Those who are willing to launch a digital bank or payment business abroad can go one of two ways: to form a company from scratch and undergo the appropriate licensing, or buy a ready-to-operate legal entity with an API license. In any case, it is important to be guided not only by personal motives, but also by the available budget and time frames.

 

Registration of a company with a license is not always quick and cheap, as it may seem. Preparation of all necessary documents takes only a small part of the costs, and the actual receipt of the license sometimes reaches 8-12 months and more. At the same time, the main costs are related to:

 

  • Paying for the initial capital, software, preparation of the team and documentation.
  • Gathering proof of solvency, preparing additional funds to cover upcoming cash gaps during the first two years of operation (depends on the Regulator).
  • Fulfilling the plan submitted to the Regulator of the jurisdiction where the license is obtained.
  • Payment of the application for license, authorization in the jurisdiction.
  • Certification of documents, including translation may be required, etc.

 

In recent years, there has been an active tightening and increase in the requirements for licensing. This leads to a prolongation of the process and increased costs, in connection with which the purchase of a ready-made company with an API license is gaining popularity. A ready-to-go licensed payment institution can be ideal for a variety of financial service providers, including small startups and online traders.

 

An API license is considered the most popular in the world for providing payment solutions for online stores. You have the opportunity to take advantage of it without waiting for a long time, all you have to do is buy a licensed and fully ready-to-launch company from the Lawrange Attorney’s Association. We offer companies with API licenses in many popular jurisdictions, which greatly expands business opportunities for further growth.

 

More about API license

API is an abbreviation of the English name Authorized Payment Institution. Obtaining such a license allows an authorized legal entity to engage in the provision of payment services:

 

  • On depositing cash in a payment account.
  • Necessary for the management of the payment account.
  • Allowing cash withdrawals from the payment account.
  • To perform payment transactions (without a line of credit).
  • To issue and/or acquire payment instruments.
  • For money transfers, including worldwide transfers.
  • To initiate payments (PSD2 implementation).
  • On the provision of account information, etc.

 

Ready-made companies with API licenses can provide their services either in the jurisdiction in which they are registered, or simultaneously at the place of registration and in other countries (depending on the Regulator’s policy).

 

Important! One of the main differences between API and another popular EMI license is the lack of the ability to issue its own electronic currency. What is common for authorized payment institutions and e-money issuers is the ability to open payment accounts (so-called e-wallets).

 

Business benefits of an API license: what it brings to a company

From a technical point of view, an API license is an authorization document for processing electronic payments. The availability of this license allows its owner to get access to the software interface, control cabinet and other important nodes of the whole software complex (a set of classes, functions, procedures, requests, responses), providing the ability to process various Internet payments. Registered payment service owns the documents of the PCI DSS certificate, the presence of which is mandatory for various foreign payment systems, including Visa and Mastercard.

 

Ready companies with a payment API license are able to make payments by applying various means and process transactions of different types. Due to functional flexibility, the program interface provided by API allows it to connect to any external system – this is the key to expanding the potential of trading platforms, companies providing payment services on the Internet. In addition, having an API license helps to establish contacts with third-party developers for the development of functionality.Also, with such a license, the business gets access to additional functions:

 

  • Importing, synchronizing transactions.
  • Receive notification messages.
  • Protection from fraudsters through the use of specialized security tools.

 

An important advantage of an API license for a business registered in the European Economic Area (EEA) is the ability to operate in any other EEA state. There is no need to obtain additional authorization in each jurisdiction. This is especially valuable for multinational companies due to the exemption from various bureaucratic delays, which, among other things, contributes to reducing costs for the business.

 

Advantages of buying a ready-made company with an API license

The first and obvious advantage of buying a ready-made company is saving time. You will be able to avoid waiting for certain documents, including the Regulator’s confirmation. Depending on the type of company and the peculiarities of the jurisdiction, it may take 1-1.5 months less to re-register the company than when opening a company from scratch. In some cases, the process is even faster.

