Starting a Fintech Company in Estonia
If you are interested in starting a fintech company in Estonia, it is important to know that the Estonian Financial Supervision Authority issues licenses to companies registered in Estonia and operating in Estonia. Here are the requirements and steps you need to take to obtain an EMI (Electronic Money Institution) license in Estonia.
Requirements for EMI License in Estonia
Minimum Capital Requirement
The first requirement is that the company shares must have a minimum capital of 350,000 EUR.
Application Process
The application for the EMI license must be submitted to the Financial Supervision Authority, along with all required documentation. The additional documents that must be submitted are those required by the Estonian Payment Institutions and E-money Institutions Act (MERAS).
Shareholder Information
All information on the persons holding qualified holdings in the company required by PIEIA, including information on all the managers, description of their responsibilities, and proof of their qualification and trustworthiness, must be provided.
Application Fee
An application fee of 1000 EUR must be paid for the EMI license.
Documentation Requirements
The following documents must be submitted as part of the application process:
- Memorandum of Association or decision
- Document confirming the availability of the paid authorized capital (if necessary)
- List of shareholders (with definitions of shares)
- Information on shareholders holding the holding (if any)
- Information on members of the board of directors and management of the company (with features)
- Information about companies in which the participation of the applicant or his manager exceeds 20% (with features)
- Information on the auditor of the applicant and the person(s) performing internal control (with peculiarities)
- Financial information (balance sheet, profit and loss statement, annual reports)
- Documents confirming the amount of net equity with the auditor’s report
- If the qualifying holding belongs to the foreign subject to financial supervision, a certificate issued by the supervisory authority of the relevant state that proves that the foreign company has a valid operating license and, in accordance with the knowledge of the supervisory authority, its activities are not inconsistent with the current legislation
- Business plan for three years
- Information about IT-systems and equipment
- PCI DSS compliance if necessary
- Description of the organizational structure
- Policies or procedures of the company
- AML rules
- Rules for the preservation of customer funds that were received when issuing electronic money (if relevant)
- Other internal rules that are relevant to all regulated entities or specific services
- The document under which the applicant undertakes to pay a single contribution provided for in the Guarantee Fund Act (only for the relevant investment company)
Timeline for Obtaining EMI License in Estonia
The time it takes for the final obtaining of the EMI license in Estonia usually takes around a year, with 5-6 months for preparations and 5-6 months for application review.
Take Advantage of Estonia’s Fast-Growing Fintech Sector
By following these requirements and steps, you can start your fintech company in Estonia today and take advantage of this fast-growing sector.
Contact Valcorp lawyers in Estonia to license your EMI patent in Estonia by contacting us in email: info@valcorp.eu or via call +372 55658650