EMI license in
Poland 2024
Poland, a rapidly growing fintech hub within the European Union, offers exceptional opportunities for businesses aiming to expand their financial services. With an EMI license in Poland, companies can access a wide range of electronic money services, granting them the ability to operate seamlessly across the European market.
By obtaining an payment license, businesses gain a strategic advantage in offering digital financial services, such as issuing electronic money, providing payment services, and facilitating secure and efficient transactions both in local market and within the EU.
Poland’s strong regulatory framework, supported by a well-established financial infrastructure and access to skilled professionals, makes it an attractive destination for fintech companies. This combination ensures a smooth licensing process and reliable conditions for future growth within the Polish and broader European markets.
Regulations for EMI license in Poland
The National Bank of Poland (NBP), operating under the Polish Law on Payment Services, serves as the primary regulatory and supervisory body overseeing Electronic Money Institutions (EMIs) in the jurisdiction. Its main objectives include:
- Strengthening Poland’s reputation as a significant financial hub within the European Union, ensuring it is seen as a trusted and secure destination for financial services.
- Supervising electronic money services to ensure compliance with strict regulatory standards, maintaining transparency, and promoting fairness among all market participants.
- Enforcing adherence to the Law on Payment Services and relevant EU regulations, ensuring high regulatory standards are upheld across the financial ecosystem.
- Issuing licenses to EMIs and Payment Institutions (PIs), overseeing their operations to ensure alignment with regulatory frameworks. This includes enforcing corrective measures, such as revoking licenses when necessary, to maintain market integrity.
- Protecting consumers’ interests by promoting safe financial practices through diligent regulatory oversight, enhancing the security and reliability of local fintech sector.
Obtaining an EMI License in Poland involves compliance with a comprehensive regulatory framework that ensures the integrity and stability of the financial system.
Key regulations include:
- Capital Requirements: Applicants must have a minimum initial capital of EUR 350,000, ensuring sufficient financial resources to operate effectively and manage risks.
- Corporate Structure and Governance: The management team must include at least two board members fluent in Polish, with knowledge of the local financial market. Proper governance and clear division of responsibilities are essential for compliance with NBP standards.
- Anti-Money Laundering and Counter-Terrorism Financing Compliance: Fintech licensed entity must implement strict AML and CTF procedures, including customer verification, transaction monitoring, and reporting to the General Inspector of Financial Information (GIIF).
- Operational Requirements: EMIs must maintain robust IT systems and implement comprehensive risk management protocols. These systems must comply with PSD2 regulations and include advanced cybersecurity measures to protect against fraud and data breaches. Additionally, integration with Poland’s payment systems, such as Elixir or SORBNET2, is required to ensure secure and efficient transaction processing.
- Consumer Protection: Compliance with consumer protection laws is mandatory, ensuring full transparency on fees and terms. EMIs must also provide customer service in Polish to handle complaints effectively.
- Reporting and Auditing: Regular reporting to the NBP is required, along with periodic audits to confirm compliance with financial and operational standards.
- Passporting Rights: Once licensed, an E-money in Poland can operate across the European Economic Area (EEA) without needing additional approvals, enabling seamless business expansion.
- Application Process: The process involves submitting detailed business plans, risk management policies, and compliance with governance standards. At least two board members must reside in Poland or the EU, and the institution must establish a registered office in Poland.
By adhering to these regulations, Electronic Money Institutions in Poland can operate within a stable and well-regulated financial environment, fostering trust and growth in the fintech sector.
Types of EMI licensing in Poland
If your business offers services such as issuing electronic money, executing payment transactions (including credit transfers and card payments), money remittance, acquiring payment services, or providing payment initiation and account information services, you are required to obtain an EMI license in Poland. These services include managing e-wallets, processing payments, and facilitating the transfer of funds, whether domestically or cross-border.
