COREDO > Financial Licence in Singapore

Financial Licence in Singapore

Singapore is one of the world’s leading financial centres and the primary fintech hub of the Asia-Pacific region. A state with the highest GDP per capita among Asian countries, a first-class legal system and political stability create unique conditions for developing payment business. A financial licence in Singapore provides a company with access to the Southeast Asian market — more than 660 million consumers — with the support of one of the world’s most respected regulators.

COREDO has provided full legal support in obtaining a financial licence in Singapore since 2016.

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Cost of the service
from 55 000 EUR

Regulatory Framework for Financial Services in Singapore

Singapore’s financial sector is regulated by the Monetary Authority of Singapore (MAS) — the country’s central bank and financial regulator. MAS exercises supervision over all segments of the financial industry: banking, insurance, capital markets and payment services.

The main legislative act in the field of payment services is the Payment Services Act 2019 (PSA), which came into force in January 2020. The law created a unified licensing system for payment service providers, replacing outdated laws on money transfers and payment systems. In 2024, the scope of regulation was expanded: effective April 4, 2024, amendments came into effect that significantly increased the list of regulated activities — including in the field of digital payment tokens (DPT).

The PSA regulates the following types of payment services:

Account issuance service
Domestic money transfer service
Cross-border money transfer service
Merchant acquisition service
Digital payment token service
E-money issuance
Money-changing service

Additionally, capital market operations are regulated by the Securities and Futures Act (SFA), and investment advice is governed by the Financial Advisers Act (FAA). MAS regularly updates its regulatory framework: in July 2024, revised “Guidelines on Licensing for Payment Service Providers” [PS-G01] were released, clarifying capital requirements, documentation and AML/CFT systems.

Types of Financial Licences in Singapore

Various categories of financial companies fall under MAS regulation. The main classification for payment services is determined by the PSA, while capital markets are subject to separate licences under the SFA.

Licence Type	Governing Law	Regulator	Minimum Capital	Purpose
Standard Payment Institution (SPI)	PSA 2019	MAS	SGD 100,000 (~EUR 68,000)	Payment services up to transaction threshold
Major Payment Institution (MPI)	PSA 2019	MAS	SGD 250,000 (~EUR 170,000)	Payment services without volume restrictions
Money-Changing Licence	PSA 2019	MAS	As required by MAS	Money exchange
Capital Markets Services (CMS) Licence	SFA	MAS	Depends on activity type	Asset management, brokerage, derivatives
Financial Adviser	FAA	MAS	As required	Investment advice
Bank Licence	Banking Act	MAS	SGD 1.5 billion (~EUR 1 billion)	Full range of banking services

The most in-demand licences for international fintech companies are SPI and MPI under the Payment Services Act.

Difference Between SPI and MPI

Standard Payment Institution (SPI) is suitable for companies whose monthly transaction volume does not exceed SGD 3 million for any single type of payment service or SGD 6 million for two or more types of services (excluding e-money issuance and money exchange). This is a simpler market entry path for startups and companies beginning operations in Singapore.

Major Payment Institution (MPI) has no transaction volume restrictions and is intended for large payment operators. An MPI may provide multiple types of payment services simultaneously, including e-money issuance and digital payment token services. An MPI is also required to deposit security with MAS: SGD 100,000 if the monthly transaction volume for any type of service does not exceed SGD 6 million, or SGD 200,000 otherwise.

Advantages of a Financial Licence in Singapore

Singapore offers holders of a financial licence a number of significant competitive advantages unavailable in other jurisdictions.

Strategic access to the Asian market.

Singapore serves as a gateway to the Asia-Pacific region — a market of more than 4.5 billion people. Singapore accounts for 21% of all fintech transactions in the APAC region. The city-state is home to more than 1,300 fintech companies.

High regulatory authority.

An MAS licence is a global mark of quality. Financial institutions with a Singapore licence enjoy the trust of partners, investors and corporate clients worldwide.

Favourable tax system.

Singapore’s corporate tax rate is 17%, with numerous incentives for new companies. Dividends are not subject to withholding tax. Singapore has double taxation treaties with more than 80 countries.

Innovation-friendly regulatory climate.

MAS supports fintech innovations through a Regulatory Sandbox (in operation since 2016), enabling testing of new products in a controlled environment. MAS actively publishes advisory materials and ensures dialogue with the industry.

Quality infrastructure.

Singapore ranks among the world’s top in rule of law, regulatory transparency and ease of doing business. Advanced financial infrastructure, a stable Singapore dollar exchange rate and a developed capital market create a favourable environment for business operations.

Access to international talent.

Singapore attracts financial specialists from around the world. Flexible hiring policies for foreign employees allow companies to build teams with the required expertise.

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Requirements to Obtain MAS Licence

Licence requirements vary depending on the type (SPI or MPI) and the requested services. Below are the general mandatory conditions.

Corporate structure.

The applicant must be incorporated in Singapore (Singapore-incorporated company) or be a Singapore branch of a foreign corporation. The company must have a permanent office in Singapore at which address corporate documents and accounting records are kept.

Management and directors.

At least one executive director must be a Singapore citizen or permanent resident. It is possible for one executive director to hold an Employment Pass, provided that the second director is a Singapore citizen or permanent resident. Directors must meet MAS requirements for business reputation and qualifications.

Minimum capital.

For SPI — at least SGD 100,000 (~EUR 68,000). For MPI — at least SGD 250,000 (~EUR 170,000). Additionally, MAS requires maintaining sufficient capital buffer covering 6–12 months of operating expenses.

Local presence.

The office must have at least one employee authorized to receive customer complaints and inquiries.

AML/CFT programme.

The company must have a developed and documented anti-money laundering and terrorist financing programme in accordance with MAS Notice.

Technical and operational capabilities.

Possession of necessary IT systems, operational procedures and human resources to provide the stated services.

Cost of Financial Licensing in Singapore

The cost of legal support for obtaining a financial licence in Singapore includes a comprehensive package of legal services covering all stages of the licensing process, from initial consultation through post-licensing support.

Obtaining an SPI (Standard Payment Institution) License

from EUR 55,000 + VAT

Analysis of business model and selection of optimal licence type (SPI or MPI)
Corporate structure advice and formation of Singapore subsidiary (if required)
Development of business plan with financial projections (1 year for SPI, 3 years for MPI)
Drafting of AML/CFT policy and KYC/KYB procedures
Preparation of operational policies and IT architecture documentation
Engagement with independent auditors and legal opinion providers
Compilation of complete application package
Liaison with MAS throughout the application process
Post-licensing compliance advisory

Regulatory Capital Requirements for MAS

from SGD 100,000

SPI: minimum SGD 100,000 (~EUR 68,000) of share capital.
MPI: minimum SGD 250,000 (~EUR 170,000) of share capital.
Security deposit SGD 100,000–SGD 200,000

Payment Terms

COREDO applies a phased payment system tied to key project milestones. The first payment is made following contract signature and project start confirmation. Subsequent payments correspond to completion of individual stages: preparation of corporate documents, development of AML/CFT programme, compilation of the application package and submission to MAS.

Payment terms are fixed in the agreement with the client. Payment in EUR is possible. For all questions regarding payment terms, please contact our specialists during the initial consultation.

Required Documents

The document package for submission to MAS is compiled according to the requirements of “Guidelines on Licensing for Payment Service Providers” [PS-G01] (October 2025 edition) and includes:

Corporate documents:

Incorporation documents (Memorandum and Articles of Association)
Certificate of registration with ACRA
Current list of shareholders and directors

Documents on individuals (shareholders, directors, UBO):

Passport information and proof of residence
Resume / professional biography
Certificates of good character
Information on source of funds and business biography

Business plan:

Financial forecasts: 1 year for SPI, 3 years for MPI
Description of business model and requested services
Target markets and client segments

Operational policies and procedures:

AML/CFT programme and KYC/KYB policies
Risk management and operational security procedures
Description of IT architecture and software used

Additional documents (where applicable):

Independent legal opinion on business model compliance with PSA — mandatory for all new applicants since 2024
For DPT services: independent audit report on AML/CFT systems and consumer protection (issued not more than 3 months before submission)

Procedure for Obtaining an MAS Licence

The licensing process with MAS consists of sequential stages and requires careful preparation at each step.

Preliminary Analysis and Structuring (4–6 weeks)

COREDO conducts an analysis of the client’s business model, determines the required licence type (SPI or MPI) and requested services, provides advice on corporate structure and staffing. If necessary, COREDO assists in registering a company in Singapore.

