Use COREDO’s expert support at every stage.

Electronic residency (e-Residency), a unique program that allows entrepreneurs from anywhere in the world to access Estonia’s digital infrastructure and open a company entirely online, without physical presence. The e-Residency program Estonia is recognized as one of the most innovative in the world: according to official statistics, more than 100,000 e-residents have created over 25,000 OÜ companies, and the share of non-residents among new businesses exceeds 60%.
How to get an e-Residency card in Estonia?
The process begins with submitting an online application on the official portal. You need to provide a passport scan, a photo, a motivation letter and pay the state fee (100–120 euros depending on the country of collection). After identity verification and approval of the application, the e-Residency card is issued at one of the pickup centers: in Estonia or at overseas representations.

Timeline and stages for obtaining e-Residency:

• Submitting the application: 15–30 minutes
• Identity and data verification: 2–6 weeks
• Receiving the card: 1–2 days after notification

Data security and identity verification are key elements of the process. Estonia uses a multi-level identification system, including biometric data and a digital signature. In COREDO’s practice we have encountered situations where, to speed up the procedure, we arranged a power of attorney (Power of Attorney) for company registration in Estonia, which allowed the client to avoid spending time on visits and in-person meetings.

How can I open a company in Estonia remotely?

Step 1. Obtaining a digital identification card (e-Residency)

The application is submitted through the official portal. Required documents include a passport scan, a photo, a motivation letter and proof of payment of the fee. After review and approval of the application the e-Residency card is issued at the selected pickup point. This stage is the foundation for subsequent actions: only with an e-Residency card will you be able to use the digital signature to register an OÜ and manage the company online.

Step 2. Choosing the company form: registering an OÜ in Estonia

OÜ is a private limited company, the most popular form for non-residents. The minimum share capital in Estonia is 0.01 euro, but in practice COREDO recommends contributing from 2,500 euros to increase creditworthiness and trust from banks and counterparties. Requirements for OÜ founding documents include the articles of association, the founding agreement, and information about shareholders and directors.

Step 3. Submitting the application through the Estonian Business Register online portal

OÜ registration is carried out completely online.

• Choosing the company name (checked for uniqueness)
• Determining the main activity (EMTAK code)
• Specifying the company’s legal address in Estonia (a virtual office can be used)
• Appointing a contact person (required for non-residents)
• Preparing and signing the founding documents using a digital signature

COREDO’s experience confirms: a competent choice of EMTAK code and legal address significantly speeds up the registration process and the subsequent opening of a bank account.

Step 4. Payment of the registration fee and share capital

The state fee for registering an OÜ is 265 euros and is paid through the online portal. Share capital can be contributed immediately or during the first year of operation. Payment is possible by bank card or via international payment systems.

Step 5. Receiving the B-card and founding documents

After registration you receive a B-card: basic information about the company, as well as the founding agreement and the articles of association. All documents are available electronically, signed and stored online. The solution developed by COREDO to automate this process allows clients to receive all documents and manage them through a secure cloud archive.

Cost of opening a company in Estonia in 2025

Direct costs

• State fee for OÜ registration – €265
• Obtaining e-Residency – €100–120
• Legal address and virtual office, €50–150 per year

Additional costs

• Assistance with company registration in Estonia, €200–500 (depends on complexity and scope of services)
• Opening a bank account for an Estonian company – €100–300
• Legal support for business in the EU, from €200 per month (if needed)

Table: Cost structure for registering a company in Estonia 2025

Taxes in Estonia for non-residents

Tax rates and regimes 2025

• Corporate income tax: 0% until profits are distributed, 20% on dividend payments
• VAT, 20%, registration is mandatory if turnover exceeds €40,000 per year
• Dividend tax: included in the corporate tax

Tax reporting and declarations

Reporting is submitted online via the government portal. Automation of accounting and tax reporting is possible through API integration, which reduces outsourcing costs and minimizes errors. COREDO solutions allow clients to set up automatic submission of declarations and receive deadline reminders.

Tax planning for international companies

Opening an account for an Estonian company by a non-resident

Requirements for shareholders and directors

To open an account the bank requires confirmation of the identity of shareholders and directors, as well as submission of the incorporation documents, a B-card and a business plan. Important: most banks and fintech platforms require completing KYC and providing information about beneficiaries.

Procedure for opening an account without personal presence

Integration with international banks and payment systems

Estonian companies OÜ can open accounts not only in local banks but also on European fintech platforms, which speeds up integration with international payment systems and makes working with multi-currency settlements easier.

Legal support and AML/KYC during company registration

Compliance with AML and KYC requirements

Since 2025 Estonia has tightened AML (anti-money laundering procedures) and KYC (Know Your Customer) requirements. Registration and opening an account require disclosure of beneficiaries, confirmation of the source of funds and verification of business reputation. COREDO’s experience shows: correct documentation and transparency of structure speed up approval by banks and regulators.

Risk management in company registration

Key risks – refusal of registration, account blocking, fines for non-compliance with AML/KYC. COREDO’s practice confirms: a comprehensive audit of documents and preliminary risk assessment help minimize delays and avoid legal consequences.

Legal consultations for business registration and support

Expert support at all stages – from choosing the company form to filing a tax return: allows COREDO clients to focus on developing the business without being distracted by bureaucracy and legal nuances.

How to manage a company in Estonia online?

Electronic signature for an Estonian company

The e-Residency digital ID card provides access to an electronic signature recognized across all EU countries. This allows signing contracts, filing reports and managing the company entirely online.

Managing risks of remote management

Main limitations: the need to maintain substance (business presence), cybersecurity risks and difficulties opening accounts in certain banks. COREDO’s solutions include organizing a virtual office and setting up secure channels for storing and exchanging documents.

Electronic document storage and archiving

Risks and limitations of company registration in Estonia for non-residents

Legal risks

Non-compliance with AML/KYC requirements, errors in founding documents or lack of substance can lead to refusal of registration or account blocking. In 2025 regulators tightened oversight of companies with non-residents.

Financial risks

There may be additional expenses for legal support, opening accounts and maintaining substance. COREDO’s experience shows: transparent planning and audit of the business model can minimize these risks.

Risks of non-compliance with EU legislation

Violation of EU rules (for example, GDPR, tax directives) can lead to fines and restrictions on operations. The solution implemented by COREDO includes regular monitoring of legislative changes and adaptation of clients’ business processes.

Practical steps for entrepreneurs

• Obtain an e-Residency card and set up an electronic signature
• Choose the company form (OÜ), prepare the founding documents
• Register the company through the online portal, pay the fee
• Arrange a legal address and choose a reliable contact person
• Prepare a package of documents to open a bank account
• Set up accounting and reporting automation
• Conduct an audit for compliance with AML/KYC and substance requirements
• Use secure channels for storing and exchanging documents

COREDO’s practice confirms: following these steps consistently makes it possible to open a company in Estonia remotely without a visit, minimize costs and reduce legal risks.

ROI and business prospects through company registration in Estonia

Metrics of ROI when opening a company in Estonia include speed of entry into the EU market, reduced tax burden, lowered operating costs, and increased trust from European partners. Estonia: it is not only a convenient jurisdiction for registering an OÜ, but also a real tool for scaling a business in the EU, integrating with international payment systems, and attracting investment.

If it is important for you not just to register a company, but to receive comprehensive support, minimize risks and ensure process transparency – the COREDO team is ready to become your reliable partner in Estonia and the EU.

Main differences between EMI and PSP

EMI functionality and capabilities

An EMI license opens up the widest range of possibilities for fintech:

• Issuance of electronic money: the right to issue electronic money and ensure its circulation within payment services, e-wallets, mobile applications.
• Opening accounts and e-wallets: clients can have individual IBANs, multi-currency accounts, integration with SEPA and SWIFT for international payments.
• Safeguarding client funds: client funds are protected by segregation, which increases trust in the service.
• Issuing payment cards: the ability to issue proprietary cards (Visa, Mastercard, etc.), which is especially in demand for startups, digital banks, and mobile wallets.
• Access to international payment infrastructures: direct connection to SEPA, SWIFT, issuing IBANs for foreign companies.

PSP functionality

A PSP license is a tool for companies that do not need to hold client funds:

• Execution of payments without holding funds: a PSP acts as a payment operator, providing instant transfers, mass payouts, currency exchange, but does not accumulate client funds.
• Mass payments and currency conversion: a PSP license is in demand for mass payout services (e.g., freelance platforms, marketplaces), as well as for exchange offices and payroll payout services.
• Opening accounts for clients: it is possible to provide IBANs for foreign companies; however, without the right to hold funds for a long period.
• Restrictions on holding funds: a PSP cannot retain client funds longer than the established period (usually 24–48 hours), which imposes limitations on the business model.

Comparison table: EMI and PSP

EMI or PSP: How to choose a license for fintech

The choice of license for fintech depends on the specifics of your services and the requirements for issuing electronic money.

When an EMI license is needed

An EMI license is required if you:

• are launching e-wallets, a digital or online bank, a mobile wallet that stores funds, issues cards, and integrates with international payment systems.
• plan to scale a payment service: entering international markets, working with foreign customers, providing IBANs.
• are building a fintech platform that issues electronic money — for example, for SaaS, a marketplace, the crypto industry, or B2B/B2C services.

When a PSP license is needed

A PSP license is optimal if:

• your business model involves mass payments, transfers, currency exchange, or payroll — you do not store clients’ funds but only enable their fast processing.
• you need quick Licensing and launch: the timeframe for obtaining a PSP license is shorter, and the requirements for share capital and compliance are lower.
• you work with international clients: a PSP license is suitable for mass payout services, e-commerce, SaaS, freelance platforms, and exchange services.

EMI and PSP for international business, examples

EMI and PSP: regulation and requirements in the EU and worldwide

Minimum statutory capital and financial requirements

• EMI license: minimum statutory capital – 350 000 EUR. For small EMIs (sEMI), from 50 000 EUR, but with turnover and geographic restrictions.
• PSP license: minimum statutory capital: 125 000 EUR. For small PSPs (sPI) – from 20 000 EUR, also with restrictions on transaction volume.

Timeframes for obtaining a license

• EMI license: from 6 to 12 months, depending on the jurisdiction, the complexity of the corporate structure and the completeness of the documentation.
• PSP license: from 3 to 6 months, which allows faster launch of mass payment services and international transfers.

AML and KYC requirements

• EMI license: strict AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures, mandatory implementation of CDD (Customer Due Diligence) and EDD (Enhanced Due Diligence), regular audits and reporting.
• PSP license: AML requirements and KYC are also high, but the volume of internal control and the depth of customer checks are somewhat lower.

EMI and PSP: comparison by jurisdictions

EMI and PSP in Lithuania

Lithuania – one of the EU leaders in the number of issued EMI and PSP licenses. Advantages:

• Fast application review times (6–9 months for EMI, 3–5 months for PSP).
• Transparent requirements for capital and corporate structure.
• Developed infrastructure for fintech.

EMI and PSP licenses in the Czech Republic

The Czech regulator focuses on transparency and predictability of procedures. Features:

• Stable capital requirements.
• Emphasis on AML procedures and disclosure of beneficial ownership.
• Ability to register as either an EMI or a PSP with minimal bureaucratic barriers.

EMI and PSP in Estonia

Estonia actively supports fintech startups:

• Simplified registration procedures.
• Electronic interaction with the regulator.
• Ability to obtain e-Residency for foreign founders.

EMI and PSP in Singapore

Singapore is one of the most technologically advanced and heavily regulated markets in Asia:

• Strict compliance requirements and financial reporting.
• High entry barrier for EMI and PSP licenses.
• Requirement to have a local director and secretary, and a transparent corporate structure.

How do I register a payment company and obtain a license?

The process of registering a payment company and obtaining a license requires a clear sequence of actions and strict compliance with all regulators’ requirements.

Preparation of the business model and corporate structure

• choosing a jurisdiction: analysis of requirements, timelines and licensing costs, regulatory specifics.
• Development of the business model: defining target markets, payment scenarios, integration with SEPA, SWIFT, IBAN.
• Corporate structure and beneficial control: disclosure of ownership structure, preparation of a governance scheme, appointment of key persons.

Collection of documents for application submission

• Financial reporting: preparation of forecasts, confirmation of sources of capital.
• Internal regulatory documents: AML/KYC policies, CDD and EDD procedures, compliance requirements.
• Regulatory submission package: charter, information on beneficiaries, CVs of key personnel.

Application submission process and interaction with the regulator

• Submitting the application: electronic or paper form, depending on the jurisdiction.
• Interaction with the regulator: responding to inquiries, providing additional documents, participating in interviews.
• Payment systems audit: demonstrating compliance with internal and international standards.

Opening an account and launching operations

• Banking support: selecting a bank, preparing the document package, undergoing compliance procedures.
• Opening an EMI/PSP account: obtaining an IBAN, integration with payment gateways.
• Operations launch: testing payment scenarios, onboarding clients, initiating mass and international payments.

Conclusions and recommendations

• How to choose a license: EMI or PSP? Base your decision on the business model, plans for holding funds, scaling and target markets. For e-wallets, digital banks and services that hold funds choose EMI. For mass payments, currency exchange and rapid launches — PSP.
• Practical steps for registration and launch: a clear business model, a transparent structure, thorough document preparation and professional support are the key to successful licensing.
• Tips for minimizing risks and complying with AML: implement modern AML/KYC procedures, regularly update compliance documents, and invest in employee training.
• How to choose a reliable partner for legal support: pay attention to experience, expertise and the presence of completed cases in your jurisdiction. A comprehensive approach reduces regulatory risks and accelerates market entry.

Frequently Asked Questions (FAQ)

To launch a fintech service in the EU and abroad, an EMI or PSP license is required, as well as additional authorizations to work with cryptocurrencies, mass payments, and currency exchange.

You need to prepare a package of documents (articles of association, corporate structure, information about beneficiaries), undergo compliance procedures and confirm the legality of the sources of funds. Professional support helps to navigate the process at every stage.

AML (Anti-Money Laundering) – a set of measures to prevent money laundering, including KYC, CDD, EDD, internal policies and regular reporting. For EMI and PSP, implementing an effective AML system is a mandatory regulatory requirement.

It is recommended to establish a transparent corporate structure, implement internal regulatory documents, regularly audit payment systems and keep compliance procedures up to date.

Assess experience, expertise, a proven track record of completed cases and transparency of communication. A comprehensive approach ensures long-term resilience and minimizes regulatory risks.