Licensing of fintech licenses is structured to cater to different business models and operational scopes. Here are the primary types of payment licenses available in Poland:
| License type | Description |
|---|---|
| Full EMI License | This is the most comprehensive license, enabling businesses to issue electronic money and provide a wide range of payment services across the European Economic Area (EEA). Institutions with this license can offer services such as issuing and managing e-money, facilitating payments, and operating electronic wallets. |
| Payment Institution (PI) License | A PI license allows companies to offer payment services such as executing transactions, remittance services, and payment initiation. PI license holders cannot issue electronic money. This license is ideal for businesses that focus on providing payment services without the need to manage e-money. |
| Small Payment Institution (SPI) License | The SPI license is designed for smaller institutions with lower transaction volumes. It limits the scope of operations to Poland, with a monthly transaction cap of EUR 1.5 million. SPI license holders are restricted from issuing e-money and accessing EU passporting rights, making it suitable for local-focused businesses. |
Key Differences Between Full EMI License and Small Payment Institution License in Poland
Capital Requirements
- Full EMI License: Requires a minimum initial capital of EUR 350,000.
- Small PI License: No specific initial capital requirement, except in certain cases as defined by Commercial Companies Code.
Scope of Services
- Full EMI License: Offers a wide range of services including issuing electronic money, payment processing, and managing payment accounts.
- Small PI License: Limited to providing payment services such as remittance, payment transactions, and money transfers within Poland. Does not allow for issuing electronic money or passporting rights within the EU.
Operational Restrictions
- Full EMI License: No restrictions on transaction volumes or the total value of issued electronic money.
- Small PI License: Subject to transaction limits and restricted from cross-border services under EU passporting rights.
Regulatory Oversight
Both EMI and PI licenses are regulated by National Bank of Poland, ensuring that institutions comply with EU directives such as the Second Electronic Money Directive (EMD2) and the Payment Services Directive (PSD2). This regulatory framework aims to maintain the security and stability of the financial system while encouraging innovation and competition in the fintech sector.
By selecting the appropriate type of license, businesses can align their operations with regulatory requirements, helping them meet their strategic goals while ensuring compliance with both national and European regulations.
With EMI license in Poland you can provide following services:
- Services enabling cash deposits into a payment account and all operations related to managing the payment account.
- Services enabling cash withdrawals from a payment account and all necessary operations required for managing the payment account.
- Executing payment transactions, including fund transfers to a payment account with the same or another payment service provider. This includes executing direct debits, payment transactions through a payment card or similar device, and credit transfers, including standing orders.
- Executing payment transactions where funds are covered by a credit line for the user of a payment service. This includes executing direct debits, payment transactions through a payment card or similar device, and credit transfers.
- Issuing and acquiring payment instruments, such as payment cards and digital wallets.
- Money remittance services.
- Executing payment transactions through telecommunications, digital, or IT devices, acting as an intermediary between the service provider and payment service user.
- Account information services (AIS), providing customers with consolidated information on one or more payment accounts.
- Issuance of e-money and management of digital wallets.
Overview of requirements to obtain EMI license in Poland
- Incorporate the company in Poland in accordance with local regulations.
- Appoint at least two board members, with residency in Poland or the EU.
- Ensure the board members have an impeccable reputation and experience in the financial sector.
- Secure sufficient financial resources, including the minimum capital requirement of EUR 350,000.
- Establish a physical presence for the business in Poland.
- Provide a detailed and realistic business plan.
Estimated time frames
Company formation
1-2 weeks
Documents preparation
4-12 weeks
PI / EMI license obtainment from NBP*
9-12 months
*”The timeline also depends on the workload of KNF and any clarifications or queries that NBP may request in relation to the application.”
Looking for legal services to obtain EMI license in Poland? Contact specialist that can consult you or order legal opinion from qualified lawyer.
Detailed Requirements for EMI licensing in Poland
List of required documents
- Application Form
- Completion and submission of the official licensing application form to the National Bank of Poland.
- Company Identification Data:
- Company details including articles of association.
- List of Payment Services:
- A detailed list of all payment services the applicant intends to provide.
