How to get FX license in Bulgaria?
Category : MiFID License
If you want to start a forex brokerage you should ask yourself a few important questions before that:
- What is the best location to form a corporation to operate a new Forex business?
- Where should I get the license?
- How quickly do I want to start my Forex brokerage?
Taking in consideration the pros and cons, Bulgaria seems a viable answer to all this questions. With its attractive tax regime, coupled with its EU Member status, its implementation of the Markets in Financial Instruments Directive (MiFid) and regulatory regime, Bulgaria has proved to be a good jurisdiction for incorporation and operation of FX companies.
With this article we aim to bring clarity to the procedure of obtaining a MiFid license, needed to operate a FX brokerage in Bulgaria.
According to the Bulgarian legislation only licensed and registered investment intermediaries can provide FX trading/investing services. Such companies need to apply for licensing with the Financial Security Commission (FSC) as a investment intermediary and comply with the legal requirements set out by the Markets in Financial Instruments Act (MFIA), some of which are: minimum capital, requirements about the directors of the firm, etc.
The procedure begins with submitting a written application and filling in a registration form. Your application should be accompanied by a set of documents, specified in MFIA.
Based on the submitted documents, the FSC will determine whether you fill the requirements for a license. If the submitted data and documents are incomplete or irregular, or additional information or evidence for correctness of the data is needed, the FSC will send you a message to require additional information and documents.
FSC should decide on the application within three months from the moment you file it.
If the decision is positive, the FSC will issue written license that gives you the right to perform certain services and activities, depending on the type of license you applied for.
The license entitles you to perform the specific services and activities within the European Union and European Economic Area, directly or through branches of your licensed company.