Entrepreneurs from Europe, Asia and the CIS face a number of pain points: difficulties with company registration, opening a bank account, complying with Finantsinspektsioon requirements, as well as a lack of reliable partners able to support the entire process from registration to obtaining a license.

Why Estonia for a crypto license in 2026?

Why Estonia, the optimal choice for a crypto license in 2026, is becoming increasingly clear to companies seeking to operate to international standards and grow within the legal field. The Estonian jurisdiction combines progressive cryptocurrency regulation with unique business advantages, which we will review below.

Advantages of Estonia for crypto businesses

Registering a CASP (Crypto Asset Service Provider) in Estonia allows you to legally carry out cryptocurrency operations, including exchange, custody, trading and other services, with EU passporting. This means that a company that has obtained a crypto license in Estonia can operate in other EU countries without needing to obtain additional licenses.

Estonia’s digital infrastructure, including e-Residency, enables remote company management, which is especially relevant for international entrepreneurs.

Advantages for businesses in the EU, Asia and the CIS

• EU passporting of the license: The ability to operate in other EU countries based on the Estonian license.
• Access to European banks and payment systems: Opening a corporate bank account, integration with EMI/PSP payment systems.
• Attractiveness to investors: Estonia’s reputation as a reliable jurisdiction attracts investors from developed markets.
• The ability to work with clients from Asia and the CIS: When complying with local requirements, a company can scale into Asian and CIS markets.
• ROI metrics: Rapid return on investment due to scalability and regulatory leniency.

How to obtain a crypto license in Estonia

Obtaining a crypto license in Estonia is a comprehensive process that requires compliance with strict regulatory requirements and the sequential completion of several stages. The step-by-step guide below will reveal all the key steps you need to take, starting with company registration and ending with obtaining official authorization to operate with cryptocurrencies. Understanding this process will help you avoid mistakes and speed up the licensing procedure.

Preparation and planning

Before starting company registration it is important to determine the types of activities that will be carried out: exchange of cryptocurrencies for fiat, custody of assets, trading, etc.

• Choosing and checking the company name in the commercial register: the name must be unique and comply with the regulator’s requirements.
• Collecting information about founders, beneficial owners and managers: full details of all company participants must be provided.
• Developing a detailed business plan:
  • Business model and sources of revenue.
  • Security plan and technical infrastructure.
  • Measures for AML/CTF compliance.
  • Risk management strategy.

Company registration in Estonia

1. Choose a registered address (you can use a virtual office service).
2. Prepare the founding documents.
3. Make initial contributions to establish the share capital.
4. Submit documents to the Estonian commercial register.
5. Obtain an extract from the commercial register.
6. Open a corporate bank account.

Tax registration and licensing

• Registration with the Estonian Tax and Customs Board as a VAT payer: Mandatory for all crypto companies.
• Opening a corporate bank account: Many banks require additional documentation for crypto companies.
• Confirmation of founders’ sources of funding: the regulator thoroughly checks the origin of funds.
• Preparation of documents confirming the competence of board members: CVs, certificates, experience.

Internal company policies and procedures

• KYC (Know Your Customer): Procedures for identifying and verifying clients, collecting information about beneficial owners.
• AML/CTF (Anti-Money Laundering/Counter-Terrorist Financing): Policies for detecting suspicious transactions, reporting procedures to the Financial Inspectorate.
• Transaction monitoring: Automated monitoring systems, alert thresholds, investigation procedures.
• Internal control: Segregation of duties, transaction audits, documentation of decisions.
• Data storage: Security requirements, retention periods, backup procedures.
• risk management: Identification, assessment and mitigation of risks of money laundering, terrorist financing and cyberattacks.

Preparing documents for the application

The full document package includes:

• Company founding documents (articles of association, deed of establishment).
• Extract from the commercial register.
• Confirmation of share capital (bank account statement).
• Business plan description specifying the services.
• Written description of KYC and AML policies.
• CVs and verification of board members’ experience.
• Documents proving the business reputation of founders and beneficial owners.
• Description of the technical infrastructure and security measures.
• Information on ownership structure and sources of funding.
• Documents on tax authority registration.

Submitting the application to the Estonian Financial Inspectorate

• The application is submitted to Finantsinspektsioon (the Estonian Financial Inspectorate).
• State fee for submitting the application: the amount is to be confirmed with the regulator.
• Standard review period: 60 working days from the submission of the complete document package.
• Possible extension of the period if additional information is requested.
• Interaction with the regulator: responding to questions, providing clarifying information.

Application review and decision

• The Financial Inspectorate checks the company’s compliance with the six minimum requirements of MLTFPA:
  • Minimum amount of share capital.
  • Adequacy of own funds.
  • Conducting annual audits.
  • Internal control and data storage.
  • Proper corporate structure.
  • Business reputation (of the company, management members, beneficial owners).
• Business reputation checks include analysis of criminal records, bankruptcies and disciplinary sanctions.
• Possible outcomes: approval, request for additional information, refusal.

After the review is completed the company receives the inspectorate’s decision and, if positive, proceeds to the licensing stage and subsequent compliance with regulatory requirements.

Obtaining licensing and compliance support

• After approval the company receives an official crypto license.
• The license allows legally conducting cryptocurrency operations in Estonia and the EU.
• Mandatory requirements after obtaining the license:
  • Annual audit of financial statements.
  • Regular monitoring of AML/CTF compliance.
  • Annual confirmation of business reputation.
  • Notifying the regulator of changes in company structure.
  • Compliance with MiCA (Markets in Crypto-Assets Regulation) requirements.

Requirements for a crypto license in Estonia

The key requirements for a crypto license in Estonia cover several critically important aspects that all companies planning to operate legally with virtual assets must follow. These requirements are intended to ensure transparency, financial stability and strict oversight of crypto business activities in the country. Below we consider the main ones, starting with the financial conditions.

Financial requirements

• Minimum share capital: 12,000 euros.
• Requirement for own funds: the company must have sufficient financial resources to carry out its activities.
• Mandatory annual independent audit.
• Documentation of all financial transactions.

Requirements for management and company structure

• At least one director must be located in Estonia or have a significant connection to the jurisdiction.
• Board members must have relevant experience in the financial sector or crypto business.
• Proof of competence is required via CVs, certificates, and references.
• The business reputation of all founders, directors and beneficial owners must be impeccable (no criminal records, bankruptcies, or disciplinary sanctions).
• Transparent corporate structure with clear identification of beneficial owners.

AML/CTF and KYC: compliance requirements

• Development and implementation of written KYC (Know Your Customer) policies.
• Identification and verification procedures for all clients before account opening.
• Collection of information about the purposes of using services and sources of funds.
• Ongoing monitoring of client transactions for suspicious activity.
• Reporting procedures to the Financial Inspectorate for suspicious transactions.
• Maintaining detailed records of all transactions (minimum 5 years).

Internal control and security requirements

• The internal control system must ensure:
  • Segregation of responsibilities among employees.
  • Regular audit of operations.
  • Documentation of all decisions and procedures.
  • Protection of client data and assets.
• Data retention requirements:
  • Minimum 5 years for all operations and documents.
  • Secure storage with backups.
  • Data recovery procedures in case of failures.
• Cybersecurity requirements:
  • Encryption of data at rest and in transit.
  • Multi-factor authentication.
  • Regular vulnerability testing.
  • Cyber risk insurance.

MiCA requirements from 2025

MiCA requirements: new standards from 2025 will fundamentally change the rules for the crypto-asset market in the European Union. From this point, companies and investors will face a unified legal regime and new requirements aimed at transparency and the protection of industry participants.

MiCA: what it is and why it’s needed

• MiCA (Markets in Crypto-Assets Regulation): a single regulatory framework for crypto business in the EU, which came into force on 1 January 2025.
• Estonia has fully adapted its legislation to MiCA requirements.
• CASP (Crypto Asset Service Provider): a new license category recognized across the EU.
• Benefits: license passporting, the ability to operate in other EU countries without additional licenses.

MiCA requirements for crypto companies

• Enhanced disclosure requirements for clients.
• Mandatory insurance against cyber risks and asset loss risks.
• Requirements for managing conflicts of interest.
• Mandatory notification of clients about risks associated with crypto-assets.
• Requirements for liquidity and reserve management.
• Stronger requirements to combat market manipulation.

Challenges and Risks in Obtaining a Crypto License

Obtaining a crypto license is an important step for the legal launch and development of a business in the field of digital assets. On the other hand, entrepreneurs on this path face a number of common challenges and risks. The first of these is the difficulty of company registration, which can significantly affect the timing and cost of market entry.

Issues with Company Registration

• Difficulty opening a bank account: Many Estonian banks are reluctant to work with crypto companies due to increased risks. Solution: use specialized fintech banks or EMI/PSP payment service providers.
• Requirements for a physical office: The regulator requires the presence of a real office, which can be costly. Solution: use virtual office services with legal address support.
• Verification of funding sources: The regulator thoroughly checks the origin of funds. Solution: prepare complete documentation on funding sources.

Interaction with the regulator: issues

• Lengthy application review: The standard period of 60 business days may be extended if additional information is requested.
• High documentation requirements: The regulator requires detailed and complete documentation. Solution: engage experienced legal advisors.
• Changing requirements: The regulatory framework is constantly evolving. Solution: continuous monitoring of changes and adaptation of policies.

Challenges in complying with AML/CTF requirements

• Difficulty identifying clients: It is necessary to collect sufficient information for verification. Solution: use specialized KYC platforms.
• False positives in monitoring systems: A high rate of false positives requires manual review. Solution: adjust threshold values and use ML algorithms.
• Documenting decisions: All decisions regarding suspicious transactions must be documented. Solution: implement specialized compliance management software.

How to minimize risks and accelerate the process

This practical guide to minimizing risks and speeding up processes begins with the most important step – choosing a reliable consulting partner. The right choice not only reduces potential threats but also significantly accelerates achieving business goals.

How to choose a consulting company

• The partner should have experience in crypto licensing in Estonia.
• Check the portfolio of successful projects and client reviews.
• Ensure the partner provides a full range of services:
  • company registration.
  • preparation of documents for a license.
  • Interaction with the regulator.
  • Legal and accounting support.
  • Compliance support after obtaining the license.
• Assess the cost of services and timelines.

Document workflow optimization

How to optimize document workflow?

• Prepare all documents in advance, without waiting for a regulator’s request.
• Use checklists to verify the completeness of the document package.
• Ensure all documents are translated into English (if required).
• Use electronic signatures to speed up the process.
• Maintain a clear document and version control system.

Speed up application review

• Submit a complete set of documents on the first attempt (to avoid requests for additional information).
• Appoint a responsible person to liaise with the regulator.
• Respond quickly to regulator requests (within 5-7 days).
• Provide additional information even if not requested (demonstrates transparency).
• Conduct an internal audit before submitting the application.

Long-term compliance strategy

• Implement a continuous compliance monitoring system.
• Conduct quarterly internal audits.
• Update policies and procedures when requirements change.
• Train employees on AML/CTF and KYC requirements.
• Keep detailed documentation of all actions and decisions.
• Engage with the regulator on an ongoing basis.

Estonia or other jurisdictions: which to choose

Entrepreneur’s checklist

Practical steps — your roadmap to a successful business start that will help you not miss a single important stage. The entrepreneur’s checklist structures the entire process of preparation and registration, turning many complex tasks into a clear sequence of actions. By following these items at each stage, you will minimize risks and create a solid foundation for your business.

Now that you have reviewed the key principles and approach, it’s time to move on to the first practical steps for preparing your business.

Phase 1: Preparation (weeks 1-4)

• [ ] Determine the types of cryptocurrency activities
• [ ] Choose the company name and check availability
• [ ] Gather information about the founders and beneficial owners
• [ ] Choose a legal address in Estonia
• [ ] Develop a detailed business plan
• [ ] Prepare resumes of the board members

Registration: weeks 5–8

• [ ] Prepare the founding documents
• [ ] Deposit the share capital into the bank account
• [ ] Register the company in the commercial register
• [ ] Obtain an extract from the register
• [ ] Register the company as a VAT payer
• [ ] Open a corporate bank account

Preparation for licensing: weeks 9–16

• [ ] Develop KYC and AML policies
• [ ] Develop internal control policies
• [ ] Develop transaction monitoring policies
• [ ] Prepare documents on business reputation
• [ ] Prepare documents on management competence
• [ ] Prepare a description of the technical infrastructure

Next, we move on to the application submission stage.

Application submission: week 17

• [ ] Assemble the complete set of documents
• [ ] Check the completeness and correctness of the documents
• [ ] Submit the application to Finantsinspektsioon
• [ ] Pay the state fee
• [ ] Appoint a person responsible for interacting with the regulator

If you have any questions or would like a personalized consultation, contact COREDO — we are ready to support you at every stage of registration and licensing.

Exempted Companies in Bermuda are a special type of company that are established primarily to carry on business outside the island and are exempt from a number of local restrictions and taxes. In this article we will review the key features of such structures, their advantages and the main rules that are important to consider when choosing this form of registration.

Definition and benefits

Key advantages of this format for international business include:

• Tax neutral jurisdiction Bermuda: absence of corporate tax, capital gains tax and dividend tax for exempted companies, which is confirmed by Bermuda’s official policy and the existence of a Tax Assurance Certificate – a guarantee of no corporate tax until 2035.
• Ability to structure the business with maximum flexibility: transferable shares, different classes of shares, free allocation of voting rights.
• Absence of currency controls (exchange control exemption) and the possibility of opening multi-currency accounts in leading banks worldwide.
• Recognition of Bermuda as an offshore financial center, which facilitates access to international financial markets, investment funds, insurance and reinsurance instruments.

Registration and company requirements

The Bermuda company registration process requires attention to detail and strict compliance with the procedures set out in the Bermuda Companies Act 1981. In practice, the COREDO team has implemented dozens of projects for registering exempted companies, and I can highlight the key stages:

• Preparation of constituent documents (Memorandum of Association, Bye-Laws), including information on beneficial ownership disclosure and capital structure (standard statutory capital, from 1 USD, but capital optimization is possible through share premium and voluntary capital contributions).
• Appointment of at least one director (may be a non-resident), a corporate secretary (usually a local professional provider) and a resident representative.
• Submission of the application through a licensed registered agent, payment of government fees (initial and annual statutory fees vary depending on the size of capital and type of activity).
• Obtaining registration approval and, if necessary, a license for specific types of activities (for example, insurance, mutual funds, payment services).