- Proof of Funds:
- Financial documents demonstrating sufficient capital, particularly for covering the minimum capital requirements and additional reserves.
- Business and Financial Plan (for at least 3 years):
- A comprehensive plan outlining the applicant’s business model, services offered, budget forecasts, marketing strategies, operational plans, and financial projections, including cash flow, revenue forecasts, and operational expenses.
- Proof of Civil Liability Insurance or Bank Guarantee
- Documentation of liability insurance or a bank guarantee to cover operational risks.
- Risk Management and Internal Control System
- Detailed description of the company’s risk management policies and internal control procedures.
- Structure Scheme of the Company and Group
- Organizational chart and structure of the company and any associated group.
- Identification Data of Managers and Persons with Qualifying Holdings
- Identification details for key personnel, including shareholders, directors, and individuals with significant ownership stakes.
- Statutory Auditors and Audit Firms
- Information identifying the statutory auditors or audit firms that will oversee financial compliance.
- Compliance with Technical Standards
- Documentation demonstrating adherence to secure communication standards and customer authentication requirements. Ensures the company meets technical and operational standards for secure transactions, particularly under the Payment Services Directive (PSD2).
- Confirmation of Payment of the Authorization Fee
- Proof of payment of the required fee for obtaining the EMI license.
- List of Applicant’s Agents
- If applicable, a list of agents who will provide payment services on behalf of the applicant.
- List of Applicant’s Branches
- If applicable, a list of the applicant’s branches where payment services will be provided.
- KYC and AML Procedures
- Detailed documentation of Know Your Customer (KYC) and Anti-Money Laundering (AML) policies, including procedures for customer due diligence, transaction monitoring, and reporting suspicious activities.
- Compliance with Liability Insurance
- Proof that the applicant meets operational risk standards by securing the appropriate liability insurance.
- Technical Standards Compliance
- Proof that the EMI applicant adheres to secure communication and customer authentication standards required by Polish regulations.
- IT Infrastructure and Architecture
- Information on IT solutions employed, agreements with third-party IT service providers, and details on IT infrastructure.
Share Capital and Government Fees
- The share capital for an EMI License in Poland is set at a minimum of EUR 350,000 to cover operational risks. For financial institutions applying for an PI License, the share capital can range from EUR 20,000 to EUR 125,000, depending on the services provided.
- Initial Application Fee: A non-refundable application fee for EMI licensing can go up to EUR 1,500 (converted to Polish currency) and is based on the specific licensing requirements.
- Supervision Costs: All payment institutions must annually contribute to supervision costs based on their financial liabilities related to electronic money issuance, with a maximum rate of 0.075%. Payments are due by 30 November each year.
- Annual Contributions: Institutions continue to contribute based on their activities and liabilities each year, ensuring compliance with NBP supervisory requirements.
Bank account requirements
- Safeguarding Account: Fintech institutions must open a safeguarding account with a bank or an equivalent institution to ensure that funds collected from customers for payment services are segregated from other operational funds. This account guarantees that the funds remain protected and can only be used for customer transactions, complying with NBP regulations.
- Operational Account: It is also required to maintain an operational account to handle their day-to-day transactions, including handling payments, fees, and general expenses. This ensures proper tracking and processing of both customer and internal transactions.
Personnel Requirements
- Management Board: At least two members, with one required to be fluent in Polish. Each board member must demonstrate financial expertise, meet high ethical standards and meet the NBP’s “fit and proper” criteria.
- Compliance Officer: Responsible for ensuring AML and KYC procedures comply with Polish regulations. At least one must be local.
- Risk Management Officer: Responsible for internal controls and risk management.
- Internal Auditor: Independent from the company’s daily operations, this role ensures compliance and reporting accuracy. Outsourcing is permitted.
- IT Security Officer: Handles IT systems security, particularly related to data protection and operational integrity. This role ensures the institution meets cybersecurity and GDPR requirements.
- Data Protection Officer (DPO): Required if the company handles significant personal data. This role ensures GDPR compliance.
