The ongoing development of the financial sector and various financial instruments present practically unlimited opportunities for entrepreneurs to conduct successful business activities. Quite often, during successful operations within one country, attention turns to the international market. Relocating a business abroad becomes the next step towards expanding partnerships, increasing the customer base, and, consequently, boosting income. Ready companies with an EMI license are one of the fairly common ways to enter the European and international financial markets. The reason for this is the relatively simple purchasing procedure, which, depending on the jurisdiction, allows you to start a business 3-6 weeks earlier than when starting from scratch.

 

The process of entering the international arena involves solving various tasks, including legal, financial, organizational, and others. The main nuance is that the registration of a legal entity and its licensing from scratch does not always happen quickly. Along the way, various difficulties may arise, such as documentation collection or the need for personal presence, which ultimately significantly slows down the registration process. Opening a bank account may also require additional attention and time. For this reason, purchasing an already established company with an EMI license eliminates many complexities. If you are interested in this, we recommend contacting Lawrange, a legal association specializing not only in providing qualified legal assistance for businesses but also in selling ready companies.

 

What is an EMI License, and Why is it Needed

The Electronic Money Institution license (abbreviated as EMI) is a permission to issue electronic money that can be used outside the payment system’s website, as well as withdrawn and converted into any other currency. With this license, a legal entity can use electronic money to serve third-party users’ payments.

 

Other possibilities provided by the EMI license include:

 

  • Linking existing payment bank cards to customer sub-accounts.
  • Issuing cards from major vendors (VISA, MC).
  • Creating a proprietary card payment system.
  • Creating and servicing users’ electronic wallets with withdrawal capabilities.
  • Issuing national IBAN accounts to institution customers (depending on the jurisdiction).
  • Conducting payments (covered by a credit line).
  • Cashing funds in the payment account.
  • Conducting payments using network operators, IT systems, etc.

 

Accounts can be opened remotely for both individuals and legal entities. In general, the EMI license provides all the possibilities envisaged by the Payment Institution. Only a banking license offers a broader range of instruments.

 

Advantages of Purchasing a Ready Company with an EMI License

Since the company has already gone through the entire registration process and obtained the necessary documents, including the EMI license, you can save time for organizing important business processes. Depending on the chosen jurisdiction, you can also expect:

 

  • Favorable taxation – several countries in Europe and the world offer low-tax regimes and tax incentives, provided specific requirements are met. Agreements on double taxation avoidance between countries also facilitate favorable conditions for conducting financial activities abroad.
  • High levels of confidentiality – depending on the chosen jurisdiction, the use of Closed Registries may be possible, or there may be strict confidentiality rules in place.
  • A wide range of tools for remote business management.
  • The ability to register branches in other countries (if registered in an EU jurisdiction) and other development prospects.

 

Purchasing a ready company with an EMI license from Lawrange will be a profitable decision, as our specialists offer a ready-to-operate legal entity in the jurisdiction that interests you and is most suitable for your interests.

 

Quick Business Launch

The sale of ready EMIs also requires the gathering of documents for re-registration. However, this process generally happens more quickly, allowing you to start your business activities sooner. Depending on the chosen jurisdiction, our specialists can typically transfer a ready company with an EMI license to the client’s management within an average of 1 month, starting from the moment the application to sell the company is submitted to the Regulatory Authority. The buyer will need to meet certain requirements and rules that demonstrate financial solvency and the reliability of the new owner.

 

Reduced Costs for Obtaining an EMI License

Financially speaking, purchasing an already licensed company is more advantageous, as it allows you to avoid expenses associated with processing certain documents, paying government fees required when submitting an application to the regulatory authority for the relevant license, and so on. The final cost of the ready company depends on:

 

  • The country of registration.
  • The duration of its existence.
  • The presence or absence of previous activities and accounts.
  • Client base and other factors.

 

To determine the exact cost and obtain additional information, please consult our specialists.

 

Ready Business Structure and Client Base

Aside from avoiding registration issues, you won’t have to build the core part of business processes from scratch. A company ready for sale with an EMI license already has a client base and established relationships with counterparts. If needed, adjustments to the business structure can be made during the transfer process. In other words, you won’t have to renegotiate contracts, reissue licenses, and, consequently, you’ll be able to start operations more quickly. Additionally, having a ready business plan and established relationships with customers and suppliers mitigates the risks typically associated with starting a new business from scratch.

 

Immediate Access to Financial Services and Markets

Having an open bank account and access to financing and loans immediately allows you to start working in the financial sector of the jurisdiction you’re interested in. These and other factors make the purchase of a ready company with an EMI license a highly advantageous and promising solution.