Tax benefits: financial advantages for businesses

Bermuda: a recognized tax‑neutral jurisdiction, which means no corporate tax, no capital gains tax, no tax on dividends and interest for exempted companies. This gives companies unique opportunities for international tax planning, especially for holding, investment and insurance structures.

• Zero corporate tax: an exempted company is not subject to corporate tax, allowing profits to be retained without erosion.
• Capital gains exemption and dividend exemption: any income from the sale of assets and from receiving dividends is exempt from taxation.
• Possibility of obtaining a Tax Assurance Certificate – an official document confirming the tax‑neutrality of the structure.
• Capital optimization: minimal Bermuda exempted company capital requirements, flexible share classes, and the ability to raise investment through a share premium.

Operational and managerial governance

Management and Corporate

Requirements for directors and secretaries of Bermuda exempted companies are determined by law and by best corporate governance practices:

• At least one director (a natural person or legal entity, not necessarily a resident).
• A corporate secretary, a professional provider ensuring compliance with legal requirements and maintenance of corporate records.
• A flexible board structure, the ability to allocate voting rights, and the appointment of observers and independent members.
• High standards of corporate governance: regular meetings, keeping minutes, transparency of decisions.

Regulatory requirements

• Implementation of AML/KYC procedures, regular audits and updating beneficial owner data.
• Filing annual reports, payment of statutory fees, maintaining up-to-date corporate information.
• Compliance with economic substance requirements for companies carrying out certain types of activities (insurance, financial services, holding companies).
• Interaction with professional providers, registered agents and auditors.

Risk Management and Business Scaling

Business Restrictions

Business activities of a Bermuda exempted company are limited in relation to dealing with local companies: an exempted company cannot carry on business in Bermuda, except where expressly permitted by a license or law. Its primary purpose is international activity.

• Business activities restrictions: prohibition on dealing with local clients, restriction on owning real estate in Bermuda.
• Licensing requirements: for certain types of activities (insurance, mutual funds, financial services) a separate license is required.
• Local ownership restrictions: no 60/40 requirement, which allows 100% foreign ownership.

Scaling and ROI: Key Concepts

Scalability of a Bermuda exempted company is one of the key advantages for international groups. A flexible corporate structure, absence of currency restrictions and ease of raising investment allow rapid business scaling, integration of new assets and markets.

• Ability to create holding, investment and insurance structures, integration into global corporate schemes.
• Effective asset protection, succession planning, and structuring of international transactions.
• ROI of offshore incorporation: reduction of tax burden, optimization of management costs, increased investment attractiveness.

Conclusion and Findings

Key Conclusions

• An exempted company in Bermuda is a strategic tool for international business, providing tax neutrality, flexibility of corporate structure and high governance standards.
• Registration and maintenance require a deep understanding of the Bermuda Companies Act 1981, the preparation of transparent corporate documentation and the implementation of effective AML/KYC procedures.
• Scaling a business through an exempted company is possible thanks to the absence of currency restrictions, structural flexibility and access to international financial markets.
• The main risks are non-compliance, errors in disclosing beneficiaries and insufficient structural transparency. These can be minimized through professional support and regular audits.

Practical Recommendations

• Choose a registered agent with proven expertise in supporting international structures; COREDO’s practice has shown that a professional approach reduces risks and speeds up processes.
• Integrate an exempted company in Bermuda into your global corporate structure taking into account economic substance requirements and international standards.
• Ensure cybersecurity and data protection by implementing modern tools and services for managing corporate information.
• Monitor key ROI metrics: tax planning efficiency, speed of scaling, and transparency for banks and investors.
• Use Bermuda’s opportunities to attract investment, create insurance and reinsurance structures, mutual funds, and asset management solutions.

Labuan as an offshore jurisdiction

Labuan for international business

Labuan offshore is not just a tax haven, but a full-fledged international financial centre integrated into the global infrastructure through the International Banking and Financial Centre Labuan (IBFC) and the strict prudential supervision of the Labuan FSA. The practice of COREDO confirms: Labuan combines the flexibility of corporate structures with transparency and compliance with OECD standards, which is critical for legally conducting business in 2025.

Corporate governance and compliance

Solutions developed at COREDO take into account corporate governance requirements: the mandatory appointment of a resident director, a corporate secretary, maintaining records and complying with transparency standards. Labuan requires compliance with international AML standards, corporate reporting and auditing, which helps minimize reputational and legal risks when working with European and Asian banks.

Company registration in Labuan: step-by-step instructions

company registration in Labuan: it is an effective way to enter the international market with optimal tax conditions and flexible opportunities for doing business. Thanks to its status as an offshore financial centre and an attractive jurisdiction, Labuan offers a number of advantages for entrepreneurs seeking access to international financing and confidentiality. Below we will review the main features of offshore companies in Labuan and the key stages of their registration.

Offshore companies in Labuan

COREDO’s experience has shown that the optimal choice of company type depends on the client’s objectives:

• Trading companies: suitable for international trade, e-commerce, and financial services. Audit is mandatory; a corporate income tax of 3% applies.
• Non-trading companies – used for holding structures, asset management, and investments. They are exempt from corporate income tax and have simplified reporting.
• Offshore holdings – allow centralizing share ownership and facilitating the repatriation of income with minimal tax costs.

Registration and required documents

The COREDO team has completed dozens of offshore company registration projects in Labuan for clients from the EU, CIS and Asia. The process includes:

1. Choosing the company type and preparing the incorporation documents (articles of association, shareholders’ resolution, beneficial owner information).
2. Collection of passport details, address verification, business model description, and information on sources of funds.
3. Submission of the application to Labuan FSA through a licensed corporate secretary.
4. Registration timeframe: from 5 to 10 working days with correctly prepared documents.
5. Company registration cost in Labuan: from 5,000 to 7,500 USD, including corporate secretary services and legal support.

Taxation in Labuan: benefits and features

Taxation in Labuan is characterized by special incentives and unique conditions for international business and investors. Attractive tax rates, minimal obligations for trading and non-trading companies, as well as exemption from a number of taxes make the jurisdiction appealing to entrepreneurs seeking to optimize their tax burden.

Corporate tax and 3% profit tax

The key advantage of Labuan: a 3% corporate tax for trading companies, or a fixed fee (20 000 MYR) in the absence of taxable activity. For non-trading and holding structures, exemptions from income tax, dividends and capital gains apply. The solution developed by COREDO enables the use of flexible tax regimes to optimize global tax planning.

Double taxation agreements

Financial services and banks in Labuan

financial services and banks in Labuan provide businesses with access to a wide range of products: from classic banking services to modern digital solutions. Thanks to flexible regulation and developed infrastructure, companies can quickly open a corporate account and enter promising Asian markets.

Open a corporate account in Labuan

Opening an account in Labuan requires verification of the source of funds, a business plan and compliance documents. International banks and licensed financial institutions of the IBFC provide access to multi-currency accounts, SWIFT operations and investment products.

COREDO’s practice confirms that a preliminary audit and preparation of a compliance dossier speed up account opening and minimize the risk of refusal.

Additional financial services and insurance

Labuan offers international insurance solutions, investment funds, asset management services and e-commerce support. Specialized licenses are available for digital and trading companies, allowing them to legally work with cryptocurrencies, payment systems and online commerce.

AML and Compliance in Labuan

Labuan strictly complies with AML, FATF and OECD requirements. The Labuan FSA implements prudential supervision, mandatory corporate reporting and audit for trading companies. COREDO’s solutions integrate KYC procedures/AML, internal controls and corporate reporting preparation, enabling clients to meet the requirements of European and Asian banks.

Risks of offshore companies in Labuan

Legal risks include changes in tax and currency regulation, compliance and transparency requirements. COREDO’s experience has shown that a preliminary audit of the structure, regular updating of corporate documentation and engagement with the regulator minimize the risks of account freezing and refusal of registration.

Practical recommendations for entrepreneurs

Practical recommendations for entrepreneurs help avoid common mistakes at the start of a business and build a sustainable management model. This section gathers key tips that will help choose the optimal type and structure of a company taking into account tasks and resources.

How to choose the type and structure of a company

I recommend starting with an analysis of the business model, goals, and the partners’ jurisdictions. For international trade and e-commerce, a trading company with a 3% tax. For asset management and investments — a non-trading or holding structure with tax exemption.

Corporate governance and reporting

Interaction with banks – best practices

Before opening an account, prepare a compliance dossier, a business plan, and documents proving sources of funds. COREDO solutions allow you to speed up the account opening process and ensure access to international financial institutions.

Scaling your business through an offshore company in Labuan

Labuan is an optimal platform for scaling business in the Asia-Pacific region, integrating with European and Asian markets, legal tax management, and asset protection. The COREDO team implements strategies that allow clients to expand their businesses quickly and safely by leveraging the advantages of Labuan’s offshore jurisdiction.

Comparison table of Labuan offshore taxes

Why are thousands of entrepreneurs from the EU, Asia and the CIS facing prolonged audits, licensing difficulties and risks of account freezes when attempting international expansion?
How can you avoid common mistakes related to registering an International Business Company in Barbados and obtain not only tax benefits but also sustainable asset protection?

In this article I will analyze in detail the main IBC rules, current requirements and the step-by-step registration process, tax incentives, legal aspects, best practices for management and optimization, as well as risks and ways to minimize them. If you are looking for a reliable path for international expansion, asset protection and tax optimization – be sure to read to the end: here you will find not only solutions, but also strategic ideas tested in practice by the COREDO team.

IBC in Barbados: What It Is and Key Rules

IBC in Barbados – is a special form of company created for conducting international business and obtaining certain legal and tax advantages. In this article we will examine what an IBC in Barbados is, their legal status and the main rules that are important to consider when creating and managing such a structure.

IBC in Barbados: What It Is and Legal Status

International Business Company Barbados – is a legal entity established in accordance with IBC legislation Barbados (Barbados International Business Companies Act), intended for conducting international operations, investments and asset management outside the territory of the country [Barbados International Business Companies Act, 2024]. The IBC status allows using the advantages of an offshore zone, including tax benefits, flexible management structure and asset protection.

COREDO’s practice confirms: choosing Barbados as a jurisdiction for IBC registration is especially effective for companies focused on export, import, international trade, investment projects and financial services. Barbados legislation provides transparent corporate governance rules and strict compliance requirements, which meet the expectations of European and Asian regulators.

IBC Registration in Barbados – Main Requirements

• Minimum authorized capital: there is no fixed requirement, typically: from 1 USD, which makes registration accessible for companies of any size [Barbados IBC requirements][KPMG Global Tax Guide, 2024].
• Management structure: at least one director is required (may be a non-resident), one shareholder, 100% foreign ownership is permitted (IBC Barbados foreign ownership) [Barbados IBC requirements].
• Residency: An IBC can be managed by non-residents; however, for certain licenses (for example, financial ones) the appointment of a local representative or registered agent may be required.
• Corporate governance: a director and a shareholder may be the same person, the use of corporate directors is permitted, which simplifies the structure for holding and investment companies.
• Required documents:
  • Articles of Incorporation
  • Resolution on the appointment of directors and shareholders
  • Beneficial owner information (KYC, AML)
  • Proof of registered address
  • Application for registration in the companies register

The COREDO team has implemented projects where structure optimization allowed clients from the EU and CIS to significantly simplify the compliance procedure and expedite obtaining licenses for financial services.

IBC Registration in Barbados, Step by Step

1. Submitting an application to reserve a name: Checking uniqueness and compliance with corporate standards.
2. Preparing incorporation documents: Including Articles of Incorporation, information about directors, shareholders, beneficial owners.
3. Filing documents with the Barbados companies register: Registration takes from 3 to 7 business days if properly completed.
4. Obtaining the Certificate of Incorporation: After documents are approved the company receives official IBC status.
5. Opening accounts with financial institutions: Interaction with banks and payment systems, preparation of an AML dossier.
6. Obtaining licenses (if necessary): For activities in financial services, insurance, crypto and forex: additional Licensing.

Thus, following all stages of IBC registration in Barbados ensures a swift start of operations and a legal international presence.
Let us move on to describing the advantages and tax benefits provided by IBCs in Barbados.

Advantages and tax incentives of an IBC in Barbados

Advantages and tax incentives of IBC in Barbados make this jurisdiction attractive to international companies seeking tax optimization and a stable business environment. With a combination of tax preferences, broad legal protections and developed infrastructure, Barbados stands out among other offshore jurisdictions and offers companies new opportunities for international operations.

Benefits of a Barbados IBC for international business

• IBC tax incentives: The corporate tax rate for IBCs is from 1% to 5% depending on the type of activity and the volume of operations, and for some international transactions tax deductions and exemptions from income tax are possible (IBC Barbados tax exemptions) [KPMG Global Tax Guide, 2024][Barbados IBC benefits].
• Exemption from customs duties and currency controls: IBCs are exempt from most import-export duties and restrictions on currency transactions, which is critical for international trade and investment.
• IBC Barbados asset protection: The legislation provides a high level of asset protection, including the possibility of using trust structures and holding companies to diversify risks.
• Corporate governance flexibility: Ease of appointing directors and shareholders, no requirement for a local office, and the ability to manage the business remotely.

Tax system and corporate tax for IBCs

• Corporate tax: In 2024–2025 the rate for IBCs ranges from 1% (for income from international operations) to 5% (for financial services), with exemptions from tax on dividends and capital gains remaining in place [Barbados IBC tax incentives][Barbados International Business Companies Act, 2024].
• Tax incentives: The possibility of full exemption from income tax for certain export and investment operations, as well as exemption from tax on interest and royalties.
• Impact of BEPS: Barbados has adapted its legislation to BEPS (Base Erosion and Profit Shifting) requirements, which ensures compliance with international standards and reduces the risk of a structure being considered artificial.

Comparison of IBC in Barbados and other jurisdictions

Legal and regulatory aspects of IBC in Barbados

Legal and regulatory aspects of IBC in Barbados, key issues for companies operating in the international market. Studying corporate law and IBC regulation helps to understand the requirements for the structure, licensing and management of such companies, as well as the advantages and limitations that determine their operation in Barbados.

