Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Part III licence, including banking and payment rails.
Get a payment license in Guernsey.
Guernsey rebuilt its non-bank finance rules in one statute. The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 has licensed financial firm business under Part III since 1 July 2023, and the register prints the activities in plain words: operating a money service business, issuing, redeeming, managing or administering means of payment, and money changing. No minimum capital is prescribed. What the rules do require is enough liquid assets for an orderly wind-down over three months, professional indemnity and employee-dishonesty cover of at least GBP 1,000,000 for each loss, customer money in dedicated bank accounts reconciled monthly, and two directors resident in the Bailiwick.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Guernsey in brief
A 2022 statute, a licence that costs GBP 1,640 a year, and rules written where you can read them.
Section 16(1) of the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 is the prohibition: persons shall not carry on or hold themselves out as carrying on a business specified in Part A of Schedule 1 except under the authority of a licence granted by the Commission. Part II of the law covers credit and home finance, Part III covers financial firm business and virtual asset service providers, Part IV covers platforms, and licensing under it began on 1 July 2023. Section 22 sets the application - a statement of proposed business, plus whatever information the Commission reasonably requires - and section 23(2) says the Commission shall not grant a licence unless satisfied that the minimum criteria for licensing in Schedule 4 are met. Section 40 lets the Commission disapply the licensing requirement by class; the notice it issued in February 2023 and revised that June deals with lending, and no turnover threshold exists for money service business. The working detail lives in the Lending, Credit and Finance Rules and Guidance, 2023, amended in 2023 and again in 2025.
Part 9 of those rules is the capital part, and it says only this: currently, there are no additional Rules made under this Part. Read it with Rule 4.2(1)(a), which requires sufficient liquid assets to allow for an orderly wind-down over a three-month period, monitored at least quarterly, and with Rule 4.1, which sets professional indemnity and employee-dishonesty cover at a minimum of GBP 1,000,000 for each loss. Rule 3.4 handles the float: customer money must be held separately from the licensee's own money in one or more dedicated customer money bank accounts, reconciled monthly, with no overdraft and no shortfall. Rule 2.2(1) asks for at least two individuals with the responsibility of directing the business resident in the Bailiwick. Fees under the 2025 regulations, effective 1 January 2026, are GBP 4,925 to apply for a Part III financial firm business licence and GBP 1,640 a year, against GBP 4,500 and GBP 1,500 in 2024; a virtual asset exchange or stablecoin issuer pays GBP 50,000. Company tax is 0% at the standard rate and the Bailiwick still has no GST: the States approved a 5% tax in February 2026, with the earliest introduction in the first quarter of 2028.
Section 16(1) of the Lending, Credit and Finance Law, 2022 bans Schedule 1 Part A business without a licence; Part III licensing started on 1 July 2023. The register lists money service business, issuing and administering means of payment, and money changing. Section 23(2) blocks a grant until the Schedule 4 criteria are met.
No prescribed capital: Rule 4.2 asks for three months of wind-down liquidity, Rule 4.1 for GBP 1,000,000 of cover, Rule 3.4 for dedicated customer money accounts reconciled monthly. Two Bailiwick-resident directors. GBP 4,925 to apply, GBP 1,640 a year. Tax 0%, no GST. We run it from London.
The routes
One Part III licence, two activity sets that matter to payment businesses.
Guernsey licenses the activity, not the business model. Money transmission, currency exchange and cheque cashing sit in one line of Schedule 1; issuing and administering means of payment sits in another. Both come under the same financial firm business licence, and both carry the same rules.
One Part III licence; money service business or means of payment on it.
01 - MONEY SERVICE BUSINESS
Part III financial firm business licence
The register prints the activity as operating a money service business, including a business providing money or value transmission services, currency exchange as a bureau de change, and cheque cashing. Application GBP 4,925 and GBP 1,640 a year under the 2025 fee regulations, with no prescribed minimum capital behind it.
The register prints the activity as operating a money service business, including a business providing money or value transmission services, currency exchange as a bureau de change, and cheque cashing. Application GBP 4,925 and GBP 1,640 a year under the 2025 fee regulations, with no prescribed minimum capital behind it.
- ✓Money or value transmission · bureau de change · cheque cashing
- ✓Application GBP 4,925 · annual GBP 1,640 (2026)
- ✓No prescribed minimum capital (Rules, Part 9)
- ✓Three-month orderly wind-down liquidity (Rule 4.2)
- ✓PII and dishonesty cover from GBP 1,000,000 (Rule 4.1)
- ✓Two Bailiwick-resident directors (Rule 2.2)
02 - MEANS OF PAYMENT
No separate e-money regimeIssuing, redeeming, managing or administering means of payment
The nearest thing Guernsey has to an e-money licence, and it is the same Part III licence with a different activity on it. Money changing is licensed under the same Part. Token issuers take a different door: the virtual asset exchange and stablecoin issuer category is priced at GBP 50,000.
Means of payment: issuing, redeeming, managing or administering, under the same licence; virtual asset exchange or stablecoin issuer costs GBP 50,000.
- ✓Issuing, redeeming, managing or administering means of payment
- ✓Money changing licensed under the same Part III
- ✓Customer money in dedicated accounts (Rule 3.4)
- ✓Monthly reconciliation · no overdraft, no shortfall
- ✓Virtual asset exchange or stablecoin issuer: GBP 50,000
- ✓A firm licensed under another Bailiwick law needs no FFB licence (Rule 9.1(1))
Costs and timelines are confirmed for your case before any work begins. The Commission publishes no decision period and no processing statistics for these applications, so the schedule in your quote is built on the file rather than on a promise.
Why Guernsey
The cheapest of the three islands to hold, with the rules written down.
Guernsey put its non-bank finance regime into one law in 2022 and one rulebook in 2023. A founder can read the capital, insurance and client-money positions in an afternoon and price the year in five minutes.
✓
A statute written this decade
Licensing under the Lending, Credit and Finance Law began on 1 July 2023, and the rules behind it were amended in 2023 and 2025 - the text you read is the text the Commission applies.Licensing live since July 2023.
✓
No capital number to fund
Part 9 of the rules makes no capital requirement. The test instead is liquid assets sufficient for an orderly wind-down over three months, checked at least quarterly.Three-month wind-down instead.
✓
Cheap to hold
GBP 4,925 to apply and GBP 1,640 a year under the 2025 fee regulations, against GBP 6,565 to apply as a credit provider and GBP 4,925 to GBP 9,845 a year in that Part.GBP 1,640 a year.
✓
A client-money rule in one paragraph
Rule 3.4: separate from the licensee's own money, in one or more dedicated customer money bank accounts, reconciled monthly, no overdraft and no shortfall.Dedicated accounts, monthly reconciliation.
✓
0% and no GST
The standard company rate is 0% and no goods and services tax is in force. The States approved a 5% GST in February 2026, and the earliest introduction is the first quarter of 2028.5% approved for 2028 earliest.
✓
Distributions leave clean
The Revenue Service states that distributions to a non-resident beneficial member do not create a Guernsey tax charge.No charge to non-resident members.
How it compares
How Guernsey differs from the other island routes.
The three Crown Dependencies tax companies at 0% and none of them passports. Guernsey is the only one of the three that prints its client-money and wind-down rules in a public rulebook.
Guernsey vs other jurisdictions
| Feature |  Guernsey | Other jurisdictions |
|---|---|---|
| Capital | None prescribed · 3-month wind-down liquidity | EUR 20,000-350,000 in the EU |
| Client money | Dedicated accounts · monthly reconciliation | Next-working-day safeguarding in the EU |
| Fees | GBP 4,925 to apply · GBP 1,640 a year | GBP 2,142-45,000 to apply in the neighbouring islands |
| Corporate tax | 0% standard · no GST in force | 12.5-25% with VAT |
Capital
GuernseyNone prescribed · 3-month wind-down liquidity
Other jurisdictionsEUR 20,000-350,000 in the EU
Client money
GuernseyDedicated accounts · monthly reconciliation
Other jurisdictionsNext-working-day safeguarding in the EU
Fees
GuernseyGBP 4,925 to apply · GBP 1,640 a year
Other jurisdictionsGBP 2,142-45,000 to apply in the neighbouring islands
Corporate tax
Guernsey0% standard · no GST in force
Other jurisdictions12.5-25% with VAT
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Guernsey | Part III FFB licence (GFSC) | 0% · no GST | PII GBP 1,000,000 · fee GBP 4,925 |
 Jersey | MSB registration (JFSC) | 0% · GST 5% | No capital determined · GBP 3,590 fee basis |
 Isle of Man | Class 8 licence (IOMFSA) | 0% · VAT 20% | 2 resident directors · fee GBP 2,142-6,424 |
 Gibraltar | PI / e-money (GFSC) | 15% local | EUR 125,000 · EMI EUR 350,000 |
GuernseyLicense typePart III FFB licence (GFSC)
Taxation0% · no GST
RequirementsPII GBP 1,000,000 · fee GBP 4,925
JerseyLicense typeMSB registration (JFSC)
Taxation0% · GST 5%
RequirementsNo capital determined · GBP 3,590 fee basis
Isle of ManLicense typeClass 8 licence (IOMFSA)
Taxation0% · VAT 20%
Requirements2 resident directors · fee GBP 2,142-6,424
GibraltarLicense typePI / e-money (GFSC)
Taxation15% local
RequirementsEUR 125,000 · EMI EUR 350,000
Before you apply
Requirements for the Part III licence.Requirements for the Part III licence.
