If you plan business regarding e-money (electronic money), it is governed by Law on Payment Services and Electronic Money. 

Electronic money is electronically (in a smart card or the computer memory) stored monetary value that:

• represents a claim on the issuer,
• has been issued on receipt of funds from the electronic money holder for the purpose of making payment transactions,
• is used as a means of payment and is accepted by a natural or a legal person other than the electronic money issuer.

To provide electronic money institution services in Latvia, Limited Liability Company or Joint Stock Company  have to be registered in Latvia, with minimal share capital of 350 000 EUR. Please note that Board members of the company shall be citizens of Latvia or they shall have Latvia residence permit.

An electronic money institution does not need a license issued by the Financial and Capital Market Commission and it is entitled to commence its activity in Latvia after registration with the commercial register for performing commercial activity provided that it has notified the Financial and Capital Market Commission in writing about the intended commencement of activity and it complies with the following conditions:

1. The average outstanding electronic money within the commercial activity of an electronic money institution does not exceed 2 million euro.
   Where an electronic money institution also performs any of the following: activities provision of payment services; provision of services related to issuing electronic money or providing payment services; the operation of payment systems other type of commercial activity, and the volume of electronic money is not known, an electronic money institution uses the volume of the issued electronic money to calculate the average outstanding electronic money. If the electronic money institution that has not performed commercial activity for full 6 calendar months determines the average outstanding electronic money on the basis of the commercial activity plan unless the Financial and Capital Market Commission has requested an electronic money institution to amend the plan;
   
   
2. If members of the executive board and of the council, all shareholders, auditors, and also about persons that are directly responsible for managing the institution's payment service operations may not be criminal punished.
   
   

To commence its activity, the electronic money institution submits to the Financial and Capital Market Commission a relevant notification and following documents:

1. Commercial activity plan;
2. Origin of money have to be proved;
3. Description of procedures that will help to prevent money laundering and funding of terrorism;
4. Persons who are/will be responsible for operations of company, have to provide CV about at least last 10 years, stating positions and performed functions and copies of education documents.
5. An insurance policy or some other comparable guarantee from an insurer of a credit institution that does not belong to the same group of commercial companies as the institution itself 

In case an electronic money institution fails to comply with above criteria it is required to receive the license for the operation of an electronic money institution, by submitting to the Financial and Capital Market Commission a relevant application.

The Financial and Capital Market Commission takes a decision on granting or refusing to grant the license and notifies the applicant within 3 months after receiving of all necessary documents; where it refuses to grant the license, it also specifies the reason for refusal. 

The Financial and Capital Market Commission grants the license for the operation of a payment institution for an indefinite time. 

1. Origin of money have to be proved.
2. Provide information about shareholders of the company.
3. Notification about financial stability of shareholders
4. Owners have to provide documents of paid taxes of last two years (declaration of income) and other documents that can prove financial stability of owner and prove legal origin of money.
5. Persons who are/will be responsible for operations of company, have to provide CV about at least last 10 years, stating positions and performed functions and copies of education documents.
6. Plan of action of company in which following information is included- (description of payment services that will be performed, will company use branches in other states, information about potential clients of company, description of procedures that will help to prevent money laundering and funding of terrorism.)
7. Plan for commercial activities for next 3 years. 
   
   

If company wants to provide services in other states, notification to Commission have to submitted.