Our local agents can help clients who want to opencompanies in Cyprus in the financial sector that require a Payment Service Provider or PSP license. Also known as the Electronic Money Institution or EMI license, this business permit requires meeting certain conditions for obtaining it. As such, we invite you to read about its issuance requirements below.
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Conditions to open a PSP company in Cyprus
The first and most important requirement to secure a Cypriot EMI license is to have a local place of business. As such, you must complete the company formation process with the Trade Register in Cyprus. For this purpose:
- you can register a private or public limited liability company;
- you must ensure a minimum capital of EUR 20,000 to EUR 350,000 to comply with the minimum resources, operations, and risks associated with doing business in this sector (the amount depends on the activities of the business);
- you must secure a management that meets the proficiency and integrity requirements of the legislation in place.
Since we mentioned legislation, the main laws to comply with in order to obtain a PSP license in Cyprus are:
- the EU Electronic Money Directive (EMD);
- the Payment Services Directive (PSD2).
Feel free to rely on our consultants for support with the Cyprus company formation process for your future EMI activities.
Requirements to apply for a PSP license in Cyprus
Here are the conditions to meet for a company to obtain an EMI license in Cyprus:
- they must have a physical office in Cyprus;
- the balance sheet must prove the PSP company has the necessary working capital and assets to ensure the operations of the business;
- Anti-Money Laundering (AML) regulations must also be created and implemented;
- some of its responsibilities must be completed by other institutions, for ensuring internal monitoring, for example.
PSP applications must be submitted with the Central Bank of Cyprus. However, it is important to note that EMI companies must also adhere to the European Central Bank’s requirements.
Steps to apply for an EMI license in Cyprus
After you open a PSP company in Cyprus, the following steps must be respected before applying for the license:
- drafting a business plan which provides for the markets and services to be provided, and the organizational structure of the company;
- creating the risk management, client protection, and AML rules;
- submitting the application to the Cyprus National Bank.
Following the review of the documents, the license is issued in about 9 to 12 months.
Documents required to obtain a PSP license in Cyprus
The following papers must be filed with the Central Bank to obtain an EMI license in Cyprus:
- a 3-year business plan;
- details about the activities of the Cyprus PSP company and a description of the payment services to provide;
- proof of the funds to carry out the activities (a bank statement);
- proof of the Cyprus-based address;
- the internal monitoring and client protection measures;
- the auditing and accounting plans;
- details on the storage, protection, and archiving of client data;
- an emergency action plan and security measures;
- the EU compliance methods to be implemented;
- the details of the shareholders and directors, and their professional experience and expertise.
Our company formation agents in Cyprus can help you gather and file the documents.
How many financial companies operate in Cyprus?
According to recent data available for 2025, in the month of October, there were 128 financial institutions operating in Cyprus, as follows:
- 122 or a little over 95% of the total were single-owned businesses;
- the remaining 6 were part of large financial groups;
- the average age of such companies is 4.2 years.
For assistance in opening a PSP company in Cyprus, please contact us.