Malta Payment Service Provider (PSP) License
The number of Payment Service Provider (PSPs) licensed in Malta has seen significant growth over the last few years, and, alongside the thriving i-Gaming and e-Commerce industry, the Island has become the destination of choice for the set-up of Payment Server Providers.
PSPs may engage in various activities including: the execution of payment transactions, issuing and/or acquiring of payment instruments, as well as money remittance.
Like other financial institutions, PSPs are not allowed to receive deposits or other repayable funds from the public and must use funds exclusively to provide payment services.
PSPs are regulated in Malta under the Malta Financial Institutions Act (the “Act”) which transposes the Payment Services Directive (the “Directive”), specifically under Schedule II of this Act. Such licence holders are authorized and regulated by the Malta Financial Services Authority (the “MFSA”), the supervisor of all the financial services industry.
- EU passporting
- 5% Effective Corporate Tax Rate
- Highly qualified persons benefits
- Ability to open a branch in other European Member States (post one year of licensing)
- No restrictions on activities
In assessing an application for the obtainment of a Payment Services Licence, the MFSA carries out a “fit and proper” test on the applicant. For the purpose of this test, the shareholders, directors and senior staff members must demonstrate solvency, competence and integrity in all their dealings.
- The following are the criteria set out by the MFSA for setting up a PSP in Malta:
- Completion of application documents
- Settling the initial license application fee of €3,500
- Capital requirement of €50K-€125K depending on the service provided
For one to obtain a PSP in Malta they must have a local presence, they must have a minimum of 3 directors with at least one of them being Maltese. Also one must have a minimum of 2 local operational staff members, a local MLRO and Compliance officer.
Furthermore, to set up a PSP in Malta one has to eventually need an office space in Malta
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|Local presence ||Settling licensing fee ||Application documents ||Minimum capital; |
€50,000 - €125,000 depending on activities
Process And Timeline
2 Months: Preparation
- Compiling the documentation requested by the Authority
- Settling application fees
- Meeting with MFSA (Malta Financial Services Authority) required, we will arrangement for you at your most convenience time
- Submit Licence Application
3-4 Months: Processing Time
- The MFSA reviews the Application and carries out ‘Fit and Proper Test’
- “In Principle’ Approval
1 - 2 Months: Compliance Time
- Incorporating the company
- Depositing share capital
Issuance of Licence and Commencement of Business Approval at the end of this stage
Offshore Company Corp services to get your license of Payment Server Providers in Malta is 24,000 US$. Contac us for more detail.