For entrepreneurs working in the financial sector, it is extremely important to find new ways to further develop their own business. If you are thinking about the discovery of foreign jurisdictions, then you will need a license for financial activities. Features of obtaining it largely depend on the country where the registration takes place. In any case, we recommend using the help of specialists from the Lawrange Lawyers Association. Each member of our team has a wealth of knowledge, experience and skills in dealing with issues related to the licensing of international financial activities.

 

Contact us in a convenient way (by phone, e-mail or filling out the form on the website for a call back) to get a preliminary consultation. Ultimately, it is the Lawrange Lawyers Association that you will be able to find a reliable assistant in solving many problems, from preparing a package of documents to representing your interests before the Registrar.

 

Which countries can give a license

The license is a permissive document that opens the possibility for legal entities to provide financial services and manage assets in the interests of clients. Licensing in a particular country is carried out by a special state body (Regulator) in accordance with a strict procedure. In Ukraine, for example, this is done by the National Commission for Financial Services. Regardless of the chosen jurisdiction, conducting financial activities without a license is fraught with dangerous consequences for both the business and its owners. The regulator brings violators to administrative or even criminal liability.

 

On the international level, various types of financial licenses are used, the most popular of which are:

 

  • A license to provide investment advisory services is issued in Australia, Belize, Great Britain, Germany, Czech Republic, Cyprus, Latvia, Lithuania, New Zealand, Panama, Czech Republic, Estonia. Such a financial license applies to all types of activities that provide advisory services on deposits, sales, investments (including real estate, securities, etc.).
  • Brokerage license – issued in Australia, Great Britain, Latvia, New Zealand, Georgia, Czech Republic, Seychelles, etc. Anyone who wants to trade financial instruments and securities (including stocks and bonds), as well as various foreign exchange transactions will need to use this permit .
  • Banking license – to obtain it, apply to the Regulators of the UK, Hungary, Germany, Latvia, Cyprus, Malta, New Zealand, Panama, Czech Republic, Belize. Not a single banking institution will be able to function in the territory of the jurisdiction of interest without this document. It does not matter whether your company will provide services through the opening of a traditional bank or an online institution (mobile banking) – in any case, it will be necessary to pass the licensing of financial activities. In turn, banking licenses can be divided into different types depending on the type of services provided – this can be, for example, a license for banking processing or for macro / micro lending, etc.
  • Forex license – it is issued in Australia, Belize, Bulgaria, Great Britain, Vanuatu, Hungary, Hong Kong, Lithuania, etc. It is possible to obtain a forex dealer license – it allows you to conclude margin trading agreements with individuals on your own behalf, on your own platform and at your own expense (obligations are determined by the current exchange rate). You can also obtain a forex broker license, which gives you the rights of an intermediary to perform various transactions on behalf of clients in the forex market.
  • The license for the operation of the payment and processing system is issued by the regulators of Australia, Belize, Great Britain, Hungary, Germany, Cyprus, Latvia, Lithuania, Malta, New Zealand, Panama, Czech Republic. Such a license should be obtained by any financial (but not banking) enterprise working with settlement and merchant accounts, transfer of funds, issue of cards, acquiring of payment instruments. Licensing is also carried out if the company provides the execution of payment transactions through the use of POS terminals.

 

Obtaining financial licenses is a complex and usually lengthy process. Therefore, independently overcoming all stages of licensing often leads to various mistakes and problems with the law. To avoid trouble with the Regulator of the jurisdiction of interest, and in general to facilitate the licensing process, Lawrange professionals can help. With us, you will receive a permit for conducting various types of financial activities in popular jurisdictions that are loyal to international investors.

 

General requirements

Each country puts forward its own list of requirements for Applicants, which is important to consider when registering. However, in general, it is possible to single out a certain list of conditions and regulations common to most countries.

 

What is usually required from beneficiaries, owners, directors, founders

All financial licenses, regardless of country, are issued subject to:

 

  • No criminal record and spotless reputation.
  • The applicant is able to prove the source of his income and capital.
  • All of the above persons of the company have sufficient experience in the financial sector and relevant education.

 

Cancellation of a license

The issued license may be canceled or revoked by the Regulator at any time. The reason for this is usually:

 

  • Conscious submission by the Applicant of false information when applying.
  • Changing the management structure of the company, or registration, activities and services provided, if the legal entity has not reported any of the above to the Regulator.
  • The company’s lack of compliance with licensing requirements.

