Electronic Money License - Czech Republic

About Czech Republic

Commercial banks, investment banks, insurance firms, and other financial institutions make up the Czech Republic’s substantial and contemporary financial sector. The Czech National Bank is the country’s central bank, in charge of managing monetary policy and ensuring financial stability.

In the Czech Republic, electronic money is recognised and regulated. It is a digitally stored monetary value that is issued upon the receipt of funds and can be used to make payments. To operate lawfully, electronic money issuers must follow relevant legislation and may be required to obtain licences such as an Electronic Money Licence.

Czech Republic is located in Central Europe. Because of its physical location, it is a natural intersection of major transit corridors. The Czech Republic is a democratic country with a stable political and social environment as well as a functional legal system.

According to Worldometer’s elaboration of the most recent United Nations data, the Czech Republic’s current population is 10,765,897 as of May 18, 2023.

Czech is the Czech Republic’s official language. Czech, which has roughly 11 million native speakers, is classed as a Slavic Indo-European language. Although many individuals in the Czech Republic have a basic understanding of English, learning a few important words in Czech will get you far.

Czech legal culture (civil law) belongs to the Germanic branch of continental legal culture. Civil, criminal, administrative, procedural, and labour law are among the major areas of public and private law that have been methodically codified.

  1. Convenient Access to European Market
    The Czech Republic is a European Union (EU) member and a member of the European Economic Area (EEA). Having an Electronic Money Licence in the Czech Republic allows you to access the larger EU market. Subject to specific rules and notifications, you may be permitted to offer electronic money services in other EU countries under the passporting framework.
  2. Opportunity to employ personnel from outside Czech Republic (the number of foreign employees should not exceed number of local (Czech) employees)
  3. Opportunity to outsource services locally and internationally (with FMS approval)
  4. Regulatory Compliance
  5. Expanded Service Offerings
  6. Enhanced Customer Experience
  7. Partnership Opportunities
  8. Innovation and Flexibility


License: Electronic Money License
Timeframe for Approval: 3 to 4 months
Regulator: The Czech National Bank (CNB)

Company Structure

Local Director: Minimum 2 directors
Local Shareholder: Minimum 1 shareholder (individual or legal entity)
Local Registered Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: 19%
Currency: Czech koruna (CZK)
Capital Requirements: $80,000
Tax Structure: 19% Tax on Offshore Profits
In order to obtain a license, the following steps will be carried out:
  1. Name reservation
  2. Incorporation of the company
  3. Application to Czech National Bank
  4. License application
    a. Prepare Documentation
    b. Incorporate a Legal Entity
    c. Minimum Capital Requirement
    d. Application Submission
    e. Fit & Proper Assessment
    f. Compliance Review
    g. On-Site Visit
    h. Decision and License Issuance
  1. Currency Exchange
  2. Mobile Wallet Services
  3. Card Services
  4. E-commerce Payment Solutions
  5. Money Remittance
  6. Payment Services
  7. Issuance of Electronic Money
  8. Electronic Money Accounts

Due Diligence on all directors/shareholders (holding 10% of shares and more):

  • Notarized copy of valid passport
  • Notarized copy of proof of address (ex. utility bill of each Director)
  • Certified Bank reference (of each Director)
  • Legal reference (of each Director and Shareholder)
  • CV (of each Director and Shareholder)
  • Notarized Criminal Records (of each Director and Shareholder)

Additional Due diligence procedures may be prescribed by the FMS:

  • Original documents that proof of source of capital
  • Shareholder – physical person – tax declarations
  • Corporate entity – audited financial statements for 3-5 years
  • Anti-Money laundering Policy
  • Business Plan

In case If a corporate entity is used as a Shareholder:

  • Passport of an Authorized Person of the legal entity (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
  • Utility Bill as proof of residency of an Authorized Person for the body Corporate (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
  • Latest CV detailing Educational background and Working Experiences of an Authorized Person for the body Corporate
  • M&A to include the clause on the establishment of the Czech Republic Company or allowing to do so
  • Two Reference letters for the Authorized Person that are to be issued by a Professional such as a Lawyer, Accountants, Company Secretary or Bank of an Authorized Person for the body Corporate
  • Registries of Company listing down the names of Director, Shareholder, Auditor, Company Secretary (to be certified true copy by the Company Secretary)
  • Certificate of Incorporation (to be certified true copy by the Company Secretary)
  • Certificate of Registered Address of the Company (to be certified true copy by the Company Secretary)
  • Resolution by the Company to appoint the Authorized Person to act on behalf of the Company (to be certified true copy by the Company Secretary)
  • Resolution of the Company to invest in the Czech Republic Company (to be certified true copy by the Company Secretary)
  • Group corporate shareholding structure, including the applicant
  • Certified true copy of certificate of license granted by relevant authority(s) in its home country – (if applicable)
  • Certified true copy of board resolution or minutes of general meeting which approved the setting up of the applicant
  • Copies of three years audited financial statements/annual report
  1. Formation of Czech Limited Liability Company
  2. Preparation and drafting of shareholder & officer agreements.
  3. Preparation and drafting of narrative business plan (req.)
  4. Prepare five year financial projections (req.).
  5. Preparation and drafting of current financial statements (req.)
  6. Preparation and drafting of personal financial statements for owners (req)
  7. Identification and draft letters naming principal representative and auditor in Mauritius (req.)
  8. Preparation and drafting application with Mauritius regulators (req)
  9. Preparation and drafting of customer agreements and disclosures.
  10. Respond and draft responses to Regulator application inquiries (req.)
  11. Facilitate and consummate bankcard relationship with Visa & Mastercard
  12. Preparation and drafting of policy agreements and related documents(req.)
  13. Facilitate and consummate IBAN and correspondent bank relationship
  14. Preparation and review of bank deposit, loan and related agreements.