If you plan to open your own financial business and provide payment services, you will need an emi licence. This document gives the right to legally work with electronic money, to ensure their release, storage and transfer. But to get such a license, it is important to choose the right jurisdiction. Not only the speed of registration depends on this, but also the further successful work of your company.
Why is the right choice of jurisdiction important?
Each country has its own requirements for obtaining licenses. In some cases, the procedure is complicated and expensive, but it opens up access to vast markets. In other places, the process is simpler, but the possibilities are limited. Here are the main factors to consider:
- The tax burden. Some countries offer favorable tax conditions for financial companies.
- Reputation. A reliable jurisdiction increases the trust of customers and partners.
- The speed of obtaining a license. In some countries, the registration may take several months, in others — years.
- Regulation. Make sure that the laws of the country correspond to your business and protect the interests of the company.
Top jurisdictions for obtaining an EMI license
There are several key places in the global market where obtaining a license will be most beneficial for payment systems.
Lithuania is one of the leaders in the number of EMI licenses issued in Europe. This country has quickly become a financial hub due to its loyal business environment.
Advantages of Lithuania:
- A quick procedure for obtaining a license (up to 6 months).
- Membership in the European Union gives access to all EU countries.
- Simple and transparent regulation.
- Relatively low minimum capital requirements (about 350 thousand euros).
- Lithuania is ideal for those who want to quickly enter the European market with minimal costs.
Estonia has long been famous for its digital initiatives, including the e-Residency program. The country actively supports financial technologies and provides convenient conditions for launching startups.
Advantages of Estonia:
- Convenient digital tools for doing business.
- The opportunity to work all over Europe.
- Ease of taxation and reporting.
- Quick registration of the license.
- Estonia is an excellent choice for companies focused on innovation and process automation.
Despite Brexit, the UK remains one of the most attractive jurisdictions for financial companies. There is reliable regulation and strict control, which increases confidence in licensed companies.
Advantages of the UK:
- High reputation at the international level.
- Ample opportunities to work outside the country.
- A qualified labor market.
- Developed infrastructure for business.
However, it should be borne in mind that the process of obtaining a license in the UK can be difficult and expensive, and capital requirements are high.
What should be considered when choosing a jurisdiction?
Before making a final decision, you need to analyze several factors:
- The market and customers. Where do you plan to work? If your market is located in Europe, choose EU countries.
- The cost. Compare the costs of obtaining a license and further maintenance of the company.
- Regulatory requirements. Make sure you can meet the country’s conditions, including minimum capital and insurance.
- Growth prospects. Consider jurisdictions that offer support to startups and the ability to scale a business.
Obtaining a payment license is an important step for any business in the field of financial technology. Lithuania, Estonia, the United Kingdom and Malta are far from a complete list of jurisdictions, but they are among the most attractive for companies planning international development. It is important to consider your goals and capabilities in order to choose the most suitable country.