A UK crown dependency, well-regarded for its business-friendly regulatory environment for financial institutions, offers a particularly attractive regime for Electronic Money Institutions (EMIs). EMIs function as licensed entities with the authority to issue electronic currency and deliver associated payment services. Securing an EMI license presents a potentially lucrative proposition for entrepreneurs in the digital payments space. However, the issuance of these licenses is contingent upon a demonstrably strong track record, leading to a heightened demand for the acquisition of companies already possessing such licenses. License holders and their key personnel must be suitable and reputable individuals. The licensing policy of the Regulatory Authority involves conducting suitability and fitness checks in key areas of integrity, competence, and financial standing.

Here are the most obvious advantages:

  • The application and licensing process is relatively simple and quick compared to other jurisdictions.
  • The island offers competitive tax rates for EMI firms.
  • The regulatory environment is quite flexible, which allows such companies to offer a variety of services and products.
  • The island has a reputation as a reliable and stable jurisdiction, which can increase the confidence of potential clients.
  • In addition, this license provides the right to operate throughout the European Union, which opens up great prospects for entrepreneurs.

Business on the Isle of Man

Despite its modest size, the island attracts businessmen from around the world due to a range of advantages. Moreover, the island's political system is founded on key principles of democracy and the rule of law. The island's economy is diversified and demonstrates sustainable growth. Here, there is a highly skilled workforce in various sectors, including financial services, IT, and professional services. The education system meets high international standards. Additionally, the island has developed infrastructure for conducting business, including telecommunications, transportation, and energy. Here is located a modern business center with offices, coworking spaces, and conference halls.

The government proposes a range of business support programs, including grants, subsidies, and tax incentives. Various business development organizations on the island are operational to aid entrepreneurs.

Note that, despite not being a member of the European Union, the island maintains close ties with the EU. Companies registered here are able to freely export goods and services to EU countries and participate in public procurement processes.

The island presents an advantageous locale for conducting business with Ireland, the United Kingdom, and Europe.

Overall, this jurisdiction proves advantageous for registering companies across diverse sectors.

Who needs an EMI license

Such a license may be of interest to various types of companies that want to issue electronic money and provide payment services.

Here are some examples:

  • FinTech are firms that develop electronic wallets and mobile payment applications.
  • E-commerce: online stores that want to offer alternative payment methods to their customers.
  • Payment systems: companies providing funds transfer and payment processing services.
  • Prepaid card issuers: firms that issue prepaid cards for various purposes, such as gift cards or transportation cards.
  • Crowdfunding platforms that allow you to raise funds for projects or startups.

Before submitting an application to the firm, it is imperative to meticulously assess one's needs and capabilities, ensuring they align with all regulatory requirements and are prepared to fulfill all obligations associated with obtaining and maintaining the license.

Isle of Man: benefits of an EMI license

Let's look at the key benefits.

  • Easy registration:

The process of application and acquisition of a license is notably straightforward and expeditious compared to other jurisdictions. The documentation requirements and application procedures are transparent and easily comprehensible. The regulatory environment of the island is geared towards fostering business development rather than erecting unnecessary bureaucratic hurdles.

  • Low taxes:

The island offers competitive tax rates for EMI companies. Corporate tax stands at 0%. There is no capital gains tax or inheritance tax. Additionally, companies are eligible for VAT exemptions for certain types of business activities.

  • Flexibility:

The regulatory environment of the island is sufficiently flexible, allowing firms to offer customers a wide range of services and products. There are no strict limitations on types of activities or service geographies. The regulator is open to dialogue and collaboration with EMI firms.

  • Reputation:

The island is renowned for its reputation as a reliable and stable jurisdiction, which can enhance clients' trust in EMI firms registered there. Its regulatory framework adheres to international standards and commands respect in the financial realm. Additionally, the island's political and economic stability constitutes an added advantage.

  • Access to the EU market:

An EMI license secured on the island facilitates business activities throughout the European Union, unlocking access to a sizeable market exceeding 450 million residents. EMI entities incorporated on the island are empowered to seamlessly provide their services to EU citizens and businesses, eliminating the requirement for procuring supplementary licenses.

