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The main advantages of obtaining a payment system license in Japan:
The provision of electronic payment services in accordance with the Payment Services Act 2010, requires obtaining of a payment institution license in Japan. It is the updated Law regulates prepaid payment instruments, which functionality is based on the:
Further, in this article, we will consider the procedure for obtaining a PI license in Japan, the necessary documents and other important aspects of the licensing business process for the provision of electronic payment services.
The main authority overseeing the financial sector in Japan is the FSA, which is part of the Cabinet of Ministers. For advising purposes, the Tokyo Metropolitan Government, together with the FSA, has created a support service that provides recommendations to foreign companies entering the Japanese market. The process of obtaining a license for payment services in Japan, also begins with preliminary consultation.
There are 5 main steps for obtaining a payment system license:
As you can see, the process of obtaining a license for a payment system in Japan takes 5-6 months. However, if in the process you need to make any changes to the application, or submit additional documents, the whole process may take longer. It should be noted that all application documents must be prepared in Japanese, or at least include a translation into Japanese.
It is preferable that the applicant company would be a JSC (kabushiki kaisha) or a foreign legal entity with equivalent registration in its country and a physical office in Japan.
In accordance with FSA requirements, the company applying for obtaining a PI license must create the following:
It must be emphasized that, in accordance with the guidelines issued by the FSA, the systems mentioned above include:
The applicant must have sufficient material resources for the proper provision of services. Also, it should be noted, there are no specific standards for this requirement (for example, requirements for capital or net assets), this amount can vary from 0 to 100 million JPY (about 835 thousand EUR).
This material is published for informational purposes, and should not be construed by the reader as an instruction or legal advice. Please, note that the entire process of obtaining a payment service provider license in Japan is a rather complicated. It requires a responsible approach and support from experienced lawyers.
If you have any questions regarding licensing of payment systems, you can discuss them with IQD Consulting experts by receiving legal advice on financial services regulation in Japan.
Our specialists provide legal support services at all stages of PI licensing in Japan. We are ready to help you in preparing a business plan for a payment institution, assist in the collection of documents, and provide other, related legal services.
To find out more detailed information about the services of our company, please, fill out the feedback form or contact us right now to order legal advice on payment system licensing process in Japan.
The information outlined in the article is actual at the time of its publication.
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