Forex broker license in Czech Republic
If you want to register a brokerage company in Europe, then the Czech Republic (CR) is one of the best variants for business.
One of the main advantages of the proposed market is the regulating and monitoring conducted by the National Bank of a CR. It is both a respectful bank organization and state institution responsible for market regulations and guaranteed equal rules and attitude for the residents and foreign companies.
The other advantages are the neighborhood with developed European countries and the ease of entering their markets. There is a fast procedure for getting a similar license in other EU-countries in case you have obtained a forex license in the CR. This procedure does not require additional documents filling and the fee is rather low.
Types of activities under the license
The license obtained in the CR allows to provide 2 types of services:
- Main investment services: receiving, transferring and executing trade orders, trading with investment instruments, emission of the investment instruments, property management.
- Additional investment services: investment instruments management, storage of these instruments, loans for the investment instruments purchase, consulting.
Requirements to the applicant
- First of all, you have to register a legal entity in the CR. It is forbidden to apply for the license if you do not have a local company here. The company can be registered as a LLC or Joint-Stock Company.
- Also, you have to prepare a proof of your trustworthiness: a document, which states that the owners and partners of the company were not prosecuted.
- At least two owners in the company. They must have previous experience in the forex market.
- You need to draft a few documents: a business plan with a real goal, rules of a broker interaction with clients, terms of service.
- You have to form a share capital.
The process of license obtaining in the CR does not differ from the procedure in other countries of the European Union. One of the advantages of obtaining a license in the CR is the absence of any requirements regarding the nationality of company managers. It allows hiring qualified staff regardless of their residency.
The authorized capital in the Czech Republic
The authorized capital of a company applying for a Forex license must be at least 125 thousand euros. But the exact amount depends on the services of the future company.
- With a capital of 125 thousand euros, the company is granted a Czech license (STP) and it is allowed to provide a wide range of services. For example, securities storage and management or issue of securities.
- With a registered capital of 730 thousand euros, the company is granted a Czech license (Market Maker) and is allowed to provide main and secondary forex activities. Among them: issue and sale of securities, offer a guarantee.
Also, you must have an active bank account with a capital on it. It is not blocked and you are free to use it in your financial operations. The higher your capital is, the wider range of services you can provide to your clients.
The duration of the procedure
The process of license obtaining can take from 6 to 9 months, including the preparation of documents. The cost of the license is better to check with our specialists.
Please, contact our team in case you have any questions or you need a piece of detailed information on license conditions and benefits.
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