Steps to open a little EMI

[Btraveler]

Hello there,

I was wondering which steps are necessary to open an little EMI which can work global but with the lesser requisites. I've seen, for example, that Payeer uses a Vanuatu Financial Services license, which I assume maybe is easy to obtain and so.

A colleague wants to start with it and I want to help him on the legal and banking issues. Thank you in advance, every help will be appreciate

 

[OrangeTIco]

I would like to know about this as well. Hopefully someone will come with a reply.

 

[Btraveler]

There are many options available but the main thing is for what you ened it.
Vanuatu license is fine but with such simple licenses such EMI will always have problems with corresponding banks and sending money to normal banks.
From the actual options UK seems one of the best. We have also helped our clients to set up EMI's in Lithuania and Czech Republic but it was more expensive than in UK.
If you need only SEPA, it's relatively easy.

Hello there @MarioSmith could you send me more info and prices for it? I'll evaluate it with. Thank you

 

[andres33]

There is a solution that's very easy. A small EMI (sEMI) in Tchequia. You don't need capital deposit. Fees cost with a good attorney firm is arround ~20K € (with business plan + 10K€). The IT for a reduced and single activity arround 10/15K.
Total cost ~40/45K € keys on hand
You need a local adrress and an office. You can get office space arround 300€/month . You need a local manager in situ that speack magyar= ~1400€/month. IT maintenance arround 1500/2000€ month.
Time to set up arround 4 months. Total operative runing cost 3000/4000€ monthly. Including externalised compliance and accounting.
You can operate the company from other country.
I got all the budgets 2 months ago from 3 diferents lawyers firms to comparate.
Limits turnover 36M/year or 3M/month. You can issue payment cards to your customers.
The ideal is to setup this solution between minimum 10 asociates to minimize the first period runing period essentialy for the operative monthly cost.

 

[Btraveler]

Hello @andres33 ,

I think you've been digging well on it. Do you think the same compliance is needed for carrying and "EMI" like ADVCASH or PERFECT MONEY?

AML Program / Documents / Advanced Cash See they are stablished on Belize and offices in Gybraltar...

Payeer has a license from Vanuatu

 

[Btraveler]

Some lights on that?

Do you think the same compliance is needed for carrying and "EMI" like ADVCASH or PERFECT MONEY? Also Payeer has a license from Vanuatu

 

[andres33]

Always you will need compliance in "normal" countries and if you want to operate with "normal" jurisdiccion. KYC, AML, new clients onboarding, due diligence, etc... are obligatory to run a financial institution, banks etc.. But you can subcontract it without problems. But normaly when you operate a financial institution, your IT will have a program with all the KYC, AML etc... When a client or customer will do the onboarding for exeemple, the program will decide if it's ok or if it red flag the client. And with AML exactelly the same. Then when a red flag is decreted by the IT, it will be a compliance, (an employee) who will analize if really is a correct red flag or is a bad interpretation from the system. For that you need always somebody specialist in compliance to verify the program. From the moment that you need a manager, try to choose somebody who is compliance . He will give to your sEMI a little more flexibily. However if you don't have compliance, the bank where you will have your account will bill you this service. So better to have one as employee. If you have few clients in the first time, you can subcontract all the services as accounting, KYC, AML, etc.. There is many lawyers firms for that. The price will depend on the volume. But forget Vanuatu and other exotic juridiction is you want to work normaly with Europe or other "normals" countries
Forget the bizaroids licenses.

 

[andres33]

Also posibility to open a EMI sublicense in Lithuania. So a white labeled EMI.
I copy the offer received 1 month ago
"Dear Sirs,
You been inquiring about payment institution license/electronic monies institution in Lithuania lately.
We have several Lithuanian licensed entities for sale starting with creative innovative IT platforms as enclosed sample join wallets around the word and 4 year in operation to mega EMIs with turnovers 10-15 million plus.
Further, our client may provide Lithuanian sublicense from cloud of the EMI, cost EUR 40 k time payment plus minor other cost. UK EMI would take only 4 months to open both with license and IT ready."

Monthly cost for that is 2500€ if you have compliance. If you don't have it, you must to add 2000€/month. Total runing cost 4500 + office. Total it's the cost like a sEMI in Tchequia. But with a biguest turnover

 

[andres33]

yes sure
For that we put the offer in standby.
Much better a new sEMI in Tchequia