 

Features of financial activities in other countries

The license for the provision of financial services is valid strictly in the country of issuing, and is not related to the activities of branches, subsidiaries in other countries. If you need to conduct financial activities in another state, then you should also pass the appropriate licensing in it. The exception is situations where the issued license does not prohibit the licensed company from providing a range of services to non-resident clients, but, of course, only in the territory of the country of registration.

 

Obtaining a financial license in the UK

Financial activities in this country are regulated by organizations:

 

  • PRA – part of the Bank of England, controls depository banking institutions, insurance and large investment companies
  • FCA – regulates the activities of investment firms, hedge funds, brokers, financial advisors, etc.
  • Bank of England – Regulator responsible for the banking and financial services sector.
  • PSR – controls the activities of payment systems that provide retail services.

 

The main law governing the activities of any financial institution in the UK is the FSMA.

 

Types of activities subject to licensing

State regulation concerns:

 

  • Acceptance of deposits.
  • Issue of electronic money.
  • Providing payment services such as card issuance or money transactions.
  • Consumer lending.
  • Mortgage lending to consumers, as well as crowdfunding, debt collection on behalf of third parties.
  • Insurance financial activity.
  • Trading in securities.
  • Investment consulting.
  • Organization of investment transactions.
  • Insurance intermediary activity.
  • Formation, operation and liquidation of an enterprise with collective investment (in the UK  it includes various funds).
  • depositary services.

 

There is no special regulatory regime for cryptocurrencies yet. Three categories of cryptoassets fit into the existing regulatory scheme:

 

  • Tokens in the form of securities (regulated in the same way as securities).
  • Electronic money tokens – governed by the EMR regulation.
  • Unregulated tokens.

 

The process of obtaining a license to operate in the UK

Legal entities that are going to conduct financial activities only in the UK will have to obtain permission. To be licensed, you must meet the requirements in Appendix 6 of the FSMA:

 

  • The real presence of the office in the country.
  • Availability of appropriate resources.
  • Detailed business plan.

 

A license to carry out financial activities is issued after filling out and submitting the relevant application. In this case, you need to provide a package of documents consisting of:

 

  • Basic information about the company.
  • Checklist and declaration form.
  • Confirmation of payment of contributions.
  • Information about persons who control the activities of the company or influence it.

 

Obtaining a financial license in Lithuania

Financial institutions in this jurisdiction are controlled by the Bank of Lithuania. The type of license is determined by the specifics of the company’s activities and the amount of planned investments. The amount of the state fee also depends on the type of license. For example, for an unlimited license, an electronic money institution needs to pay 1,463 euros to the state budget of Lithuania, for a limited activity – 1,235 euros. In this case, the permit document remains valid indefinitely.

 

Activities requiring licensing

Licensing is subject to enterprises operating in the field of:

 

  • Forex, binary options, securities trading, futures.
  • Investments, custody of securities, management of shares of third parties.
  • Financial transactions, currency exchange.
  • Provision of banking and credit services.

 

The procedure for issuing a license

It is necessary to apply to the Bank of Lithuania with a corresponding application. You should first prepare:

 

  • Register an office in the territory of this jurisdiction.
  • Contribute the authorized capital – depending on the chosen activity, the amount may vary between 125,000 – 350,000 euros.
  • Appoint a Lithuanian resident director.
  • Applicant must be in good standing
  • Collect all the necessary documents – copies of passports, an extract from the police CV for top management, the applicant will also need to prepare a power of attorney for registration, a bank statement to confirm the source of funding, a tax return for the past 3-5 years. You also need all the basic business documents, from a business plan to a description of the procedures for making transactions.

 

Obtaining a financial license in Canada

The Canadian government sets relatively low requirements for obtaining an appropriate permit – this is one of the main reasons why many entrepreneurs are interested in licensing financial activities in this jurisdiction.

 

Who should be licensed

Licensing is subject to enterprises that are engaged in:

 

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  • currency exchange;
  • money transfers;
  • operations with travelers checks;
  • provision of check cashing services;
  • virtual currency transactions
  • ATM service;
  • provision of crypto services (exchange of crypto, including for fiat and vice versa, transfer of electronic coins at the request of the client, etc.)