The law sets the prohibition, the application and the minimum criteria; the 2023 rules set the money, the insurance and the client accounts. The checklist below is what a passing file contains.
01
A licence before any Schedule 1 Part A activity is carried on or held out in or from within the Bailiwick, under section 16(1) of the 2022 law.
02
An application through the Commission's online portal with a covering letter, the fee, the supporting documents and the online personal questionnaires.
03
A statement of proposed business under section 22, together with whatever further information the Commission reasonably requires.
04
The Schedule 4 minimum criteria for licensing satisfied at the point of grant - section 23(2) blocks a grant until the Commission is satisfied of that.
05
At least two individuals with the responsibility of directing the business resident in the Bailiwick, under Rule 2.2(1).
06
Board-level policies and controls under Rule 2.2(3), sized to the activities that go on the licence.
07
Liquid assets sufficient for an orderly wind-down over a three-month period, monitored at least quarterly under Rule 4.2(1)(a).
08
Professional indemnity and employee-dishonesty cover of at least GBP 1,000,000 for each loss, under Rule 4.1.
09
Customer money held separately from the licensee's own money in one or more dedicated customer money bank accounts, reconciled monthly, with no overdraft and no shortfall, under Rule 3.4.
10
Anti-money-laundering arrangements under the Criminal Justice (Proceeds of Crime) Law and the Commission's handbook, with a reporting officer appointed.
01
Licence before any Schedule 1 activity (s.16).
02
Online application with fee and documents.
03
Statement of proposed business (s.22).
04
Schedule 4 minimum criteria met (s.23(2)).
05
Two Bailiwick-resident directors (Rule 2.2).
06
Board policies and controls (Rule 2.2(3)).
07
Three-month wind-down liquidity (Rule 4.2).
08
PII and dishonesty cover GBP 1,000,000 (Rule 4.1).
09
Dedicated customer money accounts (Rule 3.4).
10
AML handbook duties and a reporting officer.
Reflects the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022, the Lending, Credit and Finance Rules and Guidance, 2023 as amended in 2023 and 2025, and the Financial Services Commission (Fees and Administrative Penalties) Regulations, 2025, as of 2026.Lending, Credit and Finance Law, 2022; Rules and Guidance 2023 (am. 2023, 2025); Fees and Administrative Penalties Regulations 2025.
How it works
From first call to the Part III licence.
01
Activity and strategy
Money service business, means of payment, money changing or a combination - the Schedule 1 lines chosen and the budget fixed in writing.Schedule 1 lines chosen in writing.
02
Company and board
Guernsey company formed, two Bailiwick-resident directors appointed, policies and controls drafted to Rule 2.2(3).Two resident directors, controls drafted.
03
The application file
Statement of proposed business, projections, wind-down calculation, insurance, client-money arrangements and personal questionnaires.Statement, wind-down, insurance, accounts.
04
GFSC review
Question rounds answered; the Commission gives no statutory period and says a good application takes several weeks - plan on six to nine months end to end.Several weeks stated; 6-9 months realistic.
05
Licence and launch
Licence granted, customer money accounts opened, quarterly liquidity and monthly reconciliation running from the first day of trading.Accounts open, monitoring running.
Quick facts
RegulatorGuernsey Financial Services Commission
LawLending, Credit and Finance Law, 2022
LicencePart III financial firm business
In forceLicensing since 1 July 2023
CapitalNone prescribed · 3-month wind-down
FeesGBP 4,925 apply · GBP 1,640 a year
Timeline6-9 months realistic
Corporate tax0% · no GST
No statutory decision period applies, and the Commission publishes no statistics. Its own guidance says a licence application of good quality takes several weeks to review, which puts the whole weight on the quality of the file.
Your Guernsey desk
Run from our London office.
Prifinance London
London · coordinating Guernsey mandates
7 Bell Yard, London
01
Guernsey company and board
The company formed with at least two directors resident in the Bailiwick, and the board policies Rule 2.2(3) expects behind them.Two resident directors, policies drafted.
02
The GFSC file
Statement of proposed business, financial projections, policies and personal questionnaires filed through the Commission's portal with the fee.Statement, projections, questionnaires.
03
Money, insurance and accounts
The three-month wind-down calculation, the GBP 1,000,000 indemnity cover and the dedicated customer money accounts arranged before the licence goes live.Wind-down, cover, customer accounts.
04
Ongoing rules
Quarterly liquidity monitoring, monthly client-money reconciliation and the anti-money-laundering handbook duties built into the operation from day one.Quarterly liquidity, monthly reconciliation.
We also have offices in
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Good to know
Taxation of payment companies in Guernsey.
A 0% standard company rate, a 10% band for named financial sectors, a 20% band for utilities, land and large retail, and no goods and services tax in force before 2028 at the earliest.
