Financial Licenses

EMI license in Spain: unlocking the European market for your business

5/18/2023 8:00:00 AM
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If you’re wondering what is an EMI license, you’ve come to the right place. An electronic money license is a unique financial permit that allows the holder to provide financial services in the European Union. It is a relatively straightforward license to obtain compared to others yet provides a wide range of services.

These services include payment processing, payment initiation, digital wallets, currency exchange, and issuing of electronic money. To acquire an e-money license, an institution must follow the European Union’s regulatory framework and meet certain criteria which are established by all countries within the union. Through this in-depth process, EMIs can offer innovative payment services, bringing more competition to the financial sector and convenience to customers.

The power of an EMI license in Europe is staggering: it can help you run a profitable business in the old continent and enjoy a large, consolidated market.

If you want to take advantage of the opportunities and unlock the potential of your business, read this piece that we’ve prepared presenting the EMI license in Spain.

Benefits of an EMI (electronic money institution)

An EMI license in Europe can offer businesses many advantages, from boosting customer loyalty to attracting more investors. With an electronic money institution license, enterprises can take advantage of its power for their customers.

It offers them a safer and more reliable way to pay, as well as increased transparency and more secure digital transactions. The convenience and flexibility of an e-money license make it ideal for businesses aiming to expand their presence in Europe and beyond.

Manage electronic money in Spain with an e-money license 

In Spain, you’ll find the same regulations as in the rest of the EU. Even though many people don’t see Europe as a great business environment, especially for its high taxation, we can’t deny that it compensates with a solid regulating framework and a unified market. Moreover, this type of venture offers an opportunity to run a business in the EU while taking advantage of the new tendencies as e-money and electronic transactions are the order of the day. The official name for the EMI license in Spain is “authorized electronic money institution”. With such a permit you can do the following:

  • You will be able to open an unlimited amount of IBAN accounts for your clients
  • Issue electronic money in Spain, distribute it and redeem it 
  • Money remittance
  • Issue a payment card for your clients
  • Fund investment options
  • Possibility to offer merchant acquiring services

The requirements to get and hold this license are not complicated, but they should be taken into consideration. Also, if you want to get an EMI license in Europe, or any other place in the world, make sure you consult with experts and hire the right people. 

One of the first things that the local bank will ask for is proof that your company is reliable. In other words, make sure that the company operating the e-money license has proper management and plenty of resources. When presenting a business plan, make sure it encompasses at least 3 to 5 years in the future. 

A great advantage of this license is that it’s possible to find help. The right provider will outsource functionality when it comes to, for example, technological needs. Also, you can work with a foreign parent company. It’s also possible to hire two local directors who will be the CEO and MLRO of the business holding the electronic money license. You must set up an office in the capital city, Madrid, and open a secure bank account. 

How to get an EMI license in Spain 

The process can be simplified with the help of the right experts. For starters, you’ll need to be aware of the following: 

  • Initial capital: 2% of the outstanding electronic money or €350,000. You’ll have to deposit the larger sum of these two options. 
  • Limit for monthly transactions: no limit.
  • Where can you operate with your EMI (electronic money institution): Spain and all the EEA countries (this characteristic is called “passporting”).

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How much time does it take to acquire an EMI license in Spain

Here there are two possibilities: your EMI license approval can take from 3 to 12 months. Whichever it will be depends on how fast you can provide the complete application. If you make sure that all your documents meet the authority’s requirements and that the application is filled properly, you can have your electronic money license approved in only three months, if not, the process can take even up to one year. 

The time starts counting once the Bank of Spain assigns your case and your company team will have to be present at an interview in Madrid. You can have the application ready between four and eight weeks and, if you hire a good provider, they will take care of all the correspondence between you and the said bank. 

How to get an EMI license: the process 

  • Step 1: your experts will prepare all the documents which you will have to supervise.
  • Step 2: incorporate your company and open your local bank account. This includes settling all the corporate matters such as choosing a director, establishing an office, and whatever it's required in your case.
  • Step 3: apply for your EMI license in Spain. 
  • Step 4: your provider will be in charge of following up and making sure that all documents are correct and duly revised. 

What do you get when you apply for an EMI (electronic money institution)

Our providers help you with the following:

  • Preparing the AML policy 
  • Three-year-long business plan
  • Arrangements regarding governance
  • Development of risk and safeguarding policy
  • Preparing a financial forecast
  • Organizing the company's structure for you to work with electronic money in Spain safely
  • Outsourcing and IT
  • Agreements with clients
  • Application forms for clients
  • Evaluation forms for the compliance department
  • Practical AML model
  • Assistance in filling out the bank's forms
  • Preparation of the main application
  • Revision of the directors’ resume
  • Assistance with preparing proof of funds
  • Workshop that explains how to avoid common mistakes and what are the best practices 
  • Help in opening a safeguarding account
  • Establishing an office in Madrid
  • Training directors
  • Assistance when it comes to reports and accounting
  • Assistance when it comes to choosing the proper software
  • Assistance in the communication between the regulator and the client until the e-money license is obtained

Finally, keep in mind that the cost adds up to €100,000 plus the initial capital which, as we explained above, can be a maximum of €350,000. If you pay through a UK entity, you have to add 21% because VAT is applicable. 

Get your EMI license in Europe

An Electronic money institution (EMI) license, issued by the appropriate financial regulator, allows a company to provide electronic money services. It is a key legal requirement for firms that issue payments, store and transfer digital funds, and process transactions. Moreover, the EU, Spain, in this case, offers a strong regulatory framework and enjoys a solid reputation with “passporting” rights across the EEA. Contact us for more information on what is an EMI license and how to get it. 

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Disclaimer:  The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.

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