 

Other advantages:

 

  • The ability to quickly start doing business or signing contracts with clients due to the immediate opening of an account with a banking institution. The company can start providing payment services more quickly, which allows it to generate real income more quickly (compared to setting up a company from scratch). This is also facilitated by the presence of an already established client base.
  • The purchase of ready-made companies with API license can be done through the registration of a general power of attorney, providing for the possibility of preserving the original structure of the legal entity. It is also possible to fully reissue to a new owner, who becomes the title holder of shares.
  • Saving money – the process of re-registration of a ready-made company is often cheaper than opening a new company from scratch, because it is not necessary to pay, for example, an application for a license and some other state fees. In addition, when buying a company in an offshore jurisdiction, as a rule, there are no high tax rates and a number of benefits.

 

In general, starting a business from scratch is always more expensive and complicated, especially when it comes to obtaining an API license. By purchasing a ready-made company, you will save significantly on legal services – the costs of preparing documents for an authorized payment institution license can range from 75-150,000 euros, depending on the jurisdiction.

 

Possibilities of a ready-made company with an API license

Buying a fully ready-to-operate company gives you a window of significant opportunities to develop your own business. In addition to rapid market entry, the new owner will have at his disposal all sorts of payment methods, integration with financial platforms and much more.

 

Variety of payment methods and technologies

API license opens access to modern technologies, tools and services, which help to ensure safe and efficient payments between different parties. This set of solutions can be represented not only by cash transfers, but also by more complex electronic payment systems that are capable of processing multiple transactions in real time. In particular, a ready-made company with a full API license can deal with:

 

  • Issuing payment cards and servicing them.
  • Creating and maintaining e-wallets.
  • Processing payments for merchants from customers.
  • Issuing payment instruments or acquiring payment transactions.
  • Money transfers.
  • Providing payment initiation services, etc.

 

Integration with financial platforms and systems

An API license allows a payment institution to provide better and more diverse services that will meet the growing needs of customers. The wide range of capabilities makes a licensed payment institution as focused as possible on realizing the needs of different businesses. Tight integration with financial platforms will allow your company to become as customer-centric as possible and present a competitive product with a variety of payment channels.

 

Global coverage of customers and markets

A licensed fintech company is able to attract corporate clients from European and even global markets. Access to bulk transfers, other financial instruments facilitates automation of regular payments to counterparties and employees. Working with international payments and transfers within one country will be as convenient as possible, while the rate of attracting clients will steadily increase.

 

Best jurisdictions for buying ready-made companies with API license

Regulators in different countries pay close attention to controlling the activities of payment institutions. That said, some jurisdictions may offer a more comfortable business environment, making them the best place to buy an API license company. In addition, each country dictates its own business rules, and if they are violated, you could face serious consequences. When choosing a jurisdiction to buy a company with an API license, you should not only focus on the benefits that will be available to you, but also on the restrictions imposed. The level of reputation of the country is also a strong argument for many buyers, which can have a significant impact on the development of your business.

 

Europe

Licensed firms providing financial services in a jurisdiction within the European Economic Area can operate as a payment service provider in the rest of the EEA without requiring additional permits. The EEA states are:

 

  • Austria.
  • Belgium.
  • Bulgaria.
  • Croatia.
  • Cyprus.
  • Czech Republic.
  • Denmark.
  • Estonia.
  • France.
  • Germany.
  • Italy.
  • Latvia, etc.

 

The tax regime, which is important to consider when choosing a country, differs significantly in each of the European countries. In our company you will be advised which jurisdiction will be the most suitable for the purchase of a ready-to-operate licensed company.

 

Lithuania

  • There are no requirements for the top management to reside in this country.
  • It is possible to submit documents in English for re-registration. In addition, the documentation can be amended during the review process, which eliminates the need for bilateral correspondence with the Regulator.
  • Possibility to receive own codes for generation of individual client IBAN accounts as in a bank.
  • Access to the single payment system of Europe – SEPA.
  • European law PSD2 is implemented in the country, thanks to which PIS payment initiation and AIS account information services can be provided.
  • Possibility to obtain a visa for non-residents of Lithuania who manage innovative companies.

 

England

  • The fifth largest economy in the world.
  • Relatively low corporation tax.
  • Low business maintenance costs.
  • Tax incentives with savings of up to 230% on research and development.
  • Gaining the opportunity to attract highly qualified employees in the marketplace.
  • Stable growth and investment in the financial technology sector.
  • Recognized strong reputation in the financial sector.

