How to Obtain Singapore SVF license.
A developed economic system, flexible taxation, and liberal legislative framework — most dream about these conditions to obtain an SVF license. This is the reason Singapore has become a popular jurisdiction believed to be the synonym for reliability. In the new material, we will talk about how to obtain Singapore SPI/MPI license, as well as describe the regulator’s requirements and advantages SVT grants to its licensee.
Clients often call Singapore license SVF (Stored Value Facility), but it is also called SPI/MPI license now.
What is Standard Payment License (SPI)/Major Payment License (MPI)?
According to the Singapore legislation, SPI/MPI license is to be issued for Payment Service Provider (PSP), storage and control over virtual assets.
The Monetary Authority of Singapore — the financial regulatory authority of the Republic of Singapore — is in charge of licensing and payment system market regulation and is driven by international standards and Singapore Payment Services Act. The last enables entrepreneurs to register as a legal entity on the territory of the jurisdiction for the activity connected with digital and crypto assets.
According to PSA, there are three types of payment licenses:
- Money-Changing enables working with currency exchange;
- Standard Payment Institution regulates the company activity, whose transactions do not exceed its legal available supply;
- Major Payment Institution enables the provision of all payment services, and financial operations of this company exceed its legal available supply.
Why choose Singapore jurisdiction?
Many are attracted by favorable working conditions with cryptocurrency and digital money. Besides, having registered a payment system in Singapore, you can legally act in the whole Asian market.
A powerful and stable economy, liberal legislation for business regulation and taxation, major bank offices, audit, legal, and investment campaigns, as well as the exchange have made the island State a popular place for fintech business registration and crypto company activities.
More detailed info on how to obtain Singapore SVF license will be provided by the SBSB Fintech Lawyers.
What is SVF license required for?
Firstly, to work in the legal field, since all companies providing payment services on the territory of Singapore are subject to obligatory licensing.
According to the Singapore legislation, payment services are:
- billing and service provision for payment accounts (including digital and mobile wallets);
- remittances inside and outside the country;
- digital money emission;
- digital payment tokens: purchase and sale, as well as the provision of the platform for their exchange;
- merchant service provision;
- currency exchange.
Benefits of the Singapore SVF license
Potential SVF licensees are attracted by the fact that there is no severe requirement and currency control in Singapore legislation. Required equity capital depends on the class of license (100 000 SGD for Standard and 250 000 SGD for Major). Meanwhile, you get more possibilities for fintech business compared to the Hong Kong payment license functionality.
All funds obtained by a Singapore payment institution are subject to taxation. Taxation rate sums established for incomes obtained inside the country are flexible. Various tax benefits are also applied.
Who and how can obtain Singapore SVF license?
The company should be officially registered in Singapore (registration with a physical office on the territory of the jurisdiction). Strict requirements are placed on the residence: the board and owners should be residents or have a residence permit in Singapore, and shareholders can be foreigners. There is an obligation to appoint an AML officer. An audit is to be conducted annually.
How to obtain Singapore SVF license?
Our company provides turnkey licensing services. If you plan to get an SVF license, we will take up all legal questions (consulting, preparation of documents, support).
The SBSB specialists offer an optimal solution to every client, taking into account individual wishes on the jurisdiction. Contact us, and we will answer all the questions you’re interested in!