We all know that money rules the world. It gives status, power and a lot of other advantages. Since its appearance, money has evolved from rudimentary coins to modern electronic payment systems. 

E-Money is an element that is gaining ground in today’s businesses and Estonia knows it. Since the fall of communism, this little country has created tons of opportunities for investment and became a technological heavyweight in the EU. 

E-Money Institutions

Estonia has created the E-Money Institutions, known as EMI. These “online banks” have been created to revolutionize traditional banking. Unlike regular banks in Estonia, companies like Transferwise offer their services to investors who are not able to open a bank account in Estonia, mainly because this is the only requirement for start-ups that actually requires being in the country.

With the EMI, that issue is in the past, as it will enable you to execute payment transactions, provide money transfer services or even act as intermediary between the provider and the customer who will buy the goods or service.

How to Get an E-Money Institution License in Estonia

The application for an EMI License is like many other procedures with public administration. But in Estonia, that is a lot easier thanks to the e-residency, which allows you to carry out any procedure from home, even without being in Estonia.

The first step in applying for an EMI License is to register a company in Estonia (you can check all details in the “Corporate Structures” section). The process becomes a lot easier if the applicant has an E-Residency card.

How Much and How Long it Takes to Start an EMI in Estonia 

E-Money Institutions approved by the Estonian government are subject to an initial monetary investment of EUR350,000. This is one of the reasons why you shouldn’t get into this business without a solid business plan.

However, one of its main advantages is that authorized EMIs allows you to operate in the entire Eurozone without any additional requirements.

Regarding the time frame for the approval of the application, the Estonian Financial Supervision and Resolution Authority take from 2 to 6 months after all the required documentation has been submitted to the Estonian authorities.

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Step-by-Step Application for an E-Money License

In order to apply for an EMI license in Estonia, you must submit an application to the EFSA, alongside the extra information required by the law. Registration can be made as a new company or as part of an already existing one. 

The Estonian regulations require that applicants submit these documents and data:

-A copy of the articles of association of the company.

-A notarized copy of the memorandum of the company.

-A document certifying the payment of the share capital.

-An operating plan describing above all the planned payment or e-money services.

-A business plan.

-The applicant’s opening balance sheet and overview of income and expenses.

-A description of how the general requirements for holding client assets and client protection will be applied.

-The internal rules and internal accounting rules of the company.

-Data on the information technology and other technological equipment and systems that will be needed for the services that will be provided.

-Money laundering prevention policy.

-A description of the organizational structure of the company.

-Information concerning the managers of the company.

-Information concerning companies in which the participation of the applicant or his or her manager is more than 20 percent.

-A list of the shareholders or members of the company.

-Data concerning persons with a qualifying holding in the company.

-Personal information of the auditors of the company.

-Certification that values own funds for a business that is already operating, together with the auditor’s report.

-The technical, economic, and legal principles approved by Eesti Pank for the functioning of the payment system.

-Valid Security Policy.

Other Financial Licenses for Business in Estonia

There are other kinds of licenses that you can get as an entrepreneur in Estonia. These licenses are of local jurisdiction, but they actually will help you to boost your business in the country, and we can help you to get them all.

Currency Exchange License

The Estonian administration gives its businessmen the opportunity to offer currency exchange services, both in the country, as around the world. This license is issued by the Estonian Financial Intelligence Unit (FIU) and covers activities for both physical and virtual currency exchange.

The application for this license has a current fee of EUR3,300, and the time frame before receiving an answer from the FIU goes from 60 to 120 days. It could be a complicated process, so here in Mundo, we are more than happy to assist you with everything you could possibly need.

Credit Intermediary License

This is a license issued by the Finantsinspektsioon, which means that it doesn’t have an expiration date. This is very important. The barrier of this license is to facilitate the issue of credit to consumers, and work as an assistant for these consumers before they sign a credit, or during the sign itself. This assistant is able to work for creditors as well.

To apply for this license, you will need to submit some documents and data to the EFSA, and we will help you with that. The fee for applying for this license is EUR1000, and for any additional license, is EUR500. The time frame for the response from the Finantsinspektsioon goes up to 6 months after every needed document has been submitted. 

Credit Extension License 

Known as “Creditor”, these institutions are able to issue and provide credits to private clients, signing agreements, and other tasks. The license for these operators is also issued by the Finantsinspektsioon. It is a pretty interesting license, giving the Estonian support and interest for foreign investment.

This license requires the applicant to submit some documentation to the EFSA. This institution will take up to 6 months to give an answer, and the current fee to apply for the license is EUR1000; just like the Credit Intermediary License.

What Can We Do for You?

Estonia's love for start-up business and its openness towards foreign investment are just some of the green flags that this little country has to offer.

Starting a company in this country is an excellent idea, and here in Mundo, we are ready to advise you in every step of the process of creating of your own Estonian business. Our experts will help you to achieve the following requirements:

-Register a company

-Obtain the Estonian E-Residency

-Create a bank account

-Obtain a license

You can contact us to build the strongest business plan, so your project will not have any problem with receiving approval from the EFSA. 

Create an electronic business in Estonia by contacting us now!

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