The EMI (electronic money institution) or PSP (payment services provider) license is required when setting up a company in Singapore that operates in the financial sector. Considering the requirements to meet when applying for such a business permit, foreign investors can rely on our local specialists for support during the procedure.
Table of Contents
How to register a PSP/EMI company in Singapore
Starting a financial company that requires an EMI license implies the usual company formation procedure in Singapore, namely:
- selecting an appropriate business form (our agents recommend the private limited liability company);
- choosing a suitable trading name and reserving it;
- preparing the incorporation forms and filing them with ACRA;
- opening a bank account for the deposit of the share capital;
- registering for taxation;
- applying for the correct Singapore PSP license.
The following important aspects need to be considered when opening an EMI company in Singapore:
- specific share capital requirements may apply in accordance with the activities to be carried out;
- there are 3 types of EMI licenses that can be obtained in Singapore.
Given these considerations, you can address our local consultants for information and assistance in completing the necessary procedures to register your business.
Types of PSP licenses in Singapore
The 2019 Payment Services Act is the main law to provide for the activities of payment service providers, which must obtain one of the following 3 types of licenses:
- the standard payment institution license (SPI);
- the major payment institution license (PMI);
- the money-changing license.
Each has its own requirements, and our specialists in opening companies in Singapore can help you choose the appropriate one.
Who must apply for a standard PSP license in Singapore?
The standard EMI license in Singapore must be obtained if the payment services provided meet the following criteria:
- they reach SGD 3 million in monthly transactions for any payment service, except for e-money issuance and money-changing;
- they reach SGD 6 million in monthly transactions for 2 or more services with the same exceptions presented above;
- they exceed SGD 5 million in daily electronic money transactions.
For this purpose, the EMI company must meet the following requirements:
- it must be locally incorporated;
- it must have a permanent place of business in Singapore;
- it must have a minimum capital of SGD 100,000;
- it must have at least one executive director who is a Singapore citizen or permanent resident.
When applying for a major PSP license in Singapore, the transaction thresholds presented above can be exceeded. Another requirement is for the EMI company to have a minimum capital of SGD 250,000.
In the case of the money-changing license, there are no transaction thresholds; however, other conditions must be observed. They can be presented by our company formation consultants in Singapore.
How to obtain the EMI license in Singapore
PSP license applications must be filed with the Monetary Authority in Singapore, which is supervised directly by the Prime Minister’s Office, and must include:
- a copy of the business profile issued by ACRA (the document cannot be older than 30 days);
- audited financial statements for companies older than 3 years;
- copies of the shareholding and organizational structures of the company;
- a business plan that meets the Payment Services Act compliance requirements;
- a legal analysis on the services to be carried out issued by a law firm specializing in financial legislation;
- Anti-Money Laundering and Countering the Financing of Terrorism regulations;
- details of the Anti-Money Laundering compliance officer;
- proof of payment of the EMI license issuance fee.
If you want to open an EMI/PSP company in Singapore and need assistance, please contact our company registration specialists.