The fintech industry continues to grow rapidly. What was considered something unthinkable and fantastic in the financial sector yesterday is already a real product today. The traditional banking system has to compete with numerous services that offer customers a wider range of opportunities. Thanks to online technology, modern businesses have access to the transfer and receipt of funds anywhere in the world. But all this becomes possible only if a special license is obtained. API, PI, PSP – depending on the type of activity, each entrepreneur can choose exactly the license that will comply with the services provided and the current legislation of a particular state.

 

Attorneys Association Lawrange offers professional assistance in overcoming all stages of licensing your payment company. Our experienced specialists will help you choose the right jurisdiction, collect a package of necessary documentation. We provide full support on registration of a payment system or an electronic money institution. Turning to us, you can count on detailed consultations and a strictly individual approach to solving your issue.

 

Getting an API license in Ireland

One of the leaders in the fintech industry is the Republic of Ireland – a country with a rich history and unparalleled natural beauty, as well as a world-class financial sector. This jurisdiction is increasingly preferred by those wishing to develop and implement financial innovations, as it has an attractive tax regime and government assistance for start-ups. E-money issuers and payment companies in Ireland can pay corporate income tax at a fairly low rate of 12.5%. They are subject to a number of comprehensive measures to avoid double taxation, as well as numerous tax incentives allocated for research and development.

 

Features of Obtaining an API License

This type of license allows you to conduct business in the field of payment services. The regulator in Ireland is the Central Bank (CBI). The licensing process in this country, as in other European jurisdictions, is carried out within the framework of EU regulations. The very process of obtaining a license is typical, that is, it takes place according to one common scheme for all states:

 

  • An application for an API license is submitted to the Regulator, who must confirm the fact of its acceptance.
  • The stage of verification of basic data is being implemented – the Applicant is informed about the absence of this or that information. If this happens, then consideration of the application is temporarily suspended.
  • Evaluation of the application – if all the information is available, the regulatory body finds out how it meets the requirements put forward. There may be up to 36 months for initial comments from the regulator.
  • The applicant is informed that they are ready to issue a license (if the Regulator is satisfied with everything).
  • An API license is issued directly, subject to the Applicant’s consent to the licensing terms.

 

How to Apply to the CBI

Initially, the Applicant, or his representatives, needs to meet with the staff of the regulatory body in order to clarify all the main points regarding the planned activities. It also discusses how ready the Applicant is to financially ensure the legal functioning of the future company in Ireland. After that, the relevant application is submitted directly, which must be supplemented, among other things:

 

  • Constituent documentation and the charter of the company (copies are provided).
  • Detailed business plan for 36 months. It, among other things, should present forecasts for the financial component of the business.
  • A program document according to which financial transactions will be carried out.
  • Characteristics of management, monitoring methods, including those aimed at maintaining the security of operations and clients’ assets.
  • Questionnaire data about the directors and key persons of the company.
  • Markup of the internal organization of the future enterprise.

 

Important! Anyone who seeks to cooperate with third-party developers, freely import and synchronize transactions, popularize their company by creating new trading platforms and attracting third-party counterparties needs to obtain an API license.

 

What are the Requirements

Of the main ones, it is worth highlighting the requirements for personnel. When setting up a payment system or an electronic money issuer, it is necessary to hire local employees who will work full time. Also, the board must have at least 2 executive directors who perform their duties directly in Ireland. They will have to do:

 

  • financial control;
  • legal matters;
  • compliance with regulatory requirements;
  • risk management, etc.

 

Also, when licensing, certain requirements for start-up capital are put forward. They are determined by the type of services to be provided by the applicant:

 

  • 20 thousand euros – start-up capital for companies planning to work in the money transfer sector.
  • 50 thousand euros – this amount will need to be paid by everyone who wants to engage in payment transactions that can be confirmed using telecommunications, digital or IT devices.
  • 125 thousand euros – for companies planning to provide several diverse services at once.

 

Having received the necessary license, the business owner will have to constantly maintain capital at a sufficient level. The requirements for it depend on the calculations using special formulas and the volume of services rendered.

 

Potential for Using the API License

An online business cannot function without the need for quality, secure electronic payment processing. An API license allows access to a complex processing center responsible for accepting payments on any website. Moreover, you will have the opportunity to use a variety of payment methods and process various types of transactions. Due to the flexibility of the software interface of the processing center, it will be possible to communicate with any external systems. For business, this is useful by expanding the potential of trading platforms that provide services via the Internet.

