Taurus Legal Group

Forex License in Estonia

Operating in Estonia requires a Forex license issued by the Financial Inspection of the Republic of Estonia. The process for obtaining a brokerage license in Estonia for a joint-stock company involves several steps:

First, a joint-stock company must be established. This entails:

Appointing an auditor.
Preparing founding documentation.
Opening a bank account.
Notarizing registration.
Paying the statutory capital of €25,000.
Registering with the Securities Center.

According to Estonian legislation, a joint-stock company must have a minimum of three management board members and one board member representing the company. Once all these steps are completed, documents can be submitted to the authorized authority.

To operate in the Forex market, a broker in Estonia must prepare the following document package:

Articles of association/notarized founding documents.
Information about shareholders and share packages.
Information about founders, management board/council members.
Information about companies in which the plaintiff company holds more than a 20% stake.
Auditor information on internal control bodies.
Balance sheet, profit and loss statement, annual report (for existing companies).
Business development plan for the next three years.
Document confirming the commitment to pay into the guarantee fund upon license issuance – a one-time payment of €1,300.
And other documents as specified by a specialist.

To obtain a license, a sufficient statutory capital is required:

Securities transactions, including on behalf of/for the account of clients – €50,000.
Management of securities issuance and portfolio – €125,000.
Underwriting, custody, securities trading on its own account – €730,000.

If the joint-stock company supports multilateral trading systems, investment consulting, then the basic capital is sufficient. The statutory capital amount is $2,000.

The license also entails contributions to the Republic of Estonia fund. Payments depend on the nature of activities and are made quarterly:

Executing orders to buy and sell securities, including on behalf of/for the account of clients – 0.1% of the transaction amount for the last decade of the previous quarter.
Portfolio management – 0.075% of the market value of securities and cash held by the joint-stock company on the last working day of the quarter.
Securities custody and management, as well as related additional operations – 0.01% of the market value of securities traded on the last working day of the quarter.

This sum covers the full range of services provided by “Taurus Legal Group” experts:

Assistance in establishing a joint-stock company, including notarization of documents for registration, appointment of a company auditor, assistance in opening a bank account and share account, preparation of documents for registration with the Securities Center.
Assistance in obtaining a license, including the preparation of all necessary documents and submission of the application to the Financial Inspection, communication with the Financial Inspection during the license application review.
Legal address of the company.
Government fees.
Registration/transmission of powers of attorney.
Legal and accounting consultations.

Conditions:

Obtaining a license in Estonia takes more than 4 months:

1 month for establishing a joint-stock company.
1 month for collecting documents.
2 to 6 months for the Financial Inspection to review the application.

Acquiring a Representative License:

Companies’ representative offices that provide:

A certificate confirming the existence of a license in the country of operation of the head office.
Activity plan of the representative office.
Power of attorney issued by the head company.
Certificate or extract of registration of the head structural unit.
Articles of association.
Office address.