Register a company in the United Kingdom and get a Payoneer account in just 3 days!
Key Considerations for Obtaining a Payment or E-money License in the Netherlands
The Netherlands offers a relatively attractive environment for fintech companies seeking a Payment Institution (PI) or E-money Institution (EMI) license. The Dutch regulator, De Nederlandsche Bank (DNB), is known for its efficiency and flexibility compared to other European jurisdictions.
A Licensing-Friendly Environment
- Speedy License Issuance: The Netherlands boasts a comparatively fast licensing process. While it usually takes 12-15 months in most European countries, obtaining a license in the Netherlands can be achieved in as little as 6 months.
- Flexible Local Presence Requirements: Unlike other countries that demand a significant local presence, the Netherlands allows for a more distributed team structure. While having two local directors is necessary, the rest of your team can be based elsewhere in Europe or even globally.
- English-Friendly Process: Most of the required documentation can be submitted in English, simplifying the application process.
Key Considerations
- Capital Requirements: It’s advisable to deposit the full authorized capital (125k euros for PI and 350k euros for EMI) at the start of the application process, although this isn’t mandatory in all jurisdictions.
- PI vs. EMI: The Netherlands offers a broader scope for PI licenses than other countries. This means that many fintechs can operate under a PI license without needing an EMI, saving time and money.
- Strict AML Requirements: While common across Europe, the Netherlands has particularly stringent Anti-Money Laundering (AML) regulations. Expect detailed explanations of your AML procedures and client risk management strategies.
- Higher Costs: The overall cost of doing business in the Netherlands is higher than in some other European countries. However, this can be mitigated by the country’s flexible local presence requirements.
In conclusion, the Netherlands presents a compelling option for fintech companies seeking a PI or EMI license. Its efficient regulatory environment and the possibility of operating under a PI license for a wider range of activities make it an attractive jurisdiction. However, potential applicants should be prepared for the country’s higher costs and strict AML compliance standards.
Obtaining an EMI license in the Netherlands offers businesses a gateway to a dynamic and regulated market for electronic money services. By understanding the requirements and carefully preparing their application, businesses can tap into the opportunities presented by this thriving sector.
IFB team can help with this. Contact us and obtain an EMI license in the Netherlands or buy ready-made companies with this license!