Corporate law and IBC governance

• Directors and shareholders: At least one director (may be non-resident), one shareholder; corporate ownership and the appointment of legal entities as directors are permitted (requirements for an IBC director in Barbados) [Barbados IBC requirements].
• Corporate governance: Maintenance of corporate records is required, holding meetings of shareholders and directors (remote meetings allowed), and keeping a register of shareholders and beneficiaries.
• Compliance with financial regulations: For companies obtaining licenses for financial services, insurance, crypto and forex, additional licensing and compliance with international AML standards are required.

AML and compliance for IBC

• Main AML requirements: Implementation of KYC procedures, transaction monitoring, maintaining AML files, reporting suspicious transactions [Barbados IBC compliance][FATF Guidance, 2024].
• Risks of non-compliance: Violating AML requirements risks fines, account freezes, license revocations, and being blacklisted by regulators.
• Best practices: Using automated monitoring systems, regular audits, staff training, and integration of FATF international standards.

Thus, effective compliance with AML standards is directly linked to long-term asset protection and risk management.

Asset protection and risk management

• Legal and financial risks: Main threats: changes in legislation, increased regulatory control, risks of double taxation, account freezes.
• Practical recommendations:
  • Structuring assets through trusts and holding companies
  • Regular audit of the corporate structure
  • Implementation of a risk management and compliance system
  • Using insurance instruments to protect against losses

Thus, comprehensive structuring and asset diversification are key tools for protecting a business from regulatory and financial risks, ensuring its resilience even amid global changes. Let’s move on to issues of optimizing and managing an IBC in Barbados.

Optimization and management of IBC in Barbados

Optimization and management of IBC in Barbados – these are key tasks for international companies aiming to leverage all the advantages of local legislation, tax incentives, and simplified regulations. In a stable political environment and with a developed financial infrastructure, proper IBC management allows increasing operational efficiency and ensuring maximum protection of business interests.

Managing IBC in Barbados: best practices

• Corporate governance setup: Appointment of professional directors, maintenance of corporate records, regular shareholders’ meetings.
• Reporting and audit: Annual reporting, independent audit, transparent accounting, key requirements for obtaining licenses and for working with banks.
• Interaction with financial institutions: Preparation of AML files, selection of banks with an international reputation, integration of payment systems.

Optimization of business processes with an IBC in Barbados

• Use of tax benefits and exemptions: Structuring operations to maximize tax deductions and exemptions, including exemptions on profit tax, dividends, and capital gains.
• Optimization of international trade and investments: Using an IBC for export, import operations, investments in real estate and financial instruments.
• Financial risk planning and management: Implementation of a risk management system, insurance, diversification of assets.

Prospects for legislative development

• Changes in 2024-2025: Barbados adapted tax and corporate legislation to the requirements of BEPS, FATF and the EU, strengthening compliance and transparency requirements for corporate structures [Barbados International Business Companies Act, 2024].
• Impact of new regulatory acts: Tightening of AML requirements, implementation of automatic exchange of tax information, raising standards of corporate governance.
• Forecasts and recommendations: Further tightening of control over offshore structures is expected, with increased reporting and compliance requirements, necessitating regular audits and adaptation of business processes.

FAQ on IBC in Barbados – answers

Key takeaways and steps for entrepreneurs

• An IBC in Barbados is a strategic tool for international expansion, tax optimization and asset protection.
• Main rules for IBCs: minimal capital requirements, a flexible governance structure, strict compliance, and adherence to international BEPS and AML standards.
• Practical recommendations: proper preparation of documents, implementation of a corporate governance system, regular audits, and integration of automated compliance solutions.
• Risk minimization: asset diversification, insurance, and monitoring of legislative changes.
• Comprehensive support from COREDO: the team provides assistance at all stages — from registration to obtaining licenses, implementing compliance, and protecting assets.

According to Global Financial Integrity, more than $2 trillion is moved annually through offshore structures, and the Bahamas International Business Company (Bahamas IBC) occupies a leading position among instruments of international corporate planning. Why do the largest holdings, investment funds and family offices from the EU, Asia and the CIS choose this jurisdiction? The problem is clear: traditional European and Asian structures are losing tax efficiency, facing increasingly complex compliance and growing economic substance requirements. How can you preserve flexibility, confidentiality and the legality of your business in an era of global transparency?

Can I, as an entrepreneur, access global markets, optimize taxes and protect assets without risking sanctions or loss of control? Bahamas IBC: it is not just an offshore company, but a strategic tool that enables these objectives if the structure is built correctly. In this article I will examine in detail how the COREDO team addresses the key tasks of registering, licensing and supporting a Bahamas IBC, what risks and opportunities exist, and why the Bahamas IBC remains one of the most sought-after solutions for international business. Read the article to the end—you will gain not only a practical guide but also strategic ideas for scaling your business in the new environment.

Bahamas IBC: features and advantages

Next we will consider the key aspects of the legal status and liability of legal entities to understand in detail the advantages of the Bahamas IBC structure.

Legal status and liability of legal entities

Bahamas International Business Company: it is a separate legal entity with all the rights to enter into contracts, own assets, open accounts and participate in legal proceedings in its own name. Such status provides limited liability for shareholders: their risks are limited to the amount of capital invested.

Flexibility of the site structure

Решения, разработанные в COREDO, позволяют использовать nominee shareholder и nominee director сервисы для повышения конфиденциальности и управления рисками, особенно при работе с инвестиционными фондами и семейными офисами.

Confidentiality: what does it mean?

Bahamas IBC provides a high level of anonymity for shareholders: the shareholders’ register is not public, and information about beneficiaries is disclosed only to the registrar and regulatory authorities.

Tax benefits: what do they mean?

A Bahamas IBC is fully exempt from corporate tax, capital gains tax, withholding tax, stamp duty, inheritance tax and foreign exchange controls.

Such a regime allows optimizing international payments and cash flow, as confirmed by COREDO’s cases in supporting holding structures and fintech platforms.

Simplified reporting: what is it and how to maintain it?

The absence of audit requirements and public filing of financial statements is one of the key advantages of a Bahamas IBC. Maintaining internal accounting is sufficient to comply with the law.

Capital flexibility — what is it?

A Bahamas IBC does not require a minimum authorized capital, allows the issuance of no par value shares and prohibits bearer shares. This creates additional opportunities for structuring investment and holding projects, as well as for attracting venture capital.

Fast online registration

Such an approach is in demand when entering markets in the EU, Asia and Africa, where speed of business launch is critical for ROI.

International business activity

Bahamas IBC: registration and management

Bahamas IBC: registration and management: this is a structured process that includes choosing the legal form, preparing documents and engaging a registered agent for the official registration of a company in the Bahamas. Key requirements concern not only the procedure of forming the IBC itself but also the ongoing administration of the business, where maintaining contact with local authorities through a registered agent and office plays an important role.

Registered agent — what is it?

The COREDO team has implemented projects where choosing a reliable agent made it possible to minimize compliance risks and speed up registration.

Next, we’ll look at which documents are required to register a company.

Registration documents

To open a Bahamas IBC you need:

• Memorandum and Articles of Association
• Founder’s statement
• Proof of address of the registered office and agent
• Due diligence documents: identification of beneficial owners, proof of address, source of funds, professional references

Registration — how do I complete the procedure?

The COREDO team supports clients at all stages, including preparing corporate registers, issuing shares and organizing the first directors’ meeting.

What to do after registration

After registering a Bahamas IBC you must:

• Hold the first meeting of directors (anywhere in the world, including remotely)
• Issue shares and prepare the shareholders register
• Open bank accounts (in the Bahamas or in other jurisdictions)
• Set up internal accounting systems

COREDO’s solutions for automating corporate processes allow integration of a Bahamas IBC into existing business structures, providing transparency and control.

Requirements for directors and shareholders

Bahamas IBC nominee services are actively used to protect the interests of COREDO clients.

What is corporate governance?

A Bahamas IBC offers maximum flexibility: meetings can be held anywhere in the world, share rights are determined by the articles of association, and amendments to the constitutional documents are made promptly.

Bahamas IBC: taxation and finance

Bahamas IBC is a vehicle for conducting international business with unique taxation and financial reporting features. Let’s look at what tax and financial advantages are available to such companies, and which key requirements are important to keep in mind when choosing this jurisdiction.

Tax regime for business

Bahamas IBC is exempt from all local taxes on profit, capital gains, dividends, interest and royalties. This allows optimization of international tax flows and profit repatriation.

Annual expenses

What is profit repatriation?

Such a regime is in demand for holding and investment structures supported by COREDO.

Comparison of the EU and Asia by key indicators

Bahamas IBC: international regulation and compliance

Bahamas IBC is a tool for conducting international business, subject to strict control and regulation in accordance with global requirements for transparency and corporate governance.

AML/CFT and KYC: what are they and how do they work?

COREDO’s experience shows that implementing comprehensive due diligence processes helps minimize the risks of sanctions and account opening refusals.

Economic presence — what is it?

COREDO’s solutions to ensure substance include setting up offices, hiring employees and integrating the Bahamas IBC into real business processes.

Public information: what does it mean?

Information about the directors and officers of a Bahamas IBC is publicly available, while information about shareholders remains confidential. This balance between transparency and privacy is in demand among COREDO’s clients, especially amid tightening global disclosure requirements.

Regulatory changes in 2025

The COREDO team regularly monitors changes and adapts clients’ corporate structures, minimizing the risks of non-compliance.

Risks and compliance

Failure to comply with AML, KYC and substance requirements may lead to sanctions, account freezes and loss of Bahamas IBC status.

Bahamas IBC: Applications and Advantages

Bahamas IBC is a versatile tool that is widely used to address various business tasks thanks to its unique advantages and flexibility. Let’s look at the main applications and key advantages that make the Bahamas IBC structure relevant for investment funds, holding companies and other international projects.

For investment funds and holding companies

Bahamas IBC is optimal for structuring holding companies and investment funds: asset protection, optimization of tax flows, flexibility in the management of ownership interests.

Bahamas IBC is actively used for e-commerce and fintech startups thanks to the absence of currency controls, low costs and the ability to integrate with global payment systems. COREDO’s solutions include configuring AML compliance and automating corporate governance.

For family offices — services and advice

Succession strategies, asset protection and long-term planning are key objectives of family offices, addressed through a Bahamas IBC.

Additionally, the choice of the appropriate jurisdiction can play an important role in matters of international trade, the features and practice of which are addressed in the following section.

International trade: features and practice

The COREDO team supports projects to integrate Bahamas IBC into global supply chains, ensuring transparency and compliance with the requirements of international regulators.

Bahamas IBC: limitations and risks

Bahamas IBC, limitations and risks – are an integral part of evaluating work with this type of offshore company. Despite the attractive benefits, effective management requires a clear consideration of the specific limitations of internal operations and the associated risks that may affect both operational and legal aspects.

Limitations of internal activities

For international operations these limitations are insignificant; nevertheless it is important to consider them when structuring deals.

No access to double taxation agreements

COREDO solutions include using hybrid structures and integrating a Bahamas IBC with European and Asian companies.

Deoffshorization: risks

Global trends (BEPS, OECD) are leading to stricter requirements for substance, transparency and automatic exchange of information.

Cyber risks in ESG: What you need to know?

Contemporary challenges include cybersecurity and compliance with ESG standards. A Bahamas IBC requires implementation of corporate policies for data protection and sustainable development. COREDO’s practice shows that integrating digital transformation and ESG compliance significantly increases business resilience.

Bahamas IBC vs European and Asian companies: comparison

Registration and management of a Bahamas IBC

Registration and management of a Bahamas IBC: this is the first step to taking advantage of international tax optimization, confidentiality and stable regulation offered by this jurisdiction. At the next stages it is important to choose the right structure and prepare the necessary documents to ensure the company’s legality and efficiency from the very start.

Choosing the structure and startup documents

COREDO’s solutions include a preliminary audit of the structure and selection of the optimal corporate governance model.

Application submission and payment

Through a registered agent prepare the Memorandum and Articles of Association, submit the application to Registrar General’s Department, pay the government fee. The COREDO team assists clients at all stages, ensuring transparency and control.

Obtaining the certificate and commencing operations

Obtain the Certificate of Incorporation, hold the first directors’ meeting, issue shares, open bank accounts, set up accounting systems.

Stage 4: Ensuring compliance with regulations

Implement AML/CFT and KYC procedures, ensure economic substance (if necessary): office, staff, real business processes. COREDO’s solutions include regular audits and monitoring of regulatory changes.

Ongoing support and project scaling

The COREDO team provides long-term support and strategic planning.

Conclusions and recommendations for entrepreneurs

Bahamas IBC, a flexible, fast and tax-efficient tool for international business, requiring attention to compliance and substance.

The key to success is choosing a reliable partner for incorporation and support, implementing modern corporate governance and risk management systems. Take into account global trends: tightening requirements for transparency, substance, automatic exchange of information, ESG and cybersecurity.

This will allow a smooth transition to the conclusions and to capture the key competitive advantages of the Bahamas IBC in current conditions.

Conclusion: summary and findings on the topic

Bahamas International Business Company remains one of the most attractive offshore jurisdictions for international business due to the ease of registration, tax incentives, structural flexibility, and a high level of confidentiality. COREDO’s experience shows that successful use of a Bahamas IBC requires a deep understanding of current regulatory requirements, the proper establishment of compliance processes, and strategic planning that takes into account global changes in tax and corporate regulation.

How can an entrepreneur or a chief financial officer avoid drowning in the flood of requirements, choose the optimal strategy, and ensure reliable protection of the company’s interests?

In this article I will explain how to properly approach the choice of a registered agent, what types of agents exist, which jurisdictions truly support business scaling, and why comprehensive support is not an option but a strategic necessity. Drawing on COREDO’s experience in supporting projects in the EU, Asia and the CIS, I will show how to avoid common pitfalls, increase the ROI from international registration, and build an effective corporate structure. If you are looking not for another overview but for a practical guide focused on real cases and strategic decisions, I recommend reading to the end.

Who is a registered agent?

Registered agent — main functions

Its task is to ensure the correct registration of the company, receive and process legal and procedural correspondence (including court summonses and official notices), and to support the company at all stages of its lifecycle: from incorporation to liquidation.

In modern conditions, AML services for companies have become particularly important: the registered agent is responsible for implementing client verification procedures (KYC, Due Diligence), identifying beneficial owners and preventing the legalization of proceeds obtained by criminal means.

Requirements for registered agents in various jurisdictions

For example, in the United Kingdom a registered agent must hold a license, verify the qualifications of employees, and comply with corporate administration standards under the Companies Act and AML directives. In Singapore, based on COREDO’s experience, it is mandatory to have a resident secretary and a registered address, as well as to implement KYC procedures and store corporate documents in accordance with ACRA requirements.