 

Asia

Singapore and Hong Kong – the so-called economic midships – are the brightest representatives of this region. They are known for their loyal tax policy and minimum bureaucratic delays both when registering a new company and licensing, and in case of buying a ready-made enterprise. The formal corporate tax rate of 17.5% in practice turns out to be much lower due to a huge list of all kinds of benefits. Acquisition of a company in these trade and financial centers of Asia opens access to the Asian and world markets. Depending on the specific jurisdiction of this region, the company may be exempt from any restrictions on the repatriation of profits, including the amount of permissible investments.

 

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Offshore

Buying ready-made companies with API license offshore is usually much easier and faster than in other countries. Offshore jurisdictions attract investors:

 

  • lack of income tax and ample opportunities for capital gains;
  • stable economy and finances, benefits for foreign investors;
  • low costs of buying a ready-made company, etc.

 

In the  Lawrange will always be able to offer various options of companies with a license of payment institution, with and without a bank account. You can buy the company that will best meet your requirements and budget, and our specialists will quickly manage to make the necessary changes to the registers and statutory documents, notify the bank and the Regulator. We will also execute the sale and purchase transaction in compliance with all rules and regulations of the legislation of the jurisdiction of interest.

 

How companies with API license are re-registered

For this process it is also necessary to prepare a package of certain documents, which may differ depending on the jurisdiction. In some countries, a notarized sale and purchase procedure with the mandatory participation of each party is practiced. In other states it is possible to remotely re-register during the purchase.

 

The buyer assumes control of the enterprise only after the Regulator issues the appropriate authorization. In order for this to happen, it is necessary to notify the regulator about the composition of the top management, especially if changes are planned. Thus, along with the application for change of ownership, a request for approval of the new directors must be submitted. Also in the process of re-registration, the business model, programs of activities and other components of the acquired company may be subject to amendments.

 

Why you should turn to Lawrange

The Lawrange Attorney’s Association has extensive experience in the field of registration of payment organizations in various jurisdictions. Our team of highly qualified specialists provides high-quality legal, financial and registration services. If necessary, we can order further support of your payment company.

 

Cooperation with us means:

 

  • The opportunity to get advice – contact us for more detailed information on the issue of concern.
  • Exemption from paperwork – we will draw up a contract of sale and purchase, help to collect all the necessary documents.
  • Transparency – the total purchase price of the company includes various services, the prices for which are necessarily pre-negotiated.
  • Confidentiality guarantees – even the slightest risk of access of third parties to the personal data of our clients is excluded.

 

The regulatory environment is constantly evolving, with new guidelines and requirements being introduced on a regular basis. We are experts in the registration and sale of legal entities abroad, and therefore keep track of all changes in the legislation of various jurisdictions. Our team provides timely advisory services to every client. We are ready to keep you informed of any regulatory changes, interpret their impact on your business and offer strategic advice to ensure ongoing compliance.

 

Conclusions

There are many advantages to buying a company with an API license. Most often, this service attracts you with the opportunity to quickly start exploring the foreign market, as well as by saving personal funds (there is no need to pay for the license application and other documents). With our help you can become the owner of an authorized payment institution in various European and offshore jurisdictions. We offer to buy a ready-made licensed company on transparent terms with a full set of accompanying services.

 

FAQ

What are the main requirements for the buyer of a company with an API license?

A common requirement, typical for all jurisdictions, is that the director and other top management representatives have a good reputation and relevant qualifications, experience in the financial sector.

 

Which business areas can make the most effective use of the API license?

Any entrepreneur, startup or existing player wishing to do business in the EU finance and payments sector can make the most of the API license. If you plan to engage in payment initiation, foreign money transfers, direct debit and other services, then a company with a ready-made API license will prove to be a worthwhile investment.

 

What security standards should be followed when dealing with an API payment license?

Part of the relatively new EU regulations is the need to implement strong customer authentication, which is designed to provide assurance that the user is indeed who they say they are. These requirements are specified in Part 2 of the Payment Services Directive, also known as PSD2. Compliance with AML/KYC principles to prevent fraud and money laundering is also standard.

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