 

Types of Activities Allowed for Companies with EMI Licenses

An Electronic Money Institution (EMI) represents a new stage in the development of financial services. Institutions with such licenses are best known for their electronic money transfers and intermediation in payments, which accounted for approximately $6,752,388 USD of the total value of all digital payments in 2021. This amount is expected to continue growing.

 

EMI is an advanced digital system for providing financial services worldwide. Unlike banks, EMIs are regulated differently. Essentially, an EMI is a legal entity or organization that has obtained a license to use electronic money. This license allows EMIs to offer services similar to traditional Payment Service Providers (PSPs) and issue electronic money.

 

Payment Processing and Acquiring Services

A ready company with a full EMI license can process payments using any digital device or means of communication. Clients receive virtual account details, make payments, and the funds are automatically transferred to a physical bank account. Each client and organization involved in incoming or outgoing transactions gets a unique virtual account number. Funds are not physically transferred between the virtual and bank accounts; instead, a system for managing virtual accounts (VAM) regulates the comprehensive network of accounts.

 

Virtual IBANs enable international transactions as soon as funds are received in the account. When a customer makes a payment, the funds are automatically transferred to an IBAN account with a real bank. The company can allocate a separate virtual account for each supplier or customer. The use of virtual IBAN numbers makes it easier to determine the source of payment, simplifying manual verification.

 

The service of acquiring with an EMI license can be provided to any business, including retail stores and online shops. In commercial acquiring, the seller enters the payment amount, after which the buyer places their card on the terminal. The seller’s website redirects the buyer to a payment gateway where the payment details and purchase amount are received. Then, the required amount is debited from the buyer’s account and credited to the seller’s account.

 

Money Transfer Services

Payment service providers can facilitate money transfers using various digital devices, IT equipment, or other means of communication. The payer agrees to the transaction through these devices, and payments are also made through the operator’s IT system or telecommunication system acting as an intermediary. The regulation and supervision of payment organizations are conducted under almost the same conditions as for banks, with common oversight procedures led by the Central Bank (Regulator). The main objective of control is to ensure compliance with obligations and the use of the payment company’s internal control and management system.

 

Issuance and Redemption of Electronic Money

The ability to issue electronic money is the primary distinction between EMI and PI. Only institutions dealing with electronic money are permitted to issue electronic money. Clients store their funds, converted into electronic money, in a wallet (on their online account) and make payments using it.

 

An operator of an electronic money system with the corresponding EMI license is responsible for ensuring the system’s operation. They define its operating rules in accordance with the agreement with the issuer. The issuer and operator are responsible to the fund holder in case of damage caused by unauthorized access to electronic money, errors or failures in the issuer’s software, or disruptions in the system’s functioning.

 

Redemption refers to the procedure of exchanging previously issued electronic money – they are returned to the issuer at face value. The amount of “regular” money should correspond to the electronic money received (unless commission withdrawal is specified in the agreement).

 

Exchange Services

EMI organizations can provide instant currency exchange services around the clock. Convertible funds are credited to the account (including a bank account) of individuals or legal entities within the time frame specified in the contract. Additionally, depending on the payment institution’s specifics and technical capabilities, funds can be issued in cash. The entire exchange process strictly complies with the regulations and requirements of the jurisdiction’s regulator in which the company is registered.

 

Buying Ready Companies with EMI Licenses: Best Jurisdictions

Requirements, business operation conditions, tax regimes, and other factors can vary significantly depending on the country. For financial organizations planning to provide electronic money issuance and circulation services, selecting a suitable jurisdiction that meets all parameters is crucial for the future success of the business.

 

Important! Our experience and knowledge of the peculiarities of different electronic money regimes in Europe can help you choose the most suitable jurisdiction.

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Europe

Purchasing a ready company with an EMI license in EU countries allows for offering most everyday financial services (except banking). This decision is suitable for anyone looking to expand an existing payment business or start a new one in Europe. Typically, these can be payment service providers (PSP) B2B and/or B2C, without a physical presence, electronic wallets, and other business models.

 

The European electronic money license is currently regulated by the Electronic Money Directive 2009/110/EC (EMD). While this regulatory act does not have mandatory legal force in all European countries, each EU member state must implement it into their national legislation at their discretion. In the case of purchasing a licensed financial services company, you can conduct business detail in European Economic Area countries without the need for additional licenses in each country.

