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Payment System License in Cyprus

Cyprus traditionally offers unique opportunities for conducting business, as payment systems (PS) can easily interact with local offshore companies and their bank accounts. However, to legally perform all related operations, a company must be licensed.

License for a Payment Institution in Cyprus: Benefits of Licensing

By obtaining a PS license, legal entities receive the following benefits:

  • They can engage in activities related to financial operations, including currency conversion, storage and processing of relevant information, and more.
  • After registration, PS can rely on confidentiality and secure operations with favorable taxation.
  • No capital gains tax and relatively low corporate income tax.

Among additional advantages, the license allows companies to work with debit and credit products via plastic cards, accept payments through various devices such as POS terminals, as well as carry out transactions through mobile and cellular operators.

Steps

01

Company Registration in Cyprus

A local company must be registered, to which the license will subsequently be issued. This requires selecting a company name, specifying participants, and providing their documents.

02

Opening a Bank Account

The company must open a bank account to deposit the share capital. Account opening is a complex process that should be entrusted to professionals. A package of documents must be prepared and further negotiations must be properly conducted.

03

Contribution of Share Capital

The exact size of the share capital depends on the type of license. If necessary, the beneficiary must provide documents confirming the source of funds contributed as share capital.

04

Hiring Mandatory Staff

The company must employ staff in key positions, some of whom must be local. We assist with the search and recruitment of employees.

05

Renting an Office

One of the mandatory requirements is renting an office. We will find a budget-friendly option that meets the requirements.

06

Preparation of Documents for License Application

A business plan and policies must be prepared. Additionally, application forms need to be completed. Only basic information will be required from the client, based on which we will prepare the documents in accordance with local legislation.

07

Application Submission

After preparing the company and documents, the application must be submitted to the regulator. After submission, you must be ready to respond to additional questions from the regulator. We ensure timely and well-prepared responses.

08

Obtaining the License

After successfully completing the previous stages, the company receives the license. It must begin operations within six months of receiving the license. Otherwise, the license may be revoked.

Payment System Licenses in Cyprus: What Applicants Need to Consider

All PS opened in Cyprus are regulated by the Securities Commission, which closely monitors that legal entities comply with all legal requirements. To obtain a license, the PS must be registered in Cyprus. The management must have an impeccable reputation and professional skills of a certain level, necessary to fulfill their official duties.

A payment system license in Cyprus is granted only if certain requirements are met. The company must:

  • Prepare a description of all planned payment services.
  • Prepare a financial and business plan for three years.
  • Provide proof of share capital of at least EUR 350,000.
  • Have a legal advisor, external and internal auditor, risk manager, and accountant.
  • Register with the register of the Central Bank of Cyprus.
  • Prepare and submit documents related to the company’s internal procedures, as well as an application with personal details of shareholders and directors (passport copies, residential addresses, etc.).

A payment institution license in Cyprus is a permit that allows a company to provide services across the European Union. However, it imposes certain obligations, which may require:

  • A description of KYC tools and other means aimed at protecting clients’ personal data.
  • Proof of compliance with AML (Anti-Money Laundering), as well as a description of measures to implement this policy.
  • A description of risk protection measures, internal control procedures of the PS, etc.

Specifics of Obtaining a Payment Institution License in Cyprus

To obtain a license, it is not enough to simply submit documents and wait for approval. It is necessary to personally visit the Cyprus Securities Commission for an interview with the regulator’s staff — this is a legislative requirement.

After this, the licensing application review process begins. It usually takes around 4 months, but in some cases the duration can be longer.

If you need a payment system license in Cyprus, contact our company. We will handle all mandatory procedures, prepare the necessary documents, and provide you with legal advice. This minimizes the risk of licensing refusal and saves you time and effort.

Free initial consultation on legal issues, related to the daily activities of the business

Additional services

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PSP system UK

In the UK, the licensing of payment systems (PS) is carried out by certain regulatory bodies, in particular, the FCA. They can provide business owners with a special license — AEMI. Having received such permission, the company will be able to work in any country, open IBAN accounts, obtain the status of a member of SWIFT, SEPA, and so on.

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Payment System License in Lithuania

If a legal entity registered in Lithuania plans to provide payment services to clients, it must obtain the appropriate authorization from the regulatory authorities. Often, companies apply for an EMI license, which gives entrepreneurs the right to issue their own electronic money, perform various payments, and more.

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Payment System License in Denmark

Today, Denmark is a country that does not yet have extensive experience in financial technologies, especially outside the banking sector. However, the government is making every effort to change the current situation. This is reflected in the active development of the electronic payments sector and the attraction of startups from all over the world. Moreover, regulatory authorities are open to dialogue and are actively trying to assist entrepreneurs who decide to register a company and obtain a payment system (PS) license here.

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Frequently Asked Questions:

To obtain a payment system license in Cyprus, you must prepare a business plan, AML policy, and other documents, register a company, and hire specialists for mandatory positions (director, AML officer, etc.). Essential elements for obtaining a license include a bank account and paid-up share capital.
When choosing a payment system, it is necessary to consider its license, service coverage regions, and acceptable payment methods. You must also ensure that the payment system’s requirements match your company’s characteristics (country of incorporation, residency of its participants, etc.). The tariffs offered by the payment system also play an important role.
If all company maintenance requirements are met, the license is perpetual. However, the license may be revoked if the company remains inactive for a long time and/or violates operating rules.
The final cost of obtaining a payment system license in Cyprus depends on various factors (exact list of future services, region of operation, etc.). To find out the exact cost for your company, please contact our specialists.

Contact
info

+85281926676

info@incluence.net

Rm 7B, One Capital Place, 18 Luard Road, Wan Chai, Hong Kong

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