Working as CEO of Astorts Group, my team and I have received many inquiries about a cost effective way to license authorised payment institution (PSP) or electronic money institution (EMI), so I decide to write this bootstrapper's guide that can be useful for many of you.
If you are looking for the lowest possible entry point for authorised payment institution (PSP) or electronic money institution (EMI) with lighter requirements than in Europe or US, probably you should consider Georgia. I'd like -in this article- to focus on the options that Georgia may offer you. Other former popular entry point options like New Zealand, Cyprus, Malta and Hong Kong have increased their requirements and costs.
Georgia PSP Licence:
Under Authorised Payment Institution or Electronic Money Institution Licence in Georgia (PSP) you may offer the following services:
- Service, which ensures cutting the funds from the payers account and related operations.
- Service, which ensures transfer of the money on the receiver’s account and operation related to it.
- Carrying out of the payment in the amount deposited on the account holders account via direct debit (including one-time order) via other payment cards or other electronic means or via credit transfer (including permanent order).
- Making payment in the credit amount issued on the account holders account via direct debit (including one-time order), via other payment cards or other electronic means or via credit transfer (including permanent order).
- Issuance or acquiring of payment instruments including electronic money instruments
- Money transfers.
- Issuing electronic money, making money payments via electronic money, telephone, internet and via other electronic means.
- Based on the confirmation of the payer which was obtained by tele-communication, digital or informational technologies, carrying out payment operation to that network operator or for the benefit of such operator which acts as the intermediary between the payer and the receiver, between customer and service/goods provider
Georgia offers one of the most inexpensive option available anywhere in the world for setting up a Authorised Payment Institution or Electronic Money Institution Licence. Payment Service Provider Licence for Authorised Payment Institution or Electronic Money Institution is regulated in Georgia by the National Bank of Georgia (NBG).
Requirements and Procedures:
Any company registered in Georgia can apply for a Payment Service Provider Licence for Authorised Payment Institution or Electronic Money Institution, it's mandatory to have an operational office and a local manager/director in Georgia; and the Georgian company is expected to meet certain requirements, prescribed by the NBG such as:
- Directors of the company should have proper knowledge and expertise in the business that the company is planning to carry on.
- Shareholders of the company must ensure proper capitalisation of the company. There is not minimum paid- up capital to be fully paid.
- The application should be supported by certain information, including: the business plan, projected financial forecasts for the first year, Anti-Money Laundering and Customer Acceptance Policies.
Usually the full package to acquire your licence is in the range of $25.000 and includes:
- Formation of a Georgia Company;
- First year company registered address;
- One set of original corporate documents and rubber seal;
- Due Diligence file for Directors and Shareholders of the company
- Setting up a bank account for the Company in Georgia;
- Local Director/Manager;
- Completing a License Application;
- Collecting supporting license application documents from the client;
- Submitting the application to the NBG and following it up until finalised;
- Bookkeeping, Accounting and Audit Services.
Georgia is a country in the Caucasus region ofEurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the south by Turkey and Armenia, and to the southeast by Azerbaijan. The capital and largest city is Tbilisi. Georgia covers a territory of 69,700 square kilometres (26,911 sq mi), and its 2017 population is about 3.718 million. Georgia is a unitary, semi-presidential republic, with the government elected through a representative democracy.
Do you need my team help?
Please write me an email with your specific case or book a Skype Presentation, my team and I will be more than happy to help you to choose the best solution for your Forex Licence.