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Obtaining an EMI License for a Fintech Startup: A Step-by-Step Guide by “Prikhodko & Partners”

25/ 04/ 2025
  Author: Taras Miroshnychenko, Head of International Corporate Law and Fintech Practice In a world where digital finance is evolving faster than regulators can keep up, the Electronic Money Institution (EMI) license has become the “gold standard” for fintech companies. It opens the doors to the EU market, enables the provision of payment services, electronic money issuance, and integration into the global financial ecosystem. However, the path to obtaining this license is complex and requires comprehensive legal and operational support. At Prikhodko & Partners, we guide fintech businesses through the EMI licensing process, taking into account international regulations, practical challenges, and the local specifics of each jurisdiction. One of our recent cases involved the successful licensing of an innovative platform in an EU country. 1. Why Is the EMI License So Important? An EMI license grants the company the right to: Issue electronic money; Open and manage customer accounts; Provide payment services, including wire transfers, direct debit, and card transactions; Integrate with international payment infrastructures (SEPA, SWIFT, Mastercard/Visa, etc.). According to our data, as of the end of 2024, there were over 350 licensed EMIs in the EU. In today’s competitive environment, it is crucial to have not only a unique product but also a solid legal foundation. 2. What Does the Licensing Process Look Like? A successful project implemented by Prikhodko & Partners included the following steps: 🔹 Preparation of a full documentation package: A 3-year business plan with financial projections; Anti-Money Laundering/Counter-Terrorist Financing (AML/CTF) policies, risk management, and safeguarding of clients funds (27 policies in total); IT architecture compliant with PSD2 and GDPR requirements. 🔹 Legal support: Drafting and submitting the application to the financial regulator; Communicating with the regulator, making amendments to the company’s documents, and advising on corporate governance matters. 🔹 Operational setup: Organizing a physical office and appointing a local director; Recruiting qualified professionals who passed integrity and professional skill checks; Installing information systems and servers with encryption in line with European regulatory standards. 🔹 Training and compliance: Conducting training sessions for key personnel; Preparing for audits and supporting the company during regulatory inspections. 3. How Much Time and Money Is Required? The typical licensing timeline ranges from 3 to 6 months after submitting the application. The cost depends on the jurisdiction, scope of services, company type, and internal readiness. In our case: Implementation period — 6 months; Legal support costs — approximately EUR 75,000–80,000; Additional expenses included office rent, salary fund, and IT infrastructure. 4. The Result The client successfully obtained a full EMI license, which allowed them to: Launch a payment platform operating across all EU countries; Enter into agreements with international partners; Grow their customer base by 130% within the first six months of launch; Achieve a company valuation of $12 million during the first pre-seed funding round. 5. What Steps Must Be Taken? The full EMI licensing process typically includes: Analysis of the business model for regulatory compliance; Selection of the optimal jurisdiction; Preparation of the full documentation package; Communication with the regulator; Setup of KYC/AML processes; Recruitment and training of personnel; Post-licensing support: structural changes, policy updates, audits. Conclusion Obtaining an EMI license is not just a formality. It is a reputational asset and a gateway to the global financial market. Successful implementation of such a project requires deep knowledge of international financial regulation, jurisdiction-specific legal frameworks, and business realities.

Author: Taras Miroshnychenko, Head of International Corporate Law and Fintech Practice

In a world where digital finance is evolving faster than regulators can keep up, the Electronic Money Institution (EMI) license has become the “gold standard” for fintech companies. It opens the doors to the EU market, enables the provision of payment services, electronic money issuance, and integration into the global financial ecosystem. However, the path to obtaining this license is complex and requires comprehensive legal and operational support.

At Prikhodko & Partners, we guide fintech businesses through the EMI licensing process, taking into account international regulations, practical challenges, and the local specifics of each jurisdiction. One of our recent cases involved the successful licensing of an innovative platform in an EU country.

1. Why Is the EMI License So Important?

An EMI license grants the company the right to:

  • Issue electronic money;
  • Open and manage customer accounts;
  • Provide payment services, including wire transfers, direct debit, and card transactions;
  • Integrate with international payment infrastructures (SEPA, SWIFT, Mastercard/Visa, etc.).

According to our data, as of the end of 2024, there were over 350 licensed EMIs in the EU. In today’s competitive environment, it is crucial to have not only a unique product but also a solid legal foundation.

2. What Does the Licensing Process Look Like?

A successful project implemented by Prikhodko & Partners included the following steps:

🔹 Preparation of a full documentation package:

  • A 3-year business plan with financial projections;
  • Anti-Money Laundering/Counter-Terrorist Financing (AML/CTF) policies, risk management, and safeguarding of clients funds (27 policies in total);
  • IT architecture compliant with PSD2 and GDPR requirements.

🔹 Legal support:

  • Drafting and submitting the application to the financial regulator;
  • Communicating with the regulator, making amendments to the company’s documents, and advising on corporate governance matters.

🔹 Operational setup:

  • Organizing a physical office and appointing a local director;
  • Recruiting qualified professionals who passed integrity and professional skill checks;
  • Installing information systems and servers with encryption in line with European regulatory standards.

🔹 Training and compliance:

  • Conducting training sessions for key personnel;
  • Preparing for audits and supporting the company during regulatory inspections.

3. How Much Time and Money Is Required?

The typical licensing timeline ranges from 3 to 6 months after submitting the application. The cost depends on the jurisdiction, scope of services, company type, and internal readiness.

In our case:

  • Implementation period — 6 months;
  • Legal support costs — approximately EUR 75,000–80,000;
  • Additional expenses included office rent, salary fund, and IT infrastructure.

4. The Result

The client successfully obtained a full EMI license, which allowed them to:

  • Launch a payment platform operating across all EU countries;
  • Enter into agreements with international partners;
  • Grow their customer base by 130% within the first six months of launch;
  • Achieve a company valuation of $12 million during the first pre-seed funding round.

5. What Steps Must Be Taken?

The full EMI licensing process typically includes:

  • Analysis of the business model for regulatory compliance;
  • Selection of the optimal jurisdiction;
  • Preparation of the full documentation package;
  • Communication with the regulator;
  • Setup of KYC/AML processes;
  • Recruitment and training of personnel;
  • Post-licensing support: structural changes, policy updates, audits.

Conclusion

Obtaining an EMI license is not just a formality. It is a reputational asset and a gateway to the global financial market. Successful implementation of such a project requires deep knowledge of international financial regulation, jurisdiction-specific legal frameworks, and business realities.

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