Money Remittance License (PayPal License) Bulgaria Advantages

Bulgaria is currently the best country for financial services licenses. Firstly license can be passported in any other EU country; Bulgaria is a European country so any license made here will permit to do business in 30 European countries; payment institutions in EU are subject to licensing but once a licence is obtained in any member state (e.g. in Bulgaria), the payment institution can provide services on the territory of the entire EU without further licensing – Informing the relevant Central Bank – Bulgarian National Bank (BNB) of the respective member state is the only obligation. Corporate income tax is the lowest in Europe at 10%, while personal income tax is 10% only.

Company incorporation and maintenance and license application fees are very reasonable by comparison to other European countries.Office rental and fitting costs and labor costs are very low while the quality of local workers or office employees is excellent.Large choice of banks (among which international banks)

PSPSA Payment Services and Payment Systems Act

Bulgaria has a special act on this Money Remittance Services – the Payment Services and Payment Systems Act

This Act regulates:

– Requirements to the payment service providers and types of payment services;
– Terms and conditions for licensing and implementation of the business of payment institutions;
– Requirements for providing information on payment services;
– The rights and obligations of the parties in carrying out payment services;
– Terms and conditions for licensing and implementation of the business of electronic money;
– Settlement finality in payment systems and securities settlement;
– Terms and conditions of licensing and the operating payment systems;
– Payment supervision and
– Procedures for alternative dispute resolution in connection with the provision of payment services.

PSPSA lists the persons who under the Act hold the capacity “Payment Service Provider” and these are:

– Banks;
– Payment institutions and electronic money as defined in LPSPS;
– The European Central Bank and national central banks of the Member States, when not acting in their capacity as monetary authorities or bodies performing public functions.

Number of Directors	1 director required
Local Director	EU resident director – acceptable
Employees Requirement	No minimum employee requirement but should at least have:

– Front office person

– Internal Control person

– Technical Support person

Local Office Yes; the cost will not exceed 200 to 400 Euros monthly .

Activities considered as Payment Services

Services related to the introduction of cash on a payment account as well as related operations for operating a payment account;

Services related to withdrawal of cash from a payment account as well as related operations for operating a payment account;

The execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider:

– execution of direct debits, including one-off direct debits;
– execution of payment transactions through a payment card or similar
– instruments;
– execution of credit transfers, including standing orders;

Execution of payment transactions where the funds are part of relax on the payment service credit:

The issue of payment and / or receiving of payments with payment instruments;

Implementation of money remittance;

Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication or IT system or network that acts only as an intermediary between the payment service and the supplier of goods or services.

They are all licensed activities.

A license is required from the National Bank, as the company must satisfy certain conditions relating to reliability and security.

Only two types of companies can apply for obtain a license as a payment institution – a Limited liability company or a Joint stock company.

Application Requirements

To obtain a license from the Bulgarian National Bank you should file the submission of multiple documents that can be defined in several groups:

– The Company itself

Copy of Company documents;

Proof for the required capital or owners’ statement for the origin of the funds

– Professional qualifications and reputation of managers and

Representatives of the company

– Curriculum Vitae showing professional experience and expertise on the specific

financial sector

All foreign language documents must be translated and legalized in the Bulgarian language.

Among the requirements are those to rent a real office (not just mailbox) in Bulgaria, which will actually be examined by legal representative of the Regulator.

EU licence for Payment institutions E-money and Payment system providers In Bulgaria

If a payment service provider (PSP) has a Bulgarian licence granted for only one of the services but decides to offer additional services afterwards, there is an opportunity to apply for supplementing the licence with other payment services.

Payment institutions in EU are subject to licensing but once a licence is obtained in any member state (e.g. in Bulgaria) – then the payment institution can provide services on the territory of the entire EU without further licensing. Informing the relevant Central Bank of the respective member state is the only obligation in this relation. In Bulgaria this is the Bulgarian National Bank (BNB).

Supporting Documents

Notarized and Apostilled copy of passports
Notarized and Apostilled copy of ID cards
Legalized and Apostilled Criminal or Police Record
Original or Legalized and Apostilled copy of Proof of address – Utility bills of less than 2 months
Original or Legalized and Apostilled copy of Bank Reference Letter (personal account) must mention you are a client since more than 2 years
Original or Legalized and Apostilled copy of Bank Statement (personal account) one year

Supporting documents for Application

Business Plan over 3 years’ period
AML policy
KYC policy
Risk Management policy
Model of contracts with clients

Remarks

Some countries have agreement with Bulgaria where only notarization and Legalization is required no apostille needed (for example France). If you are located into a country that is not part to apostilled convention documents need to be Notarized or Legalized + Legalized by Foreign Affairs Ministry + Legalized by Bulgarian Embassy. If you leave into a country without a Bulgarian Embassy, please let us know and we will let you know which other Embassy to contact

Our Services

We can take care of all the overall work both on the creation of a company (OOD or AD) and the application of its registration and licensing by the Bulgarian National Bank (BNB). You will need to fulfil the following conditions: To set up a Bulgarian Limited Liability (OOD) or Joint Stock company AD) with a paid up capital as listed above To pay up the required capital The origin of the company’s paid-in capital or the funds used to acquire shares in the case of transfer of shares shall be transparent and legal The registered office and the head office recorded in the Registrar of Companies shall be the same as the location where the applicant’s actual management will occur; (in other words you will need a real office To apply reliable rules to ensure proper governance arrangements for its payment services business.

Timing

After submission of documents with BNB, the deadline for a ruling is approximately three months. You should be aware that if you want the representatives of the firm to be foreigners (not Bulgarian residents) they will have to come to Bulgaria at least to attend an initial meeting with the Regulators.

Bulgaria Money Remittance License Application