Obtaining an Electronic Money Institution (EMI) license is not an overnight activity, which is a good thing. Your regulators want to ensure that you are ready, stable, and compliant before they allow you to hold or transfer funds of other people. But as a founder, you also would want to know: how long will it take?

Although precise schedules differ by country, the following is a very realistic schedule, so you know what to expect.

Planning & preparation (2-3 months)

This is where you translate your idea of getting an EMI license into a practical plan. You will:

•     Specify your business and services.
•     Select your licensing jurisdiction.
•     Develop your corporate structure.
•     Begin to form your principal team (compliance officer, MLRO, directors).

This step is commonly underrated. Hurry, and you will find yourself correcting mistakes afterwards. The better you prepare, the easier the following process will become.

Documentation & application drafting (1-2 months)

With your plan ready, it is now time to collect and assemble your application materials. This includes:

•     Detailed business plan.
•     Policies on compliance (AML/KYC, risk management, and internal controls).
•     Evidence of minimum capital.
•     IDs, CVs, and background checks of directors and shareholders.

This is where a compliance professional comes in handy. An experienced one will help you get your EMI license anywhere. They will make it easier to navigate requirements, draft your policies, and take you through the process. They have already been here and know what regulators require and can save you months of guesswork.

Keep in mind that regulators prefer fully documented and in order applications. Presenting half-baked documents might land you at square one.

Application submission & initial review (1-2 months)

Upon submission, the regulator will check whether your application complies with the formal requirements. You can think of this as the gatekeeping stage. When all is fine, they will take it under full review. Otherwise, they will send it back to have it fixed, adding weeks or months to your schedule.

Detailed assessment & Q&A (4-6 months)

This is typically the most lengthy section. The regulator will:

•     Evaluate your business model and risk model.
•     Check the credentials of your directors and your staff.
•     Try out your systems of compliance.

You can expect written question-answer, document requests. The sooner you respond and the more understandable your answers, the sooner you will be able to get ahead.

Last Decision and approval (1 month)

When the regulator is content, a decision will be issued. Assuming you pass, you will be provided with your EMI license and be able to begin taking on clients. This depends on the conditions that they impose, of course.

The Full Picture: 9-14 Months

With each step in mind, it takes 9 to 14 months to move from an idea to approval in most jurisdictions. Certain nations can be faster, but most can be slower, particularly when your business is complicated or your paperwork has to undergo numerous revisions.

The takeaway

Think you might require an EMI license within a year or two? Get it now. The sooner you start, the less the pressure will be. You will also be ready when the regulator starts asking tough questions.