Eternity Law International News SEMI license in Malta

SEMI license in Malta

Published:
February 15, 2023

The Republic of Malta is among the top three countries in terms of the number of SEMI licenses issued. The increased interest in this jurisdiction and the status of Malta’s e-money license is due to a number of factors, including a single European passport, tax preferences, a loyal attitude towards foreign investors, and comprehensive active government support for providers and users of monetary services.

What is SEMI, and why do you need to choose Malta?

For any legal activity related to the provision of any payment services on the territory of the EU, the organization must obtain the appropriate permission – a payment license at the level of a Financial Institution. An SEMI license is required if transfers involve electronic payments.

An SEMI license it’s permission that allows you to to perform transfers involving electronic money like electronic money. In particular, permission is needed for the operation of payment systems and the organization of payments through electronic wallets. The SEMI in Malta license also gives the right to issue electronic money.

E-money is an alternative to cash. These are assets stored electronically and on an electronic wallet. Like physical money, it can be used for trade, exchange and various payment activities(transfers).

Even before the introduction of the European directive on electronic money, Malta offered possibilities for the enrollment of such companies and allowed to obtain SEMI license in Malta . After the Directive appeared, Malta retained the status of an innovator and promising jurisdiction for payment systems.

Businesses for sale in Malta

Ready made company in Malta with bank account

Europe, Malta

The Republic of Malta is among the top three countries in terms of the number of SEMI licenses issued. The increased interest in this jurisdiction and the status of Malta’s e-money license is due to a number of factors, including a single European passport, tax preferences, a loyal attitude towards foreign investors, and comprehensive active…

Ready-made company in Malta for sale

Europe, Malta

The Republic of Malta is among the top three countries in terms of the number of SEMI licenses issued. The increased interest in this jurisdiction and the status of Malta’s e-money license is due to a number of factors, including a single European passport, tax preferences, a loyal attitude towards foreign investors, and comprehensive active…

Ready-made company in Malta with VAT for sale

Europe, Malta

The Republic of Malta is among the top three countries in terms of the number of SEMI licenses issued. The increased interest in this jurisdiction and the status of Malta’s e-money license is due to a number of factors, including a single European passport, tax preferences, a loyal attitude towards foreign investors, and comprehensive active…

What makes Malta attractive for obtaining an SEMI in Malta:

  • Developed infrastructure: network, Internet, legislation;
  • Developed IT sector;
  • The big I-Gaming market should be mentioned separately – online gambling: 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;
  • Expenses for the maintenance of the company may be lower than in other EU countries;
  • It is possible to reduce the effective tax rate to 5%;

Acquiring a license is possible in a short period of time – approximately 3-4 months after submitting an application with all official papers.

Services and features that SEMI license in Malta provide

  • Services that allow you to transmission money to a defrayal account, as well as actions needed for the operation of a pay-account;
  • Favors that allow you to withdraw cash from a payment account, as well as actions needed for the operation of a payment account;
  • Implementation of payment transfer actions, including the remittance of funds to a payment account and including the execution of direct debits, credit and payment transmission through a paycard or similar device;
  • Making payment transfers when the costs are shaded by a credit line for the user of the payment service, including making direct debits, credit transfers and money transmissions via a payment card or other device;
  • Issuance and/or acquisition of monetary instruments;
  • Remittance;
  • Execution of payment operations, when the payer agrees to a payment operation using a telecommunication, digital or IT device, and the payment is also made by the latter, which acts as an intermediary on behalf of the client of payment services.

Requirements for SEMI license in Malta 

Obtaining an SEMI license in all EU countries requires the company to comply with certain requirements regarding the size of the authorized capital, personnel issues (company structure, reputation of top managers), asset protection policy.

Of course, the licensing process also requires certain monetary costs. This is the cost of setting up a company, payment of state tax and services for processing the application in Malta (one-time non-refundable application processing fee is 3.5 thousand euros). Cash investments will be needed to purchase equipment and software to run and support the business. An annual mandatory payment to the regulator is provided, equivalent to a share of 0.0002 of the total assets.