Not sure about the number of staff you need to employ for your PI/EMI project? Contact Legalaes experts to define the right personnel structure for your business model.
Business premises requirements
- To obtain an E-money license in Poland, it is required to establish a physical office within the state. This office serves the purpose of storing documents, providing a workspace for staff, and affirming the company’s operational presence in the country, ensuring compliance with local regulatory requirements.
By meeting these requirements and submitting the necessary documents, applicants can demonstrate their readiness and compliance with regulatory standards, facilitating the approval process for obtaining an EMI license in Poland.
Roadmap of obtainment Payment license in Poland
Our team of Fintech specialists is here to guide you through each phase of obtaining your payment license in Poland. From the initial document preparation to final approval and operational launch, we ensure full compliance with regulations and smooth communication with the National Bank of Poland (NBP).
Reach out today to learn more about the licensing process and how we can support you navigate regulatory requirements in Poland.
Edgar Mironov
Head of FinTech Projects
Documentation Preparation
Preparation of all necessary documents, including the business plan, IT security framework, financial projections, and risk management procedures. All documents must comply with the regulatory standards required by National Bank of Poland (NBP).
Company Incorporation
Registering the company in Poland via the National Court Register (KRS), ensuring compliance with local corporate laws. This includes preparing corporate governance and shareholder agreements.
Application Preparation
Compiling a complete and thorough application package, adhering to NBP’s regulatory guidelines, including corporate governance structure, risk management, and operational procedures.
Local Team HR Services
Appointing key local personnel, including the Management Board, AML officer, Compliance Officer, and local executives. Ensuring they meet NBP’s compliance standards.
Application Submission
Submitting the completed application to the NBP to initiate the licensing process. This includes responding to any subsequent queries or requests for additional documentation.
Bank Account and Safeguarding Setup
Setting up operational and safeguarding accounts to meet the Polish regulations for protecting client funds. Safeguarding accounts must comply with NBP requirements for managing customers’ funds separately from the company’s operational funds.
Regulatory Follow-Up
Engaging in continuous communication with the NBP, addressing any requests for clarification or additional documentation to prevent delays.
License Approval
Upon completing all reviews and compliance checks, receiving the final approval for the EMI license from the NBP.
Finalizing Bank and Safeguarding Accounts
Completing the setup of financial systems, including safeguarding arrangements, operational accounts, and payment infrastructure.
Operational Launch and Additional Services
Once the EMI license is obtained, launching full operations, including additional services like payment processing, card issuing, and remittance services.
Detailed Time Frames to Obtain a EMI License in Poland
The estimated timeframes to secure an Electronic Money Institution (EMI) license in Poland can vary due to several factors. These factors include the thoroughness and quality of the application, the complexity of the business structure, and how quickly applicants respond to additional requests for information from the regulator. Below is a general overview of the licensing process and the estimated time frames for each phase:
1. Preparation Phase
Time Frame: 4-12 weeks
- Preparation of Business Plan and Documentation: Drafting the necessary documents, including a business plan, financial forecasts, risk management frameworks, and IT security protocols, all in compliance with Polish regulatory requirements from the NBP.
- Corporate Structure and Governance: Aligning the company’s corporate structure with local laws, appointing key management and ensuring governance compliance.
- Meeting Capital Requirements: Ensuring the required share capital of EUR 350,000 for a full EMI license (or the relevant amount for PI licenses) is secured.
2. Submission of Application
After all the necessary documents are prepared, the application is submitted to the National Bank of Poland (NBP).
3. Regulatory Review Phase
Time Frame: up to 3 months
- Initial Review: NBP will first verify whether the application meets the necessary requirements. If any documents are missing or incomplete, the applicant will be asked for additional information.
- In-Depth Assessment: Once the application passes the initial review, regulatory body will conduct a detailed assessment of the business plan, risk management measures, IT security protocols, and AML/CTF compliance.
4. Responding to Regulatory Queries
During the assessment phase, the KNF may request additional details. The response time can vary depending on the complexity of the queries.