Registration agents: types and features

Commercial and non-commercial registration agents

The choice depends on business objectives: a commercial agent provides comprehensive support, including corporate administration, outsourcing of legal services, implementation of electronic management of corporate documents and support for scaling through international jurisdictions. Non-commercial agents are typically limited to basic registration functions and do not provide bespoke solutions for managing corporate structures.

Registration agents in offshore jurisdictions

Solutions developed by COREDO for clients include comprehensive corporate administration in Belize and the Seychelles with emphasis on asset protection and compliance with registered agent legislation (MoRAA).

Registration agents in Europe, Asia, Africa

In Asia (Singapore, UAE) requirements may include having a local secretary, a physical or virtual office, as well as mandatory client verification according to international AML standards. In Africa (Kenya, South Africa) the emphasis is on transparency of corporate structure and interaction with tax authorities.

Additional services: nominee director and virtual office

COREDO’s experience shows that integrating a virtual office with a registration agent significantly simplifies compliance and reduces the administrative burden on the client.

Jurisdictions for company registration

The choice of jurisdiction for company registration has a significant impact on taxation, operating costs and the level of business confidentiality. Thanks to the variety of jurisdictions, entrepreneurs can select optimal conditions for their project – from those most attractive in terms of tax benefits to jurisdictions with simplified administrative requirements. Below we will look at the best offshore jurisdictions and their features.

Top offshore jurisdictions
The choice of an offshore jurisdiction is determined by business goals: asset protection, tax planning, confidentiality. For example, Belize and the Seychelles offer flexible corporate administration conditions, minimal reporting requirements and a high level of owner data protection. A registration agent in these zones must hold a trust license, ensure storage of corporate documents and interact with regulators on AML and KYC matters.

EU jurisdictions: country overview

For example, the UK and Estonia have implemented electronic registers, which helps optimize processes and reduce the risk of errors. COREDO’s solutions for clients in the EU include support at all stages of legal entity registration, implementation of compliance procedures and interaction with tax authorities.

Jurisdictions of Asia and Africa: UAE, Singapore, Kenya, South Africa

In Singapore: mandatory appointment of a resident secretary and a registered address, as well as regular client checks under KYC and AML procedures. In Africa (Kenya, South Africa) the emphasis is on transparency of corporate structure and interaction with tax authorities.

Choosing a jurisdiction for business tax planning
The choice of jurisdiction and registration agent directly affects tax planning, optimization of corporate structures and business scaling opportunities.

Registration agent services: company registration and business support

Registration agent services allow businesses not only to quickly complete the registration stage, but also to ensure reliable ongoing support for all activities. The registration agent takes on key legal and administrative tasks, ensuring full compliance with legal requirements and continuous liaison between the company and government authorities.

Company registration and legal business support

In COREDO cases for clients in Singapore and the EU, special attention is paid to correctly structuring the corporate setup, implementing KYC procedures and preparing for subsequent licensing (for example, for financial, crypto, and payment companies).

Corporate administration and reporting

COREDO solutions make it possible to automate these processes using electronic platforms and reduce the administrative burden on the client.

AML services and compliance
Modern registration agents are required to implement international AML (Anti-Money Laundering) standards, conduct regular client checks (KYC, Due Diligence), and also ensure internal controls and staff training.

Company liquidation and reorganization
Company liquidation is no less complex a process than registration. The registration agent is responsible for preparing and filing all necessary documents, notifying regulators, publishing mandatory notices, and complying with all corporate law procedures.

risk management and interaction with government authorities

COREDO’s experience confirms: professional legal support for business is the key to long-term stability and growth on international markets.

How to choose a registration agent for company registration

How to choose a registration agent for company registration: the question is not only formal but also strategic: your legal security and the stability of your business depend on this choice. To make a balanced decision, it is important to assess in advance the key criteria — reputation, licenses, range of services and cost — which should be considered when choosing an agent.

selection criteria: reputation, licenses, services, cost

COREDO’s practice has shown: only a comprehensive approach and constant oversight make it possible to avoid common mistakes and minimize risks.

Choosing a registration agent in the EU

In Asia (Singapore, UAE) the emphasis is on having a local secretary, virtual office support and implementation of KYC procedures. In offshore zones (Belize, Seychelles), on the presence of a trust license, experience in corporate administration and protection of business owners’ privacy.

Risks of not having or choosing the wrong registration agent

AML and legal entity registration: advantages
Combining AML services with legal entity registration allows centralization of compliance processes, reduction of administrative burden and ensuring compliance with international standards.

Technologies used by registration agents
Modern registration agents actively adopt electronic management of corporate documents, automation of KYC/AML processes, use of cloud platforms for corporate administration and integration with government registries.

Thus, the digitalization of corporate services becomes an integral condition for effective business management – let’s consider which steps are recommended to entrepreneurs and managers.

Recommendations for entrepreneurs and executives

• Checklist for choosing a registration agent:
  • Check for licenses and compliance with the legal requirements of the chosen jurisdiction
  • Review reputation and client feedback; request case studies
  • Evaluate the range of services: company registration, corporate administration, AML, liquidation
  • Ensure the availability of electronic platforms for managing corporate documents
  • Check pricing transparency and the availability of support at all stages
• Recommendations for interaction:
  • Establish regular feedback and monitor the fulfillment of obligations
  • Request reports on completed KYC/AML procedures and corporate reporting
  • Use virtual office capabilities to optimize communications and document storage
• AML and KYC are not a formality but a strategic necessity:
  • Regularly update client verification procedures
  • Invest in staff training on compliance issues
  • Integrate AML procedures with corporate administration to reduce risks
• How a registration agent helps reduce legal and tax risks:
  • Ensures timely response to legislative changes
  • Guarantees protection of business owners’ confidentiality
  • Assists in dealings with government authorities and regulators
• Scaling the business through international registration:
  • Use the registration agent’s expertise to choose the optimal jurisdiction
  • Build flexible corporate structures enabling further expansion
  • Assess the ROI from using professional registration agents considering all associated services

In conclusion, I note: a registration agent is not just a service provider but a strategic partner on which the security, flexibility and effectiveness of your business on the international stage depend. COREDO’s experience confirms: only a comprehensive approach, deep knowledge of jurisdictional nuances, and continuous technological improvement enable entrepreneurs and executives to achieve sustainable growth and protect their interests in the context of global competition.

Why, despite the abundance of instruments, do entrepreneurs and CFOs continue to face opacity in procedures, difficulties in registration and licensing, as well as risks related to choosing a jurisdiction for their financial organizations? How to minimize credit risk and ensure financial stability if the rules of the game change every quarter?

Types of credit and bond institutions: classification

Credit organizations and institutions

1. Banks
   In international practice, a distinction is made between universal banks (serving a wide range of operations: lending, deposits, payments, investment products) and specialized credit organizations — for example, mortgage banks, investment banks, savings banks. In the Czech Republic and Estonia, the COREDO team carried out projects to register precisely specialized credit institutions for financing infrastructure projects and managing mortgage portfolios.
2. Non-bank credit organizations
   These include settlement and deposit companies, credit cooperatives, and microfinance organizations. In the United Kingdom and Singapore such structures are actively used to finance small and medium-sized businesses, and in the CIS countries to support agricultural and cooperative initiatives. COREDO’s practice confirms: non-bank credit institutions are often more flexible in their product line and borrower requirements, which is especially important for startups and innovative companies.
3. Specialized financial and credit institutions
   This refers to sectoral institutions (industrial, foreign trade), insurance companies and pension funds. For example, in Slovakia the COREDO team assisted with the registration of a pension fund focused on long-term investment strategies and risk diversification.
4. International financial institutions
   Organizations such as the IMF, the World Bank, and the European Bank for Reconstruction and Development play a key role. They not only provide financing but also shape standards for risk management, financial reporting, and AML policies that are then implemented at the national level.

Bond institutions: what they are and why they are needed

1. Investment funds
   Mutual funds, ETFs and hedge funds are the main players in the bond market. Solutions developed by COREDO for clients in Luxembourg and Cyprus allowed for effective structuring of investment portfolios taking into account tax planning and international financial law.
2. Bond markets
   Primary market: issuance of new bond issues (government and corporate), secondary: subsequent trading. In Asia, according to COREDO’s experience, corporate bond markets are developing most dynamically, which opens up wide opportunities for raising capital.
3. Investment dealers and brokers
   These intermediaries provide liquidity, professional investment analysis and access to international financial instruments. In Dubai and Singapore, the COREDO team supported the Licensing of investment dealers, which allowed clients to enter global securities markets.

# Comparison table: credit and bond institutions

Jurisdiction for financial organizations

Jurisdiction: a strategic choice that determines not only the tax burden but also access to markets, the level of regulation, and opportunities for scaling the business.

Criteria for choosing a jurisdiction

• Tax regimes and incentives
  In Singapore the corporate tax is 17%, and incentives are provided for new companies. Estonia has a unique system of deferred corporate taxation, allowing reinvestment of earnings without immediate tax payments.
• Capital and licensing requirements
  In the UK the minimum share capital for credit institutions is from £1, but obtaining a banking license requires a significantly larger amount of capital and strict Due Diligence.
• Level of banking and financial regulation
  In the EU, directives CRD IV/V, MiFID II, PSD2 set standards for transparency, capitalization and investor protection. In Singapore and Dubai regulators actively implement fintech solutions, simplifying licensing for new entrants.
• Access to international markets
  Jurisdictions with developed infrastructure (Luxembourg, Cyprus, Singapore) provide fast access to global financial markets and recognition of licenses.
• Stability of the legal system
  COREDO’s experience shows: stability and predictability of legislation are critical for long-term planning. For example, in the Czech Republic and Slovakia the legal system is harmonized with European standards, which reduces regulatory risks.
• AML and KYC requirements
  EU countries, United Kingdom, Singapore and Dubai impose strict requirements for customer identification and transaction monitoring, which requires implementation of comprehensive AML services and regular staff training.

Regulation in key regions

Europe:

Asia:

Africa:

CIS:

Issues and risks in registration

• Difficulties opening accounts
  In some jurisdictions (for example, Singapore, the United Kingdom) banks require physical presence of directors and an extended set of documents, including a business plan, KYC and proof of source of funds.
• Fines for AML violations
  Non-compliance with AML requirements leads to heavy fines and account freezes. COREDO’s practice has shown that implementing automated transaction monitoring systems and regular audits minimizes these risks.
• The need for comprehensive legal support
  Mistakes during registration or licensing can lead to license denial or loss of time. Our experience confirms: involving experts at an early stage helps avoid costly errors.
• Credit risk and financial stability
  Incorrect risk assessment when working with credit cooperatives and non-bank organizations is especially relevant for emerging markets. In such cases COREDO develops individual risk management strategies and portfolio stress-testing.

Thus, a comprehensive approach to risk management in creating a resilient financial infrastructure requires not only legal expertise but also well-considered solutions in compliance and transaction monitoring.
Next, we will look at how to effectively work with credit and bond institutions.

How to work with credit and bond institutions?

Which credit institutions are most effective for small businesses in Europe?

Best practices for working with bond institutions in Asia

Strategies for scaling a business with investment funds

Thus, flexible financial instruments and optimization of credit and investment solutions form the basis for companies’ entry into international markets;

How to choose the appropriate jurisdiction for registering a financial organization?

The importance of international financial institutions in regulating credit relations

The role of non-bank credit institutions in the development of the CIS economy

Risk management: how to assess ROI

How to assess ROI when investing in mortgage banks or bond markets?

Main challenges when working with credit cooperatives in Africa

How to ensure financial stability when working with credit cooperatives?

Legal support and AML for financial organizations

Competent legal support and implementation of AML procedures: the foundation of long-term business resilience in international markets.
stages of company registration and obtaining licenses

AML requirements in different jurisdictions

Choosing a reliable consulting partner

Risk minimization and business protection

Choosing credit and bond institutions: how to work with them?

• Comparative analysis of jurisdictions for registering financial organizations
  Singapore, Luxembourg, the United Kingdom and Cyprus are optimal for international projects due to transparent regulation, tax incentives and access to global markets. The choice depends on business objectives, investor structure and licensing requirements.
• Practical steps for choosing a credit or bond institution
  Determine the target audience, product requirements, risk level and the required amount of financing. Use investment analysis and risk management to assess prospects.
• Recommendations for legal support and AML compliance
  Implement comprehensive AML services, automate KYC processes, regularly update internal policies and engage experts for auditing.
• Advice on risk management and increasing ROI
  Diversify investment portfolios, use stress testing, implement financial reporting standards and plan tax optimization at the business structuring stage.

Labuan – a Malaysian offshore zone, which in recent years has become one of the most sought-after centers for registering brokerage companies targeting the international markets of Europe and Asia. But the path to obtaining a Labuan broker license (Labuan broker license) is not as simple as it may seem at first glance: here not only formal criteria are important, but also a deep understanding of the specifics of regulation, corporate governance and compliance.

In this article I will examine in detail how the COREDO team implements projects to obtain Labuan brokerage licenses, what key requirements and stages the procedure involves, and why a strategic approach to licensing becomes critically important for successfully scaling the business. If you are looking not just for an overview but for a practical guide and a source of strategic ideas – I recommend reading to the end. Here you will find answers to the questions that truly concern entrepreneurs and executives planning to enter international markets.

Brokerage Services License in Labuan — Why It’s Needed

The advantages of licensing in Labuan for international brokers are clear:

• Flexible regulatory environment: Malaysia’s financial regulation combines transparency with opportunities for innovation.
• Integration with international financial markets: the Labuan license is recognized in key Asian and European jurisdictions.
• Tax burden optimization: Labuan corporate law provides preferential tax regimes for international companies.
• High level of risk control: the Labuan FSA provides strict financial supervision and risk control, which increases trust from partners and clients.

How to obtain a brokerage license in Labuan

Obtaining a brokerage license in Labuan: this is a process that requires strict compliance with the requirements of the local financial regulator, including choosing a corporate structure, selecting qualified directors, and establishing a local presence. Below we will examine in detail the requirements for the company structure to successfully obtain a license.

Requirements for the company structure

Key points:

• Residency and qualification of directors: one of the directors must be a resident, and work experience in the financial sector must be at least three years.
• company registration and the role of the registered agent: the registered agent provides a legal address, maintains corporate documentation, and liaises with the regulator.
• Local office in Labuan: having a physical office and at least one resident employee is a mandatory requirement to confirm the company’s real presence in the jurisdiction.

