Licensed as a financial institution in Estonia to efficiently provide B2B financial services within the EU. Estonia's favorable regulatory environment and advanced digital infrastructure make it an ideal base for your fintech startup or financial enterprise.
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Protect your business
A license ensures you meet legal standards and protects your business from fines or going out of business.
Entering new markets
With licenses, you can do business in more markets and build better partnerships.
What is a financial institution license in Estonia?
What is a Financial Institution License?
Estonia's financial institution license allows businesses to offer a wide range of B2B financial services within the EU. The license is particularly suitable for companies engaged in lending, leasing, currency brokerage and other non-banking financial services. The license is issued by the Estonian Financial Intelligence Unit (FIU), which is also responsible for monitoring compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations.
Why choose Estonia?
■ Progressive regulatory environment:
Estonia is known for its supportive and transparent legal framework, which makes it easier for businesses to obtain the necessary licenses and operate efficiently.
■ Digital Advantage:
Estonia's advanced digital infrastructure supports seamless business operations from license applications to daily transactions.
■ EU Visit:
With an Estonian financial institution license, your business can operate across the EU and take advantage of the opportunities presented by the single market.
Key Benefits of Licenses
■ Flexibility:
Tailored for B2B services, the license allows to carry out various financial activities without the need for a traditional banking license.
■ Cost-effective:
Estonia's competitive tax system and efficient regulatory processes help reduce operating costs, providing a huge advantage for start-ups and growth companies.
■ Speed and simplicity
The application process is simple and straightforward, with clear guidelines and a reasonable timetable, enabling businesses to obtain permits and start operations more quickly.
What services can a company with a financial institution license provide?
The Estonian Financial Institution License allows you to offer a wide range of B2B financial services within the EU. The license is designed to be flexible and can accommodate various types of financial activities, helping your company meet the different needs of its customers. The following are the main services you can provide under this license:
■ Advice to customers:
Professional financial advice tailored to the specific needs of business clients to help them make informed decisions.
■ Lending business:
Promote lending transactions and provide basic credit services to enterprises.
■Lease transactions:
Participate in the leasing business and allow customers to acquire assets that fit their financial strategy through leasing agreements.
■ Guarantees and Commitments:
Provide guarantees and commitments, provide financial guarantees, and improve the business reputation and stability of customers.
■ Currency Broker:
Act as an intermediary for currency brokerage transactions, helping businesses get the best financial transactions and opportunities.
■ Activities relating to the issuance and sale of securities:
Manage and promote the issuance and sale of securities to enable businesses to raise capital efficiently.
■ Activities relating to the custody and management of securities:
Secure custody and management of securities to ensure safe and efficient management of clients' financial assets.
Maximize the potential of your business
How to get a financial institution license in Estonia
Step-by-Step Guide to Application Procedures
■Initial consultation
Objective: Understand your business objectives, target market, and the specific services you plan to provide.
How we can help: At Rengang, we begin with a detailed consultation to assess your needs and provide personalized advice on the licensing process.
■ Document preparation
-Requirements: Compilation of basic documents, including operational descriptions, organizational structure and AML/CFT policy.
How we can help: Our team assists you in collecting and preparing all the necessary documents to ensure that your application is complete and in compliance with Estonian regulations.
■ Appointment of local MLRO
-Requirement: Appoint a Money Laundering Reporting Officer (MLRO) in Estonia to oversee AML/CFT compliance.
How we can help: We can help identify and appoint a qualified MLRO to meet regulatory requirements.
■Submit Application
Process: Submit your application materials to the Estonian Financial Intelligence Unit (FIU).
How we can help: Rengang Yongsheng handles the submission process on your behalf, ensuring that all documents are submitted correctly, and providing any additional information requested by the FIU in a timely manner.
■ Review and approval
Time frame: The FIU normally reviews the application within 2 months and may request additional information.
How we can help: Throughout the review process, we liaise with the FIU to resolve any queries and facilitate smooth approvals.
■ Compliance after license issuance
Continuous requirements: After obtaining a license, your business must always comply with Estonian regulations, including anti-money laundering/combating the financing of terrorism obligations.
How we can help: We provide ongoing support to ensure your business remains compliant, including assistance with reporting and policy updates.
Why do you want to cooperate with Ren Hong Kong Yongsheng-Smith?
■ Expert guidance: Our experienced team understands the complex regulatory environment in Estonia and will guide you through every step of the process.
■ Comprehensive support: From initial consultation to post-licensing compliance, we provide end-to-end support to help you obtain and maintain licenses.
Our Pricing
Time limit for completion
Company registration: After providing all necessary documents, it is usually completed within 2-3 weeks.
License applications: The government review period is 60 days, but the review period can be extended if the regulator raises other issues.
Standard Package
€5 500
Remote Company Registration
1 year legal address
Develop anti-money laundering policies
Permit Application
Ongoing legal aid
Premium Package
€19 000
Includes all standard package services
State Application License Fee
Appointment of local anti-money laundering officers
Frequently Asked Questions (FAQ)
How long does it take to obtain a financial institution license in Estonia?
It usually takes about 2 months from the time you submit your application to the Estonian Financial Intelligence Unit (FIU). However, this time may vary depending on the completeness of the document and the speed of response during the review process.
What is the cost of obtaining a license?
The cost of our services starts from € 5500 plus a mandatory national fee of € 3300. The total cost may vary depending on the complexity of your application and the specific services required.
With this license, can my company conduct business within the EU?
Yes, once you obtain a financial institution license in Estonia, your company can provide B2B financial services throughout the EU, taking full advantage of the EU's single market.
What ongoing compliance requirements does my company need to meet?
Your company is required to comply with Estonian legislation, including regular reporting and updating the AML/CFT policy. We provide ongoing compliance support to help you comply with these requirements.
If the FIU requests additional information during the review process, will Rengkong Yongsheng provide assistance?
Of course you can. Our legal team will provide full support throughout the review process, resolving any additional questions or requests for information raised by the FIU to ensure that your application is proceeding smoothly.
Is it necessary to establish a physical office in Estonia?
No, physical offices are not mandatory. However, in order to meet certain regulatory requirements, a local office must be established through qualified individuals.
Is it mandatory to appoint a Money Laundering Reporting Officer (MLRO) in Estonia?
Yes, your company must appoint a local MLRO based in Estonia. This person will be responsible for monitoring compliance with AML/CFT regulations and liaising with relevant agencies.
What important documents are required during the application process?
Key documents include a detailed business description, organizational structure, AML/CFT policy and the appointment of local AML examiners. All owners, managers and key personnel must also provide proof of no criminal record. Rengang Yongsheng will guide you in the preparation of these documents to ensure that your application meets all regulatory requirements.
With this license, can my company provide services to individual consumers?
Estonia's financial institution license is primarily designed for B2B services, which means it is best suited for companies that provide financial services to other businesses. If you are interested in providing services to individual consumers, we can advise on the most appropriate licensing options.
More questions?
If you have any other questions or need further explanation, please feel free to contact us. The Rengang Yongsheng team will provide you with the answers you need to make an informed decision.
Need some help?
Connect with our licensing experts to discuss a solution tailored to your business. We will provide you with a personalized offer within 1 hour of the working day.
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