Money transaction License: advantages of License Obtaining in Bulgaria
Date added: :
04.01.2017
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Today Bulgaria is the most favorable Country to obtain financial license.
License could be obtained in any other EU Member State; Bulgaria is the member of EU, so you may use it in any European Country.
Payment Institutes are subjects to licensing in EU, and once you will get license in any EU Member State, you will able to provide financial services on the territory of European Union without farther issues – single obligation is to notify Banks of member states about such business (in that case BNB – Bulgaria National Bank).
Corporate income tax is the lowest in EU – 10%, the same as personal income tax, which also equals to 10%.
Set-up company prices, support of that company and licenses prices are preferable if to compare with other prices.
Price for rent of real office also preferable, but quality of office employees are very high.
Variety of different Banks (including International Banks).
In Bulgaria was created special Act, which deals with Payment services and Payment systems.
- Banks
- Payment institutions and electronic monies
- European Central Bank and national central banks of EU Member States, when they are not deal with Governmental functions.
1. Services, which connected to introduction of money on a payment account.
2. Services, which connected to output of money fr om a payment account.
3. Other payment operations:
- execution of direct debits, including one-off direct debits.
- execution of payment transactions through a payment card.
- Instruments.
- execution of credit transfers, including standing orders.
4. Money transactions, where part of the money is a payment for financial services:
- execution of direct debits, including one-off direct debits
- execution of payment transactions through a payment card.
- instruments.
- execution of credit transfers, including standing orders.
5. Payment issues and receiving of payments through payment instruments.
6. Execution of money transactions.
7. Money operations through any type of telecommunication or digital or IT gadget.
They are all licensed activities.
A license is required fr om the National Bank, as the company must satisfy certain conditions relating to reliability and security.
Only two types of companies can apply for obtain a license as a payment institution – a Limited liability company or a Joint stock company.
Bulgaria
Requirement for the Money Remittance License
Capital Requirements
There are different requirements for the minimum capital of the company:
40,000 leva (about € 20,460) – where the payment institution will provide only payment services under item 6 above (bold item 6);
100,000 leva (about € 51,150) – wh ere the payment institution will provide only payment services under paragraph 7 above (bold item 7);
250,000 leva (about € 127,850) – when the payment institution will provide any of the payment services under item 1 – 5 above (bold items).
Therefore, if you plan to implement just cash transfers you should have a capital of 40, 000 leva.
The term “money remittance” under the Bulgarian Act is: “payment service wh ere funds are provided by the payer, without any payment accounts in the name of the payer or the payee, for the sole purpose of transferring a corresponding amount to the payee or another payment service provider acting on behalf of the recipient, and / or where such funds are received by the recipient’s name and at his disposal”.
Number of Directors 1 director required
Local Director EU resident director – acceptable
– Front office person;
– Internal Control person;
– Technical Support person.
Local Office the cost will not exceed 200 to 400 Euros monthly
Application Requirements
To obtain a license from the Bulgarian National Bank you should file the submission of multiple documents that can be defined in several groups:
– The Company itself
Copy of Company documents;
Proof for the required capital or owners’ statement for the origin of the funds;
– Professional qualifications and reputation of managers and
Representatives of the company;
– Curriculum Vitae showing professional experience and expertise on the specific
financial sector.
All foreign language documents must be translated and legalized in the Bulgarian language.
Among the requirements are those to rent a real office (not just mailbox) in Bulgaria, which will actually be examined by legal representative of the Regulator.
If a payment service provider (PSP) has a Bulgarian licence granted for only one of the services but decides to offer additional services afterwards, there is an opportunity to apply for supplementing the licence with other payment services.
Payment institutions in EU are subject to licensing but once a licence is obtained in any member state (e.g. in Bulgaria) – then the payment institution can provide services on the territory of the entire EU without further licensing. Informing the relevant Central Bank of the respective member state is the only obligation in this relation. In Bulgaria this is the Bulgarian National Bank (BNB).
If a payment service provider (PSP) has a Bulgarian licence granted for only one of the services but decides to offer additional services afterwards, there is an opportunity to apply for supplementing the licence with other payment services.
- Business Plan over 3 years’ period;
- AML policy;
- KYC policy;
- Risk Management policy;
- Model of contracts with clients.
There some Countries which have treaty with Bulgaria. According to that treaty apostil and legalization of documents are not necessary (For example, France). If you are in Country which didn’t signed such treaty all documents should be signed with notary.
We represent the whole types of Company registration services andopening of Bank accounts. We are able to help with obtaining of certain licenses in Bulgaria. Our Lawyers can answer any questions via email or during consultation.