Open accounts for you and your customers; transfer funds; earn monthly maintenance fees on each single transfer; issue debit cards via third parties. E-money conversion into bitcoin and other cryptocurrencies also allowed.
Many thanks for your interest in the European Payment Service Provider License (PSP) from the Czech Republic. A fully regulated entity in the heart of Europe, in the Continent's #1 destination for flexible payments.
The benefits in detail
- Applicants can benefit of some of Europe‘s most liberal banking and e-money processing laws, especially by accepting foreign customers. Czech Republic is a full Member of the European Union (EU) and accepted and implemented the MiFID Directive Europe. It is a full OECD Member. All Czech Republic's banks are connected to a Compensation Scheme Access in case they go bankrupt or are in financial trouble.
- All banks in the Czech Republic are SEPA and SWIFT/BIC members and compliance rules are far less restrictive than those in most other European countries; License issuing authority is the National Bank of the Czech Republic; The Czech Republic is attractive for European incorporators and license obtainers; It is easy to reach by train, plane or car because of its location in the center of the European Continent.
- You get Europe-wide access to major banks, other payment providers, credit card companies due to the fact it is a fully regulated member state of the European Union (EU). The Czech Republic benefits from an excellent reputation as a modern financial market place, that allows even to serve overseas & offshore clients.
- There are actually two types of licenses: 1. Small License (SPSP) 2. Full License (PSP) with €125,000 paid-up capital and total set-up fees for €69,000 (plus 21% VAT). For Small e-money licenses currently, no office and staff are required. However, we recommend it and we can assist!
Activities permitted for the Small License:
- Taking and accepting of customer funds (bank transfer / via credit card / via bitcoin) - of individual and corporate customers
- Processing/transferring of money and funds on behalf of third parties
- No maximum number of customers to be accepted / unlimited*
- Issuing of Debit Cards and transfer of funds onto the card accounts and their withdrawals by the card holders
- Merchant and payment account solutions can be offered to third parties•You are free to set up your own fee scheme (account fees, limited, transfer fees and monthly maintenance fees)
- Merchant Account Openings for other payment providers
- Conversion of currencies into Bitcoin, Ripple etc.
*Limitations. The small license is restricted to €3,000,000 monthly in and out transfers (total)
SUPPORT / FEES
The complete package is available up from €34,950. This package contains all lawyers costs; company formation fees (excluded share capital of €2,500); creation of business plan in English and Czech; creation and preparation of AML Manuals and AML Compliance Handbook in Czech; all necessary fees and government fees to setup the license, start the application and the ongoing support. A complete internal process documentation will also be delivered.
For the authorized capital of the company we recommend €2,500 (please do not incorporate with the mandatory and ordinary CZK1.00 that usually applies for company formations. You need to prove a good standing).
All documents that will apply with the registration and application process will be prepared professionally by lawyers in the country. All documents will also be translated into the Czech Republic language. The documents to apply for a license and the company formation are the following*
1. Completing and submitting of the application in the Registry of Small Electronic Money Companies with the National Bank of Czech Republic.
2. Receipt of the License Certificate (certified extract from the Corporate Register).
3. Certificate of Good Standing in case the applicant is a foreign citizen (if requested)
4. Creation and completion of the official questionnaires for the application with the Register.
5. Business Plan (recent Business Plan with a 12 month forecast of all processes) including full financial statements, along with comments and explanations such as compliance procedures etc.
6. Detailed description of payment modules to be used
7. Description how to ensure the safety of customers' funds.
• Fast turnaround - decision is guaranteed in 30-60 calendar days
• License issued by National Bank; not just by a Ministry of Commerce or Industry.
• Friendly regulatory regime
• Low costs of operation
• No minimum capital has to be paid-in
• Czech Republic belongs to IBAN system (no intermediary banks needed)
• Deposit-taking of electronic money from third parties
• Transfer money on behalf of third parties to other third parties
• Issuing debit cards / electronic money
• Offering payment services to third parties
• Opening merchant accounts to receive payments and forward them
• Conversion of electronic money into virtual money (Bitcoin etc.)
WHAT PERSONAL DOCUMENTS ARE REQUIRED?*
(1) Notarized passport copy with apostille (if not in English, then certified translated into English)
(2) Notarized Proof of Address; max. 3 months old (if not in English, then certified translated into English)
(3) Police Clearance Certificate / Certificate of Conduct with Apostille (if not in English, then certified translated into English)
(4) Personal CV if possible with school, university, diploma copies if applicable
(5) 2 name suggestions for your company name
(6) If remote incorporation: Notarized Power of Attorney with Apostille. We will provide this Power of Attorney.
STEP 1: DOCUMENTS SET-UP
Please submit all documents upfront for a check to our email@example.com and firstname.lastname@example.org. We shall check them upfront and if they are acceptable, we will submit them to our lawyers in the Czech Republic.
STEP 2: COMPANY INCORPORATION & DOCUMENTS SET-UP
The company formation takes usually 2-3 weeks (European standard) until all filed documents are available and the company is entered into the Register. The Manager/Managers and the Ultimate Beneficial Owner (or owners) are going to be declared. Meanwhile the document set-up in Czech language starts (Business Plan, AML Manuals and Compliance). Power of Attorney for the lawyers are being also set-up.
STEP 3: TRAVELLING TO PRAGUE AND LAUNCHING OF THE APPLICATION WITH THE CZECH NATIONAL BANK
You are requested to travel to Prague and sign all documents, especially first account opening forms, Power of Attorney and company documents. Remote incorporation is possible.
STEP 4: BEGIN OF THE LICENSING PROCEDURE
Your application will be submitted. Usually a first response takes place after 30 business days. If things have to be amended or are additionally required you can submit them and after another 30 days the final approval should be done. Our lawyers will assist you with all correspondence and amendments (support included in the package). The entire licensing procedure should not be taking more than 6-8 weeks (on average). Remote licensing is possible.
5. LICENSE APPROVAL + ACCOUNT OPENINGS FOR THE LICENSE IN THE CZECH REPUBLIC
Lawyers will pick up the issued licenses for you and submit the undersigned bank account forms to the selected banks. One bank account opening is included. The signature of you as Director by an appointed Representative via a notarised and Apostilled Power of Attorney is also possible.
PRICING AND SERVICE FEES
Full license package incl. company formation is €34,950 It includes company formation from the distance; Power of Attorney to set-up the company without traveling; Power of Attorney to launch the application and correspondence; ongoing correspondence with the Czech National Bank; Registered Office Fee for the first year; Shareholder/Beneficial Wwner declaration; appointment of Director(s); setting-up the Business Plan, AML Manuals; preparations before license is launched; launching of the application / on-going support; translation work for all documents (required for licensing procedure); translation of foreign personal documents from English into Czech; appointment of accountant; included is also a Bank Account opening with one of Czech Republic‘s top banks. More bank accounts in Czech Republic (optional service)
VAT Registration - €900.00 (one-time fee)
Additional bank accounts in the Czech Republic (€400.00 to €500.00, depending on bank and work needed to do)
Payment Provider Introduction in Lithuania/Latvia for low-cost SEPA transfers up from €1.00 only - €750.00 (one-time fee)
Accounting/Monthly Reporting - from €200.00 per month
Office rental to have your own address - from €400.00 per month
Additional legal advice - €120.00 per hour
Authorized capital recommended - €2,500.00 (not included in our price structure of €34,950.00)
Securities Deposit/Capital Requirements - Not applicable - Nil
Bank Accounts in the Czech Republic
We and our lawyers assist to set-up the bank accounts with local Czech banks that are all connected directly to the SEPA transfer system and SWIFT.
Some of the most popular operating banks in Prague.
Introduction to low-cost payment provider (regulated) in Lithuania
Free introduction to regulated Baltic payment providers that are fully connected to the SEPA System. You will get charged on average of €1.00 per transfer but can charge your customer, whatever fee schedule you wish.