EU Crowdfunding Licence: Get Authorised Across the EU

An ECSPR licence (under Regulation (EU) 2020/1503) authorises your company to operate a digital crowdfunding platform connecting investors or lenders with businesses seeking capital. It covers both loan-based crowdfunding (facilitating loans with repayment schedules) and equity-based crowdfunding (facilitating securities offerings). The ECSPR licence covers platforms incorporated in any EU member state, replacing all prior national crowdfunding regimes with a unified EU-wide framework supervised by ESMA. The ESMA public register lists all authorised providers.

An ECSPR licence covers: (1) facilitation of loan-based crowdfunding, where investors lend to project owners with agreed repayment terms; (2) facilitation of investment-based crowdfunding, where investors acquire shares, bonds or other transferable securities. It does not cover payment processing, e-money issuance or consumer lending. If your platform also needs to manage client payment accounts or issue e-money, a PI or EMI licence must be obtained separately.

The ECSPR sets a minimum own funds requirement of €25,000 at authorisation, the same across Lithuania, Latvia and Estonia. As your platform grows, own funds must scale: once outstanding loans exceed €5 million, additional own funds of 0.5% of the excess are required, capped at €5 million additional. Alternatively, professional indemnity insurance of equivalent coverage may be used.

ECSPR sets a maximum of €5 million per project owner per 12-month period, applied cumulatively across all crowdfunding platforms. Offers above €5 million require a prospectus under the EU Prospectus Regulation and fall outside the ECSPR framework. Project owners must provide a Key Investment Information Sheet (KIIS) for each offer. Contact us for advice on structuring offers within the regulatory cap.

A KIIS is a mandatory standardised disclosure document published for every crowdfunding offer, setting out the key terms, risks, project owner’s financial position, fees and investor rights. ECSPR and its delegated regulations specify the exact format. Your KIIS policy and template form part of the licence application. Providing incomplete or misleading KIIS information is a regulatory breach subject to NCA sanction.

ECSPR Article 12 requires platforms to have a business continuity plan including a backup servicer arrangement: a contractual agreement with a third party to administer outstanding loans and investments if the original platform ceases operations. This protects investors in the event of platform insolvency. The arrangement must be in place before authorisation is granted and is reviewed by the NCA. Contact us for assistance identifying suitable backup servicer partners.

Under ECSPR, the NCA has 3 months to decide on a complete application. The completeness check takes up to 25 working days. In practice the full process from engagement to authorisation typically runs 4 to 5 months: about 1 month for preparation and company formation, about 1 month for the application and pre-application meeting, and 2 to 3 months for NCA review. Lithuania tends to be the fastest of the three.

State application fees differ by jurisdiction: Lithuania charges a €710 state fee paid before submission; Latvia charges €2,500 payable to Latvijas Banka on submission; Estonia charges €1,000 payable to the Estonian FSA. Annual supervisory fees apply after authorisation: Latvia charges €4,000 per year plus up to 1.4% of gross revenue (capped at €100,000). Lithuania and Estonia charge volume-based annual fees. Contact us for a full cost breakdown.

Your platform must have at minimum a CEO and an MLRO. A Management Board of at least 3 members is recommended. All managers and shareholders holding 20% or more of voting rights are subject to a fitness and propriety assessment. Key personnel including CFO, CTO, CISO and CCO are also reviewed. All persons must demonstrate good repute, relevant qualifications and no adverse regulatory or criminal history.

Yes. ECSPR requires platforms to assess non-sophisticated investors before they participate in crowdfunding offers. The entry knowledge test assesses understanding of crowdfunding risks. Platforms must also simulate the ability to bear loss for each investor. Sophisticated investors are exempt but must self-certify. Your investor suitability framework must be documented as part of the licence application.

No. Under ECSPR, all crowdfunding service providers operating in the EU must hold authorisation from their home-state NCA. Operating without authorisation is a regulatory breach subject to fines, business suspension and reputational damage. The transitional period for platforms under prior national regimes ended in November 2023. The ESMA public register lists all currently authorised providers. Contact us to assess your current status and fastest path to authorisation.

Authorised CSPs must maintain an active MLRO and compliance function, submit quarterly and annual prudential and AML/CFT reports to the NCA, publish a KIIS for every new crowdfunding offer, conduct annual investor suitability reviews and maintain an up-to-date AML/CFT risk assessment. Any material changes to business model, key personnel or ownership require prior NCA notification. