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Obtain Czech Republic small Electronic Money Institution License

Czech Republic small Electronic Money Institution License

Electronic Money Institution (EMI) is a legal entity which can issue and distribute electronic money and provide payment services. To be able to issue electronic money and provide services associated with it, a legal entity must obtain a small Electronic Money License (the License), supervised by Czech National Bank (CNB). An authorized EMI exchanges virtual electronic money (issued by EMI) for the funds of customers in form of cash.

Electronic Money Institution (EMI) is a legal entity which can issue and distribute electronic money and provide payment services. To be able to issue electronic money and provide services associated with it, a legal entity must obtain a small Electronic Money License (the License), supervised by Czech National Bank (CNB). An authorized EMI exchanges virtual electronic money (issued by EMI) for the funds of customers in form of cash.
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Licensing Services

Timeframe: 6-9 months since the company’s establishment, depending on the documents provided

Minimum paid capital: EUR 80,000.00 (it is advised to have 2-10% above the minimum)

License application fee: EUR 40,000.00

Benefits

  • Convenient access to European market
  • Time of completion – 6-9 months
  • May employ personnel from outside Czech Republic (must not outnumber Czech personnel)

Notable difference from Electronic Money Institution licence (EMI)

  • Absence of territorial limitation on cashless transactions
  • Limitation on aggregated debt owed to customers – not exceeding 3 mEUR
  • Limitation on turnover for money transactions – not exceeding 3 mEUR
  • Requirement to employ resident accountant and contact person with Czech language knowledge
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Facts & Info for Czech Republic small Electronic Money Institution License

Notable features
Procedure
Documents Required

General information

Company structure

  • At least 1 shareholder (can be natural or legal persons, a legal person must be registered and be present in Czech Republic)
  • At least 2 Executive directors (can be only natural persons)

Taxation

  • Corporate income tax of Czech Republic – 19% (incl. capital gains from the sale of shares);
  • Czech resident companies are required to pay corporate income tax on income derived from outside (non-Czech) sources.

Accounting requirements

The registered EMI shall disclose in particular the following information on its financial situation:

  • A quarterly balance sheet;
  • A quarterly profit and loss account;
  • Information on the amount of capital and the capital requirement to cover risks.

Office - The company must prove local presence in Czech Republic and have a physical head office in Czech Republic in order to conduct licensed activities both within Czech Republic, and from Czech Republic. No virtual offices or P.O. boxes are acceptable.

Employees - More than half of personnel of a Czech company must be local (Czech) employees. It is allowed to outsource services to local and/or international institutions having received approval from CNB.

In order to obtain a license, the following steps will be carried out:

  • Name reservation
  • Incorporation of the company
  • Application to Czech National Bank
  • License application

In order to obtain license, Offshorelicense will fill all necessary application forms and also acquire apostilled corporate documents. 

For that reason, please provide us with the following documents.

Due Diligence on all directors/shareholders (holding 10% of shares and more):

  • Notarized copy of valid passport of each Director (2 sets)
  • Notarized copy of proof of address (ex. utility bill of each Director, 2 sets)
  • Certified Bank reference letter (of each Director)
  • Legal reference letter (of each Director and Shareholder)
  • CV (of each Director and Shareholder)
  • Notarized Criminal Records (of each Director and Shareholder)
  • Tax declaration (if the shareholder is a natural person)
  • Audited financial statements for 3-5 years (if the shareholder is a corporate entity)
  • Anti-Money laundering Policy
  • Business Plan

In case If a corporate entity is used as a Shareholder:

  • Passport of an Authorized Person for the body Corporate
  • Utility Bill as proof of residency of an Authorized Person for the body Corporate
  • Latest CV detailing Educational background and Working Experiences of an Authorized Person for the body Corporate
  • M&A to include the clause on the establishment of the Czech Republic Company or allowing to do so
  • Two Reference letters for the Authorized Person that are to be issued by a Professional such as a Lawyer, Accountants, Company Secretary or Bank of an Authorized Person for the body Corporate
  • Registries of Company listing down the names of Director, Shareholder, Auditor, Company Secretary 
  • Certificate of Incorporation 
  • Certificate of Registered Address of the Company 
  • Resolution by the Company to appoint the Authorized Person to act on behalf of the Company
  • Resolution of the Company to invest in the Czech Republic Company
  • Group corporate shareholding structure including the applicant
  • Certified true copy of certificate of license granted by relevant authority(s) in its home country - (if applicable)
  • Certified true copy of board resolution or minutes of general meeting which approved the setting up of the applicant
  • Copies of 3-5 years audited financial statements
  • Detailed plan of activities, including:
  • - Sales plan for the next 3-5 years;
  • - Financial plan in conformity with the requirements of the Czech National Bank;
  • - Investment plan in conformity with the requirements of the Czech National Bank;
  • - Marketing plan in conformity with the requirements of the Czech National Bank;
  • - Internal audit and compliance plan in conformity with the requirements of the Czech National Bank.

* All documentation shall be provided in English. If documents are not in English, then they must be accompanied by a notarized translation.