Forex license

It is essential to obtain a forex license when performing a business activity in Estonia. Licenses are issued by the Estonian Financial Supervision Authority (EFSA).

The company’s activities may include the following:

• Establishing a joint-stock company
• Opening a representative office
• Opening a branch

Joint-stock company

To get a forex license, a joint-stock company must be formed first.

The following must be undertaken to establish a joint-stock company:

• Appointing an auditor
• Document preparation
• Opening a bank account
• Registration at a notary
• Capital — 25 000 EUR
• Registration in the Securities Centre

Requirements

After completing the steps, the following documents should be submitted to EFSA:

• Charter / notarial constituent documents
• Information about shareholders, stockholding
• Information about founders, members of board/council
• Information on the companies in which the petitioning company participates by more than 20%
• Information about auditors of internal control authorities
• Balance, profit and loss statement, the annual report (for active company)
• Business development plan for the next three years
• Document confirming an obligation to make payment to a pledge fund upon receipt of the license — single time, 1300 EUR
• and other documents (the specialist will define)

To receive a license, it is necessary to have an authorized capital in the sufficient amount:

• Operations with securities, including in the name of a customer/at the expense of a customer — 50 000 EUR
• Emission and securities portfolio management — 125 000 EUR
• Underwriting, storage, securities management, trading at own expense — 730 000 EUR

Time frame

It usually takes up to 4 months to obtain a forex license in Estonia.

Representative office

The representative office of the company must provide the following to be approved by the authority and operate legally:

• a certificate proving the license availability in the country where the head office functions
• an activity plan of the representative office
• a power of attorney issued by the head company
• a certificate or an extract on the head structural unit registration
• articles of association
• address of the representative office

Opening a branch

The branch of the company must provide the following to obtain an operating license in Estonia:

• name and address of a branch
• information about the head of the structural unit
• business plan
• if the parent company does not operate inside of the EU, it is also required to receive: permission to establish the branch
• confirmation of legal operation of the company
• certificate that the parent structure has the license
• financial report on the head company’s activity

Company in Estonia OÜ can help obtain a forex license for your business activity. Please request a consultation.