To set up an EMI/ PSP company in the United Kingdom, entrepreneurs should first register their legal entity, then obtain their licenses for functioning and offering these specific services. The EMI is an electronic money institution business, while the PSP is a payment service provider company. Our team can help you open a company in the UK and assist throughout the incorporation process, including obtaining the EMI license in the UK. Our lawyer in London can answer important questions about the laws that govern the chosen business sector.
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How to set up an EMI/ PSP company in the UK
Setting up a private company is the first step for those who open an EMI/ PSP company in the UK. The private limited company is the most chosen business form for these types of business activities as it offers a clear separation between the founder(s) and the business. As the name suggests, the company is a separate legal entity from its founders.
The following steps presented by our team, that can help you with company formation in the UK, are relevant for both an electronic money institution and a payment service provider, for the founder who will register a company limited by shares:
- Choose the shareholding structure: at least one shareholder is required and they will have to provide identification details;
- Decide who the directors are: one director is mandatory (or more for larger companies). The sole shareholder can also act as the company director, if this is the case;
- Select the business name: when you set up an EMI/ PSP company in the UK, the desired name must be available for use. This can be checked in advance;
- Prepare the documents: these are the Memorandum and Articles of Association, the statement of capital and others;
- Register the EMI/ PSP company in the UK: the new legal entity will be registered with the Companies House.
If you want to set up an EMI/ PSP company in the UK, you will have to obtain an EMI license in the UK for the activities you will be engaging in. Like other business sectors, the financial one is regulated by a specific entity, in this case, the Financial Conduct Authority.
Below, you can find out more about the e-money license in the UK, among other requirements for licenses. For more in-depth information, please seek assistance as offered by our local lawyers.
Licenses required for the EMI/ PSP company in the UK
If your company in the UK will provide payment services or issue electronic money, it will have to be properly registered for functioning with the Financial Conduct Authority, referred to as the FCA. Two distinct options are available with the Authority: authorization or registration. The form of approval is determined based on the activities that will be undertaken by the company.
You can apply for an EMI license in the UK, which is also used by companies that require an e-money license in the UK (see below for more details). Alternatively, you can apply for a license that will be used both for EMI and PSP activities.
The following checklist is a useful guide on determining if a company must be authorized or registered with the FCA:
- If the company offers both PSP and EMI services;
- If it is not a credit institution, credit union, or municipal bank;
- If it will offer payment services that are independent from e-money products;
- If it will provide both an account information service and a payment initiation service;
If all of the above are met, then the company will have to be authorized by the FCA.
License fees for the EMI/ PSP company
The fee for those who open an EMI/ PSP company in the UK applies according to the category. The following prices are offered as an example:
- Category 1: £280;
- Category 2: £550;
- Category 3: £1,120;
- Category 4: £2,790;
- Category 5: £5,580.
Payment institutions and e-money institutions are considered Category 3 (for small companies) and Category 5 for authorized PSP/ EMIs.
Our team can not only help you open a company that will offer electronic money or payment service solutions. We can also assist those who are in the licensing phase and must apply for a license that will allow their company to become an electronic money institution or a payment institution.
Additionally, we can also assist those interested in opening a branch in the UK.
Contact us for more information on how to set up an EMI/ PSP company in the UK. Our lawyer in England will answer your questions.
