Payment Institution License in Singapore
The financial services industry is growing at a rapid pace. In the digital age, even payments have become electronic. In connection with the tightening of foreign exchange controls and regulation of the banking sector in the middle years, there was a need for a reliable, safe, and fast alternative to bank accounts and traditional transactions.
It is for this reason that fintech entrepreneurs create their own payment systems and electronic money. Singapore has always strived to keep up with trends. Therefore, this state was one of the first to adopt relevant legislation to introduce fair play rules for the virtual financial industry. Today, it has become home to large banks, R&D centers, and head offices of many international corporations. A developed electronic network and high-level security allow entrepreneurs to manage their businesses and make transactions all over the globe.
Singapore’s tax system is based on the territorial principle, which means that taxes are paid only if profits are made in the country. Also, reduced taxes on first profits and tax deductions are valid for young startups in the first years of their existence.
What Payment Institutions License in Singapore?
The state is actively developing everything related to e-commerce. Therefore, in 2020, amendments were made to the laws that regulate the process of issuing licenses for electronic money issuers. Until that time, the government issued SVF permits. The so-called “stored value facilities” operated on the principle of prepaid finance to secure payments. Old licenses were withdrawn if they had not filed a corresponding request with the regulatory authority.
Today, e-money Singapore is regulated by a special piece of legislation. The payment services act offers a framework within which an establishment in the field of payment systems and services will operate. The new rules expand the understanding of settlement, including local funds transfer, acquiring a merchant account, settlement based on digital tokens.
Today, 7 types of services are available – account issuance, domestic transfer and cross-border money transfer, merchant acquisition, e-money issuance, digital payment token dealing and exchanges, and money changing service.
Requirements for companies that want to obtain an e-money license Singapore include:
Our advantages of acquiring a payment institution license in Singapore
Fintech Harbor lawyers will help you obtain a license to launch your own payment system and issue e-currency in accordance with the requirements of the new legislation in this country. You can get an initial consultation to select the right type of permit. Next, we will prepare all the required applications and documents and submit them to the regulatory authorities. For citizens of other lands, we will provide assistance in enlisting a local legal entity, opening a bank account, and a regional place of business, including the search for employees and directors.
What do we do to receive a Payment institutions license in Singapore?
In the beginning, our counselors will meet with the client’s representative for preliminary preparation. This includes planning, evaluating, and analyzing the performance of the company. At this stage, we will help identify possible weaknesses that the state regulator will definitely pay attention to.
Next, we will prepare a business resume – this is a kind of history of the organization, proof of reputation and good standing. We can also assist you to develop a business strategy and risk management documentation.
At the final stage, applications will be submitted to the regulatory authorities. If the regulator has additional requests, we will supply clarifications on all points. After the review period, you will receive a license for a standard or major payment institution.
Thanks to competent advisers for detailed advice on electronic money issues and assistance in choosing a jurisdiction.
We have long wanted to enter the Asian market and launch our own payment system. Thanks to Fintech Harbor, this has become possible faster than we expected.
The cost of legal support to receive a permit is about $25,000. It is worth considering that the minimum authorized capital of the applicant company must be at least $260,000.
Usually, the process of consideration and decision by the regulator takes from 4 to 6 weeks from the date of the petition. If the applicant does not have a registered local company, one must first incorporate the company, open a bank account and office. It will take about 2 months extra. But, as an option, you can buy a ready-made company. We discuss each project individually and offer you the best solution, taking into account your required deadlines.
The country takes its reputation seriously, so the checklist is impressive. You need to provide a charter, office contacts, an action plan for the next 5 years, and a financial forecast for 3 years. It is necessary to supply evidence of solvency and data on financial resources. As usual in such cases, great attention is paid to protecting the interests of clients, combating fraud and money laundering. The applicant must deliver all information about the structure of the organization, identify branches, agents and key persons who have the right to control. Mandatory copies of the passports of the director and all those responsible for the issuance of electronic money, proof of their reputation. The absence of criminal records is crucial. Separately, a contract with an independent auditor who will conduct annual audits is submitted.