SPI in Europe: the benefits of having a license

Getting SPI license certification in EU is a much simpler task than authorizing a full-fledged payment firm or EMI. The reason for this is the smaller volume of required documents, the absence of requirements for authorized capital and a local team, as well as due to the time frame for consideration of the application. However, there are certain restrictions on passporting and the volume of payments; the total amount of transactions must not exceed 3 million euros per month. Below we will look at what advantages the establishment of such a company in the EU offers and what benefits the holder of such a permit receives.

Our company is made up of specialists who know everything about SPI-licenses and are ready to provide you with qualified assistance in obtaining this type of permit around the world. We provide only high-quality specialized assistance. You can confidently delegate all your commercial ideas to us.

Significance of Obtaining SPI license in Europe

So, let’s look at some mandatory points related to obtaining this permit in the EU. The first and main point is such a phenomenon as certification. This is an exercise of the right for a company registered in the European Economic Area to carry on business in any other EEA state without requiring additional permission in each country. Often companies based outside the EEA are authorized in one state and use their passport rights to open an establishment elsewhere or to provide cross-border services.

This is especially valuable for multinational companies as it eliminates a lot of the red tape associated with obtaining permission from each individual country, a process that can be lengthy and costly for businesses. If you have an PI or EMI permit, then you can apply for passporting and start doing business in any other EEA state without requiring additional permission in each country. SPIs are not eligible for certification.

According to SPI regulation, you can apply to become an SPI if you meet the following conditions:

• undertake that when you start operating, your client asset business will generate an average monthly outstanding money of no more than €3 million;
• you can prove that in the 12 months preceding your application, the average monthly transaction value of payment services provided by you did not exceed 3 million euros (this estimate may be based on forecasts if the company has never operated before);
• you have a document describing how you will protect the funds of the owners of the assets transferred to you;
• ensure that you have funds to cover the minimum capital requirements.

Such authorization in EU provides full SPI license credibility and opportunity to conduct business within a given market space and access to the global market. The EU has created good conditions for entrepreneurship. Regulators and the general main government support foreign investors who are planning to invest in a business. To clarify the nuances of obtaining an activity license, contact our specialists.

So, the permit makes it possible to legally conduct business in the EU. The permit is suitable for institutions whose monthly turnover does not exceed 3 million euros. A document issued in an EU-country means legalization of work in any European country. You can carry out transactions with cryptocurrency. There are no restrictions on the types of financial work.

So, we also present the basic SPI requirements.

1. Presence of a local legal entity.
2. Availability of an office in the country where the license was obtained.
3. Permanent presence in the country of obtaining a license of at least the executive director, operating director and MLRO (Money Laundry Reporting Officer) – the employee responsible for conducting practices and compliance. Anti-Money Laundering Directive standards.
4. Prescribed mechanisms for monitoring the company’s work in accordance with the law.
5. Specified adequate measures to protect customer funds.
6. The company’s employees must be of good standing and have appropriate qualifications and skills.

SPI license in Europe provides companies with a legal basis for operating a payment system. It also allows companies to do the following.

1. Offer payment services to clients.
2. Process and store payment data.
3. Securely transmit payment information.
4. Access to payment networks.
5. Expand your customer base.

Benefits of SPI Certification: Market Advantage and Quality Assurance

Licensed SPI-institution is an ideal solution for financial service providers, fintech companies and startups to facilitate payments and remittances for individuals, companies and online traders. Europe is attractive and profitable for such firms for next-mentioned SPI license advantages.

1. There is no requirement that the management of the company reside locally in the territory of the selected jurisdiction.
2. An application for a license is made without creating a company. The creation of a company begins only after obtaining a license.
3. Fast licensing process. License issuance within 12 months or even faster. Business-oriented regulation.
4. Documents can be submitted in English and changed on the fly, which eliminates official two-way correspondence.
5. Possibility for non-banking institutions to obtain their own codes to generate individual IBAN client accounts like in a bank.

In addition to the above, there are special SPI license benefits of a market and commercial nature. Let’s consider them too.

1. Open a business in the EU and pay less taxes. Setting up the right corporate structure in a specific country can save you and your company money. After all, it is important to optimize the tax burden and reduce the amount of taxes, and not to evade paying taxes.
2. Stable legal protection. Companies registered in the EU operate in an atmosphere of positive business reputation with government support. Also in many European countries there are special subsidies, tax discounts and programs for the development of small and medium-sized businesses.
3. Register a company and open a bank account in Europe. It has long been known that the requirements and procedures for opening accounts in European banks are becoming more stringent every year. And opening a bank account in Europe for an offshore company is almost impossible.
4. Business development and entry into the international market. Having your own SPI company in the EU is always prestigious. Foreign companies and contractors prefer cooperation with partners from more developed and economically stable countries that are not considered offshore.

There is no single ideal jurisdiction in the world for starting a business that would suit everyone. But there are countries whose legislative and tax systems are ideally suited specifically to your case. However, when choosing a country to open a company, it is necessary to take into account many factors, including: benefits for newly created companies, the use of double taxation agreements, benefits for non-resident companies, benefits for certain types of companies (partnerships), benefits for limited income for small and medium-sized businesses.

Our team of professional and highly qualified lawyers is ready for fruitful cooperation and is aimed at achieving the most effective results for you. Contact us now and secure your future.

Article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.