How to open a Fintech company in the UK?
Opening a Fintech company in the UK is relevant due to the growing popularity of information technology and the spread of smartphones, which are used for financial transactions. Fintech covers finance and technology sectors - some startups in these industries have begun to compete with traditional banking.
Through the development of startups, new lower-cost banking services have emerged that can be accessed digitally. To learn more about the nuances of registering a fintech company in the UK in 2021, contact our experts at IT-OFFSHORE.
According to rough estimates, fintech in Britain brings more than $6.5 billion to the state economy every year. The country does not have a specific regulatory framework that would regulate the activities of fintech companies in the UK in 2021.
Control over the work of such firms is carried out by the Financial Supervision Authority and the Bank of England. The main regulation for regulating the company is the Financial Services and Markets Act.
Pros of development:
- Providing resources for development;
- Creating a positive environment for the introduction of fintech;
- Good reputation.
Consumer use of payment cards and applications is increasing in 2021. The number of transactions and payment services increases significantly. Regulator’s attention to non-bank service providers, related to payments is increasing.
How to open a company
There are some peculiarities of registering a business in the UK. To create a company, a name should be chosen and activity codes should be determined. It is mandatory to appoint a director and a secretary. The amount of share capital should be established.
It may be necessary to develop a memorandum of association, which establishes the rules of management and the charter. It is possible to use nominal service. Registering an account will require the provision of identification documents, the residence address of the director, a description of the firm's activities and projected cash turnover.
There are several types of activities that require a special license. A permit is required if it is planned to accept deposits, as well as carry out work with investments and securities. The registration of a document is relevant if it is necessary to conclude investment transactions, advise on investments, and manage them.