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Features of obtaining an e-money license in the EU

Every year the number of non-banking financial institutions is overgrowing, so the EU countries have developed specific rules for their regulation. So, all companies that provide financial services must obtain a work permit. Each company must obtain an e-money license in EU. Otherwise, it can lead to big problems in operation.

Who must obtain an EMI license?

First, let’s understand what an EMI company is. So, provide services related to electronic money, for example, issuing prepaid cards or being an electronic wallet. You must obtain an EMI license if you want to work legally, honestly, and openly.

Benefits of obtaining a license

In the EU countries, a clear legislative framework has been created, which says that all organizations that use e-money must obtain a license. The fact is that there are a large number of scammers in this market, so government agencies want to protect their citizens and carefully check every financial company that comes to their needs. So, if you decide to work in the EU countries, but do not plan to obtain a license, then be prepared for the fact that your site will be immediately blocked, you will not be able to conduct regular business, and most likely, your company will be declared a fraudster and tax evader. As a result, you will have big problems with the law.

In addition, no one wants to cooperate with unlicensed companies. Why invest in an organization that will be shut down by regulators tomorrow, or is it possibly a scam? So, until you get a license, you should not hope for either investment or an influx of new users.

Basic requirements for the applicant

To obtain a license, your company must comply with specific rules. Each EU country sets its requirements. However, some parameters remain unchanged:

  • The company must be registered in the jurisdiction in which it wishes to obtain a license;
  • The company must have a bank account where the authorized capital is stored in full;
  • The organization must have good protection for its clients;
  • Adhere to KYC policy and more.

The main requirement for each applicant is an excellent reputation. The founder and shareholders must not have a criminal record or be involved in fraud. Even a minor scandal in the past can cause rejection. In addition, you must know your customers. It means that your company cannot serve scammers. Each client must verify the data and provide passport and location information when registering. In addition, the company must provide information about customers if required by government authorities.

In addition, the platform must ensure the safety of the client’s data and assets. The ideal solution would be to install encryption so that hackers cannot break through the protection and get the necessary information.

Some countries set requirements for the size of the authorized capital, business fee, and many other characteristics.

What services does our company provide?

Gofaizen-Sherle is one of the most sought-after law firms that assist in obtaining a license. It has extensive experience in this area and is constantly expanding its geography, helping to obtain work permits in more and more new jurisdictions.

The list of services provided by our specialists includes:

  • Detailed consultation. Our experts will help you decide on the best jurisdiction, taking into account the specifics of your company’s work, tell you what requirements it puts forward, what documents you need, how long it will take to process documents, and also answer possible questions. It would be best if you were prepared because the consultation may take several hours, but you will return with complete information.
  • Assistance with paperwork. You need to prepare two packages of documents – for company registration and for obtaining a license. The specialists of our company will help you properly organize all the documents, check that there are no errors in them.
  • Will represent your interests in state bodies. After you sign a power of attorney for our specialists, they can take on most of the work.

Thus, if you want to obtain a license as quickly and efficiently as possible, you should contact our company, then your participation in getting a permit will tend to zero.

Saad Ullah

An engineer with a passion for innovative technology, blockchain has been a natural attraction. More than a decade of experience in handling HR, HSE and IT management systems for FMCG companies. Currently pursuing Masters in Business Administration.

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Saad Ullah

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