Netherlands PI Licence FAQ

• Why did you choose the Netherlands?

  The Dutch Payment Agency Licence (PI) not only helps licensees to establish good reputation and brand awareness, but also allows them to provide services in the Eurozone, access a wealth of financial talent, and enjoy tax benefits. There are currently 430 companies active in the FinTech market in the Netherlands, including Adyen, Bitfury, Bunq, Flow Traders and Mollie.

• 2. What specific services can a licensee provide after obtaining a payment institution licence?

  A payment institution license allows licensed businesses to provide a range of services, including payment processing, electronic currency issuance, fund transfer and payment account services.

• 3. Is a local office a prerequisite?

  Yes, there must be a local office.

• 4. Does the team need to have relevant experience in financial technology?

  From a regulatory perspective, it is important to have a team with relevant financial technology experience, which will greatly increase the likelihood of successful applicants. We recommend that your board and management include at least two practitioners with financial technology expertise.

• 5. Does the applicant need to set up the IT system in advance?

  No, the Dutch central bank only conducts a written review at the application stage. We recommend that companies develop a demonstration system and prepare user manuals for presentation to regulators. The IT system should be implemented within six months of the grant of the licence.

• How long does it take to apply for a PI licence?

  If your team provides adequate support, the application process usually takes about 8 to 10 months. We will manage the project flow chart for you!

• 7. What is the maintenance cost after successful application?

  Maintenance costs can be divided into one-time and ongoing costs.
  
  One-time costs include initial company establishment costs, such as registration fees, license application fees, investment in technology infrastructure, recruitment fees, and other regulatory obligations.
  
  Ongoing expenses include ongoing expenses such as annual audits, quarterly reports, software subscriptions, employee salaries, office rent and utilities.

• How to set up a company in the Netherlands?

  We will first conduct a detailed analysis of your company's shareholding structure and provide relevant recommendations. We will then assist you in setting up a company in the Netherlands.

• 9. What is the actual situation of talent recruitment in the Netherlands?

  Recruiting experienced locals is challenging, especially for senior positions such as directors. At the end of the day, there is often a lack of trust between recruiters and candidates, and candidates may also worry that joining an unknown company will pose a risk to their personal reputation. However, this type of talent is critical to the leadership team and the success of the application. We are well aware of the concerns of both sides and can bridge the gap as a broker. Through our extensive network, we can help you build a qualified local team.

• 10. Who will be responsible for drafting the document?

  Developing policies and writing documents is both challenging and time-consuming. We will be solely responsible for the drafting of all required documents, and you can simply gather a small team to provide feedback on the issues raised when we prepare the materials (e. g. the construction plan for the IT system).

• 11. What is the solution for opening a bank account?

  We work closely with ABN AMRO to help you successfully open a company operating and escrow account in the Netherlands.

• What is the official language of the Netherlands?

  Dutch is the official language of the Kingdom of the Netherlands. Interestingly, the Netherlands is an English-friendly country, with 93% of Dutch people able to communicate in English. The Dutch Central Bank (DNB) accepts documents submitted in Dutch and English. In addition, our team can communicate fluently in English and Chinese (Mandarin).

• 13. What are the common challenges in the application process?

  Choosing the right people to work on a project is often a tricky issue, especially when team members come from different cultures, regions, companies, or departments, which increases communication costs and complicates team management. In addition, meeting the expectations of regulators will not be easy. Regulators' focus is usually on ensuring national financial security and stability, which is different from the entrepreneur's business goals. As a result, accurately understanding and meeting regulatory requirements becomes a major challenge. We will act as an intermediary to help coordinate the relationship between the parties and ensure the smooth progress of the project.

• 14. Who will provide maintenance support after obtaining a license?

  Our company has been working in the compliance market for seven years and has accumulated license maintenance programs for more than 20 companies. You can think of us as a compliance team within your company; we are here to support you whenever you want!

• 15. After obtaining a license, can it assist in international expansion?

  We have successfully supported more than 10 clients in Europe, the UK, Hong Kong and Southeast Asia. We can provide valuable insights into your international expansion plans to help you navigate the challenges of various jurisdictions.

• 16. What are the compliance obligations of the licensee after obtaining a licence?

  Once licensed, you are required to meet ongoing compliance obligations, such as submitting regular operational reports (quarterly/annual), conducting customer due diligence, and ensuring compliance with anti-money laundering regulations. These obligations are designed to ensure that your operations comply with regulatory requirements and maintain the stability and security of financial markets.

• 17. What are the consequences if I refuse to comply with regulatory requirements?

  A licensed company's failure to comply with regulatory requirements may result in penalties, including fines, or, in severe cases, the revocation of your license. Therefore, it is essential to establish a qualified compliance team and equip the corresponding systems, which can help your company reduce compliance risks.

• 18. What specific regulations or laws should the applicant or holder pay attention?

  Be sure to understand regulations such as the Payment Services Directive II (PSD2), the Anti-Money Laundering Directive and the Digital Operational Resilience Act (DORA). Knowledge of these regulations is extremely important for licensing and operations.

• 19. How can companies keep abreast of regulatory or regulatory changes?

  We recommend that you subscribe to the information notices of the Central Bank of the Netherlands. In addition, we can provide ongoing insights and updates on regulatory changes that may affect your operations to ensure you are always up to date.

• 20. What should the business plan contain?

  The business plan should include an executive summary, market analysis, product and service details, marketing strategy, operations plan, competitor analysis (SWOT), and a comprehensive financial forecast.

• 21. What should be included in the financial forecast?

  A qualified financial forecast should include a detailed revenue forecast, cost structure and cash flow management over a three-year period. For licence applications, reliable financial forecasts should contain actual indicators, usually showing heavy losses in the first year, reduced losses in the second year, and flat or profitable gains in the third year. In addition, a good forecast should also cover different scenarios, including normal, best-case and worst-case scenarios, to fully understand potential financial performance.

• 22. What is the IT Security Policy Book?

  The IT security policy book contains comprehensive guidelines designed to protect digital assets and sensitive data from unauthorized access and cyber threats. It covers key areas such as access control protocols, data protection measures, incident response policies, employee training programs, and regular security audits to ensure effective protection against emerging threats.

• What is the Wind Down Plan?

  The contingency plan outlines the company's strategy for dealing with major issues such as software and hardware shutdowns. It details each party's responsibilities, closure procedures, risk management strategies, employee communications, and compliance regulations to ensure a smooth transition and mitigate the impact of potential issues.

• 24. What is the remuneration policy book?

  The compensation policy outlines the composition of employee compensation, including wages, bonuses and benefits, and is designed to ensure competitiveness, fairness and compliance with labor laws. The Remuneration Committee is responsible for formulating compensation plans based on the company's financial performance, economic conditions such as inflation and other relevant indicators.

• 25. Is it necessary to build a local team?

  Yes, in the eyes of regulators, building local teams is crucial. They expect applicants to demonstrate a strong and experienced business team in Ireland. The team should include at least two local directors, as well as key positions such as CEO, CFO, Compliance Officer and Head of IT.

• What is the tax rate in the Netherlands?

  The Dutch corporate tax rate is 25.8 per cent, value-added 21 per cent and dividend tax 15 per cent.

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