Estonia’s Financial Institutions Face Stricter Regulatory Requirements

In Estonia, financial institutions and companies offering investment services are subject to strict regulatory requirements. To ensure compliance, the Estonian government controls these entities through two main mechanisms: licensing and activity notification.

Licensing Requirements for Financial Institutions in Estonia

The Estonian Commercial Code grants companies the freedom to engage in any financial activity not prohibited by law. However, to operate legally, financial institutions must obtain a state licence from the relevant authorities.

Obtaining a Financial Licence in Estonia

Applying for a financial licence is a complex process that requires strict adherence to formal and material requirements outlined in relevant legal acts. LKS Consult OÜ provides comprehensive legal support to ensure successful completion of the licensing procedure.

• Financial licences are mandatory, regardless of where an Estonian company operates, to avoid potential complications and fines from regulators.
• The application process involves submitting all necessary documents, which are then reviewed by the regulator within 60-180 days.

Application Review Process

After submitting their application, companies will receive an initial response within three working days. Licences are issued electronically and remain valid indefinitely, unless a request for a fixed-term license is submitted.

Modifying Licence Terms

If circumstances surrounding the issuance of a financial licence change, companies must notify the regulator at least 30 days prior to making changes. This includes:

• Changes affecting the company’s board, proxy, actual beneficiary, or owner may require additional documentation.
• LKS Consult OÜ assists clients in obtaining various financial licences, including [list specific types of licences].