Financial Services Company Licensing And Regulation

Governmental regulatory authorities impose strict rules on the financial services sector to reinforce financial stability and maintain the soundness of individual institutions while protecting their customers. Securities Brokers and Dealers, Payment Service Providers, FinTech Companies, Electronic Money Institutions, Investment Managers, Crowdfunding Service Providers, Investment Funds, and other finance institutions worldwide are subject to higher regulatory requirements and risk management standards.

Every financial business needs to hold a relevant license in order to lawfully operate. When choosing to establish a financial company, it is crucial to make your business legitimate by getting it properly registered and licensed.

Financial regulation is handled by the government organization, that usually issues licenses to financial market participants, sets regulatory standards, supervises and imposes a range of enforcement powers including the ability to levy administrative penalties. 

Due to strict and complex regulation and government oversight, forming a financial services company might be a long and complicated procedure. In order to easily navigate the regulatory landscape we encourage you to get  help from a competent legal team to file the necessary paperwork and keep your company compliant with all applicable laws and regulations. 

 

What to Consider When Starting a Financial Services Company?

  • Suitable jurisdiction and type of license it offers;
  • The ability to satisfy due-diligence and other requirements of the regulator;
  • The management’s practical experience in the financial sector;
  • Initial and on-going capital requirements;
  • Application fees, running costs and annual fees;
  • A commitment to setting up an operational office (if required) in the jurisdiction where the license will be issued;
  • Employing qualified staff;
  • Software and IT arrangements;
  • Marketing and promotion.

Steps of Setting up a Financial Services Company

  1. Selecting an appropriate jurisdiction for licensing and company formation.
  2. Company formation and setting up an operational office (if required). 
  3. Preparation of license application pack including Business Plan, AML/CTF Policy, Internal Policies and
  4. Procedures Manual. 
  5. Financial Forecasts and Due Diligence.
  6. Regulatory Compliance support.
  7. Selection of software and technology solutions.
  8. Bank and merchant accounts opening.

The financial license application is a complex and time consuming process, that can take days or even weeks to prepare all documentation and meet regulatory requirements. Incorrectly prepared paperwork shall most certainly result in the application being rejected and recorded in a file of unsuccessful applications, even if there is an attempt to re-apply or to apply in another jurisdiction.


It is always better and safer to use the expertise of a professional advisor who is familiar with all the requirements and difficulties of the application procedure in a specific jurisdiction. 

What We Offer

Different countries have various standards and procedures for obtaining financial licenses, so we are here for you to make sure you pick the right jurisdiction that fits to the scope of your business and available budget.

We offer the following services:

  • Securities Broker/Dealer Licensing
  • Payment Processing and Money Transmission Licensing
  • Electronic Money Institution Licensing
  • Crowdfunding Service Providers Licensing
  • Financial/Investment Advisor Licensing
  • Asset Management Licensing
  • General Compliance Advice and Monitoring
  • AML/CTF Documentation
  • Regulatory Reports

How We Can Help?

CorpZone is a one stop shop offering solutions for financial licensing in both European and offshore jurisdictions. We can assist you with obtaining and managing any type of financial license that best suits your business needs and requirements.

Please contact us to get a preliminary consultation with up-to-date information and interpretation of legal and regulatory requirements for your financial services company.

Contact our department