An electronic money institution (EMI) and a payment service provider (PSP) offer specific services related to processing payments and issuing e-money. These types of activities are regulated, and to obtain an EMI/PSP license in Hong Kong, company owners will apply for the specific license with the Hong Kong authorities. Our team can help you with company formation in Hong Kong if you want to open a company in Hong Kong as an EMI/PSP.
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How to open an EMI/PSP company in Hong Kong
Entrepreneurs interested in setting up an electronic money institution, or those that will function as payment service providers, follow the same rules for company formation in Hong Kong:
- Business type selection;
- Name check and reservation;
- Company registered address in Hong Kong;
- Company setup documents drafting and vetting;
- Registration with the Company Register;
- Licensing with the local authorities.
Services offered by EMIs and PSPs in Hong Kong
An electronic money institution or EMI in Hong Kong will typically offer services such as:
- Issuing and distributing e-money;
- Exchange services;
- Handling transfers;
- Offering digital wallet solutions.
A payment service provider, the PSP in Hong Kong, as referred to herein, will offer the following:
- A platform for accepting multiple types of payments (such as credit or debit cards, or bank payments, among others);
- Provide POS solutions;
- Offer the possibility to customize the service (via an open API);
- Implement adequate payment data security standards in their platform.
As seen from the lists above, the services offered by those that open an EMI/PSP company in Hong Kong can overlap; however, this is not always mandatory, and it is not always the case. Some EMI companies can offer payment services as part of their packages, however, the PSP company will not necessarily be in a position (or authorized to) issue electronic currency.
Payment service providers and electronic money institutions are required to apply for and obtain an EMI/PSP license in Hong Kong. Given the nature of these activities, the key requirements are complex.
Our team can help you open an EMI/PSP company in Hong Kong. This type of business is generally structured as a private limited company or, alternatively, as a public limited company. Our team can not only help investors set up a company in Hong Kong but also assist with and guide them throughout the licensing process. Please read below for more details.
EMI licensing in Hong Kong
Those interested in obtaining an EMI/PSP license in Hong Kong will have to become licensees according to the law. For electronic money institutions, the Hong Kong Monetary Authority issues the Stored Value Facilities license (the SVF license) required for those that provide e-wallets and other services.
The Customs and Excise Department also keeps a database of licensed money service operators and provides guidelines for the fit and proper criteria for companies that apply for an EMI/PSP license in Hong Kong.
PSP licensing in Hong Kong
A payment service provider will ordinarily be applying for a money service operator license, issued by the Customs and Excise Department, as previously mentioned.
A license for these types of companies in Hong Kong is granted when the Commissioner of Customs and Excise determines that the directors/beneficial owners are fit and proper individuals who can engage in the business of operating a money service in Hong Kong.
In addition to the fit and proper requirement, the applicants will also:
- Pay an HDK3,310 fee for each new license;
- Make an additional payment of HKD2,220 for any subsequent business premises;
- Pay an extra fee of HKD860 for each new person who has to pass the fit and proper test for the company.
Our team can help you understand the requirements for setting up a company in Hong Kong that will be involved in offering EMI or PSP services.
Contact us for more information on how to obtain an EMI/PSP license in Hong Kong.