 

Other useful API licensing features include:

 

  • Ability to import and synchronize transactions.
  • Stable notification system.
  • Protection from fraudsters thanks to the implemented specialized tools.

 

With an API license, you can collaborate with third-party developers. You will have access to the development of functionality and expansion of the online positioning of your own company on new trading platforms.

 

Obtaining a PI Financial License

Type of licensing (similar to API), which provides an opportunity to engage in the provision of various financial intermediary services. With regard to the Payment Institution, there is no rigid link to the Internet business, but, nevertheless, it is often drawn up when opening various Internet projects. In this case, the registration algorithm is applied, similar to the scheme for obtaining an API license, that is:

 

  • An application is filed to the Regulator.
  • The applicant’s details are being verified.
  • The application is evaluated.
  • If all the requirements are met, the application is approved, and the Applicant is notified about it.

 

The list of opportunities that become open when passing this type of licensing includes, among other things:

 

  • Replenishment of user accounts in other systems.
  • Withdrawal of funds from the accounts of individuals or legal entities.
  • Ensuring a payment transaction between customer accounts.
  • Carrying out transactions while covering the funds used by the client’s credit line.
  • Formation of own payment instruments, or involvement of third parties.

 

Important! Obtaining a PI license is possible only if your company meets all the requirements that the Regulator puts forward. Lawrange specialists will advise you on how to quickly and conveniently open a European payment system in full compliance with the current legislation of the jurisdiction you are interested in.

 

General Rules for Obtaining a License

Within the EU, the rules for passing such licensing may differ, but in general, regardless of the country, they provide for the need for businesses to comply with the regulatory policy of the Regulator regarding:

 

  • Sufficient amount of capital.
  • Effective control over operations.
  • Management of the company through suitable technological systems.
  • Business policy of the enterprise.
  • Proper reporting and notifications, etc.
  • It will be possible to obtain a PI license only if the Regulator deems satisfactory:
  • The services the company intends to provide.
  • Planned security measures designed to effectively protect customer funds.
  • Customer identification process.
  • Measures taken to reduce the risk of money laundering and fraud.

 

What are the Financial Requirements?

To obtain this license, it is necessary to prove to the Regulator that the authorized capital of the future company reaches:

 

  • 20 thousand euros or more – if you plan to deal exclusively with money transfers.
  • 50 thousand euros – refers to companies that plan to carry out transactions with the help of additional confirmations in various ways.
  • 125 thousand euros – if you plan to open a business that provides a full range of payment services.

 

Important! An increase in start-up capital is possible if, after reviewing the business plan, the supervisory authority considers that the initial amount will not be enough to carry out the proposed activities. In particular, this amount will depend on the planned turnover, the number of transactions, the characteristics of the beneficiaries and other factors.

 

Required Documentation Package

Depending on the chosen jurisdiction, the list of documents may differ slightly. But, mainly, the main documentation should be submitted:

 

  • A completed form describing the financial services you plan to provide.
  • Documents confirming the legal status of the company.
  • A document confirming the right to sign (for company representatives).
  • Operating plan.
  • Business plan for 3 years.
  • Documentary evidence of the availability of the required amount for start-up capital.
  • Description of the management scheme and methods of internal control – we are talking, among other things, about administrative systems, risk management systems, etc.
  • Questionnaires of owners and managers of the company.
  • Professional indemnity insurance contract, etc.

 

Self-writing a multi-page company policy, a detailed business plan and preparing other documents requires a huge amount of time. In addition, without the appropriate knowledge, skills and experience, it is almost impossible to do it yourself. Lawrange lawyers and consultants will help you collect a complete package of necessary documentation, which will ensure that your application for a license is processed quickly.

 

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Obtaining a PSP License in Belize: What You Need to Know

Increasingly, payment systems registered in the US and the EU have to deal with heavy oversight. The need to comply with strict rules forces entrepreneurs to look for other, alternative places with a favorable economic climate. These include Belize, a small state in Central America, on whose territory relatively low requirements for authorized capital are put forward when licensing the payment system.

 

Obtaining a PSP (Payment Service Provider) license in Belize makes doing business easier due to less tax and other burdens. It is possible to obtain such a license in other jurisdictions, but it is here that the local authorities implement a policy to create comfortable conditions for the active development of the financial services sector. Other important benefits of licensing in Belize include:

 

  • sufficiently prompt terms for obtaining a license;
  • a reliable judicial system that provides effective protection of business assets;
  • the opportunity to engage in various types of financial activities.

