Malta Electronic Money Institution License

The Malta Financial Services Authority (MFSA is the authority responsible for the licensing, regulation and supervision of credit institutions, electronic money institutions and financial institutions. The setting up of Electronic Money Institutions in Malta is regulated by the Financial Institutions Act and Financial Institutions Rules.

 

Key Features

In addition to issuing electronic money, Electronic Money Institutions are entitled, subject to the prior authorisation of the Malta Financial Services Authority (MSFA), to engage in any of the following activities:

  • the provision of certain payment services;
  • the granting of credit related to certain payment services. Provided that any such credit shall not be granted from the funds received in exchange for electronic money and held in accordance with the prescribed safeguarding requirements;
  • provision of operational services and closely related ancillary services in respect of the issuing of electronic money or to the provision of payment services referred to in point (a) above;
  • The operation of payment systems;
  • business activities other than the issuance of electronic money, having regard to the applicable law regulating such activities;
  • Electronic Money Institution are allowed to issue debit cards (such as a chip device) but they are not allowed to issue credit cards since such institutions are not permitted to undertake lending or other bank-related activities;
  • EMIs based in Malta are allowed to outsource services subject to the MFSA’s evaluation on their own merits.

Once a licence is obtained, the Electronic Money Institution would benefit from the right to passport such licence into other EU Member State and EEA country/ies by following some basic procedures of notification thereby enabling the Electronic Money Institution to provide its services within the relevant Member State/s and/or EEA State/s either through the establishment of a branch or remotely, under the freedom to provide services.

 

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Company, Limited partnership

  • Local physical office required

No

Share capital or equivalent

  • Minimum paid-up capital

€350,000

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

Yes

 

Tax Treatment

Companies incorporated in Malta are considered to be ordinarily resident and domiciled in Malta and are subject to income tax on their worldwide income. The standard rate of Maltese corporate income tax is 35%.

 

Duration to Set Up

About 2 months

 

Distinctive Benefits of Licence

  • Attractive fiscal environment
  • Generally fast regulatory approval environment

 

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers