Eternity Law International News License for electronic money in Estonia

License for electronic money in Estonia

October 6, 2020


Located in Northern Europe, Estonia has become a center for digital innovation and financial evolution. At the heart of this transformation is the Electronic Money Institution (EMI) license, which unlocks a vast array of financial services and possibilities. In this in-depth investigation, we will explore the requirements, advantages, processes, sales, payments, costs, taxation, and the involvement of fintech in acquiring an EMI license in Estonia.

Requirements for an EMI License in Estonia

To embark on this transformative path, prospective financial institutions need to fulfill specific requirements.

Establishing a Legal Entity: The initial step involves setting up a registered company in Estonia, often in the form of a private limited company.

Meeting Share Capital Requirements: Ensuring an adequate capital base, with a minimum requirement of €350,000 on bank account, lays the financial foundation.

Qualified Management: The institution must have a capable management team well-versed in financial laws and practices.

Ensuring Adequate Infrastructure: A robust electronic infrastructure is crucial to ensure secure issues and compliant e-money transactions and payments.

Meeting Solvency and Prudential Requirements: Compliance with solvency and prudential standards as prescribed by Estonian financial law is mandatory.

Advantages of EMI Licenses in Estonia

Acquiring an EMI license in Estonia comes with numerous advantages.

EU Passporting: Once licensed in Estonia, financial institutions can seamlessly expand their services throughout the European Union, crossing borders effortlessly.

Advanced Digital Infrastructure: Estonia’s sophisticated digital infrastructure simplifies compliance, ensuring efficient customer service.

Low Bureaucracy: Estonia’s business-friendly environment minimizes administrative hurdles, expediting the licensing process.

Innovation Hub: Estonia’s pro-innovation stance creates a fertile ground for fintech startups, nurturing creativity and financial innovation.

Political Stability: As an EU member state, Estonia offers political stability, providing a secure environment for financial transactions, sales and capital investment.

Procedure for Obtaining an EMI License in Estonia

Securing an EMI license in Estonia involves a series of essential stages. Here’s a breakdown of the procedure:

  • Establish Your Registered Company: The initial and foundational step is the registration of a legal entity in Estonia. This step establishes the groundwork for your robust financial institution.
  • Prepare Required Documentation: Diligently compile all necessary documentation, which includes creating a comprehensive business plan.
  • Submit Your License Application: Forward your EMI license application to the Estonian Financial Supervision Authority, triggering the commencement of the regulatory evaluation process.
  • Onsite Inspection (if necessary): In cases that are more intricate or require further scrutiny, authorities may conduct onsite visits. These visits aim to ensure your readiness for electronic money operations and the management of bank accounts.
  • License Issuance: Upon receiving approval, you will be granted the highly sought-after EMI license. This license bestows upon you the authority to facilitate electronic money transactions and sales.

What is Included in Price of Our Services

When considering acquiring an Electronic Money Institution (EMI) license in Estonia, it’s essential to understand what is included in the services provided. Wt compile a comprehensive overview of the requirements, advantages, processes, and prices associated with obtaining an EMI license.

  • Regulatory Compliance: Our services guide you through the intricate process of ensuring your institution complies with Estonian financial laws and regulations. We help you navigate the legal landscape to meet solvency, prudential standards, and all other statutory requirements.
  • Document Preparation: We assist you in meticulously preparing the necessary documentation required for the EMI license application.
  • Application Submission: Our services extend to helping you submit your EMI license application to the Estonian Financial Supervision Authority. We ensure that your submission is complete and in compliance with all regulatory requirements.
  • Assessment and Evaluation: We guide you through the assessment process where regulatory authorities scrutinize your application. Our expertise helps you present your financial health and management expertise in the best possible light.
  • Onsite Support: In complex cases or when authorities require an onsite visit to assess readiness for electronic money operations, we provide support to ensure a smooth evaluation process.
  • License Issuance: Finally, upon approval, our services continue as we facilitate the issuance of the coveted EMI license. This license grants you the authority to facilitate electronic money transactions in Estonia and beyond.

Taxation of EMI Companies in Estonia

Estonia’s Tax Regime:

Estonia’s tax framework serves as a guiding light, illuminating the way for fintech enterprises in search of a favorable environment to thrive and pioneer innovations. One of the most captivating facets of this tax structure is the absence of a corporate income tax on retained earnings, a pivotal factor contributing to Estonia’s appeal to Electronic Money Institution (EMI) companies.

Zero Corporate Income Tax on Retained Earnings

The absence of a corporate income tax on retained earnings is a compelling incentive for fintech companies to establish themselves in Estonia. Retained earnings, often crucial for a company’s expansion and reinvestment, remain untaxed within the Estonian jurisdiction. Consequently, as fintech firms amass profits, they can channel them back into their operations without the burden of corporate income tax, granting them significant financial flexibility.

A Cohesive Tax Environment for Fintech

Estonia’s tax system is not solely about low rates; it is about fostering a cohesive environment that promotes the flourishing of fintech companies. It eradicates the complexities and uncertainties typically associated with tax planning and compliance. Fintech entities can concentrate on their core operations, secure in the knowledge that their tax obligations are clear-cut and transparent.

Furthermore, Estonia’s dedication to digital innovation extends to its tax administration. The nation’s robust digital infrastructure facilitates efficient tax reporting and compliance, diminishing administrative burdens and ensuring a seamless tax process for businesses.

How Much Does an EMI License in Estonia Cost?

The cost of acquiring an E-Money license in Estonia varies, influenced by factors such as application complexity, legal fees, and consultancy services. To ascertain an accurate estimate, it is prudent to consult specialized service providers. Despite initial expenses, the long-term benefits and access to the EU market render it a sound financial investment.


Estonia’s embrace of digital finance and its facilitative EMI license process have placed it firmly on the global fintech map. As an aspiring financial institution, navigating the waters of electronic money services in Estonia can be a transformative experience. The advantages of EU passporting, digital infrastructure, and a stable environment beckon fintech innovators to explore this exciting landscape, with the promise of a thriving future in the world of financial technology.

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