 

Asia

Those interested in buying a ready company with an EMI license should pay attention to this region, with Hong Kong and Singapore being its brightest representatives. Here, there is an attractive tax system and one of the world’s best IT infrastructures. The governments of these Asian jurisdictions give special attention to the development of everything related to e-commerce. In Hong Kong and Singapore, EMI companies can issue Visa and MasterCard cards linked to client partner accounts. They also have the ability to make authorized payments worldwide, including in US dollars, euros, British pounds, etc.

 

Lithuania

A licensed company in Lithuania will be a profitable investment that enhances the growth prospects of your business. With an EMI license, offline/online payments, subaccount openings within a bank account, creation and management of electronic wallets, and more become available here. In addition to all the above, in this jurisdiction, startup owners can take advantage of a special visa regime to obtain residence permits through a simplified procedure.

 

Other advantages:

 

  • Low taxes: Lithuania is among the top ten countries with a competitive tax regime.
  • Ability to provide clients with a personalized IBAN account.
  • Opening payment accounts for individuals and legal entities remotely.
  • Unlimited duration of the EMI license.

 

England

In this prestigious jurisdiction, the best payment processors operate, and the local regulator (FCA) applies a well-thought-out regulatory framework for licensed companies.

 

The main reasons to choose England for purchasing a licensed company:

 

  • An EMI license issued here is recognized worldwide.
  • The government provides comprehensive support to the fintech sector.
  • The ability to hire highly qualified staff.
  • Obtaining an English-language SWIFT code for receiving international payments.
  • The possibility of issuing IBAN accounts in English for clients.

 

Offshore

Ready offshore companies with EMI licenses come with a complete set of corporate documents. Depending on the jurisdiction, purchasing an offshore firm can eliminate the need to pay income tax, which is particularly important for young businesses. This option often also includes protection against double taxation and exemption from financial and accounting reporting.

 

The most popular offshore countries for purchasing a ready company with an EMI license include:

 

  • Belize.
  • Malta.
  • Cyprus.
  • Curaçao.

 

Transferring an EMI Licensed Company

This process can vary depending on the jurisdiction, but as practice shows, it requires fewer document preparations. One option for transferring ownership could be through a notary with the personal participation of all parties involved or remote transfer if permitted by the laws of the country where the company is registered.

 

The buyer will be allowed to take control of the EMI company after receiving approval from the regulator for the change of ownership. To do this, the directors and other top management representatives from the buyer’s side must be officially approved by the regulatory authority. This means that along with the application for a change of ownership, a request for the approval of new directors is submitted.

 

During the transfer process, you will have the opportunity to change the company’s name or its sphere of activity. Additionally, certain other characteristics may be subject to amendment:

 

  • Business model.
  • Financial model.
  • Activity programs.

 

The resubmission of the current activity program occurs simultaneously with the change of ownership application.

 

In the Lawrange Law company, only verified businesses with a documented reputation are offered. Our specialists will prepare a clear purchase/sale agreement with well-defined transaction stages and closing conditions. As a result, the purchase will provide the opportunity to quickly launch your own business abroad and start generating profits.

 

Why you should turn to Lawrange:

We offer a wide selection of jurisdictions where you can buy companies with an EMI license. Our experts will take care of all the tasks related to re-registration, including the ability to go to the location of the operating entity. The result of Lawrange’s activities will be a fully prepared legal entity capable of legally providing services specified in the EMI license.

 

We will help gather all the necessary documents for the purchase and sale agreement. If you have any questions, please call or write – our consultants will provide detailed information and advise on which tax legislation will be most advantageous for your business, enabling you to choose a suitable jurisdiction.

 

FAQ

 What are the benefits of EMI for clients?

  • Easy accessibility – EMI clients highly appreciate the convenience of electronic banking, eliminating the need to visit a physical bank for transactions.
  • Round-the-clock payment services – clients can decide when to access specific financial information and when to carry out transfers or other operations.
  • No credit risk – EMIs do not use clients’ money for lending (unlike banks), so they are secure, encrypted, and protected in their accounts.
  • Lower fees – EMI processes transactions more efficiently and quickly, resulting in cost savings, which positively affects clients’ perception of your company.

 

What factors should be considered when evaluating the cost of a ready-made company with an EMI license?

The cost of a ready-made company is influenced by its place of registration (the more prestigious the jurisdiction, the more expensive the company), as well as the duration of the legal entity’s existence, the presence or absence of previous activities, customer base, and other factors.

 

What is the difference between an Electronic Money Institution (EMI) and a Payment Institution (PI)?

The key difference is that EMI organizations have the right to issue electronic money in addition to other services provided by the PI license. EMIs can also hold clients’ funds for an unlimited period.

 

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