Get a FINMA License in Switzerland

Swiss jurisdiction: Stability and trust for fintech

Switzerland is globally recognized as an authoritative hub for banking and fintech services, offering a stable jurisdiction for financial companies seeking to provide innovative payment solutions.

In the Swiss context, “payment” encompasses a broad range of services for receiving, processing, and transferring funds, including:

• Domestic and international payment transfers;
  
• Acquiring services;
  
• Payment initiation and account management services;
  
• Issuance and maintenance of electronic money storage (e-money) and related fiat/crypto gateways.

To operate in this environment, financial service providers must obtain authorization from the Swiss Financial Market Supervisory Authority (FINMA).

A FINMA license ensures that a company operates within a secure and transparent regulatory system, protecting both clients and the integrity of the Swiss financial sector. Companies operating without a license face penalties and legal restrictions.

Certain payment service providers may also operate under self-regulatory organizations (SROs) – their roles and legal frameworks are detailed on FINMA’s official website.

The FINMA license is a mark of reliability, allowing companies to comply with Swiss law, expand across Europe and beyond, and operate under one of the most respected regulatory regimes in the world.

Advantages of working with Prifinance:

Types of activities covered by the Swiss FINMA licence 

A FINMA license is required for companies planning to engage in a broad range of regulated financial and payment operations in Switzerland.

Key types of activities under the FINMA license

The FINMA license is also valuable for foreign companies seeking access to the Swiss market and international clients. It enhances trust, ensures compliance with Swiss regulations, and supports cross-border financing and fund management.

Regulator and compliance obligations

The FINMA regulator sets strict but transparent requirements covering corporate governance, risk management, and compliance.

Key mandatory obligations:

• Adherence to AML/CFT programs;
  
• Comprehensive KYC procedures;
  
• Regular reporting to the regulator and/or a self-regulatory organization (SRO);
  
• Data storage and accessibility within prescribed timeframes;
  
• A transaction monitoring and analysis system;
  
• Appointment of a Compliance Officer and implementation of internal controls and independent audits.

The FINMA regulator conducts inspections, data requests, and issues directives to address identified deficiencies.

Non-compliance may result in fines, suspension, or revocation of the license, and other adverse consequences.

Advantages of a payment license in Switzerland

Choosing Switzerland to obtain a FINMA license provides significant advantages for both local and foreign companies aiming for international expansion.

1. Strong regulatory environment
   • FINMA ensures that licensed companies operate within a strict but transparent regulatory framework.
   • Detailed legislation guarantees a predictable business environment for payment and crypto-related organizations.
   • Licensed entities must comply with global AML/KYC standards, including internal policies, documentation, and regular reporting.
2. International reputation
   • Switzerland is one of the most respected jurisdictions in global finance.
   • A FINMA license enhances trust among banks, institutional investors, and international clients.
   • The country’s reputation in fund management, finance, and asset supervision attracts top fintech innovators.
3. Wide range of activities
   • With FINMA authorization, companies can provide payment services, currency exchange, digital wallets, and virtual token issuance.
   • Regulated operations enable firms to process transactions in both traditional and crypto markets.
4. Favorable business environment
   • Clear licensing procedures with well-defined requirements and step-by-step application processes.
   • Opportunities for foreign organizations to register and operate within one of the world’s most secure financial systems.
   • Predictable tax system and supportive policies for fintech startups and cross-border funds.
5. Innovation and fintech hub
   • Switzerland actively supports blockchain, tokenization, and digital asset projects.
   • Close cooperation between banks, providers, and technology companies drives the growth of the fintech ecosystem.
   • Strong monitoring systems reduce risks while maintaining business flexibility.

Prifinance provides full consultation and support at every stage of the licensing process, helping clients obtain their FINMA payment license efficiently and in full compliance.

Payment license FINMA in Switzerland compared to other jurisdictions

When selecting a financial license, many companies compare Switzerland with other prominent jurisdictions such as the European Union, the United Kingdom, the United States, and offshore zones.

Each jurisdiction has its own specific requirements, regulatory frameworks, and distinct advantages.

Key takeaways

• Switzerland: Balance between strict regulation and innovation-friendly policy – ideal for foreign structures and funds.
• EU: Harmonized laws but high compliance burden and lengthy procedures.
• United Kingdom: Strong legal framework, but uncertainty after Brexit.
• United States: Large market but fragmented system.

Offshore: Low entry barrier, but issues with trust and access to banks.

Main requirements for obtaining a licence FINMA

To operate as a regulated company in Switzerland, applicants must meet the strict requirements set by FINMA.