Corporate tax 0%
The Revenue Service states that the standard rate is 0%. Which band a licensee falls into depends on the activity rather than on the licence it holds.Standard company rate.
The 10% band
Banking, domestic insurance, fiduciary work, insurance intermediation and management, administration of controlled investments, custody, investment management for individuals, investment exchanges, compliance services and the aviation registry. Money service business is not on that list.Listed financial sectors only.
The 20% band
Trading regulated by CICRA, gas and hydrocarbon import, large retail above GBP 500,000 of profit, income from Guernsey land and buildings, and cannabis.CICRA, land, large retail.
No GST in force
The Bailiwick has no goods and services tax today. The States approved a 5% GST in February 2026 as part of a wider package, and the earliest introduction is the first quarter of 2028.5% approved, 2028 at the earliest.
Distributions to non-residents
Distributions to a non-resident beneficial member do not create a Guernsey tax charge, per the Revenue Service.No charge to non-resident members.
Payroll
Income tax and social insurance on Bailiwick salaries. Two resident directors and a reporting officer are the fixed part of the operating budget.Income tax + social insurance.
Tax summary
Corporate tax0% standard rate
Intermediate rate10% for listed financial sectors
Higher rate20% CICRA, land, large retail
GSTNone in force · 5% approved for 2028
DistributionsNo charge to non-resident members
PayrollIncome tax + social insurance
*Figures as of 2026 per the Guernsey Revenue Service. Treaty and regime positions are assessed per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Guernsey company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed business.
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The Guernsey payment licence, answered.
What licence does a payment business need in Guernsey?+
A Part III financial firm business licence from the Guernsey Financial Services Commission under the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022. The register prints the activities as operating a money service business, issuing, redeeming, managing or administering means of payment, and money changing.
How much capital is required?+
None is prescribed. Part 9 of the Lending, Credit and Finance Rules and Guidance says there are currently no additional rules made under it. Rule 4.2(1)(a) instead requires liquid assets sufficient for an orderly wind-down over a three-month period, monitored at least quarterly.
Is insurance required?+
Yes. Rule 4.1 sets professional indemnity and employee-dishonesty cover at a minimum of GBP 1,000,000 for each loss. For a small applicant that premium is usually the largest fixed cost in the file after salaries.
How is customer money held?+
Under Rule 3.4: separately from the licensee's own money, in one or more dedicated customer money bank accounts, reconciled monthly, with no overdraft and no shortfall permitted.
What does the licence cost?+
Under the Fees and Administrative Penalties Regulations 2025, effective 1 January 2026, a Part III financial firm business licence costs GBP 4,925 to apply for and GBP 1,640 a year. The 2024 figures were GBP 4,500 and GBP 1,500. A virtual asset exchange or stablecoin issuer pays GBP 50,000.
How long does the Commission take?+
No statutory decision period applies to a Part III application. The Commission's own guidance says it may take several weeks to review and process a licence application provided it is of good quality, and it publishes no statistics. Plan on six to nine months end to end.
Is there an e-money regime?+
Not a separate one. The closest activity on the Part III list is issuing, redeeming, managing or administering means of payment, which covers stored-value products under the same licence and the same rules. Token issuers fall into the virtual asset categories instead.
Who has to live in the Bailiwick?+
Rule 2.2(1) requires at least two individuals with the responsibility of directing the business to be resident in the Bailiwick. Board-level policies and controls come with them under Rule 2.2(3).
How are payment companies taxed?+
The standard company rate is 0%. A 10% rate applies to a list of financial sectors that does not include money service business, and 20% to CICRA-regulated trading, large retail above GBP 500,000 of profit and Guernsey land and buildings. There is no GST in force; the States approved a 5% tax in February 2026 with the earliest introduction in the first quarter of 2028.
Why Guernsey rather than Jersey or the Isle of Man?+
Guernsey is the cheapest of the three to hold at GBP 1,640 a year, and it prints its client-money and wind-down rules where an applicant can read them. Jersey asks for no capital and charges one flat fee. The Isle of Man has a dedicated e-money class. Guernsey's cost is the GBP 1,000,000 insurance minimum, which a small startup feels.
Which licence?+
GFSC Part III financial firm business.
Capital?+
None prescribed; three-month wind-down.
Insurance?+
PII and dishonesty cover GBP 1,000,000.
Customer money?+
Dedicated accounts, reconciled monthly.
Cost?+
GBP 4,925 to apply, GBP 1,640 a year.
How long?+
No clock; several weeks stated, 6-9 months realistic.
E-money?+
No separate regime; means of payment instead.
Residency?+
Two directors resident in the Bailiwick.
Taxes?+
0% standard, 10%/20% bands, no GST.
vs Jersey / Isle of Man?+
Cheapest to hold; rules published.
Client notes
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Guernsey Financial Services Commission or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.