  • A required condition for acquiring a license to use electronic money in Malta is the presence of a real physical head office on the territory of the Republic.
  • The management structure of the payment company must have at least two directors resident in Malta, an auditor and a secretary. Top managers must have the needed training and practical knowledge in finance, as well as an impeccable reputation. To confirm this, Due Diligence of key persons and major shareholders is conducted.
  • The licensee must organize a control system within the company (Customer identification procedures, regulation of operational risks).

Obligations of public companies with a Small electronic money institution license in Malta  include annual reporting.

Initial capital requirement

Small SEMIs are defined as companies headquartered in a country that issue electronic money.

The total amount of earnings from the providing of their services cannot exceed 2 million EUR. Officials must provide a certificate stating that they have not been convicted of crimes and are not involved in the financing of illegal activities.

In cases where SEMI companies make a profit of EUR 1 million, the minimum authorized capital (which is equal to the minimum account balance) is EUR 50,000.

Documents, that needs to get SEMI license in Malta 

Be prepared to provide an impressive list of legal papers in order to successfully obtain a license:

  • Operations program;
  • Copies of the memorandum and charter of the firm or partnership agreement;
  • Audited financial statements;
  • Business plan with the structure, organization and administration system of the firm;
  • Explanation of the internal control system;
  • Asset conservation measures;
  • Data on all directors, controllers and managers of the company;
  • Info about shareholders and partners;
  • Information about the persons who will manage the company;
  • The official status of the company and the address of its head office.

Licensing procedure

The process for obtaining an Small e-money license in Malta includes:

  1. A meeting with the MFSA is arranged before the request is submitted.
  2. If necessary, additional preliminary request details may be submitted for review and comment.
  3. The applicant submits a completed questionnaire together with supporting documents.
  4. MFSA confirms the receipt of the request within 3 working days from the moment of receipt of the application.
  5. Within 10 working days after receiving the application, the MFPD informs the applicant about the status of the application – whether it contains all the necessary info.
  6. After receiving all the needed papers, the body proceeds to the evaluation stage. The MFSA informs the Applicant about the assessment phase, which usually lasts three months.
  7. The application will be officially approved or rejected within 3 months of receiving the complete application. If the Authorized Body doesn’t approve application within this period, it will be considered a refusal.

On average, the entire licensing procedure, including preparation time, can take 4-6 months.

You could be interested

Forex broker license in Estonia

The fact that a forex broker has a license to carry out professional activities is a key criterion in choosing a forex broker for traders. Licenses show which regulator controls the activities and quality of the company. Estonia is an excellent choice when choosing a jurisdiction to obtain a forex license due to the fact...

Temporary residence permit in Ukraine

Of the ways of legal residence, many prefer to get a temporary residence permit. It should be issued if you do not have the opportunity to obtain a permanent residence permit. ALGORITHM OF PREPARATION OF DOCUMENTATION FIRST POINT To acquire a temporary view of the place of residence, you must have certain grounds. All of...

Money Service Operator License in Hong Kong

If a company provides services in financial field, it must obtain a MSO – Money Service Operator license, which is issued by the Department of Customs Duties and Excise (CCE). This license required in accordance with the provisions of the Anti-Money Laundering and Terrorist Financing Ordinance, Chapter 615 of the Hong Kong Code of Laws...

Corporate tax in Austria

Austria has an enticing tax system for businesses. There are double taxation accords with several different foreign nations to prevent double taxes. A summary of the most significant tax-related topics may be found here. Businesses taxes The tax base for enterprises The entire amount of a corporation’s (domestic and non-resident) revenue is subject to unlimited...

Change of registration agent for an offshore company

A registration agent is a person accompanying an entrepreneur during the acquisition or registration of a new offshore company. The agent’s list of actions also includes providing a legal address, accepting notifications sent by the registration authority, and interacting with this institution regarding issues related to the client’s area of interest. In some cases, an...

Differences in payment licenses in the UK

The most widely applied licenses for the UK firms engaged in the FinTech sector are the two non-banking PSP authorizations: PI License and EMI license. They both give authorizations to engage in the delivery of the main monetary services that allow servicing a wide range of businesses. Thus, businesspersons may hesitate between the EMI and the...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Tallinn

Kesklinna linnaosa, Tuukri 19

Riga

Esplanade, 7 floor

Vilnius

Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175

Sydney

20 Martin Place

Singapore

3 Fraser Street, #08 DUO Tower

Hong Kong

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

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7