The financial sector is one of the best industries to invest in Estonia for several reasons. Among these are the number of activities available and the clear regulations for obtaining various types of Estonian financial licenses.
Below, our company formation agents in Estonia present the steps for opening a financial business in this country. We offer support in applying for the type of financial license you need.
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How to register a financial company in Estonia
The procedure to open a business and obtain a financial license in Estonia implies registering one of the available business entities with the Companies House followed by the licensing phase. From this point of view, we want to mention that you can choose between the private and joint stock company. The decision should be made based on the size of the enterprise.
We invite you to use our company registration services in Estonia to incorporate the chosen business form.
| Quick Facts | |
|---|---|
| Specific applicable law |
– Company Law, – Bank of Estonia Act, – Securities Market Law. |
|
Types of financial companies in Estonia |
– banks, – insurance/reinsurance companies, – pawn brokers, – investment companies, – credit institutions, etc. |
|
Activities completed by financial entities |
– consumer credit offering and management, – banking, – insurance/reinsurance, – investment management, – financial advisory, – crypto activities, etc. |
| Special licensing requirements (YES/NO) | Yes. |
| Types of licenses available |
Financial institution, crypto, crypto investment fund licenses. |
| Licensing authority |
Financial Supervision and Resolution Authority in Estonia. |
| Special requirements (if any) |
Yes, specific share capital requirements must be met in accordance with the type of license obtained. |
| Legal forms recommended to open a financial company in Estonia |
Private and public companies, depending on the size of the enterprise. |
| Special business forms for foreign companies (if any) |
The branch office is often used by foreign banks. |
| Local management requirements (YES/NO) | Yes, such companies must have at least one resident director. |
| Local registered address required (YES/NO) |
Yes. |
| Other considerations when setting up a financial business |
The director and employees must have experience in the financial field the company operates. |
| Company registration time frame (approx.) |
Approx one week. |
| Licensing time frame (approx.) |
The issuance of financial licenses in Estonia depends on the type of authorization sought and can take a few months. |
| Support in filing for a financial license in Estonia (YES/NO) | Yes, we can assist with the application for Estonian financial licenses. |
Activities that dictate the type of financial license you can obtain in Estonia
There are several types of financial licenses available in Estonia and they are issued in accordance with the activity to undertake. From this perspective, you can set up the following financial companies in Estonia:
- banks;
- credit institutions;
- trust offices and companies offering trust services;
- investment management companies and investment funds;
- pawnbrokers;
- insurance and reinsurance companies;
- virtual asset service providers (VASPs), for which the Estonian crypto license is available;
- other financial service providers that obtain their licenses from the Estonian Financial Supervision and Resolution Authority.
If you want to obtain a financial license in Estonia you must know that it can also be grouped into several activities. The business permit is usually issued by the above-mentioned authority or by the Estonian National Bank.
If you want to open a company in Estonia with the purpose of applying for a financial license, you will find our agents’ knowledge and experience very useful.
General conditions to obtain a financial license in Estonia
Without exception, the following requirements must be met when filing for an Estonian financial license:
- the company must have a physical presence in Estonia;
- it is also required to appoint at least one resident director;
- the director must have experience in the financial field and must have occupied a managerial position prior to being appointed;
- the staff of such a company must also be proficient in the financial sector;
- the company should also set in place the technical infrastructure for its operations, including security features in the case of businesses operating on the Internet.
Please note that such businesses may also have specific accounting requirements, cases in which you can rely on our accounting services in Estonia.
Minimum capital requirements associated with various financial licenses in Estonia
Among the distinctive conditions related to obtaining a financial license in Estonia, the capital requirements are some of the most important. As such:
- to open a bank or a branch of a foreign bank in Estonia, at least EUR 5 million is required;
- the minimum share capital for a crypto company is EUR 12,000;
- EUR 100,000 is the minimum amount required to create a VASP in Estonia;
- companies providing virtual transfer services must deposit EUR 250,000 upon registration.
For other types of Estonian financial licenses, the issuing authorities may conduct various tests associated with the services to provide, and based on the respective assessments they will determine the capital requirements. This is often the case for insurance and reinsurance companies.
Feel free to contact us if you need assistance in opening a financial company and obtaining a financial license in Estonia.