01

Document Preparation (8–12 weeks)

At this stage, all necessary documents are developed: business plan with financial forecasts, AML/CFT programme, operational policies and procedures. COREDO coordinates collection of individual documents and organises preparation of the legal opinion.

02

Application Compilation and Submission (2–4 weeks)

The complete document package is submitted to MAS through the official portal. The application includes Form 1 (Application for a Payment Service Provider Licence) with appendices.

03

MAS Review (60–120 working days)

MAS reviews SPI licence applications within 60 working days and MPI licence applications within 120 working days from receipt of a complete document package. In practice, the total time to obtain a licence is 6–9 months for SPI and 9–12 months for MPI. For DPT service applications, the period may reach 12 months.

During review, MAS may request additional information or invite directors for an interview. COREDO accompanies the client through all stages of interaction with the regulator.

04

Licence Issuance and Post-Licensing Support

Following licence receipt, COREDO provides services to ensure ongoing compliance with MAS requirements, including AML/CFT audit and advice on reporting matters.

05

Our Financial Licensing Experts

Financial licensing matters in Singapore at COREDO are handled by experienced lawyers with years of practice in financial law and regulatory compliance. COREDO has been operating since 2016 and successfully supports clients across dozens of jurisdictions worldwide.

Pavel Kos

Head of Legal. Pavel has headed COREDO's legal team since 2020. He specializes in financial licensing, fintech project structuring and regulatory support across various jurisdictions. He has worked at COREDO since 2017.

Basang Ungunov

Lawyer. Basang has been a lawyer at COREDO since 2022. He specializes in financial and corporate law, preparation of legal opinions and support of licensing processes. He holds a Master of Laws (LLM) degree.

Frequently Asked Questions

Which licence type does my company need — SPI or MPI?

The choice of licence type depends on expected transaction volume and range of services. SPI is suitable for companies with monthly transaction volume up to SGD 3 million for a single service type or up to SGD 6 million for multiple services. If your operations exceed these thresholds or you plan to work with digital payment tokens on a large scale — you will need an MPI. COREDO will help determine the optimal option during the initial consultation.

Do I need to physically open an office in Singapore?

Yes, MAS requires the existence of a permanent place of business in Singapore. The office must have at least one employee authorized to receive customer requests and complaints. A virtual office is insufficient — MAS verifies actual presence.

Can a foreign citizen be a director of the company?

Yes, however MAS requirements provide that at least one of the executive directors must be a Singapore citizen or permanent resident. It is possible to have one executive director holding an Employment Pass and another director who is a citizen or permanent resident. COREDO assists in selecting qualified nominee directors.

What is the real timeline for obtaining an MAS licence?

The official MAS review period is 60 working days for SPI and 120 working days for MPI. However, accounting for document preparation time, the total time to obtain a licence in practice is 6–9 months for SPI and 9–12 months for MPI. For applications including Digital Payment Token Services, the period may reach 12 months.

Does a Singapore licence provide access to other Asian markets?

Singapore is not part of the EU and does not provide passporting under European directives (PSD2, EMD2). However, a Singapore MAS licence opens access to ASEAN markets and enjoys high credibility with correspondent banks and partners worldwide. A number of Asian countries recognise a Singapore licence through simplified coordination with local regulators.

What services can be provided with an SPI licence?

An SPI licence permits provision of one or more of the 7 regulated payment service types within established transaction thresholds: account issuance, domestic and cross-border money transfers, merchant acquisition, digital payment token services, e-money issuance and money exchange.

What are MAS requirements for AML/CFT systems?

MAS imposes strict requirements on anti-money laundering systems. A company must develop and implement a comprehensive AML/CFT programme, including KYC/KYB policies, transaction monitoring procedures and suspicious activity reporting. For DPT service applicants, a conclusion from an independent external auditor on AML/CFT systems and consumer protection is mandatory.

Is a separate bank account needed for the Singapore company?

Yes, for operational activity and compliance with MAS requirements for holding client funds, a Singapore company bank account is needed. Opening a corporate account in a Singapore bank requires full KYB procedure. COREDO assists in opening bank accounts.

Get a Financial Licence in Singapore

COREDO provides a complete range of legal services for obtaining a financial licence in Singapore: from analysis of business model and licence type selection through to MAS application submission and post-licensing support. Since 2016, we have implemented hundreds of projects across dozens of jurisdictions.