Eternity Law International News How to get PSP license in Estonia

How to get PSP license in Estonia

Published:
April 24, 2023

Since Estonia is a part of the EU, its system must comply with the regulations and legislation of this intergovernmental organization. Conducting any format of electronic transactions is possible only if the relevant permits are available. Such permits are valid both within the state and within the EU. That is why corporations that work in this sphere are obliged to obtain a PSP license in Estonia for carrying out such activities. 

But companies that want to get used to this market don’t always understand where they need to go and how to act. Let us look in detail at what an organization needs to do to obtain a PSP license in Estonia

Why does the firm need to buy PSP license in Estonia  

Estonia is considered to be a country where the doors to the market are wide open to foreign capital. It has become especially attractive for organizations to open to buy PSP license in Estonia since the state joined the EU. Thus, companies can operate faster in almost all countries of Western and Central Europe and reduce the tax burden on the interchange. 

To carry out such activities, organizations need to have a license to work with payment systems. Previously, large companies preferred simply to buy a company with PSP license in Estonia. But now they can get such a license themselves. 

Of course, it takes some time and you need to collect a certain package of papers. But already after receiving the request, organizations can make e-fees within the land and throughout the EU. And this is a tangible advantage over their competitors. 

Businesses for sale in Estonia

Cryptocurrency company in Estonia For Sale

Europe, Estonia

Since Estonia is a part of the EU, its system must comply with the regulations and legislation of this intergovernmental organization. Conducting any format of electronic transactions is possible only if the relevant permits are available. Such permits are valid both within the state and within the EU. That is why corporations that work in…

Financial institution in Estonia for sale

Europe, Estonia

Since Estonia is a part of the EU, its system must comply with the regulations and legislation of this intergovernmental organization. Conducting any format of electronic transactions is possible only if the relevant permits are available. Such permits are valid both within the state and within the EU. That is why corporations that work in…

Ready-made company in Estonia

Europe, Estonia

Since Estonia is a part of the EU, its system must comply with the regulations and legislation of this intergovernmental organization. Conducting any format of electronic transactions is possible only if the relevant permits are available. Such permits are valid both within the state and within the EU. That is why corporations that work in…

What you need to get psp license in Estonia

Today in Estonia PSP for sale or mutual settlement is used by many companies. That is why companies need to get a document confirming the ability to conduct such operations. It is not very difficult to obtain it, but it is necessary to adhere to local rules and provide the commission. 

Of course, this process can be done by yourself. But many international corporations also work in another way. They prefer to buy payment service provider license in Estonia through special organizations that help them gather the whole package of papers for its recommendation. Thus the company can think ahead about its business strategy, and the service company will help with this issue. 

Yes, the second option will cost extra expenses. But it will relieve the company from a lot of hassle and minimize the chance of mistakes. But for those who want to collect documents on their own, the doors of the EFSR are also open.  

What organizations to apply for a license

According to Estonian legislation, the Financial Supervision Authority has the right to register payment service providers in Estonia. It is its representatives who can allocate the corresponding license. A firm that plans to get it, must meet all the prerequisites that exist in Estonian law. It is also necessary to concede with the prescribed norms of the Financial Inspectorate. 

The organization can both issue and refuse to issue a license. They can also send the client for revision. In this case, the company does not lose the opportunity to get a license, but it needs to correct certain errors. For example, if the company did not collect a complete set of documents, they need to collect the missing papers and reapply a few days later.

List of requirements for the package of documents for obtaining a license

In order not to worry about such a document, the company must meet the requirements for a PSP license. To do so, it must work cleanly and have certain papers to the Financial Supervision Authority.

In the Estonian territory, the requirements for payment service providers are strict and demanding. To receive a license, an organization must provide: 

  • constituent papers;
  • company’s plans for working with the given payments; forms with interior controls of the company;
  • plans to counter financial fraud and the inadmissibility of its organization in a licensed enterprise;
  • details on the head of the corporation. 

These documents will be submitted to the Financial Supervision Authority for examination. If there are no objections then there is a high probability to get a license. Most often a license is obtained after six months from the date of a complete set of the file.

Is the Estonian license valid in other countrysides 

If a company provides financial services in the countries of the EEA, it can operate not only in the country where the license was obtained. Such a document automatically works for all other countries that are part of this association. 

That is why companies are ready-made PSP for sale in Estonia and other not the largest organizations. However, in some countries, representatives of the company may encounter some minor difficulties. The territory of the states has the advantage of legal documents, which are primarily approved at the local level. Therefore, it is important to provide additional documents when requested by the regulatory authorities. Otherwise, you may not wait for the activation of the license, as well as work with its help in other countries. 

Usually, this process does not take much time. But if the applicant submits only an identical set of documents, it is likely to delay the recognition of the license or reject such a request altogether. Therefore, organizations must work carefully, honestly, and correctly concerning local laws

Is it worth turning to agencies for a license

For many companies, there is no fundamental difference if you submit the documents yourself or apply for a payment agent license in Estonia. If you submit the documents yourself, you can redo them several times. But if you ask for help from an agency, you will need to spend extra money, and the costs are not pleasing to anyone. Therefore, in such cases, the company makes a decision based on its interests. If there are deadlines for obtaining an offshore PSP license in Estonia or other licenses, it might be worth speeding up the process and hiring an agency.

You could be interested

Legal issues surrounding cryptocurrency

Although crypto may still be in a bear market, this doesn’t mean people have stopped talking about it. According to BitInfoCharts, tweets mentioning Bitcoin are higher than they’ve been at any point in the cryptocurrency’s 13-year history. As a strong base of public interest in crypto remains, despite a bearish trend, and new crypto uses...

Forex license in South Africa

In this jurisdiction FSCA controls all transactions with crypto-currencies, in particular trade, in accordance with Financial Law. A firm intending to act in the Forex industry and carry out commercial operations in this niche needs to get such permission as Forex license in South Africa. Powers of local authorities Some time ago, FSCA had a...

Company registration in Poland

Poland is developing quite dynamically. It is a European country with EU membership and offers its residents and foreign visitors a high social level, a loyal fiscal system and a welcoming, friendly atmosphere. And this is not a complete list of the advantages of Poland as a jurisdiction for creating a business. You can register...

Opening an account in a foreign bank

Opening an account with a foreign bank is an urgent issue for those involved in entrepreneurial activities. Since the services of banking organizations have become familiar to us, their role is practically not recognized. Modern banks and financial institutions offer their customers a wide range of services and products specifically designed for individuals and business...

Legal regulation of operations with cryptocurrencies in Latin America

Regulation of operations with cryptocurrencies in Latin America has been popular for a long time. Three years ago, the report of the State Treasury showed an increase in such transactions in the amount of 510%. The most impressive growth was recorded in 2016 – $ 50 billion. The prospect of business development using digital money...

How to start a cryptocurrency company in Portugal

As specified in the findings of Ernst Young’s (EY) latest survey on foreign direct investment destinations, Portugal is included in the top ten countries in the EU. This survey showed that 50% of the investors think Portugal will achieve more investment attractiveness in 3 coming years and 37% of the investors are seeking to broaden...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7