A business license is an approval for regulated markets. Authorities in different jurisdictions issue licenses to operators that want to legally run their online platforms in those places.
A license is truly an entry ticket to a better world. If you want to build online services, you need a license. That’s the only way you can partner with trusted PSPs and content providers, expand your business to new markets, sell your software to ‘big fishes’, and attract more users.
But without a license, the life of online platform operators is not so easy. They face fines of millions, their websites shutdowns, and even worse, criminal prosecution.
Why do many operators choose this thorny path full of fines and sanctions? They believe that getting a license takes a very long time.
We’re here to debunk that myth.
Comparison Table: How Long It Takes To Get A Business License
Description: These timeframes reflect only the regulatory processing period. They don’t include the preparation phase.
What Is a Business License and Why Is It Required?
Licenses mainly exist to keep a country’s online market in check. With a license, operators can open digital platforms, interactive services or subscription websites, start accumulation programs, and develop software within a specific region.
The only few things differ from place to place — what requirements are and how long it takes to get a business license.
For example, if the operator plans to target users in Malta and other EU countries, the license is required. The thing is that Malta is one of the first EU countries with a dedicated online services regulatory legislation.
To get a B2C license, the operator must pass a “fit and proper” test, submit detailed business plans, and meet capital requirements of €100,000 minimum for premium features. That’s not the end.
The MGA, the main regulatory body in the country, requires that servers and infrastructure be located in Malta. After 7-9 months, when the operator gets a license, they will pay annual fees and pass regular compliance audits.
Sign in to leave a comment.