Financial Licenses in Germany
VEGO Consult provides support in financial licenses / authorizations obtainment in Germany and other jurisdictions of the European Economic Area
VEGO Consult provides support in financial licenses obtainment and collaborates with issuing license authorities directly (without intermediaries) what significantly reduces the costs for our customers. Any company that wishes to provide financial services in Germany on commercial basis (within the jurisdiction of the German Banking Act / Kreditwesengesetz, KWG) is required to request written authorization from the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) in accordance with section 32 (1) Banking Act.
Financial licenses / authorizations are issued for the following activities:
- Brokerage business in the EU related to the purchase and sale of financial instruments, for example, securities or foreign currencies (on behalf and at the expense of third parties)
- Brokerage business outside the European Economic Area
- Purchase and sale of financial instruments on an individual basis for third parties
- Providing investment recommendations/investment advice (providing clients or their representatives with personal recommendations regarding transactions related to certain financial instruments)
- Management of multilateral mechanism uniting the interests of large number of individuals in the purchase and sale of financial instruments through a unified infrastructure
- Managing portfolios of financial instruments on behalf of third parties at sole discretion
- Money transfer services (money remittance)
- Credit card services (issuing and administering credit cards)
- Foreign currency transactions
- Financial leasing
- Investment fund
The minimum requirements for the above licenses include the following:
- Public listed company (PLC or AG in German) as form of legal entity, depending on the type of activity (in some cases LLC/GmbH)
- Availability of the required authorized /share capital (from 50 000 up to 750 000 EUR), depending on the type of activity. Funds should be transferred to the account of the company from one source and be “crystal clear”. If additional questions from issuing license body will arise, customer should be able to clarify the source of funds (SOF).
- Business plan (includes description of the business, organizational structure, financial plan, marketing plan, description of the technical platform, internal control mechanisms AML / KYC)
- At least two managing directors with relevant skills, education and experience, depending on the activity type and legal form of the entity
- Headquarters (HQ) in Germany, depending on the activity type and legal form of the entity
- Corporate documents (articles of association, certificate of incorporation etc.)
Requirements listed above is not final and could vary on the type of license required for customer's activity. Issuing license governmental authority may request additional documents.
The cost of VEGO Consult services for license / authorization obtainment varies depending on the scope of work, the type and number of licenses required.
VEGO Consult also has experience in obtainment of financial licenses in other jurisdictions of the European Economic Area. We specialize in electronic money institution (EMI), payment service provider (PSP) and virtual values / virtual currency licenses obtainment. Company holding mentioned above types of the license in one of the EU countries could operate throughout the European Economic Area.
Please contact us to further clarify your planned activities and determine the jurisdiction most suitable for you.
To learn more or to order this service, contact us by the following phone number: +4989 9982804-50 or leave a request through the feedback form.