UK SPI License Fees: Steps & Estimated Total Cost for Obtaining a Small Payment Institution (SPI) License with Remittance Permission in the UK
When budgeting for a Small Payment Institution licence in the UK, it is essential to understand the breakdown of costs involved. The UK SPI License Fee itself, payable directly to the FCA, is £1,090, while additional expenses such as the advisory fee (£25,000), HMRC AML registration (£750), and remittance software setup (around £10,000) must also be factored in.
On top of these one-time fees, applicants should plan for ongoing operational costs including management salaries, office expenses, and most importantly, maintaining sufficient working capital—set at a minimum of £50,000, though £75,000 is recommended for credibility and resilience.
Together, these commitments ensure that applicants not only meet the regulatory requirements but also demonstrate financial readiness to operate a compliant and sustainable payments business in the UK.
| Step | Details | Cost | Notes |
|---|---|---|---|
| 1. Incorporate a UK Company | • Incorporate a private limited company (Ltd) limited by shares.• Corporation and payroll tax registrations.• Covered under advisory fee. | Included in advisory fee | Advisory fee covers full incorporation. |
| 2. Recruit Management (Directors & MLRO) | • At least one individual must act as the Director and Money Laundering Reporting Officer (MLRO). | ||
| • Salary benchmark: £3,000/month for a dual-role individual. | |||
| • Hiring separate individuals for Director and MLRO increases strength of application and approval likelihood. | |||
| • Recruitment cost covered under advisory fee. | £3,000/month (dual-role) | ||
| £6,000+/month (split roles) | Ongoing monthly expense. Recruitment handled under advisory fee. | ||
| 3. Secure Remittance Software | • Required to meet transaction monitoring and reporting obligations. | ||
| • Lease option: Initial deposit £10,000 (approx. £10,000 to launch). | |||
| • Provider can be arranged with £10,000 deposit; balance payable when system goes live. | |||
| • Outright purchase possible, but not required to satisfy license requirements. | £10,000 deposit | Approx. £10,000 total to launch (leased). | |
| 4. Prepare and Submit FCA SPI Application | • Application prepared, compiled, and submitted to the FCA. | ||
| • Covered under advisory fee. | Included in advisory fee | FCA application drafted and submitted. | |
| 5. Apply for HMRC AML Supervision | • Mandatory registration under Money Laundering Regulations. | ||
| • Covered under advisory fee. | Included in advisory fee | HMRC AML registration handled as part of advisory. | |
| 6. Prepare All Regulatory Documentation & Policies | • Included in advisory fee. | ||
| • Documents include: | |||
| – Regulatory Business Plan | |||
| – Financial Projections (P&L, Balance Sheet, Cash Flow) | |||
| – Flow of Funds Chart | |||
| – Organisational Chart | |||
| – Business Wide Risk Assessment | |||
| – Anti-Money Laundering Policy | |||
| – Outsourcing Policy | |||
| – Fraud Policy | |||
| – Payment Services Complaints Policy & Process | |||
| – Issue Resolution Policy | |||
| – Operational & Security Incident Reporting Process | |||
| – Sensitive Payment Data Policy | |||
| – Business Continuity Plan | |||
| – Business Impact Analysis | |||
| – IT and Information Security Policy | Included in advisory fee | Comprehensive policy set to satisfy FCA requirements. | |
| 7. FCA & HMRC Interview & Queries | • FCA will interview management to assess competence, experience, and obligations. | ||
| • Advisory includes preparing management and assisting with responses to FCA/HMRC queries. | Included in advisory fee | Guidance & prep included. |
Best Practices
- Recruit highly competent and experienced management.
- Maintain adequate working capital (minimum £50,000; recommended £75,000). Liquidity needs may rise depending on payout partners and bank accounts abroad.
- Implement robust systems and controls for compliance, risk management, and record-keeping.
Potential Challenges
- FCA may request additional information or clarifications, extending process.
- Meeting FCA expectations for governance and risk frameworks amid regulatory changes.
Cost Breakdown
| Item | Cost | Notes |
|---|---|---|
| Advisory fee for SPI application | £30,000 | Includes company incorporation, recruitment, policies, business plan, FCA preparation, and application support |
| FCA application fee | £1,090 | Payable directly to FCA |
| HMRC AML registration fee | £750 | Payable directly to HMRC (for 1 shareholder, 1 director, 1 MLRO) |
| Remittance software (leased) | £10,000 deposit | Balance payable after go-live (total approx. £10,000) |
| Management salary (Director/MLRO) | £3,000–£6,000/month | Higher if roles are split; ongoing expense |
| Working capital | £50,000 minimum (recommended £75,000) | To demonstrate operational readiness |
| Office address & utilities | £600–£1,500/month | Trading address & utilities (if applicable) |
Approximate Initial Cost (excluding ongoing salaries & working capital)
£41,840 = Advisory fee (£30,000) + FCA fee (£1,090) + HMRC fee (£750) + Software deposit (£10,000)
(add monthly salaries and £50k–£75k working capital requirement on top)
Estimated Timeframe
- 6–9 months from FCA application submission to decision (depending on complexity and FCA/HMRC queries).
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This page was last updated on August 18, 2025.
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