Setting up a payment agent in EU

[Clearsky Network]

nurredon said:
I agree! One interesting advantage of setting it up in Cyprus instead of countries like Spain or the UK is that it could make things more challenging when the company receives cease-and-desist letters. There might be fewer lawyers in Europe specializing in representing manufacturers in this jurisdiction, which could work to our advantage
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Such letters can be sent only if you will be offering replica or very low quality product that can cause health issues to the consumers.
if the business is legit like originally stated there shouldn't be such issues.
In my opinion having proper policies and insurance is more important than the payment agent jurisdiction

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[daniels27]

Clearsky Network said:
Such letters can be sent only if you will be offering replica or very low quality product that can cause health issues to the consumers.
if the business is legit like originally stated there shouldn't be such issues.
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Depends on the jurisdiction. In Germany, they can send you a letter already if you forget some legally required mentions on your website.

 

[alpakiwi]

Yeah, anyway, the main goal is to avoid the letters, which is why we're structuring it this way. So I guess the answer is that the location of the payment agent doesn't really matter

 

[bubbledouble]

alpakiwi said:
Yeah, anyway, the main goal is to avoid the letters, which is why we're structuring it this way. So I guess the answer is that the location of the payment agent doesn't really matter
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Correct, as long as the country of registration doesn't do too much checks on foreign owned companies.

 

[Compliance Circle]

alpakiwi said:
Yeah, anyway, the main goal is to avoid the letters, which is why we're structuring it this way. So I guess the answer is that the location of the payment agent doesn't really matter
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A few points you may want to consider when making decision:

1) English is not an official language of Cyprus, meaning that most official/court business goes in Greek - one may see that as a small advantage already;

2) Government system is on "island time", as it is the case with most lawyers and service providers meaning any potential legal action may take quite some time to move between stages;

3) Well-established practice of creating and maintaining "payment agent" structures for higher risk business verticals (i.e. gambling, unlicensed FOREX) meaning that many CSP's would get it right from the start what you'll need to accomplish and can advise you accordingly

 

[CyprusLaw]

Compliance Circle said:
A few points you may want to consider when making decision:

1) English is not an official language of Cyprus, meaning that most official/court business goes in Greek - one may see that as a small advantage already;

2) Government system is on "island time", as it is the case with most lawyers and service providers meaning any potential legal action may take quite some time to move between stages;

3) Well-established practice of creating and maintaining "payment agent" structures for higher risk business verticals (i.e. gambling, unlicensed FOREX) meaning that many CSP's would get it right from the start what you'll need to accomplish and can advise you accordingly
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Just a couple of points for 1 and 2.

Even though English is not an official language, everyone speaks English, filings can be made in English, for example at the Registrar of Companies (provided that you have paid for an English language file).

With respect to the court procedures (a) yes it does take time, which is why the new CPR were introduced and so far things are improving, (b) as I am personally well versed with the UK as well, the procedures are not faster over there.

Cyprus is indeed the perfect jurisdiction for setting up a payment agent, even though I would recommend using a law firm and not a CSP.