Financial requirements for the business

Personnel and compliance requirements

The staffing structure must include an AML specialist responsible for implementing and ensuring compliance with anti-money laundering (AML/CFT) procedures. Implementing effective compliance procedures and a risk control system is a key element of the long-term sustainability of the business.

How to obtain a broker license in Labuan

Obtaining a broker license in Labuan is a step-by-step process that requires strict compliance with local requirements for corporate structure, capital, and internal procedures. To successfully go through Licensing, it is necessary to carefully prepare the documents and develop a business plan that meets the regulator’s expectations.

Create a business plan and prepare documents

• the company’s founding documents,
• a business plan for the Labuan broker license with a detailed description of the business model, target markets, financial forecasts and risk management system,
• evidence of the qualifications and experience of directors and managers,
• information on the shareholder structure,
• documents confirming the presence of authorized capital and a local office.

How to submit an application to Labuan FSA

At this stage it is critical to respond promptly to regulator requests and provide additional clarifications.

Obtaining the license and starting operations
After receiving provisional approval, it is necessary to confirm the placement of the authorized capital, the existence of a local office, and compliance with all company structure requirements. Only then is the license issued and the registration in the official register of Labuan brokerage companies takes place.

Features of licensing brokerage services in Labuan

It is these key aspects that the LFSA regulator pays special attention to, requiring companies not only to formally comply with the rules but also to truly integrate supervisory and control procedures into the broker’s daily activities.

AML and risk control
Key AML requirements for brokerage firms in Labuan include:

• mandatory appointment of a qualified AML officer,
• implementation of an internal client identification policy (KYC),
• regular updates of compliance and risk control procedures,
• maintaining reporting on suspicious transactions and cooperating with Labuan FSA when incidents are detected.

Regulation of crypto-broker services
Licensing of financial technologies (FinTech) and crypto-brokers in Labuan is distinguished by enhanced requirements for security systems, data storage and processing, as well as reporting on cryptocurrency transactions. Labuan FSA requires separate approval of the business model and the implementation of additional risk control procedures.

Audit and reporting

Let’s proceed to review the costs and timelines for renewing a broker license in Labuan.

Cost and timelines for renewing a broker license in Labuan

• government fees (fixed and annual),
• refundable deposit,
• payment for registered agent services,
• costs of setting up a local office and hiring staff,
• payment for auditor services.

COREDO’s practice shows that regular audits and proactive compliance not only help avoid sanctions but also increase trust from partners and clients.

Practical recommendations for entrepreneurs

• Choosing a registration agent and setting up a local office: A reliable agent is the key to proper interaction with Labuan FSA and successful registration. The COREDO team supports clients at all stages, including selection of office and staff.
• Strategic planning and business scaling: broker license Labuan opens opportunities to enter the Asian and European markets, integrate with international financial systems and scale the business. It is important to develop the business plan and company structure in advance taking into account the regulator’s requirements.
• Assessing ROI and minimizing risks: Key metrics, speed to market, cost of the Labuan broker license, tax burden and compliance expenses. COREDO solutions enable optimization of the cost structure and improve return on investment.
• Compliance with international standards: Implementation of effective AML/compliance procedures, regular audits and transparency in corporate governance: the foundation for long-term success and minimization of legal risks.
• Summary of main requirements and stages: Successfully obtaining a Labuan broker services license requires a comprehensive approach to preparing documents, building the company structure and establishing an internal control system.

Comparison of requirements for obtaining a license

PCC, what is it and how does it work?

Key feature: segregation of assets and liabilities: if one of the cells faces losses or creditor claims, the other cells and the core remain protected. This ring-fencing mechanism is recognized as a global standard in risk management and investor protection.

Differences between PCC, traditional companies, and ICC

For international business, the advantages of PCC are obvious:

• The ability to quickly launch new products or projects by creating separate cells without the need to register new companies.
• Segregation of assets and liabilities – protection against cross-risks.
• Flexibility in structuring dividends and allocating profits across cells.

Structure and operation of Gibraltar PCC

Structure of a cell company: core and cells

Segregation of assets and liabilities in a PCC

The main protection mechanism is the strict segregation of assets and liabilities between the cells and the core. The law expressly prohibits the transfer of assets between cells without special permission and limits the consolidation of cells, which prevents the risk of liabilities spilling over.

Legal support and management of a PCC

PCC Registration in Gibraltar

Registration and conversion of a company into a PCC

The registration of a Protected Cell Company in Gibraltar is a process that requires strict compliance with procedures. It is necessary to prepare statutory documents, a business plan, conduct Due Diligence on the founders and appoint a board of directors. All documents are submitted to the Gibraltar Financial Services Commission (GFSC).

PCC Licensing GFSCgiene

Minimum capital and guarantee fund requirements

Advantages and Risks of PCC in International Business

Advantages and risks of PCC in international business are becoming increasingly important against the backdrop of market globalization and the diversification of financial instruments.

Advantages of a PCC for Insurance and Investments

Risk Management for Investors

Taxes and Cross-border Operations

Reporting, audit and compliance standards

Reporting and audit for PCC

Each cell maintains separate reporting, and consolidated reports are also prepared for the entire PCC. Audits are conducted both on individual cells and on the company as a whole. The GFSC imposes strict requirements on transparency and the completeness of information disclosure.

Due Diligence, KYC and AML for PCC

Due Diligence and KYC procedures are mandatory for all owners and managers of cells. Integration of PCC with international AML/CFT standards provides protection against financial crime and complies with the requirements of FATF and the EU.

Case studies and recommendations for implementing PCC

Case studies and recommendations for implementing PCC help you understand how to use this tool to solve practical business challenges.

Examples of using PCC in insurance and investments

Entering EU, Asian, and African markets through PCC

Liquidation, restructuring, PCC restrictions: what you need to know?

The issues of liquidation, restructuring and restrictions on PCC activities are becoming particularly relevant for companies today.

PCC liquidation and restructuring procedures

The liquidation or restructuring of a cell is carried out separately from the rest of the PCC structure, which helps minimize the impact on other areas of the business.

Key findings and recommendations

The COREDO team is ready to offer tailored solutions for the registration, licensing and support of PCCs, ensuring transparency, protection of interests and compliance with international standards. By choosing a PCC in Gibraltar, you are investing not only in a legal structure but also in the long-term resilience and competitiveness of your business.

In 2024 the global insurance and financial services market faced an unprecedented rise in cyber risks, lawsuits and regulatory requirements: according to Insurance Europe, losses from cyber incidents in the EU alone exceeded €8 billion, and the number of new insurance licences in Europe and Asia grew by 27% year‑on‑year. Against this backdrop, entrepreneurs and chief financial officers are under pressure: how to launch an international insurance product, protect assets, comply with Solvency II, reduce operating expenses and scale the business — all at once?

Why, despite hundreds of jurisdictions, are large and medium-sized companies increasingly choosing Malta Protected Cell Companies (PCC Malta) as a strategic tool for business growth and protection?

As the founder of COREDO, I see every day how regulatory, licensing and risk management issues become critical for our clients in Europe, Asia and the CIS. The Protected Cell Company structure in Malta is not just a fashionable trend, but a real way to address these challenges. In this article I will examine in detail what a Protected Cell Company is, how a PCC operates in Malta, what advantages it gives to business, and why registering a PCC in Malta right now is becoming a key solution for insurance and financial companies, as well as for projects in aviation, shipping and securitization.

Malta Protected Cell Company (PCC): what is it and how does it work?

Malta Protected Cell Company (PCC): is a unique corporate instrument that allows creating separate cells (Cells) within a single legal structure, providing reliable segregation of each cell’s assets and liabilities. To understand how a PCC works in practice, it is important to grasp its basic setup: what the Core consists of and how the Cells are organized.

Structure of a PCC: what the Core and Cells are

Legal status of a PCC in Malta

The registration of a PCC in Malta is regulated by the Companies Act (Cap. 386) and the specialized rules of the MFSA (Malta Financial Services Authority). A Maltese PCC has the status of an independent legal entity, but each cell within the company is not a separate corporation; it is a structural part of the PCC with its own balance of assets and liabilities.

The process of registering a PCC in Malta includes:

• Preparing the constitutional documents specifying the ability to create cells.
• Obtaining preliminary approval from the MFSA for the structure and business plan.
• Contributing the minimum capital (usually from €100,000 for insurance PCCs, but requirements may vary depending on the licence and type of activity).
• Appointment of the board of directors and a compliance officer responsible for AML and corporate governance.
• Submitting the application for registration and licensing.

Thus, registering a PCC in Malta requires step-by-step preparation of documents, coordination with the MFSA and completion of all procedures in close interaction with the regulator, which, with a competent approach, takes from 2 to 4 months.

Next, we will consider the key asset protection mechanisms and the principles of ring-fencing in PCC structures.

Asset protection mechanisms and ring-fencing in PCCs

Benefits of PCC for businesses and insurance companies

The benefits of PCC for businesses and insurance companies open new opportunities for risk management, asset optimization and scaling operations. Thanks to its unique structure, a PCC allows not only to save on administrative expenses but also to flexibly develop a business within a single legal platform.

Cost savings and business scaling with PCC

Thus, the PCC model not only optimizes costs but also opens up wide opportunities for flexible management of insurance solutions and the implementation of captive insurance.

Flexibility in managing insurance products and captive insurance

Attracting investors and building trust in the business

Regulation and Licensing of PCC in the EU and in Malta

Regulation and licensing of PCC in the EU and in Malta are key factors that define how protected cell companies operate in the region. Special attention is paid to the licensing process and supervision by regulators such as the MFSA, which ensures compliance with European Union standards and Maltese law.

The role of the MFSA in regulating a Protected Cell Company (PCC)

Capital requirements under Solvency II

PCCs in Malta are required to comply with capital requirements set by both Maltese legislation and the European Solvency II directive. For insurance PCCs the minimum capital (Minimum Capital Requirement, MCR) starts at €100,000, but additional requirements may be imposed for individual cells depending on the nature of the risks and insurance products.

Licensing of PCC and individual cells

Licensing PCC Malta involves two stages: obtaining a license for the core and subsequent licensing of each new cell. To open a new cell it is necessary to submit a business plan, a risk description, the governance structure and to confirm the availability of sufficient capital.

Practical application of PCC in business

The practical application of PCC in business is becoming increasingly in demand due to the constant need for effective risk management, financial resilience and flexibility of corporate structures. The use of PCC is especially relevant for industries such as insurance and reinsurance, where the key tasks are risk diversification and capital optimization.

PCC in insurance and reinsurance

Malta Protected Cell Companies are widely used for insurance and reinsurance. Insurance cells allow the creation of bespoke products for corporate clients, managing the risks of individual projects or business segments, as well as operating through insurance intermediaries and brokers.

PCC in aircraft leasing and shipping

PCC Malta is actively used in the aviation and shipping business. Cells allow structuring the leasing of aircraft, marine cargo insurance and shipowners’ liability, providing transparency and asset protection.

Thus, the use of PCC provides a flexible structure for implementing complex tasks of managing and structuring transport assets, smoothly transitioning to the possibilities of applying cells in securitization and SCC.

Use of PCC in securitization and SCC

Corporate governance and risk management in a PCC

Corporate governance and risk management in a PCC provide a clear structure for allocating rights, responsibilities and control among shareholders, the board of directors and management, which is critical for the company’s resilience and operational effectiveness. This approach enables timely identification of risks and the design of internal processes so that they align both with business objectives and with requirements for transparency and accountability to stakeholders.

Corporate structure management and the board of directors

MFSA and Solvency II: reporting and disclosure

Each PCC and its cells are required to keep separate accounts, prepare individual financial statements and undergo an annual audit. The MFSA requires submission of regular reports on capital, risk management and financial results in accordance with Pillar III of Solvency II.

Legal risks when working with a PCC: how to minimize

PCC tax regime in Malta

The PCC tax regime in Malta provides international companies with unique opportunities to optimize their tax burden and manage financial flows. Thanks to a special approach to taxation and the flexible PCC structure, businesses can access a range of benefits, significantly reducing the effective tax rate and optimizing their operations.

Tax advantages of PCC for international companies

Registration and management of PCC – legal support

Recommendations for Entrepreneurs

Malta Protected Cell Companies are an effective tool for international business, allowing you to:

• Protect assets and isolate risks between business lines.
• Reduce operating costs and accelerate scaling.
• Attract investors through the transparency and manageability of the structure.
• Comply with the strict requirements of the MFSA and Solvency II.
• Optimize tax burden and simplify international settlements.

Practical steps to launch a PCC in Malta:

1. Assess your business model and determine which lines require risk isolation.
2. Prepare a business plan and PCC structure taking into account MFSA requirements.
3. Appoint a board of directors and a compliance officer with insurance experience.
4. Complete the registration and licensing procedures for the PCC and its cells.
5. Implement an internal control system, automate reporting, and ensure Solvency II compliance.

For risk management and corporate governance use best international practices: regular audits, an independent board of directors, a transparent ownership structure and effective communication with the regulator.

If you plan to scale an insurance business, enter new markets or protect assets – a Malta Protected Cell Company will become your strategic advantage.

Why does company registration in the Seychelles remain so in demand? The reason is the unique combination of tax advantages, rapid incorporation, confidentiality and flexibility of corporate structures. However, behind these opportunities lie new challenges: tightening of compliance, changes in legislation (in particular, Seychelles IBC Amendment Act 2025), economic substance requirements and the disclosure of beneficial owners.

Legal forms of companies in the Seychelles

Choosing the right structure is the foundation for successful company registration in the Seychelles. Over the years the COREDO team has completed dozens of projects to create Seychelles IBCs, LLCs, ITZs, SLCs and branches for clients from Europe, Asia and the CIS. Each type has its own nuances in taxation, licensing and applicability.

Registration of a Seychelles Company in 2025

Registration of a Seychelles Company in 2025 opens up new opportunities for entrepreneurs thanks to a fast and simple incorporation procedure. At the initial stage it is especially important to choose the company structure correctly, as this determines all subsequent steps and compliance with local requirements.

Choosing the structure

The first step is determining the optimal legal form based on business objectives, the geography of operations and licensing requirements. For example, for e-commerce and IT a Seychelles IBC or ITZ is most often chosen, while for financial services — an SLC or LLC.

