Company Registration
12 Week
Local Director?
No
Bank Account Opening
4 Weeks
Travel Required?
No
Excellent
Based on 87 reviews
PSP license in Brazil
- A Payment Service Provider (PSP) license in Brazil is crucial for companies providing online payment services, which allow secure and effective financial transactions. The licensing process is overseen by the Central Bank of Brazil (BCB) to ensure adherence to rules under the Brazilian Payment System (SPB). PSPs provide payment gateways, remittance processing, and multi-currency transactions, which aid in the development of e-commerce in Brazil. Nonetheless, acquiring the license requires one to go through Brazil’s bureaucracy and adhere to strict requirements.
- We make this process easy at Tetra Consultants by providing one-stop-shop services to assist clients to register company in Brazil, preparing paperwork, and meeting regulatory requirements. Our professional experience guarantees a seamless process to obtain a PSP license effectively.
- Our service package includes:
- Brazil PSP license application
- Brazil company registration
- Company secretary and legal registered address
- Nominee director service
- Drafting of business plan and AML/CFT documents
- Corporate bank account opening
What is a PSP license in Brazil?
- Payment Service Provider license in Brazil is a central banking license, issued by the Central Bank of Brazil (BCB), under which companies may function as third-party intermediaries in the payments processing industry. PSPs handle electronic transactions among merchants, buyers, and banks and provide products and services such as online payment gateways and remittance processing.
- In Brazil, PSPs are integrated into the overall Brazilian Payment System (SPB), which encompasses the clearing and settlement of transactions both within the country and abroad. PSPs are regulated by the BCB to comply with financial regulations and keep the payment system stable.
Advantages of obtaining PSP license in Brazil
Market access
- Having a PSP license in Brazil is an entryway to a very large and developing market. One of the bigger economies in Latin America, Brazil has a great percentage of the population actively conducting digital transactions. The PSP license enables businesses to access this market, providing local businesses and customers with payment services. This ability is essential in growing a company’s customer base and revenue source.
Compliance and legitimacy
- A PSP license is granted by the Central Bank of Brazil (BCB) after strict scrutiny, affirming that the company meets all applicable financial regulations. This in turn adds to a company’s legitimacy and credibility within the market. Customers and businesses will be more inclined to trust a PSP that is officially recognized and regulated by the BCB, as it guarantees a degree of security and accountability.
Diversified payment facilities
- Brazil possesses a distinctive payment environment with favorite modes such as Boleto Bancário and Pix. Having a PSP license enables businesses to include such domestic payment instruments in their sites, addressing Brazilian consumer preference. Such diversification is necessary to ensure maximum conversion and satisfaction because it offers customers the freedom of choosing the method they like.
Security and fraud protection
- PSPs must ensure that they apply stringent security mechanisms to safeguard transactions against fraud and cyber-attacks. By acquiring a PSP license, businesses can ensure that their payment processing systems conform to the most stringent security guidelines prescribed by the BCB. Not only does this protect the data of consumers but also lower the likelihood of financial losses because of fraudulent activity.
Operational efficiency
- A PSP license facilitates businesses to handle global transactions more effectively. PSPs are able to support multi-currency payments, which makes it easy for businesses to accept payments from global customers. This functionality eliminates the complexity in dealing with multiple currencies and exchange rates, and it makes it more convenient for businesses to go global.
Competitive advantage
- In Brazil’s dynamic fintech competition, a PSP license is an important differentiator. It brands companies as established players in the market, trusted to deliver compliant and secure payments. This distinction can bring about additional partners and customers, signaling a commitment to adhering to the highest regulation standards.
Timeline for obtaining PSP license in Brazil
- The process of getting a PSP license in Brazil with Tetra Consultants is in a systematic flow. In 6 to 12 weeks after receiving the required due diligence documentation, Tetra Consultants will have successfully registered your Brazil company, including the requisite CNPJ registration, with the government charge incorporated in the process. At the same time, our experts will draft a complete business plan, AML/CFT policies, and other documentation necessary for submitting the license.
