Eternity Law International — News — Overview – EMI in Cyprus

Overview – EMI in Cyprus

Published:
August 3, 2021

E-Money Institutions in Cyprus (also known as EMI in Cyprus) are entities that licensed to provide financial services to third parties, store their funds on special segregated accounts and issue debit cards. Being more flexible and fast in their operations, EMIs are a great alternative to traditional banks. EMI’s clients can also execute payment transactions in two ways: using a platform or a debit card. Being authorized, an EMI can execute its services in all countries of the European Union on a cross-border basis.

EMI in Cyprus: overwiev

To obtain authorization as an EMI, an applicant shall be a legal entity incorporated in Cyprus. The main precondition of granting a license is having a registered head office within the territory of the country. An EMI also falls under the regulation of the Central Bank of Cyprus (CBC) pursuant to the Payment Services Directive and the E-Money Directive which integrated into Cyprus legislation. Above all, such a license can also be issued by any country in the EU. The license petitions normally processed within 90 days of receipt of a duly filled out application form. In case the request is rejected, the regulatory body shall provide a proper explanation to a candidate.

To clarify, the license issued if an EMI has robust governance arrangements, including a coherent organizational structure with explicit and transparent lines of responsibility, efficient risk management processes, and control mechanisms. But the applicant may be asked to provide a reference letter for banks or the government proving high rates of return (RoR).

According to the Cypriot legislation, the right to carry out e-money services given to:

  • Banks approved by the CBC or any other EU regulatory body;
  • the European Central Bank (ECB) and the national central banks (NCBs);
  • Cooperative financial institutions;
  • Government bodies;
  • E-money and postal payment services providers;
  • EMIs, having obtained proper authorization to carry out their activity.

How to apply for the EMI license in Cyprus:

The applicants should also fill out the application form for authorization of an EMI. The request must include all the necessary information and documentation.

It is necessary to submit:

  • The operational program with a projected set of activities;
  • A business plan, comprising the structure, organization, and set of policies, processes, and operations of an establishment with a projected budget for the first 3 fiscal years of activities as an EMI;
  • Proof that the applicant has the necessary starting capital, the established minimum of which is 350 thousand euros;
  • Information about all directors, controllers, managers, shareholders or partners;
  • Evidence of good reputation, the legal status of the candidate and his/her headquarters address;
  • A copy of the Articles of Incorporation and the Memorandum or the partnership deed;
  • Provision of other necessary justifications.

The CBC may claim the applicant to submit additional information, since it may regard it appropriate to determine an application for a license.

Services provided by an EMI

EMIs approved to perform the number of activities, contingent on the prior authorization of the CBC:

  • Provision and operation of payment services;
  • Credit-granting;
  • Conducting other activities (payment cards issuance and digital wallet accounts creation; provision of currency exchange services; carrying out wire payments, IBANs issuance, etc.), subject to the applicable laws controlling such activities.

It is worth noting that the EMI license welcomes development in the sector of establishing new tools for working with digital money, also providing customer support, etc. EMIs that have obtained a license can receive the cash analog of transactions in digital currency, use e-payment means or resell products.

The establishment of an EMI in Cyprus has many benefits.

  • The government’s loyal position and attractive tax system create excellent conditions for setting up EMIs in this country. Moreover, Cyprus is a gateway to the European Union granting EMIs the right to perform their activities across all 27 countries.
  • The corporation tax rate for net earnings from EMI’s activities is only 12.5%, which is also the lowest rate in the EU.
  • No taxation on earnings from the sale of titles and received dividends.

If you are also looking to obtain an EMI license in Cyprus, Eternity Law International can also offer you its legal, technical, and business expertise and consulting support. We also have ready-made options.

Do not hesitate to contact us if you are looking for an available EMI licensed company in Cyprus.

You can also see our offers in category ready-made companies and licenses for sale

We also have multiple options worldwide!

You could be interested

Hong Kong Fintech Week 2023

This years Financial Technology Week marked a significant juncture, providing insights into the trajectory of a dynamic financial future characterized by unprecedented policy and regulatory announcements. This comprehensive exploration delves into the pivotal developments that unfolded during this groundbreaking event. Securities and Futures Commission (SFC) Initiatives: Tokenised Securities-Related Activities: The SFC’s Circular on Tokenised Securities-Related...

Apply for CySEC Market Maker License Cyprus

Cyprus established its image as an EU-state committed to forming legislative grounds for brokers. Getting a market-maker permit on the island is a highly-lucrative and promising solution in frames of quick and efficient business-development. CySEC license for Forex market makers gives possibilities to conduct operations to ensure financial tools liquidity, offering them for purchase/sale deals....

NEXT BLOCK EXPO BERLIN 2022

NEXT BLOCK EXPO BERLIN 2022, held in the bustling heart of Berlin, Germany, marked a significant milestone in the blockchain and cryptocurrency space. From cutting-edge technologies to regulatory insights, this expo served as a focal point for thought leaders, entrepreneurs, and investors to exchange ideas and forge new partnerships. With its dynamic program of keynote...

Classic Trust in British Virgin Islands

Beyond their untouched beauty, the BVI also offers favorable possibilities for someones and relatives striving to protect and grow their wealth through the corporation of classic trusts. A classic trust is a legitimate arrangement in which acquisitions are given to a trustee who owns and manages them on behalf of the inheritors. The trustee is...

Offshore updates in the Fintech

The Fintech industry has been experiencing significant offshore updates in recent times, leading to a global transformation in monetary favors. Offshore locations, traditionally known for their favorable adjustment environments and economically efficient operations, have become hotspots for fintech innovation and expansion. One of the key drivers behind offshore regulatory updates in Fintech is the advancement...

Business in 2021: how did companies manage to weather the global crisis?

What technologies can be used to prevent it in the future? Tech Week 2021, an annual conference dedicated to the introduction of digital technologies into the business sphere, will bring together leaders from companies operating in the technology industry. They will discuss how small, medium and large enterprises can grow and continue to function steadily...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360