Payment license in Estonia

Considering the tendency in development of online payments and the popularization of e-currency, many companies want to do…

Considering the tendency in development of online payments and the popularization of e-currency, many companies want to do business with it. However, to issue virtual money or create your own payment system, you need a license for electronic money. For its execution, you can apply to various jurisdictions, including offshore. But in practice, companies try not to mess with them in order not to discredit themselves. And they receive permits in other, more reputable jurisdictions, where this procedure is not pricy, and the requirements for a future licensee are minimal.

E-money license in Estonia and its advantages

Despite the development of Internet technologies, many large companies are cautious in choosing a payment system and unwillingly changing it. In a highly competitive environment, it becomes difficult to get a client Therefore, there are a lot of those who want to get an offshore payment license. One of the strongest arguments that may attract attention to Estonia is the license for electronic money in the EU.

The European Union is known for its scrupulousness. If the company received a license for electronic money, then it was carefully checked and the commission did not find any threats or risks, which is an additional guarantee of security. If you need a license for electronic money in Europe, you can obtain it in the jurisdiction of one of the member countries that make more loyal requirements. It will also cost much cheaper. One of these countries is Estonia.

Why do many people choose Estonia to register a payment system?

Firstly, this country is a member of the EU, it has created favorable conditions for doing business in the field of e-commerce. It is politically and economically stable. Here you will not come across frequent checks or pressure from administrative resources, which this is one of the important points for business development.

Secondly, it is not an offshore, but an authoritative jurisdiction that appears credible. The payment system license issued by Estonia is highly valued and is an additional proof of reliability and transparency. At the same time, the requirements for obtaining a document are not the most strict. This means that you will not have any particular problems and it will cost much less than an electronic money license in England.

Thirdly – the EMI license of Estonia allows you to perform your activities not only in this country, but also in the territory of any EU state.

To obtain a license, you must apply with the appropriate application to the EFSA and submit the required package of documents. It includes mostly the statutory documents of the enterprise and others that give complete information about the company, its management and founders, and a business plan is also required.

How to obtain a license for payments in Estonia?

EFSA issues payment licenses for financial transactions to companies that are residents of Estonia. Obtaining a license for electronic money entitles its owner to make operations with virtual money not only in Estonia itself, but also throughout the European Union.

In this case, a license of electronic money in Estonia can be issued if a number of requirements are satisfied with both the company itself and its shareholders and management. In particular, the investment capital should not be less than 350 thousand euros, and the share capital should not be less than 50 thousand euros.

EFSA will perform a thorough review of the management of the company and its shareholders. The main requirements for them are:

  1. Appropriate documented higher education (financial, economic, legal).
  2. Experience in the financial sector, which is documented, the CV, recommendations, etc.
  3. Impeccable business reputation – no records in the personal file about license revocation, bankruptcy, etc.
  4. The absence of “dark past ” (convictions, links with criminals, participation in scandals).
  5. Good financial health.

An application for registration of a payment system in Estonia is considered from 3 months to six months on average.

In special cases, the deadline may be extended to consider some issues and request additional documents.

You can apply for a license yourself or use the help of experienced international lawyers to obtain the required payment license for sure.

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