In the modern world of digital money, the term EMI License has become very popular.
Many companies that work in fintech or crypto now look for this license to operate legally in Europe. But what is an EMI license, and how to get EMI license if you want to work in the European Union?
This article explains everything in simple language — and why Latvia is one of the best countries to apply for it.
What Is an EMI License?
An EMI License stands for Electronic Money Institution License.
This license allows a company to issue and manage electronic money, hold client funds, and provide payment services like transfers or online wallets.
If you want to build a business similar to Revolut, Wise, or Payoneer, you need an EMI License. Without it, you cannot store client money or process payments legally inside the European Economic Area (EEA).
The license comes from EU laws — especially Directive 2009/110/EC and PSD2 (Payment Services Directive 2). These laws make sure that every company handling money is safe, transparent, and compliant with anti-money laundering (AML) rules.
So when people ask what is EMI license in Europe, the answer is simple:
It is a legal approval that lets your business issue e-money, process payments, and work with clients in all EU countries.
Why Latvia Is One of the Best Options
Latvia has become one of the most attractive European countries for EMI licensing.
It is a small but advanced EU member with a friendly business environment, clear rules, and a regulator that communicates in English.
The Financial and Capital Market Commission (FCMC) is the authority that gives EMI Licenses in Latvia. This institution is known for its open communication and efficient review process. Latvia also has lower business and living costs than countries like Ireland or Luxembourg, which makes it very appealing for fintech founders.
Here are a few main reasons why Latvia is popular for EMI companies:
- It offers full access to the EU market through passporting rights.
- The regulator provides clear and structured procedures.
- The country has a strong banking system and a good reputation for compliance.
- Setup costs and annual maintenance are more affordable compared to most EU countries.
Because of these advantages, many fintech startups see Latvia as a smart way to enter the European market.
How to Get an EMI License in Latvia
If you are wondering how to get EMI license, the process can seem complicated at first — but it becomes clear once you break it down into steps.
First, you need to create a company in Latvia. This company will be the legal entity applying for authorization. You must prepare several documents: a business plan, a financial forecast, and internal policies for compliance, AML, and data protection.
Next, you must build a professional management team. The regulator expects experienced people in charge — individuals who understand how to manage financial operations and customer money safely.
You also need to prepare your IT systems. The FCMC pays attention to data protection and security. The company must be able to prove that client information and funds are safe at all times.
Finally, there is a capital requirement. The minimum share capital for an EMI License in Latvia is EUR 350.000, and it must be fully paid before you apply.
Once everything is ready, the company submits the full application to the FCMC. The review usually takes four to six months. The better your documents and structure, the faster the process. When approval is granted, you can “passport” your license and offer services across the entire European Union.
Key Requirements You Should Know
Latvia’s rules for obtaining an EMI License are detailed but reasonable. The main requirements are:
- A company registered in Latvia with a real office and management presence.
- A clear and transparent ownership structure.
- A qualified management team with a strong background in finance or compliance.
- Proper AML and KYC procedures that meet EU regulations.
- Reliable IT infrastructure and secure storage of data.
Each part of the application must show that your company can operate safely and responsibly. The regulator’s goal is to make sure all license holders protect clients’ money and follow the same high standards across the EU.
Benefits of Holding an EMI License in Latvia
The biggest benefit of having an EMI License is that your company becomes a regulated financial institution in the EU. This means you can open accounts, issue e-wallets, transfer funds, and cooperate with European banks and partners.
Having the license in Latvia gives you:
- The right to offer services in all EU and EEA countries.
- A trustworthy reputation in the eyes of clients and investors.
- Easier access to partnerships and payment infrastructure.
- Lower running costs compared to other EU jurisdictions.
Latvia’s growing fintech community also means easier access to local legal, accounting, and compliance experts. The country is developing into a regional hub for payment and crypto businesses that want to scale across Europe.
Common Challenges and How to Solve Them
Even though Latvia offers a friendly environment, getting an EMI License is still a serious process. Many applicants face delays because of small mistakes that could have been avoided.
Common challenges include missing documents, weak AML policies, or management teams without enough experience. Sometimes companies underestimate how much detail the regulator expects in their business plan or IT policy.
Another issue is communication. The FCMC can request clarifications or additional evidence, and slow responses from the applicant can delay the process further.
The best way to handle these challenges is preparation. Before submitting an application, make sure your business model, internal rules, and technical systems are fully ready for review.
Working with professionals who have gone through the process before can also save time and reduce risk. Experienced consultants help structure documents properly, prepare management interviews, and guide you through each stage of communication with the regulator.
At BMP Global, we support fintech companies that plan to apply for a Latvian EMI License. Our role is to simplify the process, help prepare strong compliance documentation, and make communication with the FCMC easier. This kind of expert help often turns a long and stressful process into a smooth and predictable one.
The Real Value of an EMI License
Getting an EMI License is more than just a legal step — it’s a foundation for long-term business growth. With this authorization, your company can legally store client money, provide payment solutions, and expand into new markets.
It also gives clients confidence that your operations meet strict EU standards. Trust is one of the most valuable assets in the financial industry, and having a recognized license builds that trust automatically.
For investors, the license adds value to your company. It proves that your business can operate safely, which helps attract partners and funding.
Why Latvia Works Well for Fintech Companies
Latvia’s mix of modern infrastructure, fast digital transformation, and pro-business regulation makes it an ideal place for fintechs. The government supports innovation, the regulator is approachable, and the cost of maintaining a company is competitive.
Unlike in many large EU states, the FCMC offers direct communication and clear expectations. This is especially helpful for startups that want to build relationships with the regulator rather than just submit papers.
The country also has access to skilled professionals in compliance, IT, and finance. Many international fintech companies have already opened offices in Riga, making it easier to find the right talent locally.
Practical Tips for a Smooth Application
If you plan to apply for an EMI License in Latvia, here are some practical tips to improve your chances of success:
- Start with a strong business plan. Show that your company has a clear market focus, realistic forecasts, and risk controls.
- Build a solid compliance culture. Regulators respect companies that take AML and KYC seriously.
- Keep documentation simple and clear. Avoid unnecessary complexity — clarity is key.
- Be responsive to feedback. If the FCMC asks for more details, reply quickly and precisely.
- Work with experts. Consulting firms familiar with EMI licensing can help you avoid common mistakes.
These simple principles can turn a difficult licensing process into a structured, step-by-step experience.
Conclusion
Understanding what is an EMI license and how to get EMI license is the first step toward expanding your fintech business into the European market. Latvia offers a unique opportunity: a respected EU jurisdiction, clear rules, and an efficient application process at reasonable costs.
Getting an EMI License can open many doors for your company — new clients, new markets, and new partnerships. But success depends on preparation, attention to detail, and understanding what regulators expect.
If you are thinking about applying for a Latvian EMI License, take time to plan carefully and make sure every part of your project — from business model to technology — meets EU standards. And if you want to make the process easier, experienced consultants like BMP Global can help you move forward with confidence.