  • Other benefits:

A highly skilled workforce in the financial services sector, developed business infrastructure, access to cutting-edge technologies, and support from governmental bodies and business development organizations make the island conducive to business operations.

In general, this type of license is an attractive option for companies operating in the field of electronic payments.

Risks and challenges associated with obtaining and maintaining an EMI license

Companies must consider these risks before applying for a license.

  • Regulatory requirements:

The process of obtaining such a license can be intricate and demanding. Firms must be prepared to furnish the regulator with comprehensive information regarding their business activities and adhere to stringent requirements pertaining to governance and oversight.

Licensees are subject to continuous supervision by the regulator and must adhere to a set of rules and norms. Failure to comply with these rules may result in fines, enforcement measures, and even license revocation.

  • Financial risks:

Obtaining a company license may entail significant up-front expenses. Businesses need to be ready to set aside funds in their budgets for taxes, legal and consulting fees, and costs related to putting necessary systems and procedures into place. In order to offset any possible financial deficiencies, license holders must have a sufficient amount of equity capital. This might be especially important for new businesses or organizations with limited financial resources.

  • Reputational risks:

Non-compliance with regulatory requirements or other issues with EMI licensing can tarnish a company's reputation, potentially leading to customer attrition, investor reluctance, and various adverse ramifications.

  • Competitive risks:

The market for firms providing electronic money and payment services is highly competitive. EMI licensees must be prepared to contend with competition from other firms, including large international players.

  • Technological risks:

The sector of payment services and electronic money is continually evolving and undergoing changes. EMI licensees must be prepared for rapid implementation of new technologies and adapting their systems and procedures to the evolving market requirements.

There exists a risk of cyberattacks and fraud. EMI licensees must take appropriate measures to safeguard their systems and data from unauthorized access and cyber threats.

  • Legal risks:

Licensees must stay abreast of all legislative changes in the realm of digital assets and payment services to ensure compliance with all pertinent requirements.There is a risk of disputes arising with clients, regulators, or other parties. EMI licensees need to have clear dispute resolution procedures and be prepared to defend their interests in judicial proceedings.

Requirements for obtaining an EMI license

There are a number of requirements that must be met, including:

  • Experienced management: managers must have experience in the financial services industry and have an impeccable reputation.
  • Sufficient capital: the EMI firm must have sufficient capital to cover potential risks.
  • AML/CFT compliance: an EMI company must implement and comply with strict anti-money laundering or anti-terrorist financing measures.
  • Compliance with technical requirements: the firm must comply with all technical requirements set by the regulator.

Let's look at the requirements in more detail. To obtain a license, your company must meet certain conditions set by the Financial Services Authority (FSA):

  • Requirements for management and shareholders:

Leadership must possess experience in the realm of financial services and maintain an impeccable reputation. Shareholders must demonstrate financial stability and uphold a reputation as reliable partners.

  • Capital requirements:

The company must have sufficient capital to cover potential risks. The minimum amount is 350,000 EUR.

  • AML/CFT requirements:

The company is required to implement and adhere to stringent AML/CFT measures. This entails developing an AML/CFT program, conducting customer identification, and transaction monitoring.

  • IT security requirements:

The firm is mandated to ensure the availability of robust IT security systems for safeguarding client information and assets. This encompasses the utilization of data encryption, access control, and other protective measures.

  • Business plan requirements:

The corporation is obligated to furnish an exhaustive business proposal delineating:

  • Types of activities that the company plans to carry out
  • The target audience
  • Development strategy
  • Risk management systems
  • Financial forecasts

Other requirements:The company is obligated to have an office on the Isle of Man. Additionally, it is necessary to appoint a Compliance Officer, i.e., an individual responsible for ensuring compliance with requirements. In addition to meeting the aforementioned obligations, your firm must also undergo an FSA inspection - a comprehensive assessment of financial stability, risk management systems, and corporate reputation.

Company forms

To obtain such a license, your company can be registered in one of the following forms:

Limited Liability Company (Ltd):

An Ltd, commonly deemed the prevalent corporate entity on the island, proffers limited liability to its shareholders. The requisite minimum share capital therein stands at no less than 1 pound sterling. A minimum of one director and one secretary is mandated. Additionally, a registered office within the island's jurisdiction is imperative.

