How to Obtain a Payment Institution Licence in the Czech Republic

Need advice on this topic? Contact the ARROWS law firm by email consultation@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

Why Choose the Czech Republic for Your Fintech Hub?

The Czech Republic has established itself as a safe European harbour for financial institutions. For foreign investors and fintech operators—similar to successful platforms like KoalaPays—Prague offers a stable regulatory environment within the European Union, cost-effective operational structures, and direct access to the single market via passporting rights.

As a leading Czech law firm in Prague, EU, ARROWS supports foreign SMEs, large corporations, and investment groups in navigating this process. While the jurisdiction is attractive, the Czech National Bank is a rigorous regulator. Success requires more than just filling out forms; it demands a flawlessly executed legal strategy.

What Do You Need to Comply With?

The core legislation governing this sector is the Czech Act on Payment System. To obtain a full Payment Institution licence, you must prove to the CNB that your company is robust, transparent, and secure. This is not merely a bureaucratic exercise; it is a forensic audit of your business model.

You must demonstrate sufficient initial capital (typically starting at EUR 125,000 depending on the scope of services) and sound capital adequacy planning. Furthermore, you must implement a governance system that ensures the prudent management of the payment institution.

Even simple-looking steps often contain legal traps and hidden risks for laypeople, specifically regarding the definition of funds safeguarding.

We handle this agenda daily. Our experience with the CNB allows us to anticipate questions and structure your application to minimize delays. Our lawyers are ready to assist you – email us at consultation@arws.cz.

Initial Application Phase

How Can You Avoid Legal Risk in Management?

A critical component of the application is the "fit and proper" test. The CNB evaluates the professional competence and trustworthiness of your management board and supervisory board. This applies to both local and foreign executives.

You must prove that your managers have relevant experience in the financial sector and a clean criminal record. For foreign clients, gathering the correct cross-border verifications can be a procedural nightmare without local legal counsel.

ARROWS operates in 90 countries globally through our international network. We can facilitate the necessary background checks and legal opinions from foreign jurisdictions to satisfy the CNB.

Need legal help verifying your management team? Contact us at consultation@arws.cz.

The Critical Role of AML/CFT Compliance

The steepest hurdle for most applicants is Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). The Czech Republic implements strict EU directives (AMLD5/AMLD6). Your internal control system must be sophisticated enough to detect suspicious transactions in real-time.

You cannot simply copy-paste a template. The CNB requires a tailored risk assessment specific to your client base and transaction types. Failure to provide a robust AML manual is the most common reason for license delays.

Drafting these internal policies requires deep knowledge of both local execution and international standards.

As an international law firm operating from Prague, European Union, ARROWS specializes in drafting these high-stakes documents. We mitigate the risk of your application being flagged as high-risk by the regulator.

Operational & Compliance Risks

What Is the Next Step?

Once the application is submitted, the CNB has a statutory period to decide, but in practice, the process involves several rounds of questions and amendments. This "administrative procedure" is where an experienced law firm earns its value.

We handle communication with the regulator, responding to their inquiries rapidly and accurately. This significantly reduces the client's risk of rejection and saves months of operational time. It is much safer to have the matter handled professionally than to attempt a DIY approach with the CNB.

ARROWS is insured for damages up to CZK 500 million, providing you with an extra layer of security that freelance consultants cannot offer. We also support over 150 joint-stock companies and can connect you with potential partners within our client network when business interests align.

Get tailored legal solutions by writing to consultation@arws.cz.

Post-Licensing & Operations