1. Practical aspects of establishing and maintaining payment services business in the Czech Republic

2. Presentation overview
Doing business in the Czech Republic
Licensing and regulation of payment services providers
PI and EMI comparison
Legislation and business
Advantages of the jurisdiction
Our services
Questions and answers

3. Business in the Czech Republic
GDP growth in 2015 is 4,8%
Continuous reforms to simplify business administration
Qualified and reasonably priced labour force
Low operational costs
Strong and stable financial system
Low corruption level
Fair authorities approach

4. Legislation and business
Formal activities under the 284/2009
«Payment Services» law
Business activities
Execution of payments, initiated by a recipient or sender without a credit line
Maintaining of current accounts, currency exchange services, cards acquiring, payments aggregation
Placement and withdrawal of cash to/from payment account
Cash operations related to payment accounts
Execution of payments, initiated by a recipient or sender with a credit line
Credit cards, overdrafts
Execution of payments without usage of a payment account
Money remittance
Payment instruments issuance
Issuing of debit or credit cards, internet banking service, mobile applications

5. Practice of licensing and regulation of payment services providers
Regulator requires sufficient capital to cover the costs till the break- even point, at least 180k EUR for PI and 400k EUR for EMI
Strict source of funds review process – legal and taxed income, lower toleration of holding structures and initial capital loans
Rigorous process of business plan appraisal – real statistical data or deep and reliable marketing research required
Simplified regime for SPI’s and SEMI’s – absence of capital requirements, simplified fit and proper tests, no operational risk management requirements etc.
Always better to start with SPI and then apply for PI license

6. PI and EMI comparison
The main advantage of EMI is the possibility of prepaid cards issuance :
Less complicated process of acceptance as principal member of VISA and MC schemes , collateral deposit of approx. 500k EUR for prepaid card issuance vs. approx. 3 mio EUR for debit cards
Besides all payment services, small EMI is allowed to keep max. of 5 mio EUR of electronic money in circulation, comparing to max. 3 mio EUR payment transactions TURNOVER (arithmetical sum) 12-months average with SPI

7. Advantages of the jurisdiction
No formal shareholders and board members residency requirements, foreign owners permitted
PI's are allowed to hold client money on payment accounts without time restrictions
Low operating costs comparing to major jurisdictions
Fair regulator approach
Simple online EU resident customers identification (disadvantage: complicated process of non-EU resident clients onboarding)

8. Our services SPI, SEMI, PI, EMI, MiFiD license applications
FI acquisition consulting
Specialized FI accountancy
Internal audit and compliance services
Bank introduction services
SWIFT and card schemes membership consulting
Czech sort code application (IBAN assignment)

9. Questions and answers Thank you for you attention,
now we can proceed to Q&Asession either in English or in
Russian