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APPLYING SMALL-SCALE ELECTRONIC MONEY ISSUER LICENSE IN CZECH REPUBLIC, SEMI LICENSE IN CZECH REPUBLIC, REQUIREMENTS

Published: 08 Feb 2019

The Czech Republic is characterized as a jurisdiction that opens up wide opportunities for those who want to create and run a payment business throughout Europe. The Czech Republic is also attractive for those, who are willing to obtain an Electronic Money Issuer License. Before considering the mechanism for obtaining a small-scale electronic money issuer license in Czech Republic, let’s first explain the differences between the EMI license and SEMI license.

To obtain an EMI license in Czech Republic, it is necessary to contribute a share capital of 350,000 euros. At the same time, electronic money issuer can work not only in the Czech Republic, but also throughout the European Union. The recipient of the Czech SEMI license does not have to contribute share capital, but it can work exclusively in the Czech Republic.

OPPORTUNITIES FOR SMALL-SCALE ELECTRONIC MONEY ISSUER AFTER OBTAINING SEMI LICENSE IN CZECH REPUBLIC

Czech SEMI license is easy to obtain, but it provides fewer features than the EMI (Electronic Money Issuer) license. Financial companies that decide to receive small electronic money issuer license in Czech Republic can carry out:

• electronic money issuing with SEMI license in Czech Republic;

• providing of payment services in Czech Republic related to electronic money with Czech SEMI license;

• providing of support services related to electronic money issuing with SEMI license in Czech Republic;

• providing of non-electronic payment services specified in the license.

SEMI LICENSE REQUIREMENTS IN CZECH REPUBLIC

Obtaining a SEMI license in Czech Republic is much easier than obtaining a full EMI license. The requirements for obtaining a SEMI license in Czech Republic include an office in the Czech Republic, while in order to obtain an EMI license, a company must be only registered in the Czech Republic. SEMI license in Czech Republic can receive small-scale electronic money issuer, registered outside the Czech Republic, but within the European Union.

Also, there is another requirement for obtaining a SEMI license in Czech Republic. The annual turnover of small electronic money issuer should not exceed 3 million euros per year in order to be able to use SEMI license in Czech Republic. Otherwise, electronic money issuer will have to get an EMI license in the Czech Republic.

In addition, a small electronic money issuer for obtaining a SEMI license in Czech Republic must ensure the security of transactions and the safety of its clients' funds.

WHAT DOCUMENTS DO I NEED TO APPLY FOR A SEMI LICENSE IN CZECH REPUBLIC?

To apply for a SEMI license in Czech Republic, a small-scale electronic money issuer license must provide: a business plan that complies with the requirements of the legislation governing the receipt of a small-scale electronic money issuer license in Czech Republic; statutory documents of the company, showing its essence and legitimacy for the implementation of activities related to electronic money; personal documents of managers.

TERMS FOR OBTAINING SEMI LICENSE IN CZECH REPUBLIC

Unlike the EMI license, small-scale electronic money issuer receive SEMI license faster. Obtaining a SEMI license in Czech Republic will take about one to three months after the preparation of all the necessary documents to apply for a Czech SEMI license. While obtaining an EMI license in Czech Republic takes from 5 to 9 months.

A team of SBSB professionals will help you to figure out all the requirements for obtaining a small-scale electronic money issuer license in Czech Republic, prepare all the necessary documents for obtaining the Czech SEMI license, carry out all the necessary legal procedures for obtaining and properly applying the SEMI license in Czech Republic. For over five years we have been advising our clients in the areas of corporate law, international tax planning, finance, international licensing and comprehensive business support in more than 40 countries.

We will be happy to help you.

Firm: Addleshaw Goddard
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Practice Area: Trade & Customs

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