Document preparation: what you need to collect

To file the application you will need:

• Passport and proof of address for all directors, shareholders and beneficial owners.
• A bank reference confirming good standing (on request of the bank or regulator).
• All documents in English or with a notarized translation.
• Details of the registered agent and office (registered agent and registered office): a mandatory requirement for all company forms.

Filing the application and paying fees

The application is submitted to the Registrar of Companies together with the full set of documents and payment of government and service fees. In practice, with a correctly prepared package, registration takes 1–2 working days. The solution developed by COREDO enables tracking the application status online and minimizing the risk of document returns.

Receiving documents and starting activities

New requirements of the Seychelles IBC Act 2025 on transparency and compliance

The year 2025 proved to be a turning point for everyone using a Seychelles Company as an international business vehicle. Amendments introduced by the Seychelles IBC Amendment Act 2025 have significantly expanded requirements for transparency, disclosure and economic substance.

Mandatory declaration of nominee shareholders

Now all companies are required, within 21 days from the appointment of a nominee shareholder, to submit a nominee shareholder declaration containing detailed information about the nominee shareholder and the beneficial owner (nominator). In COREDO’s practice such cases require special attention to detail, since incomplete disclosure of information risks fines and even administrative liability.

Register of shareholders: what it is and how to obtain it?

The Register of Members must now reflect not only shareholders’ data but also nominee holders and their nominators – full names, identifiers, addresses. This strengthens control over the beneficial ownership structure and reduces the risk of abuse.

Economic Substance Report

Companies carrying out relevant activities (financial services, IP management, holdings) are required to annually demonstrate actual presence and management in the Seychelles under the Economic Substance requirements 2025. COREDO’s practice confirms: for a number of clients we have arranged office rentals, hired local staff and prepared an economic substance justification of activities to meet the new standards.

Compliance deadlines and penalties

The deadline to bring documents into compliance is June 30, 2025. Violations carry administrative and financial sanctions, including freezing of corporate accounts and revocation of licenses. At COREDO we assist clients at all stages of compliance, minimizing risks and ensuring the transparency of the structure.

Taxation of a Seychelles Company – What You Need to Know?

Taxation of a Seychelles Company — what you need to know? This jurisdiction operates on a territorial principle: taxes are levied only on income earned within the territory of the Seychelles, and most of companies’ foreign receipts are exempt from taxation. Below we will examine which tax incentives are available to companies, and what restrictions may apply when operating in the Seychelles.

Tax incentives

Annual renewal and financial reporting

To maintain the company’s status, an annual renewal fee must be paid and reports submitted. If annual turnover exceeds $3,750,000, a Seychelles company annual financial summary must be prepared within 6 months after the end of the reporting period. COREDO’s solutions allow automating data collection and report preparation, which is especially important for companies with an international structure.

Bank account and multi-currency operations

Banking: licensing, risks, scaling

Banking is impossible without strict licensing procedures, continuous monitoring of key risks and the ability to quickly scale solutions in line with market and regulator requirements. Each of these aspects shapes the modern banking system and directly affects how simple and reliable it is to complete basic steps such as opening a bank account.

How to open a bank account

The choice of bank depends on the jurisdiction, business type and multi-currency requirements. For non-residents the procedure has become more complex: banks require detailed justification of sources of funds, the business model and confirmation of economic substance. COREDO’s experience shows: pre-prepared documentation and a transparent ownership structure significantly speed up the process.

Licensing of activities: what it is and how to obtain it?

Separate licensing is required for IT, consulting, e-commerce, Forex and work with virtual assets. In particular, since 2024 the VASP Act 2024 has been in force, regulating the activities of Virtual Assets Service Providers. The COREDO team assisted in obtaining VASP licenses for fintech companies, helping to build AML/KYC processes and prepare internal policies.

Risk management and compliance

The main risks are related to non-compliance with new requirements on nominee shareholders, economic substance and AML. COREDO’s practice confirms: regular audits, implementation of internal control systems and staff training help minimize regulatory and reputational risks.

Scaling and entering the international market

Seychelles Company is ideally suited for holding structures, intellectual property management, international trade and e-commerce. Solutions developed by COREDO allow integrating Seychelles companies into global supply chains, protecting IP and optimizing the tax burden.

Case studies and best practices for businesses from Europe, Asia and the CIS

Cases and practices for businesses from Europe, Asia and the CIS clearly show how companies from different regions adapt to the rapidly changing world of international trade and the new demands of the global market. By studying successful solutions and common mistakes of e-commerce brands, it becomes easier to find effective approaches to developing online business and scaling sales in foreign markets.

International trade for e-commerce

One of COREDO’s clients, a large e-commerce holding with markets in the EU and Southeast Asia – used a Seychelles IBC to optimize taxes, manage payments and scale operations. Thanks to a multi-currency account and a flexible structure, the company significantly reduced conversion costs and accelerated settlements with suppliers.

Intellectual property management

COREDO’s case studies included tasks related to registering and managing IP through a Seychelles Company. This allowed clients to centralize rights to trademarks and patents, enhance asset protection and simplify licensing in different countries.

IT consulting

Forex and financial services – overview and differences

Obtaining an SLC and VASP license in the Seychelles allows legally providing financial and crypto services to clients from the EU and Asia. The COREDO team supported projects for licensing Forex brokers, building a transparent structure and AML compliance/Compliance.

Key findings and recommendations on the topic

The key findings and recommendations on the topic will help you quickly understand the main steps and requirements when registering a company in the Seychelles. Below is a practical checklist of required documents that will allow you to prepare for the registration process as efficiently as possible and avoid common mistakes.

Checklist of documents for registering a Seychelles Company

• Passport and proof of address for all participants.
• Bank reference (if required).
• Articles of association and memorandum (Memorandum and Articles of Association).
• Beneficiary information and nominee shareholders.
• Information about the registered agent and office.

Registration procedure

1. Determine the optimal legal form and business model.
2. Check and reserve the name.
3. Prepare and collect all necessary documents.
4. Submit the application and pay the fees.
5. Obtain the certificate of incorporation and corporate documents.
6. Open a bank account and commence operations.

Compliance 2025

• Declare nominee shareholders in a timely manner.
• Update the shareholder register in accordance with new requirements.
• Confirm economic substance where applicable.
• Monitor compliance deadlines and document updates.

Selecting partners and risk management

Effective support for the registration and subsequent maintenance of a Seychelles Company is possible only with the involvement of licensed agents and lawyers with international expertise. Regular compliance audits, monitoring changes in legislation and transparency of the corporate structure are the key to long-term security and success.

Conclusion

In 2024 more than 60% of new international companies choose offshore jurisdictions in the Caribbean, and St Vincent and the Grenadines consistently rank among the top five in growth rates for business company registrations among non-residents from Europe and Asia. This fact surprises many: why does a small country become a magnet for cross-border business structures? The reason is a unique combination of tax benefits, flexible corporate governance rules, high confidentiality and ease of registration.

Why is an offshore company in St Vincent becoming a strategic tool for international business?

In this article I will outline the key rules and requirements for registering a company in St Vincent and the Grenadines, and share practical case studies and strategies that the COREDO team has successfully implemented for clients from the EU, the CIS and Asia. Read the article to the end, and you will get not just an instruction, but a systematic understanding of how to use the jurisdiction’s opportunities to grow and protect your business.

Business Company in St. Vincent: Registration and Management

Business Company in St Vincent: registration and management, is a practical solution for international entrepreneurs who want to take advantage of flexible legislation, confidentiality and tax benefits. Before choosing and registering a company, it is important to understand which types of legal entities are available and how each of them suits conducting global business.

Types of companies in St Vincent for international business

Choosing a structure: a strategic step. The following types of business companies are available in St Vincent:

COREDO’s practice confirms: the IBC is ideally suited for holding structures, trading, IT and financial services. The Offshore LLC is in demand for projects with multiple partners and a flexible internal structure. The Limited Local Company is used for local operations, and the Sole Proprietorship for individual entrepreneurs who want to run a business without complex corporate procedures.

Requirements for registering a company in St. Vincent: instructions

# How to register an offshore company in St Vincent: documents and timelines

The COREDO team has developed a clear registration procedure:

1. Name selection and reservation, uniqueness check via the Registry. The name must comply with the requirements of the Registration of Business Names Act.
   – Reservation takes 1–2 days.
2. Preparation of documents, Articles of Association (company charter), Application Form, identification documents of directors and shareholders, proof of address, information on beneficial owners (beneficial ownership). Notarization of certain documents is required for non-residents.
3. Submission and review: the set of documents is submitted to the Financial Services Authority (FSA). Review period: from 5 to 10 working days. After approval, a Certificate of Incorporation is issued.
4. Specifics for foreigners: a resident director is not required, but for some licensed activities (for example, financial services) a local registered office or a trade permit for foreign nationals may be required. Opening a corporate bank account is often possible only after incorporation is completed.

Corporate governance in St Vincent

# What are the requirements for share capital and director residency

Minimum requirements:

• 1 director (individual or legal entity, residency not required)
• 1 shareholder (may be the same as the director)
• Maintaining a register of directors and shareholders (register of directors and shareholders) is mandatory.

Economic substance: new rules and implications for business

Since 2021, economic substance requirements have been introduced for companies carrying out financial, holding or trading activities. It is necessary to demonstrate real managerial and operational activity in the territory of St Vincent.
COREDO assists clients in preparing an economic substance report, developing tailored solutions for office placement, staff recruitment and reporting.

Our experience at COREDO has shown that regular monitoring of legislative changes minimizes risks and ensures the long-term sustainability of the structure.

Thus, understanding the requirements for residency and economic substance is important for proper planning of a company’s operations in St Vincent and for preventing legal and tax risks; next we will review the specifics of taxation and reporting.

Taxation and reporting of companies in St Vincent

# What tax incentives are available to companies in St Vincent: Tax exemption: for International Business Company (IBC) and Offshore LLC the corporate tax rate is 0%.

• There are no audit and public reporting requirements for offshore companies.
• For local businesses VAT registration is required, VAT rate: 15%.

# Economic substance and reporting

• For IBCs and Offshore LLCs an annual solvency report and an economic substance report are required.
• Non-compliance with requirements can lead to the company being struck off the register and loss of tax benefits.

Given current regulatory requirements, the next key area is compliance with AML and KYC procedures.

AML and KYC in St Vincent: how to meet the requirements

# Digital KYC procedures and maintaining a register of beneficiaries

Digital KYC and digital client portals (digital client portal) speed up verification and reduce operational risks.

Compliance obligations and risks

• Compliance with Anti-Money Laundering regulations: a key requirement for all companies, especially in the financial sector.
• Violation of AML/KYC rules can lead to account freezes and sanctions.

Opening a bank account in St Vincent

# How to open a corporate bank account for a company in St Vincent

• Required: Certificate of Incorporation, Articles of Association, proof of address, information on beneficiaries, and a business plan.
• The process takes from 3 to 6 weeks, depending on the chosen bank and type of business.

Multi-currency accounts and international banking solutions

• Most banks offer multi-currency accounts, which are critical for cross-border business operations.

COREDO supports clients at all stages, including document preparation and interaction with partner banks.

Doing business through a company in St Vincent

Features of accounting and internal control

• Offshore companies have no mandatory public reporting.
• It is recommended to maintain internal accounting and retain documents for inspection.
• Local companies are required to file regular reports and pay taxes.

# How to scale a business through a company in St Vincent

A company in St Vincent and the Grenadines is an effective tool for international transactions, intellectual property management, and tax optimization.

• Return on investment (ROI) when using an offshore structure often exceeds that of traditional jurisdictions due to reduced tax burden and administrative costs.

Risks and opportunities of St Vincent as an offshore jurisdiction

# What risks are associated with registering an offshore company in St Vincent

• Main risks: changes in international regulation, tightening of economic substance requirements, difficulties opening accounts in foreign banks.
• Opportunities: tax optimization, asset protection, high confidentiality, ease of management.

# How to ensure shareholder confidentiality in St Vincent

• Strict privacy laws and the absence of a public shareholders’ register provide a high level of data protection.
• For certain types of activities, additional data encryption and use of digital signatures may be possible.

Thus, entrepreneurs should carefully approach the organization of activities and proceed to implement concrete steps for registering and further supporting an offshore company.

Practical actions for entrepreneurs

# Step-by-step checklist: from choosing the company type to opening an account and ensuring compliance

1. Define business goals and choose the optimal company type (IBC, LLC, Limited Local Company).
2. Conduct a business name search and reserve the name.
3. Prepare the Articles of Association and the document package.
4. Complete the incorporation procedure and obtain the Certificate of Incorporation.
5. Set up AML/KYC procedures and maintain a register of beneficial owners.
6. Open a corporate bank account and choose multi-currency solutions.
7. Set up internal controls, keep accounting records and reporting.
8. Conduct regular audits of the structure and monitor legislative changes.

# How to choose a reliable corporate service provider

• Criteria: experience in the region, availability of licenses, transparency of processes, comprehensiveness of services (registration, support, compliance, reporting).

# Procedure for liquidation and reorganization of a company in St Vincent

• Liquidation is possible upon shareholders’ application; it requires preparing an annual solvency report and notifying the regulator.
• Reorganization of the structure is carried out by amending the constitutional documents and the shareholders’ register.

St Vincent and the Grenadines: Company registration

• The choice of company type depends on business goals: IBCs and Offshore LLCs are optimal for international operations, while a Limited Local Company is for local business.
• Compliance with AML/KYC and economic substance requirements: critically important conditions for the long-term sustainability of the structure.
• Long-term business support requires regular audits, monitoring of legislative changes and choosing a reliable corporate service provider.
• Digitalization of registration and company management processes in St Vincent significantly reduc

reduces operational risks and accelerates entry into international markets.
If you are looking for a strategic solution for international business, the COREDO team is ready to offer comprehensive support at every stage: from company registration to risk management and scaling your business in Europe, Asia and the CIS.

96% of new international companies encounter legal and tax barriers already at the initial stage of entering foreign markets: this fact is confirmed not only by OECD statistics but also by my personal experience at COREDO. Many entrepreneurs, when planning to register a company in Saint Lucia, expect ease and transparency, but reality turns out to be much more complicated: from the nuances of international taxation to AML and KYC requirements that change every year.