5. Decision Phase
Time Frame: up to 3 months
- Approval/Rejection: After the assessment, compliance department of national bank will either approve or reject the application. Upon approval, relevant fintech license will be granted to the applicant.
- Publication: The decision will be formally communicated, and the license will be listed in the NBP registry.
Total Estimated Time
- Best Case Scenario: Around 9 months, assuming all documentation is complete, and responses to queries are swift.
- Average Timeline: Typically 9-12 months, factoring in the time for back-and-forth communication and any additional requests for clarification.
Factors Influencing the Time Frame
- Application Completeness: Well-prepared applications are processed faster.
- Response to Queries: Quick responses to any regulatory requests can expedite the process.
- Business Model Complexity: More complex business operations may lead to longer review times.
- Regulatory Workload: The current workload of NBP can impact processing speed.
Proactive preparation and communication with the NBP can help streamline the process and reduce delays when obtaining your EMI license in Poland.
Advantages of the Electronic Money Institution license in Poland
Obtaining an Electronic Money Institution license in Poland offers several strategic and operational advantages for fintech companies. Here are the key benefits:
01
Access to the European Market
Poland’s EMI license allows companies to operate across the entire European Economic Area (EEA), providing access to a large and integrated financial services market. This allows you to passport your services across EU member states without needing additional local licenses.
02
Favorable Regulatory Environment
Poland’s regulatory framework is supportive of fintech companies, providing a stable and clear licensing process through the National Bank of Poland and encouraging innovation within the financial technology space.
03
Cost-Effective Licensing:
With competitive initial application fees and ongoing supervisory costs, Poland offers a cost-effective route for obtaining and maintaining an EMI license, making it financially attractive for new market entrants.
04
Global Connectivity and SEPA Integration
Enjoy direct access to the Single Euro Payments Area (SEPA) through the CENTROlink system, enabling seamless EUR transactions across 36 countries. Additionally, gain access to global payment systems like SWIFT, and issue Visa or MasterCard payment cards, allowing for international transactions in multiple currencies.
05
Skilled Workforce
Poland boasts a highly educated and multilingual workforce, particularly in IT and finance sectors, ensuring companies have access to top talent capable of supporting international fintech operations.
06
Robust IT Infrastructure
As one of the EU’s leaders in digital infrastructure, Poland offers a strong technology backbone with a high emphasis on cybersecurity, ensuring a secure operational environment for electronic money institutions.
07
Supportive Ecosystem
Poland’s fintech community is thriving, supported by various government initiatives and funding programs aimed at promoting innovation and fostering partnerships across the sector.
08
Tax Incentives and Competitive Tax Rates
Poland offers a corporate tax rate of 19%, with possible reductions for smaller businesses, making it a favorable jurisdiction for cost-conscious companies. Additionally, tax incentives for R&D activities further support long-term growth.
09
Strong Banking Network
Poland’s established and reliable banking network supports seamless integration for EMI services, allowing for robust connections with both domestic and international financial systems.
07
Favorable Cross-Border Tax Rules
Poland offers favorable cross-border tax rules through its extensive network of double taxation treaties, making it an attractive jurisdiction for EMI companies with international clients or stakeholders.
08
Unlimited License Duration
Once granted, the E-money license in Poland is not subject to expiration, ensuring long-term operation without the need for periodic renewals. This provides stability and operational continuity for businesses.
By taking advantage of these benefits, fintech companies can efficiently set up and grow their operations across Europe, offering innovative financial services while benefiting from Poland’s dynamic and business-friendly environment.
Links for legislation related to EMI business in Poland
This is the foundational Polish law regulating payment services and electronic money institutions.
This EU directive outlines the legal framework for electronic payments and payment service providers, including EMIs, across the European Union.
Financial service providers are subject to Poland’s anti-money laundering (AML) regulations to ensure compliance with EU standards.
This is an essential law governing the tax obligations, including corporate tax, VAT, and other fiscal responsibilities of EMI institutions in Poland.
