Eternity Law International — News — EMI License in Latvia

EMI License in Latvia

Published:
October 5, 2020

In recent years, Latvia has emerged as a promising destination for fintech companies seeking to obtain an Electronic Money Institution (EMI) license. This Baltic gem boasts a stable financial landscape, a well-developed regulatory framework, and a strategic location within the European Union. In this article, we will delve into the issues for obtaining an EMI license in Latvia, the advantages it offers, the procedure involved, taxation, sales, transactions, costs, and why choosing Latvia could be a prudent move for your fintech venture.

Requirements

To navigate the regulatory landscape and secure an EMI license in Latvia, a company must meet several essential criteria. Firstly, the entity should be registered as a limited liability company (SIA) in Latvia. It is imperative that the company maintains a minimum initial capital of €350,000 on your bank account, a key requirement stipulated by Latvian law. This capital serves as a safeguard, ensuring the financial stability of the EMI. Furthermore, the registered company must have a robust anti-money laundering (AML) policy in place, conforming to international standards. This includes stringent Know Your Customer (KYC) procedures.

Advantages

Latvia’s EMI license offers a plethora of advantages, making it an attractive choice for fintech companies.

  1. EU Passporting: Once an EMI license is obtained in Latvia, the company gains access to the entire European Union. This means it can provide payment services and e-money issuance across the EU member states without the need for additional licenses.
  2. Stable Financial Environment: Latvia’s banking institutions are renowned for their stability, providing a secure environment for financial transactions.
  3. Strategic Location: Situated at the crossroads of Northern and Eastern Europe, Latvia offers excellent connectivity and access to international markets.
  4. Fintech-Friendly: Latvia has shown commitment to fostering the growth of fintech companies, making it a conducive environment for innovation and expansion.

Procedure for Obtaining an EMI License in Latvia

The process of obtaining an EMI license in Latvia is meticulous but manageable.

  1. Company Formation: Register a limited liability company (SIA) with a bank account in Latvia, ensuring it meets the minimum capital requirement.
  2. Application: Submit a comprehensive application to the Financial and Capital Market Commission (FCMC), including details of the company, its business plan, and AML/CTF policies.
  3. Due Diligence: The FCMC conducts thorough due diligence, assessing the company’s suitability for an EMI license.
  4. Approval: If the application meets all regulatory criteria, the FCMC grants the EMI license.
  5. Ongoing Compliance: Post-license issuance, the EMI must adhere to ongoing compliance requirements set by Latvian law.

If you are looking to buy an EMI license in Latvia, our services can guide you through this complex process effectively.

What is Included in Our Services

Our comprehensive services assist companies through every step of the EMI licensing journey in Latvia. From initial company and bank account registration to compiling a strong application, all included in price, we ensure your venture complies with all legal requirements, thus expediting the process without any issues.

Taxation of EMI Companies in Latvia

The tax landscape plays a pivotal role in determining the attractiveness of a jurisdiction for businesses, especially in the dynamic world of electronic money institutions (EMIs). In this regard, Latvia stands out as an exceptionally enticing destination due to its favorable taxation regime, which significantly bolsters the competitiveness of Latvian EMIs in the European market.

Corporate Income Tax at a Flat Rate of 20%

One of the standout features of Latvia’s tax system is the corporate income tax rate, which is set at a flat and relatively modest rate of 20%. This simplicity and predictability are highly appealing to businesses, providing them with a clear understanding of their tax obligations. EMIs operating in Latvia can make long-term financial plans with confidence, knowing that their tax liability remains stable, regardless of their profitability.

Exemption from Withholding Tax on Dividends

Another advantageous facet of Latvia’s tax regime for EMIs relates to the withholding tax on dividends. Dividends are a crucial component of a company’s financial transactions, allowing for the distribution of profits to shareholders. In Latvia, EMIs enjoy an exemption from withholding tax on dividends under specific conditions.

This exemption incentivizes the reinvestment of profits within the company, promoting its growth and expansion. It also enhances the overall financial health of the EMI, as it can allocate resources more effectively without the burden of withholding tax. For EMIs seeking to maximize their financial efficiency and returns on investment, this exemption is a noteworthy advantage that Latvia offers.

How Much Does an EMI License in Latvia Cost?

The cost of an EMI license in Latvia varies depending on factors such as legal and consulting fees, application processing, and compliance expenses. However, it is generally an affordable option when compared to other EU countries. Consulting with experts can provide a clear understanding of how to obtain an EMI license in Latvia cost-effectively.

Our Advantages

Choosing our services for your EMI license application in Latvia offers numerous benefits, including next-described.

  1. Expertise: Our team possesses extensive knowledge of Latvian financial laws and regulations.
  2. Efficiency: We streamline the application process, ensuring minimal delays.
  3. Cost-Effective: We offer competitive prices for our services.

In conclusion, Latvia’s EMI license offers an excellent opportunity for fintech companies to capitalize on the growing electronic money and payment service sector in the European Union. With its strategic location, stable financial institutions, and fintech-friendly environment, Latvia stands as a prime destination for those looking to establish a reputable EMI institution within the EU.