1. Corporate and legal structure
   • Establishment of a legal entity registered in Switzerland.
   • Provision of information about directors, shareholders, and beneficial owners.
   • Availability of a physical office and qualified staff to ensure ongoing compliance.
   • Alignment of the business structure with Swiss law and legislation.
2. Capital and financial requirements
   • Minimum capital levels depending on the scope of activity and type of license.
   • Maintenance of segregated accounts and relationships with Swiss banks.
   • Proof of sufficient funds for sustainable operations and financing.
   • Regular submission of audited financial statements.
3. Compliance and AML/KYC obligations
   • Implementation of robust AML/CFT frameworks.
   • Development of internal policies for management, monitoring, and reporting.
   • Appointment of a compliance officer responsible for risk assessment and control.
   • Ensuring systems that enable the company to meet local and international requirements.
4. Documentation and application submission
   • Required documents: business plan, compliance manual, risk management plan, shareholder register.
   • Preparation of a detailed IT system diagram, including cybersecurity and digital solutions.
   • Submission of the application package to FINMA with supporting materials.
5. Company and risk management
   • Appointment of key executives and staff, including compliance and risk officers.
   • Transparent decision-making procedures and ownership structure.
   • Independent audit and internal control procedures.
   • Compliance with FINMA supervisory standards and policies.

Process of obtaining a payment license in Switzerland

Applying for a FINMA license is a structured procedure that requires thorough preparation.

Step 1. Preliminary assessment (1–2 months)

• Initial evaluation of the business model, types of activities, and projected transaction volumes.
• Consultations with advisors and preparation of compliance policies.
• Identification of potential risks and establishment of management frameworks.

Step 2. Application preparation (2–3 months)

• Collection of required documents, including ownership structure, list of directors, and register of beneficial owners.
• Preparation of AML/KYC manuals, monitoring procedures, and internal records.
• Confirmation of sufficient capital, availability of safeguarded funds, and bank accounts for client funds.

Step 3. Submission to FINMA (1 month)

• Official submission of the application to the regulator.
• Provision of all reports, risk management systems, and IT infrastructure details.
• Assurance that the company is capable of complying with regulations and Swiss law.

Step 4. Review and licensing (4–6 months)

• FINMA reviews the application, verifies documents, and may request clarifications.
• An independent audit may be required to validate internal controls.
• Once all requirements are met, FINMA issues a license allowing full-scale operations.

Prifinance prepares the complete documentation package, develops AML/KYC policies, establishes corporate governance, and manages communication with FINMA. This significantly reduces review time and increases the likelihood of a positive decision on the first attempt.

Taxation of licensed companies in Switzerland

Operating a company licensed by FINMA in Switzerland is accompanied by a transparent and predictable tax regime.

Corporate income tax

• Federal corporate income tax: 8.5% (effective rates range between 12%–21% depending on the canton).
• Exemptions and preferential rates for fintech, funds, and innovative financial activities.
• No capital gains tax for most transactions related to shares or long-term financing.

Value added tax (VAT)

• Standard VAT rate: 7.7% – one of the lowest in Europe.
• Certain payment services, such as remittance or currency exchange, may be exempt from VAT.
• Licensed companies are required to maintain accurate accounting and regularly submit reports to tax authorities.

Withholding tax and dividends

• Withholding tax on dividends: 35% (reduced or eliminated under double taxation treaties).
• No tax on the return of paid-in share capital.
• Foreign investors benefit from Switzerland’s extensive network of double taxation agreements.

Compliance and reporting obligations

• Annual reports and audited financial statements are required.
• Proper accounting must be maintained in accordance with Swiss laws and regulations.
• Independent audits ensure companies’ compliance with FINMA standards and tax authority requirements.

Advantages of the Swiss tax system

• Predictable policy and transparent legal framework reduce risks for international legal entities.
• Favorable conditions for businesses involved in cryptocurrencies, digital assets, and virtual tokens.
• Supportive environment for foreign companies, banks, and global clients.

Taxation varies depending on jurisdiction and corporate structure; therefore, Prifinance provides consulting and ensures the selection of the optimal tax strategy.

Timeframe and cost

On average, the licensing process takes 6–12 months, depending on the jurisdiction, the completeness and quality of the documentation package, and the business model. The exact cost is calculated individually.

Typical cost components:

• government fees and charges;
• legal services (document preparation, regulatory and bank communication, submission support);
• notarial expenses;
• translation and document legalization (if required);
• banking fees (account opening, maintenance, and transaction charges).

The precise cost and optimal roadmap can only be determined after analyzing the company structure and the scope of required services.

Prifinance helps reduce expenses by selecting the right strategy, documentation package, and banking/payment partners.