In this article I will not only analyze the key conditions for registering an International Business Company in St Lucia, but also show how the COREDO team helps clients realize the potential of this region in practice. Here you will find answers to the most pressing questions, from tax incentives and privacy protection to obtaining Saint Lucian citizenship by investment. I recommend reading to the end: you will receive not only a step-by-step guide but also strategic ideas for developing an international business.

Company registration in St. Lucia

company registration in St. Lucia opens up wide opportunities for entrepreneurs thanks to a simple procedure, favorable tax conditions and owner confidentiality. Below is a step-by-step guide that will help you understand the key stages of registration on the website and prepare to launch a business in this attractive jurisdiction.

Website registration – step-by-step guide

COREDO’s practice confirms: registering an IBC (International Business Company) in St. Lucia is a structured process that requires attention to detail at every stage. The sequence of actions includes:

• Choosing a unique company name and its preliminary reservation.
• Preparation of incorporation documents: Memorandum, Articles of Association, information about directors and shareholders, proof of registered address.
• Submitting an application to the St. Lucia Companies Registry with the full set of documents.
• Payment of the registration fee (usually from 100 to 300 USD, depending on the chosen registered agent).
• Receiving the Certificate of Incorporation and the company’s registration number.

Requirements and documents for registration

To register an IBC in St. Lucia you will need:

• At least one shareholder (individual or legal entity; residency does not matter).
• At least one director (may be a non-resident).
• A registered address in St. Lucia.
• Appointment of a registered agent.
• No minimum share capital requirement: in practice a nominal amount is sufficient (often 1 USD).
• The standard package includes passport copies, proof of address, KYC questionnaires and, if necessary, corporate documents for legal entities.

Tax incentives: conditions and requirements

tax incentives become one of the key factors when choosing a jurisdiction for establishing and conducting international business.

Next, let’s look at which specific requirements are imposed on IBCs and under what conditions tax incentives are granted to such companies.

Tax incentives for IBCs: overview of conditions

• Corporate income tax;
• Taxes on dividends, interest and royalties;
• Stamp duties and capital gains taxes.

At the same time, companies are required to file an annual financial statement, which is in line with the transparency principles adopted in Caribbean financial centers.

Saint Lucia’s tax legislation

Saint Lucia actively implements international standards for the exchange of tax information (CRS, FATCA), which provides a balance between financial confidentiality and the requirements of global regulation. Tax incentives apply to foreign companies if they do not carry out activities on the territory of the country and do not receive income from local sources. This approach makes the jurisdiction attractive for holding structures, investment funds and international trading operations.

Offshore companies in St Lucia

Offshore companies in St Lucia are becoming an increasingly attractive tool for international business thanks to special registration conditions and a flexible tax regime. This jurisdiction offers not only significant tax benefits but also a high level of confidentiality for company owners, making it one of the popular destinations among entrepreneurs.

Benefits of offshore companies

Among the key benefits noted by COREDO clients:

• Asset protection: St Lucia legislation provides effective mechanisms for protecting property from claims by third parties and creditors.
• Financial confidentiality: There is no public register of shareholders and directors, which guarantees anonymity and data protection.
• Corporate structure flexibility: The ability to issue shares with different rights, and to appoint nominee directors and shareholders.
• Minimal reporting requirements: No mandatory audit, an annual declaration is sufficient.
• Access to international trading licenses: Offshore companies can obtain licenses to provide financial services in the Caribbean, including forex, payment systems, crypto operations.

The COREDO team has repeatedly supported projects for opening corporate accounts in leading banks of the Caribbean region and Europe for IBCs from St Lucia, which confirms the practical feasibility of these benefits.

Zero tax rate and incentives

It is important to note that the zero tax rate for IBCs does not exempt them from the need to comply with international AML and KYC requirements.

Data privacy protection

St Lucia enforces a strict business confidentiality policy.

The solutions implemented by COREDO allow an additional increase in anonymity by using trust and holding structures.

Risks and opportunities — what’s important to know?

Risks and opportunities of offshore structures are today considered both from the perspective of potential advantages and from the standpoint of current threats and restrictions that are important to take into account. To make a balanced decision, it is necessary to understand exactly how offshore opportunities can be used and what risks need to be analyzed under the new regulatory conditions.

Analysis of risks and opportunities of offshore jurisdictions

Any offshore jurisdiction combines opportunities and risks. Among the main challenges:

• Increased international scrutiny of offshore companies (FATF, OECD).
• Disclosure requirements under CRS and AML.
• Possible restrictions on opening accounts in foreign banks.

How to mitigate risks

COREDO’s practice shows: the key to success is a transparent and lawful structure, compliance with international standards (AML, KYC), as well as competent support at all stages. To minimize risks we recommend:

• Use only trusted banking and payment solutions.
• Implement internal KYC procedures and AML.
• Regularly audit the corporate structure for compliance with current requirements.

Saint Lucia citizenship by investment

Saint Lucia citizenship for investment, is an opportunity to obtain a second passport by investing a certain amount in the island state’s economy. The program attracts investors with simple conditions and a relatively low investment threshold, making it one of the most accessible in the Caribbean region. Below we will consider what requirements are imposed on candidates and how citizenship can be obtained.

Conditions for obtaining citizenship

The Saint Lucia citizenship by investment program is one of the most attractive in the Caribbean region. The minimum investment amount starts from 240,000 USD (for example, in real estate or government bonds). An alternative route: a non-refundable contribution to the National Economic Fund from 100,000 USD for a single applicant.

Benefits of the Saint Lucia passport:

• Visa-free entry to more than 145 countries, including the Schengen area, the United Kingdom, Hong Kong, Singapore.
• Ability to optimize tax residency.
• No residency requirements on the island.
• Citizenship can be passed on by inheritance.

How to apply

Steps to obtain citizenship:

1. Choose an investment option and prepare the document package.
2. Undergo a compliance check (Due Diligence).
3. Submit the application through a licensed agent.
4. Approval and making the investment.
5. Receive the passport and certificate of citizenship.

AML and KYC in Saint Lucia

AML and KYC in Saint Lucia are not just international standards, but mandatory requirements for all companies dealing with financial and virtual assets on the island. Saint Lucia’s legislation requires the implementation of strict procedures to combat money laundering (AML) and client identification (KYC) to ensure transparency, financial security and investor protection.

AML and KYC Requirements

Saint Lucia strictly adheres to international AML (Anti–Money Laundering) and KYC (Know Your Customer) standards. Legislation requires:

• Identification of all beneficiaries and shareholders.
• Retention and updating of client information.
• Conducting regular checks of sources of funds.

For companies providing financial services in the Caribbean, the implementation of AML and KYC procedures is a mandatory requirement for obtaining licenses and opening accounts. COREDO’s solutions include the development of tailored AML policies, staff training and process audits.

Practical recommendations for companies

• Implement internal regulations for client identification and monitoring.
• Use modern IT solutions to automate KYC.
• Conduct regular training for employees.
• Timely update documentation in accordance with changes in legislation.

Conclusions and findings

international business company St Lucia: it is not just a tool for tax optimization, but a full platform for developing, protecting and scaling a business on a global scale.

Registering a company in Saint Lucia opens access to tax benefits, financial confidentiality and the opportunities of Caribbean financial centers. Nevertheless, success depends on proper preparation, choosing a reliable partner and complying with all international standards.

Practical recommendations from COREDO:

• Carefully analyze the business’s goals and objectives before registering an IBC.
• Use the advantages of offshore companies to protect assets and optimize tax liabilities.
• Comply with AML and KYC requirements; this is the key to long-term stability.
• Consider Saint Lucia citizenship by investment as a strategic tool for business immigration and expanding opportunities.

The COREDO team is ready to offer comprehensive solutions for registration, licensing and business support in Saint Lucia, taking into account the specifics of your project and current international market trends.

Comparison table of registration requirements and benefits

In 2024, more than 60% of new international business companies are registered in jurisdictions with zero corporate tax and a flexible regulatory system, and St Kitts and Nevis consistently ranks among the top five such destinations according to Global Finance. So why, despite tightening global AML requirements and growing attention to transparency, does this Caribbean jurisdiction become the strategic choice for European and Asian entrepreneurs? What are the real opportunities and risks, and what lies behind the façade of “offshore simplicity”?

In recent years the team COREDO has repeatedly encountered cases where classic offshore solutions stopped working due to changes in international regulation, and businesses needed not just company registration but a comprehensive strategy for tax optimization, asset protection and lawful scaling. In this article I will examine in detail why the St Kitts and Nevis international business company is not only a tool for reducing tax burden, but also a platform for sustainable development, investment mobility and effective corporate risk management.

If you want not a superficial overview but a structured guide with practical recommendations, case studies and strategic ideas: I recommend reading the article to the end. Here you will find answers to the most pressing questions that managers and entrepreneurs face when choosing a jurisdiction, registering a company, obtaining financial licences and complying with AML requirements.

International business company in St Kitts and Nevis

international business company in St Kitts and Nevis opens access to unique opportunities for conducting business and investing on the Caribbean islands, combining a stable economy and attractive conditions for international activity. The geography and economic specifics of St Kitts and Nevis create advantages that make the country appealing to entrepreneurs and foreign investors.

Geography and economy of St Kitts and Nevis

St Kitts and Nevis is an independent state in the eastern Caribbean Sea with a stable political system and one of the region’s most liberal economies. The country’s economic policy is focused on attracting foreign investment, developing the financial sector and creating favorable conditions for international business. The Caribbean region has traditionally been viewed as a platform for offshore companies due to the combination of tax incentives, a flexible regulatory environment and a strategic location between North and South America, as well as proximity to markets in Europe and Asia.

Legal framework of corporate law in St Kitts and Nevis

The jurisdiction of St Kitts and Nevis is governed by modern corporate legislation based on English law, taking into account international standards of corporate governance and compliance. The International Business Companies Act (IBC Act) provides transparency of procedures, flexibility of corporate structures and protection of the interests of foreign investors.

Company registration in St Kitts and Nevis, step-by-step

company registration in St Kitts and Nevis, step-by-step allows foreign entrepreneurs to open a business remotely while complying with local rules and international transparency standards. At each stage it is important to take into account requirements for corporate structure, documentation and licensing to ensure the legality and protection of the company’s interests in this jurisdiction.

Requirements for IBCs in St Kitts and Nevis

Key aspect: compliance and AML in St Kitts and Nevis. The country’s legislation requires KYC procedures, verification of sources of funds and identification of beneficiaries. The solution developed by COREDO enables automation of data collection and processing by integrating LegalTech tools to speed up checks and minimize errors.

Registration and licensing: procedure and rules

The company registration process in St Kitts and Nevis includes several stages:

• Preparation and filing of the constitutive documents (Articles of Incorporation, Memorandum of Association).
• Reservation of a unique company name.
• Appointment of a director and a secretary.
• Opening a corporate bank account (personal presence is often required).
• obtaining licenses (if necessary – for financial, payment, crypto and forex services).

Legal support for offshore business

Best practices for legal support of companies in St Kitts and Nevis include regular monitoring of legislative changes, integration of LegalTech solutions to automate reporting, and compliance with international AML and KYC standards. The COREDO team implements digital platforms for managing corporate documentation, enabling clients to respond promptly to regulator requests and maintain a high level of transaction transparency.

Business advantages in the jurisdiction of St Kitts and Nevis

Business advantages in the jurisdiction of St Kitts and Nevis reflect a unique combination of a favorable business environment, flexible regulation and asset security. This Caribbean jurisdiction attracts entrepreneurs with favorable conditions for international activities and wide opportunities for tax planning.

Thanks to these advantages, special attention should be paid to tax incentives and the possibilities of structuring international companies, which we will consider further.

Tax incentives and planning

One of the main advantages of registering a company in St Kitts and Nevis is the absence of taxes on income, capital and inheritance for international business companies. This creates unique opportunities for tax optimization, especially for holding structures managing assets across different countries. The impact of St Kitts and Nevis legislation on tax optimization is confirmed by COREDO cases: clients were able to reduce their overall tax burden by 30–40% through proper business structuring and the use of international tax treaties.

Citizenship by investment (CBI) and business opportunities

St Kitts and Nevis is one of the few countries offering a Citizenship by Investment (CBI) program, allowing one to obtain citizenship through investments in real estate or government funds. For business owners, this is not only a tool to legitimize assets but also a way to expand international mobility, obtain a second passport and access new markets.

Offshore registration to scale the business

Offshore registration in St Kitts and Nevis opens wide opportunities for scaling a business, from creating international holdings to managing investment funds and trusts. Asset management and asset protection are implemented through trust structures that provide a high level of confidentiality and protection from external risks.

Thus, offshore registration in St Kitts and Nevis provides businesses with significant flexibility and reliable asset protection, thanks to well-designed corporate and trust structures.

Let’s move on to examining the requirements and risks associated with AML and compliance rules in this jurisdiction.

AML and Compliance in St Kitts and Nevis: requirements and risks

Mandatory AML and KYC procedures for international business

Minimizing legal and financial risks

The main risks of registering a company in St Kitts and Nevis are associated with possible reputational losses, the tightening of international sanctions and changes in financial regulations. Corporate risk management requires regular audits, monitoring of legislative changes and integration of anti-corruption measures.

International standards: FATCA and CRS — what you need to know

St Kitts and Nevis actively participates in international initiatives for transparency of financial operations — including FATCA and CRS. Companies are required to provide data on beneficiaries, sources of funds and transactions, which helps reduce the risk of tax claims and ensure compliance with global standards.

Corporate governance in St Kitts & Nevis

corporate governance in St Kitts & Nevis – is an effective system of oversight and management, ensuring transparency and protection of the interests of both shareholders and all stakeholders. In this jurisdiction corporate governance combines the flexibility of offshore structures with compliance with international standards, which is especially important for holding companies and multi-level business models.

Corporate governance in holding companies

The corporate law of St Kitts and Nevis allows the creation of flexible holding structures, integration of trusts and foundations, which significantly expands opportunities for asset management and optimization of corporate processes. Management of corporate risks is implemented through the introduction of compliance policies, regular audits and integration of LegalTech solutions.

Procedures for the inheritance of corporate rights

The specifics of inheritance and transfer of business in St Kitts and Nevis include the possibility of using trust structures, which provides asset protection, confidentiality and flexibility in managing corporate rights. Business transfer procedures are transparent, regulated by national legislation and comply with international standards.

Asset protection through trust structures

Trust and foundation structures are a key instrument for protecting ownership and managing assets in St Kitts and Nevis. They allow diversification of risks, ensure confidentiality and create a sustainable platform for long-term business development.