How to obtain Fintech license in Europe

Registration of a fintech company in Europe and licensing open up business possibilities for the provision of services…

Registration of a fintech company in Europe and licensing open up business possibilities for the provision of services all over the European Union, since it’s the biggest common market in the world. 

Types of European fintech licenses: Who need to obtain 

The following fintech licenses can be obtained to work legally on the territory of Europe:

  • banking licenses provide minimum capital for an applicant with more than €1 billion. Lately, fintech projects have been enlarging their licenses, additionally receiving banking ones (e.g., Revolut);
  • crypto licenses give a chance to legalize crypto companies to provide crypto services transparently and openly in the legal field;
  • PI (Payment Institution) is a payment institution license ensuring the provision of financial and intermediary services. PI license is equivalent to PSP (Payment Service Provider);
  • EMI (Electronic Money Institution) is a  license for electronic money. It is obligatory for companies willing to provide clients with electronic wallets to withdraw money. Includes all possibilities of PI license and gives the right for electronic money emission.

The PI license is usually easier to obtain and cheaper than EMI. Numerous European countries issue PI (PSP) and EMI licenses with minor limitations, and in this case, they are marked as small, restricted, or specialized, meaning that a company provides a smaller set of services and there are average monthly limits for the number of transactions. 

Benefits of European fintech licenses 

In Europe, certification procedures are available for banking, payment, broker, and EMI licenses, licenses. They enable to expand of the scope of the license obtained in one of the European countries to other EU countries, while notifying local regulators. With the adoption of MICA, certification are expected to be applied for crypto licenses.

Fintech license cost in Europe

The price depends on the region and license type. The SBSB experts can help to find out an exact cost of a license.  


Requirements for fintech licensing in Europe 

How to obtain a Fintech license in Europe? Each jurisdiction has different conditions for registration, since regulators set their own rules. Basic requirements to obtain PI and EMI licenses include:

  • charter capital on a bank account (from €350 000 for EMI and from €125 000 for the majority of PI);
  • prepared business plan;
  • AML policy description;
  • secure procedures of client identification;
  • operational plan, including the description of services and markets for their provision;
  • description of company’s structure;
  • description of mechanisms of internal control, risk management, accounting and company management;
  • description of measures, aimed to protect the safety of client funds;
  • PSC information and information about a company’s management and compliance of these persons with the established requirements;
  • existence of a physical official (if required);
  • charter and the description of an organizational structure;
  • accounting and external audit obligations;
  • appropriate software.

European countries and regulators SBSB works with 

We offer individual solutions for the licensing of financial projects in various jurisdictions of the European Union: Malta and Cyprus, Bulgaria, Lithuania, Czech, Switzerland, Estonia, and other countries. We also have experience in licensing in Great Britain and Gibraltar. 

We recommend paying attention to the payment license in Spain. In this jurisdiction, a favorable tax regime for fintech companies is created, and tax breaks for development costs are also provided. The absence of duty requirements is another advantage of the project registration in Spain. If needed, a company can obtain licenses that enable the provision of payment services and e-money emission. 

How to obtain Fintech license in Europe?

SBSB Fintech Lawyers help clients get fintech licenses in Europe. We offer turnkey legal service: from the selection of an optimal jurisdiction, preparation of the package of documents, developments of internal regulations of a company up to the registration of a project, licensing, calculations of the tax burden, bookkeeping, and financial reporting. Call us, and our lawyers will quickly launch your project. 

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