Ltd offers a number of benefits, including:

  • Limited liability: shareholders are not personally liable for the debts and obligations of the company.
  • Ease of registration and operation: requirements for accounting and reporting are relatively low.
  • Flexibility: can be created with one or more directors and shareholders.

Public Limited Company (PLC):

PLC is a suitable corporate form for entities intending to raise capital through the public issuance of shares. Compared to registering a Ltd, PLC registration entails more stringent requirements. The minimum authorized capital for a PLC is £50,000. A minimum of one director and one secretary is required. The PLC must also register an office on the island.

PLC on the island offers a number of benefits, including:

  • Ability to raise capital through public offerings: PLCs can sell their shares to a wide range of investors.
  • Increased transparency and reputation: PLCs are subject to stricter disclosure requirements than Ltds.
  • Flexibility in ownership and management structure: PLCs can have different classes of shares with different rights and powers.

The island PLC registration process usually takes 3 to 5 business days.

Limited Liability Company (LLP):

LLP is deemed a structure of business blending characteristics from various models, combining the features of a partnership and a limited liability company. It lacks shareholders, with its members being partners. The minimum capital for an LLP is not prescribed. A minimum of two members and one manager is required. An LLP must have a registered office on the Isle of Man.

LLP on the island offers many benefits, including:

  • Limited liability: the individuals in an LLP bear no personal responsibility for the debts and commitments of the company beyond the extent of their assurances.
  • Simple management structure: LLPs can be managed by their members or by an appointed manager.
  • Flexibility: LLPs can be formed with any number of members.

The Isle of Man LLP registration process usually takes between 1 and 3 working days.


A foundation is a legal entity that is established to manage assets for the benefit of beneficiaries. It possesses a complex management structure and necessitates the services of professional administrators. There is no minimum capital requirement for the fund. A minimum of one founder and one board of directors is required. A mandatory condition is the presence of an office on the island's territory.

Isle of Man funds offer a range of benefits, including:

  • The assets of the foundation are isolated from the personal assets of the founder and beneficiaries.
  • Information about the beneficiaries and owners of the fund is usually not publicly available.
  • Foundations can be structured to suit the specific needs of the founder and beneficiaries.
  • May receive various tax benefits, including exemption from corporate tax.

There are several types of funds, the most common of which are:

  • Private foundations that are established for a specific group of beneficiaries.
  • Public interest foundations, which are established to achieve charitable or social goals.
  • Alternative investment funds, which are used to invest in various assets such as stocks, bonds, real estate, etc.

The process of registering a fund in the Isle of Man usually takes between 4 and 8 weeks.

Company form




  • Most popular shape on the Isle of Man
  • Simple structure and management
  • Minimum share capital required, which is just £1
  • Low taxes (0%).
  • Limited liability.
  • Annual reports and audit


  • Suitable for companies planning to raise capital through a public offering
  • Increased transparency and reputation
  • Flexibility in ownership and management structure
  • More complex structure and management
  • Higher disclosure requirements
  • Costs of listing on an exchange


  • Flexibility in management structure
  • Limited liability
  • Low taxes (0%).
  • Not suitable for firms planning to go public
  • Not as widespread as Ltd

Requirements for enrolling an entity in the Isle of Man

To establish a company in the Isle of Man, you require:

  1. Select a company form (one of those presented above);
  2. Select company name;
  3. Appoint a director;
  4. Prepare the essential paperwork (statutory documents, address documents, personal documents of founders and directors, etc.);
  5. Pay registration fees;
  6. Apply for registration: an application for registration is made to the Isle of Man Companies Registration Office. A number of documents should be attached to the application.

Business taxation

The Isle of Man offers entrepreneurs an appealing tax regime, rendering it a popular destination for conducting business.

The taxation system in the Isle of Man is based on a territorial principle.

This translates to a territorial tax system for companies registered on this island. They are only liable for taxation on profits generated from activities conducted within the island's jurisdiction. Conversely, income earned from external sources generally remains exempt from taxation.




Corporate tax


Tax on profits received from sources on the island.

