Canada is not just the second-largest country in the world with a large population – it is an important economic center with a developed legislative framework. Today, many international companies seek to open branches or representative offices in this country. You must obtain a Canada MSB License if you are a financial services provider. It is a rather complicated process requiring your attention and special knowledge.
Why is it Worth Getting a License?
If you want to work in Canada, you must get a license. Otherwise, you will have problems with government agencies. Your platform will be blocked entirely, you will not be able to conduct normal activities, and most likely, you will be charged with fraud or tax evasion. A lawsuit can negatively impact your reputation, so finding investors, new clients, and reliable partners will be much more difficult.
It is also worth saying that investors refuse to invest in unlicensed companies. It is because they consider themselves fraudsters and are afraid of losing money. In addition, ordinary users refuse to cooperate with unlicensed platforms, as they are so scared of being deceived. Practice shows that even if you offer the most favorable terms of cooperation, clients will prefer to work with licensed companies, as they are sure they operate legally.
Who Needs a License?
All organizations that provide financial services must obtain an MSB license in Canada:
● Currency exchange;
● Execution of transactions;
● Actions with digital assets, including cryptocurrencies;
● Operation of ATMs and much more.
Thus, most non-banking organizations that provide financial services must obtain a work permit. If you are in doubt about whether you should get a permit, contact the specialists of our company. They will tell you what kind of work permit your company needs to obtain, how best to do it, and how much it will cost.
What is the Process for Getting a Permit?
It should be said right away that obtaining a license will not be easy. You need to be patient and learn some information in advance.
In general, obtaining a license can be divided into 3 main stages:
● Company registration in Canada;
● Pre-registration with FINTRAC (this is a particular state body that issues licenses);
● Registration with FINTRAC.
Each of these stages is of great importance. So, first, you need to register a company in Canada. You can choose any province for this, but British Columbia offers the most favorable conditions for foreign companies. At this stage, you need to consider the company’s name, what services you will provide, what the authorized capital will be, and how you will arrange management. After you submit your company registration application, government agencies will have a few days to review the documents and decide. The failure process is minimal here.
After registering a company, you need to pre-register with special government agencies. At this stage, you will have to pass an interview, communicate with a representative of government agencies, and answer possible questions. You must indicate the name of your company and the services you plan to provide. After that, you can get to work. In parallel, you are given a short period to collect documents for obtaining a license.
The most complex and responsible stage is registration with FINTRAC, so this should be treated with particular care. We advise you to immediately seek help from professional lawyers because, without them, you will not be able to collect the necessary documents.
Our company has a large team of professionals who specialize in assistance in obtaining licenses in Canada. During our work, we have helped many companies get work permits. The list of our services includes consultation, assistance in collecting and verifying documents, representing your interests in Canadian government agencies, and much more. After you sign a power of attorney for our specialists, your participation in licensing will be reduced to zero. Our experts will do all the hard work for you. It should also be noted that the cost of services in our company is relatively low, but you can forget possible problems with obtaining a license.