Payment Institution License in the Czech Republic
The Czech Republic offers comfortable environment for entrepreneurial and financial activities. This is explained by the fair fiscal policy, economic development, reasonable supervision by authorities.
By creating payment systems in the Czech Republic, you may take advantages to do business both in the EU and beyond.
Availability of experts, relatively low labor cost, convenient regulation and transparent tax system make the Czech Republic a very comfortable place to create the private payment system. Also, the mentality of residents is close to ours, which simplifies the communication process with citizens of the Czech Republic.
The Private Financial Services experts have spent time and resources to adjust the process of payment system in the Czech Republic and prepared a special offer for partners and customers.
In the Czech Republic, the activity of persons authorized to provide payment services and issue electronic money is regulated based on the Law 284/2009 Sb., http://www.zakonyprolidi.cz/cs/2009-284 and Directives No 141/2011 Sb. http://www.zakonyprolidi.cz/cs/2011-141.
The license of the payment institution is granted by the Czech National Bank. The license may be issued subject to the following conditions:
- A legal entity is a resident of the Czech Republic.
- The registered and head office is located in the Czech Republic.
- Share capital is from 70,000 Euro.
- The business plan is available.
- Transparency and compliance of the business model with regulations and international rules.
- Directors are reliable persons in terms of reasonable provision of payment services.
- Key persons are employees who are able to effectively do business on payment services provision, who are competent and are sufficiently experienced in terms of reasonable and careful provision of payment services.
These are minimal provisions to obtain a license. For more information, please contact our specialists.
Specialists of the Private Financial Services are available to assist in implementation of these criteria and provide a turnkey service.
To note, the license of the payment institution issued by the Czech National Bank grants the right to deliver services throughout the EU. This does not definetely limit in attracting customers from other countries. However, as per the license iteself, the activity shall be performed at the territory of the EU.
The business plan provided by the customer, is the integral part of the package of documents submitted to the CNB. Generally speaking, success or failure to get a license depends on the business plan.
From our party, to facilitate the preparation of the business plan by our clients, we have prepared templates of business plan and financial plan that we pass to our customers as the contract with us is signed.
Yet, as the business plan and financial plans are transferred, we do the detailed analysis and provide specific recommendations for the plan improvement based on our experience to collaborate with the CNB on the issue.
We offer our services to prepare a business plan and a financial plan, but this service is not part of the standard price offer and shall be negotiated separately.
The cost of translation of the business plan and financial plan into the Czech language will be charged separately.
In the Czech Republic, almost all major banks allow acquiring services. The choice of bank is responsibility of the customer.
The package provided included:
- A company registration in the Czech Republic and settlement account opening.
- The application for registration in the register of payment service providers.
- The permit for commercial activities.
- Proof of origin of the share capital.
- Application form for each manager with the information on work experience and educational background.
- Certificate of no criminal record in the Czech Republic in terms of shareholders and the director and certificate of no criminal record from countries of residence of shareholders and Directors.
- Business plan for 3 years.
- Financial plan for 3 years.
- Description of the management and control system.
- Description of methods to secure funds of trustees for payment transactions.
- Description of methods to implement various payment services.
- Description of the method to be used by the payment institution when calculating the capital adequacy.
- Preparation of statutory documents and regulations under the Czech law and bank requirements.
- In addition, we are available to deliver other related services.
To obtain licenses is long and time-consuming process. Prices to get a license start from 50,000 Euros depending on what operations will be carried out by employees of our company.
For more information on payment institution license in the Czech Republic and prices please contact our specialists.