Obtaining brokerage license in the Czech Republic | Law&Trust International

Brokerage license in the Czech Republic

One of the advantages of processing brokerage license in the Czech Republic is the fact that the National Bank of the country acts as the regulator of the financial and forex markets. The state institution complies with all regulations of the legislation and guarantees equal conditions for consideration of applications for citizens of the state and non-residents.

The second distinctive feature that concerns all jurisdictions in Europe is the process of passportization.

If you obtained brokerage license in one of the EU member states, business expansion into neighboring regions that are also part of the Union is possible by a simple procedure of inter-jurisdictional authorization without additional filing of documents and payment of large state fees.

Obtaining forex license in the Czech Republic implies the establishment of legal entity in the territory of the state. Only local legal entities are entitled to obtain an initial certificate. When incorporating a new company, it is also necessary to open bank account and contribute the authorized capital.

Certain requirements are imposed on new enterprises, such as: the IP can not act as investment company or securities firm. Brokerage licenses are issued only to LLCs or JSCs. Regardless of the type of firm, minimum amount of the authorized capital is set at 125 thousand euros. These requirements are prescribed by the regulator of the stock market, so they need to be obligatorily met.

How to obtain brokerage license in the Czech Republic:

Authorized capital

  • Financial condition of the client is very important. However, forex licenses are of several types, and the type of certificate is determined by the set of services that the company plans to provide to its users. All operations permitted for trading on the stock exchanges are divided into main and secondary ones.

    The first ones include direct participation in trade, issuance of own business instruments, regulation of brokerage clients' relations, granting of loans and miscellaneous operations. The secondary ones are consulting, renting safe boxes and other similar services.

The amount of the authorized capital is calculated as follows:

    • f the client plans to provide a full range of main and secondary services, at least 730 thousand euros should be on his account.
    • In case there is the amount of 125,000 euros, most services are also available to be provided, however a lot of restrictions are imposed in the foregoing situation.
    • 50000 euros on the bank account is sufficient to work with many instruments, but it is forbidden to accept the finances of the clients, as well as investment objects.
    • If there is 25,000 euros on the account, a broker can not provide insurance services, accept finances from his clients and render accompanying and maintenance of services and operations from the list of secondary ones. He retains the right to execute several main operations.

    Detailed list of brokerage services and their relation to the amount of the authorized capital can be clarified with the lawyers of Law&Trust.

What is the cost of brokerage license in the Czech Republic?

Establishment of a head office in the Czech Republic and verification of the company's senior management for availability of criminal record are not included in the price indicated on our website, since the foregoing services are not necessary for everyone.

Submission of the application in accordance with general rules, as well as collection of the package of documentation for the company and all its shareholders are carried out by our specialists.

The price for work can be clarified by phone, in chat or by mail. The period for consideration of the application is 6-8 months.

Legal support of the specialists of Law&Trust, which is necessary for the development of the company in the territory of the new jurisdiction, is ensured for you during the foregoing period.


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