- Once these are completed, we will then submit a high-quality PSP license application to Banco Central do Brasil (BCB), which should be processed and approved within 3 to 6 months. On approval, we will then go ahead with corporate bank account opening, which usually takes 4 weeks. In total, the whole engagement should take 6 to 8 months. Nonetheless, Tetra Consultants shall actively work with the authorities in order to reduce any delay and make the process run smoothly.
Regulatory authority for PSP license in Brazil
- The Payment Service Provider license regulator in Brazil is the Central Bank of Brazil (BCB). The BCB issues PSP licenses, oversees PSP operations, and enforces compliance with financial laws and security measures. This regulation is essential for ensuring a safe and secure payment system in Brazil. The BCB works within the parameters of Brazilian Law 12,865, which regulates payment services and institutions.
- This legislation gives the BCB the power to control and license PSPs, ensuring they have tight requirements for financial security, money laundering and KYC policies, and anti-money laundering (AML) measures. The BCB also has an important role to play in establishing security regulations and mechanisms for PSPs, for example, on Brazil’s instant payment scheme, Pix, with high-quality fraud prevention and user-risk-profile-based transaction limits.
Activities permitted under PSP license in Brazil
- Under a Payment Service Provider (PSP) license in Brazil, the following operations are authorized:
Contribution or withdrawal of funds:
- Offer services for contribution or withdrawal of funds in a payment account.
Execute or facilitate payment instructions:
- Execute or facilitate payment instructions in respect of a specific payment service, such as transfers from or to a payment account.
Manage payment accounts:
- Manage payment accounts, which entails managing and maintaining these accounts on behalf of users.
Issue payment instruments:
- Issue payment instruments like credit cards, debit cards, or other payment instruments.
Accredit acceptance of payment instruments:
- Accredit merchant acceptance of payment instruments, so that merchants are able to accept multiple payments.
Make remittances:
- Make remittances of funds, transferring money from or to individuals or entities.
Currency conversion:
- Convert electronic or book-entry currency into book-entry or physical currency, or vice versa, and control the utilization of electronic currency.
Other payment services:
- Undertake other operations concerning the payment services provision as assigned by the Central Bank of Brazil.
Types of PSP license in Brazil
Issuer of electronic money (E-money):
- This category of PSP is licensed to provide electronic money, which can be spent on transactions. Companies that have acquired licenses in this category allows them to provide services around electronic money.
Issuer of post-paid payment instruments:
- PSPs here operate with payment instruments that enable the customer to pay after the purchase has been made, e.g., post-paid credit cards or mobile payment services.
Acquirer:
- Acquirers are PSPs who allow merchants to accept payment instruments such as credit cards or digital wallets. They act as an intermediary between the merchants and the financial institutions to facilitate the acceptance of different payments.
Initiator of payment transactions:
- PSPs in this category trigger payment transactions on behalf of the users, including payment initiation services that enable users to pay directly from their bank accounts to merchants.
How to proceed with PSP license in Brazil?
Step 1: Company registration in Brazil
- We start at Tetra Consultants by helping clients register a business in Brazil. This includes the procurement of a CNPJ number and compliance with Brazilian regulations. Our experts will walk you through the process of creating a legal entity in Brazil, which is a requirement for applying for a PSP license.
Step 2: Business planning and structure development
- Then, we assist in the creation of an overall business plan and organizational structure that is designed to suit the Central Bank of Brazil’s specifications. This entails establishing roles, responsibilities, and operational procedures in line with PSP regulations. Our specialists will assist you in designing a solid plan that will enhance your PSP license application.
Step 3: Nominee director services
- In order to fulfill Brazilian laws mandating a local resident director, Tetra Consultants provides nominee director services. This will see your company fulfill the legal requirements while ensuring you have control over your operations.
Step 4: Preparation and submission of PSP license application
- Our experts prepare and file the PSP license application with the Central Bank of Brazil. This entails gathering and checking all necessary documents, such as financial reports, security policies, and compliance procedures. We make sure your application is complete and correct to prevent delays or rejection.
Step 5: Compliance and regulatory support
- Once the application has been submitted, Tetra Consultants offers continuous compliance and regulatory assistance. This entails making sure your company complies with the BCB’s security, anti-money laundering (AML), and know-your-customer (KYC) policy needs. Our specialists will take you through the further documentation or audit requirements that the licensing procedure entails.
Step 6: Corporate bank account opening
- Further, we proceed with the corporate bank account opening with major banks in Brazil. This is an important step in PSP operations, as it provides a means of managing funds and transactions. Our staff will assist in communication with banks and help have all required documents handy.
Step 7: Post-licensing compliance
- Once your PSP license is approved, we assist our clients to stay in compliance with regulatory demands on an ongoing basis. This involves annual accounting and tax compliance, as well as keeping your business updated to the BCB’s PSP standards. Our assistance guarantees that your operations are compliant and cost-efficient so that you can concentrate on expanding your business in Brazil.
Documents required for PSP license in Brazil
- Notarized copies of passport of directors and shareholders.
- A detailed application form that includes complete information about the company and its activities.
- Three proposed names for the company
- Partner and legal representative details, including:
- Full name, nationality, father’s and mother’s full names
- Passport number, profession, marital status, address
- A comprehensive business plan outlining the company’s strategy, financial projections, and operational model.
- Information about the company’s organizational structure, including details of key personnel such as directors and senior management.
- Audited financial statements demonstrating the company’s financial health and stability.
- Proof of adequate capital reserves to meet regulatory requirements.
- Details of the technology and security measures in place to protect transactions and customer data.
- Documentation of Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and procedures.
- Documents confirming the company’s registration in Brazil, such as a CNPJ (Cadastro Nacional da Pessoa Jurídica) number.
- Utility bills or bank statements to verify the company’s and key personnel’s addresses.
- Evidence of appropriate insurance coverage to mitigate operational risks.
- Certificates demonstrating compliance with relevant Brazilian laws and regulations.
Requirements for obtaining PSP license in Brazil
- The PSP must be a legal entity registered in Brazil, such as a limited liability company (LLC.) or a corporation (S.A.).
- Minimum of 1 local director.
- Minimum of 1 shareholder without residency requirements.
- Minimum capital requirement of R$1,000,000 (approximately US$170,000).
- The BCB must approve the PSP license application, ensuring compliance with financial regulations and security standards.
- PSPs must implement robust AML/KYC policies to prevent financial crimes.
- PSPs must adhere to BCB-defined security rules, including transaction limits and fraud detection mechanisms.
- No physical registered office address is required, a virtual office is enough to start with.
Cost of obtaining PSP license in Brazil
- The process of getting a Payment Service Provider license in Brazil entails a number of fees, such as application fees, registration fees, compliance fees, and ongoing maintenance fees. At Tetra Consultants, we assist clients with this intricate procedure, ensuring each step is executed to obtain the license effectively.
- We maintain full transparency during the engagement, detailing all the expenses involved before the process begins. This method enables our clients to clearly understand the financial implications and prepare accordingly.
- With the help of Tetra Consultants, companies can proceed with PSP licensing confidently, secure in the knowledge that they are being provided with complete support and transparent financial advice. Our proficiency assists clients to register company in Brazil and conforming to domestic regulations, making it easier for them to access Brazil’s active fintech sector.
How can Tetra Consultants help with obtaining PSP license in Brazil?
- Tetra Consultants can play a major role in helping clients achieve a Payment Service Provider (PSP) license in Brazil by offering an end-to-end suite of services. We start by helping to register company in Brazil, conforming to domestic regulations and obtaining relevant documents like a CNPJ number. We then prepare and file all the documents necessary for PSP licensing so that your company will be in full compliance with the Central Bank of Brazil’s regulatory requirements.
- We also help build a solid business plan and company structure, both of which are essential for PSP license applications. We also provide nominee director services to satisfy the condition of a resident director within your company in Brazil. In addition, we assist in the corporate bank account opening, a requirement for PSP operations, with well-established banks in Brazil. Last but not least, we offer continuous compliance assistance to keep your company in compliance with the regulatory demands once it has received the PSP license.
Looking to obtain PSP license in Brazil
- Contact us to know more about how you can obtain Brazil PSP License, and our team will revert back in 24 hours.
FAQs
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