Czech EMI License

Czech EMI License

• The Cech EMI License has become a regulatory authorization provided by the Czech National Bank (CNB) that enables businesses to issue electronic money and offer payment services with EU directives. With the help of a Czech EMI License, organizations can easily increase their fintech operations, not only within the Czech Republic but also in the European Union. The financial landscape of Europe has become increasingly competitive, and getting a Czech EMI License ensures credibility, adherence, as well as a strong presence on the EU market. Tetra Consultants helps businesses to obtain the Czech EMI License. Our team helps organizations to get through the complex application procedure while also ensuring regulatory compliance.  

Advantages of the Czech EMI License

• The Czech EMI (Electronic Money Institution) license provides major benefits for businesses focusing on offering electronic payment services and e-wallet solutions across the EU and beyond. Here are the main advantages of the Czech EMI License: 

Full EU passporting

• Through the Czech EMI License, your business can operate not just in the Czech Republic but also in the entire European Union. This offers wide market access and the chance to attract consumers from all the EU member states without any need for additional local licenses.  

Efficient regulatory process 

• Getting an EMI license in the Czech Republic is usually considered to be a straightforward and less bureaucratic process when compared to other countries in the European Union. Furthermore, the application and business process in the Czech Republic are more business friendly leading to more and more investors opting to register company in Czech Republic. 

Attractive business environment  

• The Czech Republic also has a favorable business climate that has low taxes, a skilled workforce, and an efficient process of company registration. This makes the Czech Republic suitable for both startups as well as established fintech.  

Reputable and stable  

• The Czech Republic is known for its stable and reputable jurisdiction, along with a strong legal framework, which improves the standing and credibility of your organization with its partners and clients. Furthermore, the Czech Republic is a member of the European Union and the North Atlantic Treaty Organization (NATO), which further reinforces stability. 

No customer or employee location restrictions  

• Companies can easily attract clients from across the world, as well as locate their employees as they can see fit. There are no EU-imposed limitations on the consumer base or the workforce location.   

Types of Czech EMI License

• The Czech Republic provides two main types of EMI licenses these are: 

Full EMI License  

• The full EMI license allows issuing electronic money and offering payment services across the entire European Union, with full passporting rights. The requirements of this license consist of establishing a legal entity in the Czech Republic, which includes a physical office, a minimum share capital of €350,000, and strong AML/compliance frameworks.  

• With this license, companies can manage e-wallets, issue and redeem electronic money, process payments, and also serve both Czech and EU clients with no limitations on service volume.  

Small scale/semi-EMI License 

• This license is commonly known as semi-EMI, a license that is intended for companies with limited payment turnover or those who are just starting out. There are certain restrictions on a semi-EMI license, such as maximum transaction volume, capital, limited service range, and geographic limitations. Lastly, this license has low initial capital requirements and a regulatory burden, which makes it accessible for startups that want to test the Czech markets.  

Costs and timeline for getting the Czech EMI License

• Tetra Consultants will help you in registering your Czech entity within 3 weeks of getting all the necessary due diligence documents. Our team will also prepare your AML/CFT policies, secure a physical office, and also appoint a local director and AML/CFT officer. We will also submit your complete EMI license application to the Czech National Bank. The approval process usually takes 8 to 10 months, based on your application and if there are any queries. Once the license is provided team, our team will then move ahead to open a corporate bank account for your company, which usually takes an additional 3 to 4 weeks. Overall, the entire procedure takes approximately 9 to 12 months from beginning to end.  

• The total cost of getting a Czech EMI License is based on multiple factors like the scope of services, business structure, and the support level needed. At Tetra Consultants, we follow a transparent fee structure with no hidden charges. All our prices are communicated to you during the initial consultation, so you know exactly what you are paying for.  

Regulatory authority for the Czech EMI License

• The primary regulatory authority that is responsible for the Czech EMI License is the Czech National Bank (CNB). The CNB is responsible for overseeing and issuing licenses to electronic money institutions and payment service providers in the Czech Republic.  

• The CNB reviews all the applications, grants, or denies EMI licenses, and supervises all the ongoing activities of the licensed entities. It also ensures compliance with the Czech laws, and relevant EU directives. Lastly, the CNB is also tasked with the supervision of the financial market and the implementation of the anti-money laundering (AML) standards for the EMIs.  

Activities allowed under the Czech EMI License

• The Czech EMI License authorizes a broad range of financial activities, mainly focused on electronic money and payment services. Here are the activities that are allowed under the Czech EMI License: 

Issuance of electronic money  

• This license allows companies to create and distribute digital funds that will act as a substitute for cash and can be used for payments and stored-value purposes.  

Operating electronic wallets and prepaid cards  

• Companies can offer e-wallet solutions and prepaid payment products in order to store and spend electronic money.  

Redemption of electronic money 

• Companies can also return the stored value to the consumers in cash or transfer it to a bank account on request. 

Provision of payment services 

• Companies can facilitate payment transactions, which consist of deposits, withdrawals, and money transfers. It also covers both domestic and international payments, consisting of direct debts, credit transfers, and standing orders.  

Step-by-step procedure to get a Czech EMI License