The Small Payment Institution in Poland [Polish: MIP] is a solution addressed to entrepreneurs who provide payment services within the scope of their business activity. It corresponds to all the activities that are necessary to maintain an account.
This includes depositing or withdrawing money, transferring funds or operating money orders. In the case of Small Payment Institution, the average monthly amount of such transactions cannot exceed 1 500 000 EUR per year.
What is Small Payment Institution in Poland [Polish MIP]?
According to the statutory explanation, the Small Payment Institution in Poland may be defined as an entity – a natural person, legal person or an organizational unit that is not a legal person but to which the Act grants a legal capacity – that obtained an entry in the register of payment and electronic money institutions and conducts a business activity that provides any of the payment services other than initiating payment orders or accessing account information.
Who can register a Small Payment Institution in Poland?
A Small Payment Institution may be registered by a natural person, legal person (in such case we advise you to form a company in Poland) or an organizational unit that is not a legal person but to which the Act grants a legal capacity. A person managing the Small Paying Institution may not be legally convicted for a crime against the administration of justice, for an economic crime or fiscal offence.
To operate in the form of a Small Payment Institution, an entrepreneur must first obtain an entry in the register of payment and electronic money institutions. It stems from the fact that the activity in the field of payment services constitutes a regulated activity according to the provisions of the Act on the Entrepreneurs’ Law.
The register is kept by the Financial Supervision Authority [Polish: KNF]. The entry is made at the request of the entrepreneur who intends to operate as the Small Payment Institution in Poland.
What should be enclosed in the application for a Small Payment Institution’s registration?
The application for registration of a Small Payment Institution in Poland shall be submitted on the official form available on the website of the Polish Financial Supervision Authority. It shall include:
- a list of payment services that the entrepreneur intends to provide,
- information about the applicant – name and surname or the company’s name, address of the place of residence or registered office and address of the main place of conducting a business activity, Tax Identification Number [Polish NIP] and, if an entrepreneur is registered in National Court Register [Polish: KRS], he or she should also submit the KRS number.
If the applicant intends to conduct business activity with the support of agents, he or she needs to submit a relevant statement to the competent authority on the official form. It is available on the website of the Financial Supervision Authority [Polish: KNF]. If the business is going to be run by the company’s branches, the applying entrepreneur should also provide their names and addresses.
Attachments to the application for registration of a Small Payment Institution (EMI Poland)
It is very important to attach all the necessary documents while applying for a registration of a Small Payment Institution. This will allow for an efficient and quick registration without the need to correct formal deficiencies.
The first of the attachments constitutes a graphic diagram presenting the payment services that the entrepreneur intends to provide as a Small Payment Institution.
The graphic diagram shall include a description of the services. The entrepreneur should also indicate what the type of the offered payment service is, as specified in the Act, and which entities will participate in the process of providing them.
The diagram should show how resources and information will flow in the process of providing the services. It is important to prepare the diagram with respect to the statutory deadlines as indicated in the Act on Payment Services.
Moreover, the entrepreneur has to enclose a statement that the data included in the application are complete and true. The applicant should also confirm that he or she knows the statutory conditions for conducting business activity as a Small Payment Institution and that he or she meets the requirements.
The application is subject to a fee of 616 PLN payable to the account of the taxpayer service center of the Municipal Office of Warsaw Capital City. Payment confirmation should be attached to the application.
The application should be signed by the applicant or by his or her representative. In the case of acting through the representative, the application shall be accompanied by a relevant document of authorization.
This obligation does not concern applicants who are registered in the Central Registration And Information On Business [Polish: CEIDG] and who act through their representative designated in the Register.
The Small Payment Institution in Poland must keep the documents necessary to prove the fulfilment of the conditions required to perform the activity for a period of at least 5 years from the day of their creation or receiving.
How to submit an application for registration of a Small Payment Institution in Poland?
A correctly completed and paid application for registration of a Small Payment Institution in Poland can be submitted both electronically and in a traditional way.
If the applicant wants to deal with this matter online, he or she may use the Electronic Platform of Public Administration Services [Polish: ePUAP] via the Inbox of the Financial Supervision Authority Office.
However, the application for registration of a Small Payment Institution in Poland may also be sent by a traditional mail to the address of the Polish Financial Supervision Authority. It is also possible to submit the application personally to the office of the Polish Financial Supervision Authority in Warsaw.
Processing of the application for registration of a Small Payment Institution in Poland
Financial Supervision Authority [Polish: KNF] may refuse the registration if the application is incomplete and is not corrected within the specified time period. Moreover, the refusal will take place if the data included in the application are inconsistent with the facts.
The Financial Supervision Authority will refuse the registration obligatorily in the following cases:
- if the entrepreneur has been subject to a legally binding decision prohibiting him or her from engaging in business activity of this kind,
- if the applicant has been removed from the register of payment services providers as a result of a decision to prohibit such activity within the period of 3 years prior to the submission of the application
If the application meets the requirements indicated in the Act, the Financial Supervision Authority will enter the Small Payment Institution into the register within 3 months following the submission of the application. The date of entering into the register is unequivocal with the date of starting a business activity as a Small Payment Institution.
The activity of a Small Payment Institution in Poland
As part of its activities, the Small Payment Institution may perform all operations that are necessary to keep a payment account. In particular, it is allowed to accept cash deposits and make withdrawals from payment accounts. Its operations enable transferring the funds to the account of a selected provider and executing money transactions.
It is worth knowing that the Small Payment Institution in Poland may issue its own payment instruments as well as execute payment orders with their use.
A Small Payment Institution in Poland may keep the funds of its users on their payment accounts. It should be noted that the total amount of funds accepted for one user at any time may not exceed the equivalent of 2000 EUR.
This amount is calculated based on the average exchange rate announced by the National Bank of Poland, applicable on the last day of the month preceding the given day. The Small Payment Institution in Poland may provide its services only on the territory of the Republic of Poland.
If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.
Small Payment Institution in Poland (MIP) – FAQs
What is a Small Payment Institution in Poland?
A Small Payment Institution in Poland is an entity authorized to provide certain payment services, excluding initiating payment orders or accessing account information, after obtaining an entry in the register of payment and electronic money institutions.
Who can register as a Small Payment Institution in Poland?
A natural person, legal person, or an organizational unit with granted legal capacity can register as a Small Payment Institution in Poland.
What are the legal requirements for managing a Small Payment Institution?
The person managing must not have a criminal record for crimes against justice administration, economic crimes, or fiscal offenses.
What register must a Small Payment Institution be entered into?
The register is kept by the Financial Supervision Authority (KNF).
What should be included in the application for registration?
The application must include a list of payment services intended to be provided, information about the applicant, and if agents are involved, a relevant statement on the official form.
What are the necessary attachments for the application?
Attachments include a graphic diagram presenting the payment services intended to be provided, a statement on the completeness and truthfulness of the application data, and a payment confirmation of the application fee.
How much is the application fee for registering a Small Payment Institution?
The fee is 616 PLN, payable to the Municipal Office of Warsaw Capital City’s account.
How can the application for registration be submitted?
The application can be submitted electronically via ePUAP or in traditional form by mail or personally at the office of the Polish Financial Supervision Authority in Warsaw.
What can cause the Financial Supervision Authority to refuse registration?
Reasons include incomplete applications not corrected within the specified time, data inconsistency with facts, or if the entrepreneur was previously prohibited from engaging in this business activity.
How long does it take for the Financial Supervision Authority to process the application?
The authority will enter the institution into the register within 3 months following the submission of the complete application.
What services can a Small Payment Institution provide?
It can perform operations necessary for keeping a payment account, including accepting cash deposits, making withdrawals, and executing money transactions.
Can a Small Payment Institution issue its own payment instruments?
Yes, it may issue its own payment instruments and execute payment orders using them.
Is there a limit to the funds a Small Payment Institution can hold for a user?
