AEMI license in Malta

AEMI license in Malta

Acquiring an Authorised e-money license in Malta in Malta is an opportunity to start financial actions in a country that is part of the EU. Following recent amendments that lowered capital demands, Malta has become one of the most popular lawfullment for those wishing to open a virtual money establishment in the EU. Classified as a true center for monetary services, Virtual Money Institutions have relocated to the island, taking full advantage of an unblemished international reputation as well as a knowledgeable and experienced regulator and a pool of local talent and experts.

AEMI is a special license that allows you to manage assets in the form of so-called digital currency. It is an alternative to cash and traditional banking solutions.

The island, even before the introduction of the European Electronic Money Directive, offered the possibility of registering this type of company and allowed obtaining a license. After the introduction of the Directive, islands have retained, plural its status as an innovator and a promising partner for payment systems.

General information

An Authorized electronic money institution license in Malta is a special permission that allows you to manage assets in the form of so-called digital money. It is an alternative to cash and conventional banking solutions.

The most famous examples of virtual money institutions are Revolut, Transferwise and others. These companies allow you to transfer real money into the virtual world and use it to pay for services and goods.

Thanks to payment systems that use an AEMI license in Malta for sale, transfers are very fast or even instantaneous, and their cost can be several times lower than through a bank. Very often transfers between accounts are free.

Businesses for sale in Malta

Benefits

The Third Schedule of the AEMI Financial Institutions Act defines companies as “financial institutions licensed under this law and authorized to issue electronic money or equivalent authorization in another country in accordance with the Directive”.

What makes island attractive for an AEMI license:

  • An acceptable authorized capital required for obtaining a license;
  • Predictable demands for the organization of the company;
  • Advanced basic physical and organizational structures and facilities: network, Internet, legislation;
  • Advanced IT sector;
  • Separately, it is worth mentioning the large I-Gaming market – gambling on the Internet: bets, casinos, slot machines and much more;
  • At the same time, Malta is a member of the EU and its license can be used for clients throughout the Union;
  • Company maintenance costs may be lower than in other EU countries;
  • It is possible to reduce the effective tax rate to 5%;
  • Obtaining a license is possible in a short time – approximately 3-4 months after submitting an application with all documents.

Requirements for AEMI license in Malta

There are few basic demands for a company that wants to obtain an AEMI license in Malta:

  • Starting capital of the company from 350,000 euros;
  • The corporation needs to have leastwise two people who will ensure the administration of the company, both in terms of issuing e-money and in terms of office work. These people should have relevant knowledge.
  • Directors and owners must be vetted and meet standards.
  • In general, a control system should be organized within the company – after all, this is a financial institution.

Taxation of AEMI in Malta for sale

Like all Maltese resident companies, AEMIs will be subject to company income tax at a rate of 35%. However, this is subject to the full Maltese tax system whereby the tax paid by the company on island on the final dividend distribution is credited to the shareholder as a tax credit against the shareholders’ tax liability. Thus, after the distribution of dividends, the shareholder will be entitled to a partial or full refund of any advance tax collected from the distributing company. Thus, the full conditional exemption from taxation makes Maltese companies highly tax efficient vehicles with the possibility of reimbursing a certain amount to shareholders. The default discount applied to the fund manager on active trading profits is 6/7, resulting in a tax leakage of only 5%.

Regulator of Malta

Malta’s regulatory framework governing AEMI is based on the provisions of the Banking Act (Section 371 of the Laws of Malta) which transposes the digital currency Directive. Article 2 of the Malta Banking Act defines virtual money institutions as “any person, other than a credit institution, that issues means of payment in the form of electronic money”. AEMIs cannot engage in lending or other banking actions.

Digital money is defined by the Law for a monetary value expressed by a claim to the issuer that issues such money, which is:

  • stored on an e-device
  • issued after receipt of funds for an amount not less than the cash value of the issue
  • accepted as a means of payment by enterprises other than the issuer.

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