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EMI license in Sweden

Published:
September 14, 2023

Introduction

Sweden has emerged as a financial technology (FinTech) haven in recent years, attracting innovative companies from around the globe. A vital component of this FinTech ecosystem is the Electronic Money Institution (EMI) license. This license empowers businesses to operate as financial institutions, offering electronic payment services and electronic money issuance. In this article, we will delve deeper into the intricacies of EMI licenses in Sweden, including their requirements, advantages, transactions, sales, application process, taxation, costs, and the added value of professional services.

Swedish EMI License Requirements

Obtaining an EMI license in Sweden is a well-regulated process overseen by the Swedish Financial Supervisory Authority (Finansinspektionen). To be eligible for an EMI license, a company must meet several essential criteria:

  • Legal Structure: The applicant must be a registered legal entity in Sweden or another European Economic Area (EEA) country, demonstrating a commitment to the region’s financial stability.
  • Solvency: Demonstrating financial stability and solvency is paramount, as the authorities want to ensure that EMI license holders can meet their financial obligations and capital on bank account meets requirements.
  • Anti-Money Laundering (AML) and Know Your Customer (KYC): Stringent AML and KYC procedures must be in place to prevent illegal activities, fostering a secure financial environment.
  • Compliance: The company must adhere to strict compliance requirements, which encompass risk management, governance, and robust internal controls. This ensures that EMI license holders maintain the highest standards of ethical and responsible financial services.

Advantages of EMI Licenses in Sweden

  • Access to the EU Market: One of the most compelling advantages of obtaining an EMI license in Sweden is access to the European Union (EU) single market. This allows companies to offer their services seamlessly across EU member states, vastly expanding their customer base and market reach.
  • Flexibility: EMI license holders enjoy a remarkable degree of flexibility. They can issue electronic money, facilitate electronic payments, and offer a wide range of financial services. This versatility makes EMI licenses an attractive option for innovative FinTech companies seeking to diversify their offerings.
  • Competitive Edge: EMI licenses lend companies a considerable competitive edge. Holding such a license enhances a business’s credibility and trustworthiness in the eyes of customers and potential partners, making it easier to issue partnerships and attract clients.
  • Operational Control: With an EMI license, companies gain greater control over their financial operations, reducing their dependence on third-party payment processors and enhancing their ability to tailor their services to meet customer demands.

Procedure for Obtaining an EMI License in Sweden

Obtaining an e-money license in Sweden involves several sequential steps:

  • Preparation: Before applying, it’s essential to ensure your company and bank account meets all eligibility criteria and has the necessary documentation ready.
  • Application Submission: The heart of the process is submitting a comprehensive application to the Swedish Financial Supervisory Authority. This application should detail your company’s business plan, governance structure, and AML/KYC policies.
  • Review Process: Expect a thorough review of your application by the Financial Supervisory Authority. This evaluation is a crucial step in ensuring that your company is well-prepared to operate as a financial institution.
  • Approval: Once your application successfully navigates the review process, you will receive your EMI license, granting you permission to commence your transaction  and sale operations.

What is Included in Our Services

Embarking on the journey to obtain an EMI license can be complex and time-consuming. This is where professional services come into play, offering invaluable assistance:

  • Comprehensive Guidance: Expert consultants can provide step-by-step guidance throughout the application process, ensuring your documents are in order and your business plan aligns with regulatory requirements.
  • Law Compliance: Professional services can help you establish and maintain robust AML/KYC procedures, guiding you through the maze of ongoing regulatory requirements and updates.
  • Risk Assessment: These services can also assist in identifying and mitigating potential risks in your business plan and operational model, ensuring your business operates smoothly and securely.

Taxation of EMI Companies in Sweden

EMI companies in Sweden are subject to corporate taxation law, and it’s essential to understand the capital implications. Corporate income tax rates in Sweden typically range from 20.6% to 21.4%. Additionally, EMI companies must adhere to VAT regulations for financial services, which can vary depending on the type of services offered.

How Much Does an EMI License in Sweden Cost?

The price of obtaining an EMI license in Sweden is variable and depends on various factors. These factors include the complexity of your business model, the extent of professional assistance required, and the ongoing compliance costs. As part of your financial planning, it’s crucial to budget for application fees, legal and consultancy fees, and other related expenses.

Our Advantages

Selecting the right partner for your e-money license application can significantly impact your success in this venture. Our price included services offer several key advantages:

  • Expertise: Our team comprises experienced professionals who are well-versed in the intricacies of EMI licensing and regulatory compliance.
  • Efficiency: We streamline the application process, reducing potential delays and ensuring a smooth transition to EMI license status.
  • Ongoing Support: Beyond securing your license, our services provide ongoing support to help you maintain compliance and adapt to evolving regulations. This long-term commitment ensures your business remains on solid footing in the ever-evolving financial landscape.

In conclusion 

Obtaining an e-moneylicense in Sweden is a strategic move for FinTech companies aiming to expand their operations in the EU market. However, the process can be intricate, and compliance is non-negotiable. Utilizing professional services can simplify the journey and substantially increase your registered company’s chances of success in this dynamic and rapidly evolving industry. As you embark on this journey, consider the myriad advantages that EMI licenses in Sweden can offer and the value that professional assistance can bring to your endeavor.

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