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Electronic Money Issuer License in the Czech Republic
With the growing digitalization of financial services, issuing electronic money has become an increasingly significant business activity. In the Czech Republic, electronic money issuers operate under the supervision of the Czech National Bank, which enforces stringent criteria for companies seeking to obtain the necessary authorization.
Holding an EMI license in the Czech Republic grants the right to:
- Issue electronic money;
- Offer payment services associated with electronic money;
- Provide additional payment services stipulated in the license that are unrelated to electronic money.
Apart from the standard license, businesses may also apply for a small electronic money issuer license. This authorization permits an entity to issue electronic money and provide related payment services, provided that the total volume of electronic money in circulation within the Czech Republic does not surpass €5,000,000. For issuers operating for less than six months, the average issued amount is determined based on their business plan. Additionally, small EMIs are subject to limitations regarding activities unrelated to electronic money.
Eligibility Criteria for Applicants
An EMI license may be granted if the applicant satisfies the following requirements:
- Must be a legal entity;
- Must have a registered office and main headquarters within the Czech Republic;
- Must submit a business plan with a financial projection for the initial three reporting periods, grounded in realistic economic assessments;
- Any additional business activities beyond electronic money issuance and payment services must not jeopardize the financial stability of the institution or impede effective regulatory oversight;
- Its ownership structure must consist solely of individuals or entities capable of ensuring secure and responsible management of the electronic money institution;
- The minimum initial capital must be at least €350,000 (or €800 for small EMIs).
Mandatory Documentation
To apply for an EMI license, the following documents must be provided:
- Formal application for an electronic money institution license;
- Evidence confirming the right to conduct business operations;
- Documentation verifying the source of funds used as share capital;
- Completed questionnaire for each director, outlining their educational background and professional experience;
- Extract from the Czech Republic’s criminal records for founders and directors;
- Extract from the criminal records of the founders and directors’ respective countries of residence;
- Three-year business strategy;
- Three-year financial projections, among other required documents.
Application Submission and Processing
An EMI license application may be submitted by an individual designated as an executive body in the incorporation documents, even on behalf of a legal entity that has yet to be officially registered.
The application must be filed exclusively in electronic format, and the review process takes a minimum of three months.
Should the legal entity fail to complete its registration within six months from the date of license approval, the license will be rendered invalid.
If you require further details about acquiring an EMI license in the Czech Republic or have already decided to proceed with the application, the legal professionals at Law&Trust are ready to offer comprehensive guidance throughout the entire procedure.
Additionally, we provide supplementary services such as company registration in the Czech Republic and assistance with opening standard or segregated bank accounts.
FAQ
Can an EMI license obtained in the Czech Republic be used in other EU countries?
Yes, an EMI license issued by the Czech National Bank can be passported to other EU member states. This enables the license holder to provide services across the entire European Union without the need to obtain additional licenses in each country.
What is the difference between an EMI and a PSP license?
An Electronic Money Institution (EMI) license authorizes not only the provision of payment services—similar to a Payment Service Provider (PSP) license—but also the issuance of electronic money. This makes the EMI license broader in scope and more versatile.
How long does it take to prepare an EMI license application?
The preparation phase—including document collection, business plan development, and team organization—typically takes between 1 to 3 months, depending on the applicant’s level of readiness and the complexity of the company’s structure.
Who can serve as founders and directors of an EMI?
Both EU citizens and non-residents may serve as founders and directors, provided they meet the regulator’s requirements, which include a clean professional reputation and sufficient experience in the financial sector.
What happens if the Czech National Bank raises concerns during the application review?
If the regulator identifies deficiencies or requests additional information, the applicant will be given a deadline to address the issues. Failure to comply within the specified timeframe may result in the application being denied. Therefore, it is highly advisable to work with experienced professionals who can ensure a thorough and accurate application.