 

How Licensing Works

To obtain a license, the Applicant must interact with the local state Regulator FINTRAC – the financial intelligence agency that reviews the documents. Before applying, a number of requirements must be met, including registering a company with a local physical office address, depositing share capital, and hiring management with sufficient experience in management and the financial sector. Along with the application, FINTRAC should also submit a business plan, financial plan, documents for persons included in the structure of the enterprise.

 

What you need to know about licensing in Hong Kong

Regulation of the financial sector in Hong Kong is carried out according to the sectoral principle, that is, a separate Regulator operates for each industry:

 

  • SFC – the securities and futures market, the main supervisory authority for brokerage.
  • The Monetary Authority (HKMA) – the banking sector, also controls the activities of credit institutions.
  • Insurance Administration (IA) – issues licenses to insurance companies, intermediaries.
  • The Reserve Fund Scheme Authority (MPFA) is the government agency responsible for the reserve fund and pension plans.
  • Customs and Excise Department (CED) – regulation of currency exchange, cross-border financial transfers, also controls the work of companies that have received a license to operate money transactions.

 

What activities require licensing

A license to carry out financial activities is required for legal entities planning to engage in:

 

  • Trading in securities.
  • Futures trading.
  • Foreign exchange trading with leverage.
  • Provision of advisory services on securities, futures contracts, corporate finance.
  • Providing automated trading services.
  • Margin financing of securities.
  • Asset management.
  • Providing credit rating services.

 

What does the license process look like?

To obtain permission, each of the Regulators listed above puts forward its own requirements. For example, when applying to the SFC, you need to fill out some license forms, supplements (with a description of the proposed commercial activity, corporate structure), and pay a registration fee. For the HKMA, you need to submit a letter of application indicating the reasons for applying to this body, also attach the applicant’s curriculum vitae, certified copies of annual reports, business plan, etc.

 

Licensing in Singapore

The supervisory authority for the financial sector is the Monetary Authority (MAS), which works in parallel with the Commercial Affairs Department (CAD), the AML investigation department in Singapore.

 

What activities are covered by the license?

Obtaining a license for financial services in Singapore is necessary for owners of:

 

  • Banking business.
  • Companies dealing with capital markets products.
  • A business based on the provision of financial advisory services.
  • Fund management companies.
  • Insurance, insurance-brokerage business.
  • Companies that issue credit and payment cards.
  • Payment service companies.
  • Legal entities operating in the field of custodial services, etc.

 

Features of the licensing process

The requirements differ depending on the type of activity. Common to all areas is the main stage – to submit an application to the Regulator and confirm that there is full compliance with all the requirements put forward. In particular, the capital markets and financial advisory services sector implies the need to open a physical office of the company. This will require the appointment of a resident director. Also, financial institutions must have a minimum capital and meet the requirements of professional suitability.

 

Obtaining a financial license in Cyprus

Financial companies are monitored here by the Cyprus Commission Securities and Exchange Commission (CySEC), and the direct issuance of licenses by the Central Bank. Information about each financial institution is entered into the Unified State Register. For licensing, you will need to prepare in the following areas:

 

  • Starting capital (the amount depends on the type of activity).
  • Registration of an office in Cyprus.
  • Local management.
  • Hire management with the appropriate education, as well as a legal adviser.

 

The licensing process takes 4-6 months, but it is possible to speed it up by 1-2 months for an additional fee.

 

Czech financial license

It is issued by the national bank for an indefinite period, without the need to pay an annual state duty for renewal. Allows you to do business with fiat and electronic money. Before applying, companies must meet a number of requirements:

 

  • Register a local office (physical).
  • Pay the amount of the authorized capital.
  • Hire competent people for managerial positions.
  • Prove technical, organizational and other prerequisites.
  • Provide a business plan with a financial plan for 1 or 3 years (depending on the type of activity of the enterprise).
  • Prepare owner and management documents.
  • Develop internal AML/Compliance procedures.

 

For more information, please contact us in a convenient way.

 

Obtaining a financial license in the UAE

A promising jurisdiction for conducting any financial activity. Supervisory function here is performed by 4 state bodies:

 

  • Central Bank.
  • SCA.
  • DFSA.
  • FSRA.

 

Each of these organizations regulates different activities:

 

  • Acceptance of deposits.
  • Lending.
  • Financing of all kinds.
  • Services of monetary intermediation.
  • Virtual banking.
  • Storage of valuables, digital money, retail payments.
  • Implementation of payment services, etc.

