Financial license in the Czech Republic

A PSP (Payment Service Provider) license is an authorization that allows companies to legally conduct payment operations. The license can be obtained in the Czech Republic - a country with a stable legal environment, transparent regulation, and a favorable approach toward startups. The Czech PSP license grants companies and entrepreneurs access to EU countries through mutual recognition among member states, providing a competitive advantage and broad opportunities for business expansion.
Specifics of the PSP License in the Czech Republic
The PSP license is issued by the Czech National Bank (ČNB) and, as mentioned above, provides direct access to the entire European market. In addition to passporting, notable features include:
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Moderate regulatory requirements. Unlike other EU member states, requirements for share capital and internal procedures are more flexible.
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Developed banking sector. The licensing process is simplified thanks to existing banks that actively cooperate with fintech companies.
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Favorable conditions for non-residents. The Czech Republic does not require founders to be residents. Business can be managed remotely, as long as requirements and standards are met.
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Timeframe. Preparation, submission, and review of the application take up to nine months, which is comparatively faster than in other European countries.
How to Obtain a PSP License in the Czech Republic
It should first be noted that the PSP license is divided into two types - Small and Full.
SPI: small payment institution
A Small Payment Institution (Small PSP) is a simplified license format, intended mainly for those just starting operations. It allows the provision of basic payment services within the country but does not permit offering them outside the Czech Republic. A key advantage of this type of license is the absence of strict requirements for share capital - starting from EUR 20 000. Formally, there is no lower threshold.
However, Small PSPs are limited in annual transaction volume - not exceeding EUR 3,000,000. This license is suitable for local market players or as an intermediate status before transitioning to a Full PSP.
API - full payment license
A Full Payment Institution (Full PSP) license enables the provision of the complete range of payment services. The license is recognized throughout the EU thanks to passporting, but the requirements are significantly higher. The minimum share capital is EUR 125,000, depending on the business profile.
Applicants must demonstrate an established management structure, develop comprehensive internal AML (Anti-Money Laundering) and KYC (Know Your Customer) policies, and confirm sources of income. Obtaining this license takes 6 to 9 months, but it is the right choice for companies aiming to build a robust payment infrastructure and expand into the European market.
In addition to the requirements that differ depending on the license type, a physical office must be registered.
Requirements for the applicant
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Local staff;
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Founding documents;
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Business plan;
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AML/KYC policies;
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Three-year financial plan;
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Proof of income;
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Lease agreement or property ownership document;
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CVs, references on business reputation, and certificates of no criminal record.
Our Services for the license obtaining in the Czech Republic
The specialists at Law&Trust provide full support throughout the PSP licensing process in the Czech Republic. We begin with a detailed analysis of your business model, then assist you at every stage of document preparation, and successfully guide you through the regulatory interview.
In addition to company registration, we will develop mandatory internal AML/KYC policies, prepare the full package of corporate documents, and, if necessary, assist with opening a bank account. Once the license is issued, you may also take advantage of our post-licensing support services.
Thanks to our experience and streamlined process, obtaining a license becomes a simple and efficient task.