 

Steps to Obtain a PSP License

  • Registration of a company with a specific memorandum of association (MOA) reflecting its activities.
  • Preparation of an application for licensing with its subsequent sending to the Regulator (International Financial Services Commission – IFSC). In this case, it is necessary to collect a package of accompanying documents.
  • Contacting a local registered official.
  • Getting the registered address on the spot (but it is also allowed to use a virtual office), where applications, correspondence, etc. will be received.
  • The introduction of collateral, the amount of which, depending on the type of activity of the company, can vary between 5,000-100,000 dollars.

 

Once the application has been pre-approved, you will need to pay a license fee.

 

Important! The license is issued within 3-5 months from the date of application to the IFSC. According to the current rules in Belize, it will need to be renewed every year. When considering an application, the Commission pays attention to a number of factors, including solvency, prospects for further business development, etc.

 

Main Requirements

Obtaining a PSP license is only possible if:

 

  • When a company is headed by at least two directors, one of them must have local citizenship.
  • Hiring qualified personnel.
  • Compulsory professional insurance.
  • If the company undertakes to maintain timely financial statements audited by a licensed auditor.
  • Having a physical office in Belize.

 

You should be prepared for the fact that at the stage of considering your application, the commission may require documentary evidence of the level of qualification of the company’s management. The possibility of other questions to the Applicant cannot be ruled out, therefore it is so important to enlist the support of experienced specialists of JSC Lawrange.

 

It is also important that the following conditions are met:

 

  • To ensure internal corporate documents are publicly available to the IFSC.
  • After obtaining a license, do not provide other services to residents of Belize.
  • To get approval for any structural changes in the company.
  • To eliminate the possibility of circulation of the national currency.

 

Shelf Companies with API License

It is essential for modern businesses to use efficient payment processing systems to remain competitive. But, as practice shows, obtaining a license is not an easy task. In this case, everyone can take the opportunity to buy a ready-made company with an API license from Lawrange JSC. This option has several important advantages:

 

  • Accelerates your time to market by saving time on licensing. That is, payment processing and profits start much faster than if you applied for an API license from scratch.
  • Access to an established customer base is one of the hallmarks of such a product.
  • Less costly – In most cases, starting a business from scratch requires more capital investment than if you just bought it. In any case, some legal and regulatory costs will be avoided in this way.

 

Contact Lawrange if you are interested in ready-made companies with an API license. It is possible to purchase an operating business in various jurisdictions from us. Contact us in any of the ways convenient for you to discuss this issue in more detail.

 

Why it is Worth Turning to Lawrange

Many years of experience, deep knowledge in the field of licensing and international law makes the specialists of our lawyer association true professionals in their field. We practice a transparent pricing policy and an exclusively individual approach to solving each task. Lawrange experts are ready to accompany every stage of registration of your company providing payment services. Among the important advantages is also the well-established relations with partners in different countries, which contributes to a significant increase in the efficiency of our work. We will help you quickly prepare and apply for any of the licenses described above. You also have the opportunity to successfully integrate your business into a commercial environment by acquiring a ready-made company that has passed the necessary licensing.

 

FAQ

What is an SPI License?

An SPI license is required for those who are going to provide a limited set of payment services, such as money transfers or account management. The SPI license is for smaller scale operations. The regulatory framework for SPIs is usually less stringent than for fully authorized payment institutions, as they operate on a smaller scale and offer a more limited range of services. However, small payment institutions are still required to register with the relevant national regulatory authority. It is important to note that the specific thresholds and requirements for qualifying as a small payment institution may vary by jurisdiction.

 

What are the Terms for Obtaining API, PI, PSP Licenses?

It is impossible to answer this question unequivocally, since the duration of the licensing process depends on the country and the requirements of the Regulator. But still, in most jurisdictions, this process takes from 3 to 6 months. It should be noted that the terms for obtaining payment licenses are determined by various factors, including the completeness and accuracy of the application, the complexity of the business model. Turning to our company, you can be sure that the licensing stage will be completed as quickly as possible.

 

Do you Need to Live in the Jurisdiction in which you are Going to Get a License to Conduct Payment Activities?

For some countries this is mandatory, for others it is not. For example, in jurisdictions such as the UK and Malta, you need to be present in person, but you do not need to move to the Czech Republic. Everything is determined by your goals and desire to develop your own payment business in a specific environment.

 

 

 

 

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