How to Apply for an MPI License in Singapore
Applying for an mpi license singapore means following strict rules from the Monetary Authority of Singapore. Companies need to register in Singapore. They must have at least one executive director who lives in Singapore. Directors and shareholders must be honest and reliable. Companies must show who owns the business clearly. They need to keep at least S$250,000 as base capital. They also need good business plans and risk management rules. Preparing documents carefully and knowing each step helps avoid delays. This also makes it more likely to get approved.
Key Takeaways
- Companies must be registered in Singapore. They need at least one executive director who lives there. This helps make sure rules are followed. It also gives local control.
- You must have at least S$250,000 as base capital. This shows the company has enough money. It proves you can run the business well.
- Get all needed documents ready before you apply. You need things like legal opinions, business plans, and compliance manuals. This helps you avoid waiting longer.
- Apply online using the MAS eLicensing website. Make sure every document is correct and finished. This stops your application from being rejected.
- Keep talking with the Monetary Authority of Singapore while they check your application. Answer their questions fast to get approved sooner.
Eligibility for Major Payment Institution Licence
A company must follow many rules to get a major payment institution licence. The Monetary Authority of Singapore made these rules in the Payment Services Act. These rules help keep payments safe and fair for everyone. Companies should check all the steps before they start.
Company Requirements
A company needs to meet some important rules to get a major payment institution licence:
- The company must be set up in Singapore or be a foreign company registered in Singapore.
- The company must have a business structure that is clear and legal.
- The company must show who owns and controls it.
- The company must obey all Singapore laws and business rules.
Note: The company also needs a law firm to give a legal opinion. This legal opinion must say the company follows all rules in the Payment Services Act.
Capital and Director Criteria
There are strict rules about money and leaders for this licence. These rules help make sure the company can handle problems and keep customers safe.
- The company must always have at least S$250,000 as base capital.
- At least one executive director must live in Singapore and be a citizen or permanent resident.
- All directors and shareholders must have a good record. They must be honest and trustworthy.
- The company must have strong systems to manage risks and follow rules.
| Criteria | Requirement |
|---|---|
| Company Registration | Singapore-incorporated or registered foreign corp |
| Minimum Base Capital | S$250,000 |
| Executive Director | At least one, must be Singapore Citizen or PR |
| Legal Opinion | Required from a law firm |
| Fit and Proper Test | Directors and shareholders must pass |
It is very important to meet all these rules to get an mpi license singapore. Companies must always follow the major payment institution licence rules from the Monetary Authority of Singapore. This helps the company work safely and legally in Singapore’s payment industry.
Documents Needed for MPI License Singapore
To get an mpi license singapore, you need to prepare many documents. The Monetary Authority of Singapore (MAS) will check each one. They want to see if your company follows all the payment service rules, like e-money issuance.
Application Form
You must fill out Form 1 on the MAS eLicensing website. This form asks for important details about your business and leaders. The table below lists what you need to include in the form:
| Requirement | Description |
|---|---|
| Fit and Proper Requirement | Business and main people must be honest and reliable. |
| Staff Requirement | Key staff should have the right skills and education. |
| Minimum Base Capital | Company needs at least S$250,000 in base capital. |
| Permanent Physical Office | Must have an office with staff for customer help. |
| Financial Security Deposit | Deposit amount depends on how much money you send. |
| Compliance Program | Must follow a program that matches your business. |
| Technology Risk Management | Must follow MAS rules for technology risks. |
| Annual Audit Requirements | Must plan for yearly checks by a good auditor. |
| Annual Compliance | Must send regular reports to MAS. |
Legal Opinion
MAS needs a legal opinion from a law firm. This paper says your company’s work, like e-money issuance, follows the Payment Services Act. The legal opinion must show your company meets all the license rules.
Supporting Documents
MAS wants many extra documents to check your company’s background. These help MAS see if your company is ready. You need to give:
- A business profile from ACRA, dated within 30 days
- Financial statements for the last three years, audited or not
- An organization chart that shows who handles compliance
- A shareholding chart with all people who control the company
- A business plan that explains how you will follow the Payment Services Act
- AML/CFT policies, and the name and CV of the compliance officer
- An outside auditor’s report for new digital payment token service providers
- Business profiles of corporate shareholders, dated within 30 days
- Clear copies of Employment Pass or passport for non-Singaporean shareholders
- Documents for partnerships, corporations, or sole proprietorships, including CVs and Medisave liabilities
Note: You must upload all documents online using the MAS eLicensing website. You need to log in with Singpass to finish the process.
Application Process
Getting a major payment institution licence in Singapore has many steps. Companies must follow each step set by the Monetary Authority of Singapore. These steps show the business is ready to give safe payment services. This includes e-money issuance under the Payment Services Act.
Prepare Documents
Companies need to collect and sort many documents before they apply. These papers show the business is real and managed well. Getting everything ready helps stop mistakes and delays.
- Corporate Documents: Companies must have the ACRA Certificate of Incorporation, a new Business Profile, and the Memorandum & Articles of Association (M&AA).
- Business & Operations Plan: The business plan should tell about the company’s goals, technology, and safety rules.
- Financial Information: Companies must add future financial reports and checked financial statements.
- Management & Personnel Details: The application needs CVs for directors and main officers.
- Compliance Manual and Legal Opinions: A compliance manual and a law firm’s legal opinion are needed.
Companies should also:
- Gather all registration papers and proof of a local office.
- Make sure the minimum paid-up capital is ready.
- Give full details about the board of directors.
Companies must fill out all forms with true and correct information. If there are mistakes or missing parts, the Monetary Authority of Singapore may delay or reject the application.
These steps help prove the business is real, has good money, and strong leaders. Being careful makes the licence process easier.