Social Security Tax

up to 12,5%

Paid by employers and employees to fund the social security system.

Property tax

0,25% – 20%

Paid by property owners on the island.

Stamp duty

£10 – £100,000

Charged upon registration of companies, issue of shares and other corporate actions.


0%, 5% or 20%

Value added tax, which applies to goods and services supplied on the island

In addition to the main taxes, there are also various duties and fees.

Stages of obtaining an EMI license

The process of acquiring a license on the island usually takes 4 to 6 months. It includes several stages:

  • Submitting an Application: the applicant must submit an application to the Island's FSA, providing details of his firm, its management, business plan, etc.
  • Due diligence: the FSA will carry out due diligence on the applicant to ensure that it is credible and meets all requirements.
  • Payment of fees: the applicant is required to pay a state fee for processing the application.
  • Obtaining a license.

Obtaining an EMI license is a multistep process that demands meticulous preparation and adherence to regulatory conditions. Let's delve into each stage in detail. Broadly, the process can be divided into the following phases:


  • Determine whether your company meets the requirements to purchase this license. Review the list of requirements provided on the island's FSA website.
  • Assess your chance of obtaining a license. Review your business plan, financial strength, management experience and other factors that may influence the FSA's decision.
  • Choose the right agent. An experienced agent can help you collect documents, prepare your application, and communicate with the regulator.
  • Gather your documents. The list of required documentation may include financial statements, business plan, management and shareholder information, AML/CFT and IT security plans and other documents that may be required by the FSA

Submitting an application:

  • Complete the online application form on the FSA website.
  • Pay the state fee. The fee is set at 20,000 EUR.
  • Submit your application and all required documents to FSA.


FSA will conduct a comprehensive examination of your company. This may encompass scrutiny of your business model, assessment of your financial robustness, analysis of your risk management systems, scrutiny of compliance with AML/CFT requirements, and evaluation of your IT security. Additional inquiries or requests for supplementary documentation may be made.

Consideration of the application:

The FSA will review your application and decide whether to issue or refuse a license. The application review period usually ranges from 4 to 6 months.

Obtaining a license.

Rights of the issuer of electronic money on the island

The issuer of digital assets has rights to the following:

  • EMI can create and store electronic funds in the accounts of its clients.
  • Issue prepaid cards suitable for paying for goods and services in various offline and online stores.
  • EMI can carry out electronic money transfers from one electronic wallet to another.
  • Such a company can make payments from its clients' e-wallets to other e-wallets or bank accounts.
  • Offer other services of a similar nature: For example, services for cashing electronic money, paying bills, etc.

It is important to note that EMI's rights are limited by the regulator's requirements. The island's FSA sets strict rules for EMI activities, which are aimed at protecting consumer rights and ensuring financial stability.

Expenses related to acquiring and upkeeping an EMI permit

Typically, the acquisition cost of this license falls within a band of £10,000 to £50,000. Annual outlays for maintaining the license can range from £5,000 to £20,000. The following represent some of the primary cost components:

  • State fee: £5,000 for license application, plus annual fees of £5,000 to £10,000.
  • Consultant assistance: necessary for application preparation, compliance, and operational alignment, with costs varying based on business complexity.
  • Audit: may be required to demonstrate regulatory compliance.

How can TK DEAL help you obtain an EMI license?

TK DEAL helps you get an EMI license on the island. We offer services for every step, from analyzing your business to ensuring compliance, answering your questions about regulations, and helping you with tax optimization.

We'll make a list of what you need and help you get it. Then, we'll put everything together according to FSA rules. If needed, we'll translate everything into English.

We'll help you create a top-notch business plan that convinces the FSA you're capable of running an electronic money business. We'll study your market and competitors, and make financial forecasts and risk management strategies.

We'll help you with the FSA application process from start to finish, staying in touch with them and keeping track of your application's progress.

We'll keep you updated on any changes to rules. Once you get the license, we'll help you activate it and follow the rules.

Why choose TK DEAL?

We're experts in getting licenses for companies. We know all the rules inside out and can guide you through without any hiccups. Trust us to be your reliable partner. Just reach out, and we'll help you secure an EMI license in Isle of Man, getting your electronic payments business off the ground smoothly.