License for financial activities in Ukraine

The degree of trust between a client and a company that provides financial services depends on factors that can influence it. The company’s reputation, professional experience in the financial market, and the number of real clients who can provide objective information about it, devoid of advertising tinsel, are taken into account here. However, none of them can be called decisive. The only unconditional marker of professionalism and reliability is a license for financial activities, which every company positioning itself in the field of finance must have.

Why do you need a financial license?

Imagine yourself in the place of a client, searching for the company that will be the most reliable to contact. The experience of the 1990s taught us that financial pyramids, promising millions in earnings to gullible fellow citizens, burst like a soap bubble, and banks go bankrupt from one strong jump on the stock exchange. The conclusion follows from this: a financial enterprise must be reliable, and one of the key indicators of reliability is a license. At the legal level, it provides the right to provide services in a particular branch of finance.

When is a financial license required and when not.

The vast majority of types of financial activity require licensing:

• work in the insurance industry;
• providing loans using raised funds;
• raising funds for deposits;
• creation and development of a non-state pension fund;
• activities involving the involvement of assets of individuals;
• financial clearing and work related to currency exchange.

As for unlicensed industries, these include:

• loans and credits from personal funds;
• attraction of assets of legal entities;
• work related to the provision of guarantees and factoring;
• surety

How to get a license.

As already mentioned, a license is a kind of evidence of the professionalism and quality of the services you provide. Therefore, the state commission puts forward a number of mandatory requirements for each applicant.

• First of all, you will have to take care of the availability of authorized capital. For each type of enterprise, the amount is calculated individually.
• In addition, the commission will inquire about the education of your director. Of course, it must be higher and relate to the field of finance. Also, the director must have relevant work experience, have no criminal record and have an impeccable reputation, that is, not have in his professional background enterprises that became bankrupt under his leadership.
• The state will subject your future accountant to an almost identical “exam.”

Deadlines for obtaining a license.

The commission will spend 30 days reviewing your application. If no errors are found in it, you will have the license; if they are found, the application will be returned for revision. In practice, this drags on for several months. And this does not take into account the time spent on preparing official papers.

If you are not ready to spend so much time on obtaining a license, the Elionorum company can offer you a simple and fast algorithm. The main task of our employees is to minimize personal