Submit Online
After getting all documents ready, companies must send the application online. The Monetary Authority of Singapore uses a website for this. The steps are clear and easy to follow:
- Pick the type of license needed. Companies must choose the major payment institution licence if they want to handle big payments or give e-money services.
- Get all needed documents. This means registration papers, proof of a local office, capital check, and board details.
- Send the application on the MAS eLicensing website. All papers must be uploaded, and the company must log in with Singpass.
- Wait for approval. There is no set time for review. MAS looks at each application one by one.
Tip: Companies should check every document before uploading. Missing or wrong files can slow down the process.
Now, companies must give a legal opinion on how their business fits payment service rules. If they offer digital payment token services, an outside auditor must check them. Each company must also have a compliance officer in Singapore.
After Submission
When the application is sent, the company waits for review. MAS may ask for more details or answers. Sometimes, MAS puts applications on hold if there are big changes in owners, business, staff, or money. This hold can last up to six months.
MAS checks if the company meets all licence rules. The company must be ready to answer questions and give more papers if asked. If approved, the company gets the major payment institution licence and can start giving services.
Note: After getting the licence, companies must keep following all Payment Services Act rules. They must send regular reports and follow business standards.
Staying neat and quick to reply helps companies finish the mpi license singapore application process smoothly.
Fees and Timeline
Application Fees
Companies must pay fees to get a major payment institution licence. The Monetary Authority of Singapore decides how much these fees are. The fee amount depends on which payment services the company wants to offer. Each service has its own fee amount. Companies need to pay the fee when they send in their application. MAS will not look at the application until the fee is paid.
Here is a table that shows the fees for each payment service:
| Payment Service Type | Application Fee (SGD) |
|---|---|
| Account Issuance Service | $1,000 |
| Domestic Money Transfer Service | $1,000 |
| Cross-border Money Transfer Service | $1,500 |
| Merchant Acquisition Service | $1,000 |
| E-money Issuance Service | $1,000 |
| Digital Payment Token Service | $1,500 |
Companies should visit the MAS website to check for the newest fee updates before they apply.
The application fee cannot be refunded. If MAS says no to the application, the company will not get the money back. Paying the right fee helps the company keep moving forward in the process.
Processing Time
It can take many months to get a major payment institution licence. MAS looks at each application very carefully. They check if the company follows all the rules. MAS says it usually takes about 6 to 8 months to finish checking an application.
MAS might ask for more papers or information while they review. Companies that answer quickly can help make the process faster. If a company does not give all the needed details, there can be delays.
Companies should get all their documents ready before they apply. This helps stop delays and makes things go smoother.
A company should talk to MAS often while waiting. Good communication helps the company know what is happening with their application. Companies that follow all the steps and rules have a better chance of getting the licence in Singapore.
Tips and Common Mistakes
Avoiding Delays
Many companies have trouble when they try to get a major payment institution licence. The steps can be hard and take a lot of time. People often do not understand the rules. They also find it hard to collect all the needed papers. Meeting all the strict rules is tough. The table below shows mistakes that happen a lot:
| Common Challenges | Description |
|---|---|
| Complexity | There are many rules, and they can be confusing. |
| Uncertainty | People are not sure which licence they need or how to meet the rules. |
| Resource Strain | The process takes a lot of time, effort, and special legal help. |
| Risk of Non-Compliance | People worry about making mistakes or getting in trouble. |
| Lack of Clarity on Costs | People do not know how much legal help will cost. |
To stop delays, companies should do these things:
- Use the Licence e-Advisers tool on GoBusiness to find out what is needed. This tool helps you know which major payment institution licence is right for your business.
- Get all papers ready for each rule. Make sure every paper is correct.
- Send your application online with GoBusiness. Sending to many agencies at once can make things faster.
- Check your application often and answer questions quickly. Fast answers help stop slowdowns.
- Download your licence after you get it and keep track of when to renew. Renewing on time keeps your major payment institution licence active.
Getting help from experts can make sure your papers are right and show your company has enough money. Support services also help you keep the right amount of money and make sure your main workers are qualified.
Success Tips
People who get a major payment institution licence use smart ways to succeed. They use technology to manage risks and make payment systems safe. Good relationships with banks help them give better services. The table below shows what works well:
| Strategy | Description |
|---|---|
| Technology-driven risk management | Use new technology to handle risks better. |
| Secure payment infrastructures | Build safe and strong payment systems for businesses in other countries. |
| Relationships with financial institutions | Work with big banks to make services better. |
Applicants should use all tools to make their major payment institution licence application stronger. This means following all rules, picking a compliance officer, and learning MAS guidelines. Companies do better when they check their own work and get help from others for their application and talking to MAS.
Getting full advice on rules, having strong security, and planning well all help you get a major payment institution licence.
Getting an mpi license singapore has many steps. Companies must see if they fit all the rules. They need to get papers like business profiles and legal opinions ready. They should send the application online and pay the right fees. Checking every rule helps stop errors.
Companies that follow each step carefully can feel sure when they apply.
FAQ
What is an MPI license in Singapore?
An MPI license lets a company give big payment services in Singapore. The Monetary Authority of Singapore gives out this license. Companies must follow many strict rules to get it.
How long does it take to get an MPI license?
It usually takes about 6 to 8 months. MAS checks each application very closely. If companies answer MAS questions fast, it can help things move quicker.
Can a foreign company apply for an MPI license?
Yes, a foreign company can apply for an MPI license. It must register a branch or a subsidiary in Singapore first. The company also needs to meet all MAS rules.
What happens if a company does not meet the requirements?
MAS might say no to the application. The company must fix the problems and try again. Following all the rules is needed to get approved.