 

Licensing procedure

In the UAE, the requirements depend on which government agency the Applicant applies to. However, there are general factors that are taken into account when licensing:

 

  • Structural features of the company and corporate governance.
  • The degree of financial security of top management.
  • Professional suitability of the business owner and management.
  • Impeccable reputation and experience.

 

In this case, the process of obtaining a license occurs in stages:

 

  • Submission of a letter of application describing your intentions.
  • Providing a business plan.
  • Submission of Additional DFSA Application Forms and Related Documents.

 

It usually takes 4 to 6 months to process an application.

 

Features of licensing in the EU

The need to obtain a financial license relates primarily to:

 

  • Banking.
  • Insurance.
  • Providing payment services.
  • Crypto currency activity.
  • Fintech institutions, etc.

 

Depending on the country, the requirements and package of documents may differ. Documents required for licensing common to all EU countries include:

 

  • Copies of passports, previously certified by a notary.
  • A document confirming the place of residence of the founders.
  • A letter from the bank with an account statement.
  • Certificates confirming the absence of a criminal record.
  • Memorandum of association.
  • Description of the planned activity.
  • Business plan, etc.

 

Important! In most European jurisdictions, it is mandatory to have a local registered office. The applicant must also indicate which payment platform he plans to use (the choice is made in accordance with the directives of payment systems and data protection requirements).

 

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The licensing process takes place through:

 

  • Company registration.
  • Preparation of a package of documents.
  • Applying.
  • Consideration by the Regulator of all submitted documents.

 

The decision is made depending on the EU country 6-12 months after the application is submitted.

 

Obtaining a financial license in offshore jurisdictions

Licensing in such countries is usually cheaper and faster. Main types of financial licenses:

 

  • Forex and securities trading (broker) – issued in Belize, British Virgin Islands, Cayman Islands, Malta, etc. With its help, it will be possible to gain access to the world’s largest interbank currency exchange market.
  • For gambling – suitable for a steadily growing business. Issued in Costa Rica, Curacao, Gibraltar, Malta.
  • For cryptocurrency and ICO – Bermuda, Gibraltar jurisdiction.
  • Investment Fund – Cayman Islands, Switzerland.
  • For banking – they often prefer to obtain a financial license in the Bahamas, Belize, Labuan.

 

Of course, each offshore jurisdiction puts forward its own requirements for applicants for a license, but in any case, for these purposes it is necessary to prepare:

 

  • Copies of passports of the founders, top management.
  • Documents confirming the experience of managers and professional suitability.
  • Business plan.
  • Evidence of having a registered office in the chosen jurisdiction.
  • Confirmation of payment of registration fees.

 

What are the costs involved in the process of obtaining a license

Profiting from financial activities abroad, of course, is preceded by certain costs. The amount of expenses for licensing depends on the country, which the client should choose based on the needs of the business and its own preferences.

 

The main financial costs are usually associated with:

 

  • Contribution of authorized capital.
  • Payment of guarantee, insurance fees.
  • Payment of state fees when submitting an application to the Regulator.
  • Annual license fees.

 

In addition, when contacting the specialized Lawrange Lawyers Association, it is necessary to pay for legal services.

 

Why Choose Lawrange

Our team of experienced professionals is ready to provide professional assistance in obtaining a financial license in the jurisdiction of interest. Cooperation with us has a number of advantages:

 

  • Efficiency – we take on the solution of the task without delay, working in the future exclusively for the result.
  • Professionalism – we have a deep knowledge of international law and many years of experience in solving licensing issues in various countries.
  • Honesty – we practice a loyal pricing policy, while the prices for the services provided are negotiated at the stage of concluding a contract. We are always in touch, and keep up to date with all the developments in your case.

 

Our company has been licensing companies in various jurisdictions for several years in a row. We are ready to offer full support at all stages of obtaining a financial license.

 

FAQ

What types of financial activities are subject to licensing?

It is necessary to obtain a license in case of providing various financial services, which are represented by transfer of funds, leasing, lending, issuing payment cards, as well as everything associated with banking, Forex trading, etc.

 

What can lead to the revocation of a financial license?

Regardless of the chosen jurisdiction, the reasons for the revocation are the same: providing false information to the Regulator, keeping silent about changes in the company’s structure and the company’s non-compliance with licensing requirements.

 

How long does it take to obtain a financial license?

The duration of licensing differs in each country, but on average it takes 6-12 months in EU countries and about 3 months in offshore jurisdictions.

 

 

 

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