If you aim to obtain an EMI license in Latvia or explore options to buy an EMI license in Latvia, our expert team is here to assist you every step of the way. Contact us today to discuss how we can help you navigate the licensing process efficiently and effectively.

Businesses for sale

For sale EMI LICENSE IN CZECH REPUBLIC

Europe, UK Crypto forex brokers
There are two types of licenses for electronic money institutions in the Czech Republic: EMI – electronic money institution, and SEMI – small electronic money issuer. Specialists of Eternity Law International have extensive experience preparing the necessary documents and complete knowledge for the correct paperwork for obtaining EMI and SEMI licenses in the Czech Republic....

EMI license in Estonia for sale

Europe, Estonia EMI License
This is a new investment opportunity – EMI license in Estonia for sale. Please check out the main details regarding this proposal below. Ready Made EMI license in Estonia: key considerations Clean license, hasn’t started operations; Bank accounts in Estonia and Lithuania; Company has direct CentroLink connectivity; Passportisation to EU countries; Can be sold with/without...

EMI License in Lithuania for Sale

Europe, Lithuania EMI License
This’s a great possibility to buy an EMI license in Lithuania, completely ready for future work. Features and functionality of EMI license in Lithuania for sale Main operational and structural features of permit are as follows. The company is established in Lithuania. Year of firm’s establishment: 2017. Authorization from Lithuanian Bank was received in same...

You could be interested

Crypto License in Bosnia and Herzegovina

The digital economy is rapidly expanding, with e-currencies playing a notable part in shaping global monetary ecosystems. Although the legislative scheme is still developing, this sector offers promising capabilities for organisations willing to enter the trade. This article outlines the key aspects of obtaining a crypto licence in Bosnia and Herzegovina, the demands for crypto...

Regulator for blockchain companies

LITHUANIAN BANK CREATES A REGULATOR FOR BLOCKCHAIN ​​COMPANIES The Bank of Lithuania is creating a regulatory and technological platform that allows developing and testing innovative technologies. The platform is code-named LBChain, which is also known as a regulator for blockchain companies. With its help, not only local, but also international blockchain companies will be able...

Status Check in Interpol Database in Germany

To begin with, when it comes to guaranteeing that your identity is exempt from future threats. Commencing from potential issues that could affect your personal freedom or travel, performing an Interpol background check Germany is one of the most notable steps you can take. Moreover, the global police department retains a comprehensive data archive that...

VASP in BVI

The BVI have long been recognized as a leading offshore monetary center. This picturesque Caribbean territory boasts a stable political environment, a robust legal system, and a range of monetary services that make it attractive for persons and corporations seeking to manage and protect their funds. One key player in the offshore finance world, on...

Changes in regulation of UK companies

Most recently, Companies House, the register of companies in the UK, published its business plan for 2017-18, as well as a strategic development plan for the period 2017-2020 and a press release outlining additional anti-money laundering measures. The article also identified some changes to the Persons in Significant Control (PSC) regime, which will take effect...

Asset management license in France

Today, the establishment of companies in France, in particular those working in the financial sector, has gained particular popularity among investors. Many may wonder what is the reason for such a stir, but we will now look into this in detail, and also study the procedure for licensing an asset management firm in this jurisdiction....

Related posts

Get a Trust License in Latvia

Obtaining such official permission as a trust license Latvia depends on the specific activity that the entrepreneur is engaged in. The issue of licensing trust organizations in Latvia is regulated by the Financial Services Law and the provisions of the EU Directive, which was adopted in the jurisdiction in 2009. As follows from the legislative...

Crypto license in Latvia

By establishing a firm and getting a crypto-license in Latvia, you open doors to offering services for crypto-exchange and storage of cryptoassets within provisions of law basis of the European Union and other countries. Our professional experts have already helped hundreds of clients successfully obtain permits to work with crypto-currencies in Latvia and others; it...

PSP license in Latvia

The Baltic countryside has become a big financial-centers in a short duration. But Latvia allows a gentle policy concerning fees for corporations that want to obtain a PSP license in Latvia. To get a PSP license in Latvia, a corporation needs to spend a lot of time and resources. But the time invested is more...

Investment license in Latvia

Like other Baltic countries, Latvia has a very attractive policy for potential investors. Therefore, large companies are trying to invest money in this country. Since the financial market regularly develops, new tools for investing appear. One of these ways is crowdfunding. It appeared because banks check their clients very thoroughly and are not always ready...

AEMI License in Latvia

Today’s jurisdiction that 2 years ago regulated the processes of acquiring AEMI license. Entrepreneurs who have decided to operate in this area and want to obtain a license for a payment system in Latvia will now be able to distantly enroll accounts for their clients. A license for digital money in Latvia can be issued...

SEMI license in Latvia

Latvia is in a leading position as one of the leading countries in attracting fintech companies. Unlike other lawfull ment, the Central Bank demonstrates its loyalty by regularly issuing licenses and offering various initiatives aimed at developing the FinTech sector. Following the UK’s exit from the EU, Latvia has become one of the best jurisdictions...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: