Czech is a rapidly growing central European state in the EU. The activities of payment institutions require obtaining an appropriate license. One of the jurisdictions where it can be reached is the Czech Republic. Recently, it has attracted many fintech projects. In addition, a license obtained in the country applies to the entire area of Europe after passportization.
General information for getting a PI license in the Czech Republic
The Czech permission of the PI is a European license and gives the right to work on the territory of the entire European Union, without any restrictions in attracting clients from worldwide. Obtaining a payment institution license in the Czech Republic, as well as running a remittance provider business-company, is fully regulated by legislation, which will give you an undeniable advantage in the form of confidence in your actions, in working with clients, as well as in communicating with government administration.
The Czech government regulates the actions of persons authorized to provide monetary favors and issue virtual money in accordance with Act No. 284/2009 Sb. and Directive No. 141/2011 Sb. Czech legislation and regulations regarding PIs fully comply with all EU directives, so passporting in other EU states is realizable after obtaining a PI permission.
Benefits of PI in Czech Republic for sale
Some people think of virtual money institutions as similar to a bank, but without a banking permission, they have no legal right to offer banking lending services. But, for those who are interested in this area but don’t want to deal with the costs of owning and setting up a full bank, a payments corporation is a great choice.
So, the main preferences of the Czech Republic:
- An onshore European lawfullment with a good reputation, which is becoming a profitable alternative;
- Is much cheaper to obtain PI license in Czech Republic and maintain monetary permissions than in other territories such as UK;
- A permission for payment system of the country gives the right to work throughout the EU and attract clients from all over the world;
- The country is a comfortable place for doing biz, the country has relatively low labor costs, a convenient regulatory system, and a transparent tax system;
- A mentality close to the inhabitants of the EU countries and a similar language simplify communication.
Requirements for PI license in Czech Republic
The permission in the Czech Republic is issued by the national bank. A license request can only be submitted by a legal entity. To obtain a permit, a legal entity must meet a number of requirements:
- Time to obtain a license: approximately 12 months;
- Strict requirements for the owners and beneficiaries of the business-company;
- Office in the Czech Republic;
- Business plan;
- Transparency and compliance of the biz model with norms and worldwide rules;
- Directors must be reliable persons;
- Key persons should be employees who are able to effectively carry out the business of providing payment services, with competence and sufficient experience in this area.
Other requirements:
- Authorized capital.
- EUR 20,000 – if only money transfers are planned;
- EUR 125,000 – if the applicant plans to accept and withdraw cash;
- EUR 350,000 – for a virtual money issuer.
- Organizational structure.
- A fintech project must have at least 2 directors, only individuals are allowed.
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