This act outlines the accounting and financial reporting requirements for businesses operating in Poland, including EMI institutions.
Ensures the safety, efficiency, and compliance of Poland’s payment systems, maintaining stability and public confidence in financial operations.
Provides access to official Polish legal acts, including payment services laws, financial market supervision, and other regulations relevant to EMI businesses.
This directive provides the legal framework for the issuance and supervision of electronic money institutions, ensuring a level playing field for all payment service providers.
IX. Instructions to Tables in Annex 1 to the Regulation of the Minister of Finance (October 15, 2014)
This document outlines the reporting obligations and requirements for issuers of electronic money and payment instruments in Poland. It provides detailed instructions on how to report statistical data related to payment services to the Narodowy Bank Polski.
The above summaries highlight the key objectives of each act and their significance within the regulatory framework for acquiring an EMI license in Poland.
Taxation of EMI Companies in Poland
The taxation of Electronic Money Institution (EMI) companies in Poland is governed by a set of tax regulations that are designed to create a favorable business environment while ensuring compliance with national and EU tax laws. Here are the key aspects of taxation for EMI companies in Poland:
- Corporate Income Tax (CIT): EMI companies are taxed at 19%, with a reduced 9% rate for small companies (under EUR 2 million in revenue) and for newly established EMI companies in their first year.
- Value-Added Tax (VAT): Poland’s standard VAT rate is 23%. Most financial services, including EMI services, are exempt from VAT, though certain ancillary services may still be taxed.
- Dividend and Withholding Tax: Dividends to foreign shareholders are taxed at 19%, with possible reductions under double tax treaties. Withholding tax on interest and royalties is 20%, subject to treaty adjustments.
- Social Security Contributions: Employers contribute 19.21% and employees 13.71% of gross salaries toward social security, covering pensions and other benefits.
- Personal Income Tax (PIT): Employee income is taxed at progressive rates of 12% and 32%. Employers must also contribute to social security on behalf of employees.
- Tax Incentives and R&D Credits: EMI companies can deduct 100% to 200% of eligible R&D expenses from taxable income, depending on company status.
- Transfer Pricing: EMI companies must also comply with Poland’s transfer pricing regulations. Transactions between related entities must be conducted on an arm’s length basis and documented in line with Polish transfer pricing laws.
- Reporting and Compliance: EMI companies must file annual financial statements and comply with Polish accounting standards. Tax returns, including CIT and VAT, must be submitted electronically through the e-Deklaracje system.
By adhering to Polish tax laws and ensuring compliance with the country’s financial regulations, fintech companies can navigate the complexities of taxation effectively.
FAQ about EMI license in Poland
1. Why choose Poland for a PI/EMI license?
2. Who can apply for a PI/EMI license in Poland?
Companies incorporated in Poland or the EU with a robust business plan, adequate capital, and a compliant organizational structure can apply for a PI/EMI license.
3. How long does the licensing process take?
4. Can I operate across the EU with a Polish EMI license
Yes, a Polish EMI license allows businesses to operate across the European Economic Area (EEA) without needing additional local licenses.
5. Do I need a physical office in Poland to obtain the license?
Yes, it is required to establish a physical office in Poland to store documents and provide a workspace for key personnel, affirming your company's operational base.
6. What is the minimum capital requirement for a PI/EMI license?
The capital requirement for an EMI license in Poland is EUR 350,000, while for a PI license, the amount can range from EUR 20,000 to EUR 125,000, depending on the services offered.
7. What taxes apply to PI/EMI companies in Poland?
PI/EMI companies in Poland are subject to a 19% corporate tax rate, with potential reductions for small businesses, as well as VAT and withholding taxes, depending on the nature of services and transactions.
8. What is the difference between a PI and an EMI license in Poland?
A PI (Payment Institution) license allows the company to provide payment services, while an EMI (Electronic Money Institution) license enables the issuance of electronic money in addition to providing payment services.
Each of our projects receives unique and tailored solutions in accordance with the initial objectives and vision of the shareholders.
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