Obtaining a business license

Company incorporation

Opening a bank account

Obtaining a business license is mandatory if you are planning to start an activity that requires prior permission of the authorities.

Accordingly, a license is a document of the established form that allows the holder to engage in a certain type of activity. It is issued by authorized regulators at any government level, up to the local one. In some cases a business license may be required at each state level. By the way, this practice is widespread in federal countries.

By issuing a license, the regulator is considered as a partly liable for the operation of the enterprise, that is, for the quality of the products or services that it provides to the consumer. Therefore, the requirements for obtaining a license can be very stringent, and non-compliance with the terms of the license threatens the licensee with large fines, as well as revocation of the license.

Further, in the article we will consider the most common types of licenses.

Financial license

Financial licenses are the following: brokerage license, forex broker license, banking license, investment license.

A company which activities are associated with the provision of financial services, need to obtain a financial license. This order is applicable in most countries of the world.

The license provides the following benefits:

  • Allows you to conduct legal activities;
  • Allows the holder to attract customers and partners promptly;
  • Allows customers to verify the stability and reliability of the licensee.
Gambling license

Everywhere, where it is not prohibited gambling requires an obtaining of a gambling license. The concept of “gambling license” includes: gambling licenses, casino licenses, sweepstakes licenses, licenses for lotteries or slot machines, online gambling licenses, etc.

The presence of a gambling license allows you to protect the casino itself, or the company that organizes the games of chance, as well as its customers from possible problems in the form of fines or even criminal liability.

The benefits of obtaining a gambling license are generally similar to the benefits of obtaining a financial license.

Cryptocurrency license

Compared to the same gambling industry, the crypto industry is very young, and the market itself, in principle, is still at the formation level. Since the legal system of states is usually inferior to technology in pace of development, it is also normal that crypto activities are not yet regulated in all countries.

However, many states are already trying to regulate and control the cryptocurrency market by introducing certain prohibitions and issuing licenses for cryptocurrencies.

And if you are planning to register a company for an ICO, open a cryptocurrency exchange, or engage in another business related to cryptocurrencies or blockchain, you need to consult with competent lawyers or even the regulator about the features of crypto regulation in the jurisdiction of your choice.

This will help to make sure whether obtaining the appropriate license in a particular case is required for the particular activity.

EMI license or payment system license

EMI or Electronic Money Institution is an enterprise engaged in electronic money issuing. Payment system is an institution engaged in the transferring of money or other means of payment between entities. Many payment systems are also issuers of their electronic currency (WebMoney, QIWI, etc.).

Thus, obtaining a PSP license or obtaining an EMI license in Europe involves the following main activities:

  • Issue of virtual currency;
  • The provision of payment services, etc.
Other types of licenses

Above, we examined the most frequently requested types of licenses for organizing international business. Here is a non-exhaustive list of licenses that may also be required for conducting legal activities in any jurisdiction:

  • License for notarial services;
  • License for insurance services;
  • License for security activities;
  • Building license;
  • License for the maintenance of medical equipment;
  • License for pharmaceutical activities;
  • License for international passenger or cargo transportation;
  • License for the transport of dangerous goods, etc.
Conclusions

It is worth noting that the requirements for obtaining a particular license, as well as the procedure for issuing it, depend on the particular jurisdiction. The only feature that combines the procedure for obtaining licenses is that it is usually a labour-intensive process that requires careful preparation and, in many cases, good material support.

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The information outlined in the article is actual at the time of its publication. Please refer to our specialists for checking possible solutions for your business.

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