Yes, the total amount of funds for one user at any time cannot exceed the equivalent of 2000 EUR.
Can a Small Payment Institution operate outside Poland?
No, it can provide its services only within the territory of the Republic of Poland.
What is the significance of being entered into the register of payment and electronic money institutions?
Being registered allows the institution to legally operate and provide payment services in Poland.
Are there any specific documents required for the application apart from the form?
Yes, including a graphic diagram of the payment services and statements about the data’s completeness and compliance with statutory conditions.
What happens if an application is not corrected within the specified time?
The Financial Supervision Authority may refuse the registration if the application remains incomplete.
How is the application fee calculated?
The fee is set by the Financial Supervision Authority and is required for processing the application.
Can the registration be done by a representative?
Yes, but the application must be accompanied by a document of authorization if acting through a representative.
How long must a Small Payment Institution keep its documents?
It must keep the necessary documents for at least 5 years from their creation or receipt to prove compliance with the required conditions.
What is the role of the Financial Supervision Authority (KNF) in the registration process?
The KNF oversees the registration process, ensuring that applicants meet all legal requirements and maintain standards for offering payment services.
Can a Small Payment Institution engage in initiating payment orders or accessing account information?
No, a Small Payment Institution is restricted from providing services related to initiating payment orders or accessing account information.
What happens after a Small Payment Institution is registered?
Once registered, the institution is legally allowed to start providing the payment services it has been registered for, strictly within the territory of Poland.
Are there ongoing compliance obligations for a Small Payment Institution after registration?
Yes, registered institutions must adhere to ongoing compliance obligations, including AML (Anti-Money Laundering) regulations and operational requirements set by the KNF.
Can a Small Payment Institution conduct business activities other than payment services?
While its primary function is to provide payment services, a Small Payment Institution may engage in other business activities, provided they comply with Polish law and do not conflict with its status as a payment institution.
What kind of support does the KNF offer to Small Payment Institutions?
The KNF provides regulatory guidance and support to ensure that Small Payment Institutions understand and comply with the legal framework governing their operations.
Is there a public list or register of Small Payment Institutions?
Yes, the KNF maintains a public register of payment and electronic money institutions, which includes Small Payment Institutions, accessible to the public for verification and trust-building purposes.
What are the consequences for operating as a Small Payment Institution in Poland without registration?
Operating without registration is illegal and subjects the entity to penalties, including fines and potential prohibition of business operations.
How often does a Small Payment Institution in Poland need to update its registration information?
Any changes to the provided services, company structure, or operational details must be reported to the KNF promptly to ensure the register remains accurate.
Can a Small Payment Institution in Poland offer cross-border payment services within the EU?
As a Small Payment Institution, offering services is limited to the territory of Poland unless specific arrangements or licenses allow for cross-border services within the EU framework.
What are the key differences between a Small Payment Institution in Poland and a full Payment Institution?
The main differences lie in the scope of permissible activities, operational limits (such as the cap on funds held for a user), and the extent of regulatory requirements, with full Payment Institutions facing more stringent controls.
How does the cap on user funds affect the operations of a Small Payment Institution in Poland?
The cap requires institutions to monitor and manage the funds within the set limits, affecting how they offer and structure their services to users.
What impact does the registration as a Small Payment Institution in Poland have on consumer trust?
Registration can significantly enhance consumer trust by demonstrating compliance with regulatory standards and financial stability.
Are Small Payment Institutions subject to periodic inspections by the KNF?
Yes, they may be subject to inspections to ensure ongoing compliance with regulatory requirements and operational standards.
Can a Small Payment Institution in Poland appeal a decision made by the KNF regarding its registration?
Yes, decisions made by the KNF can be appealed through the legal system, providing a mechanism for review and correction if necessary.
What role do agents and branches play in the operation of a Small Payment Institution in Poland?
Agents and branches can extend the operational reach and service delivery of a Small Payment Institution, subject to regulatory approvals and reporting.
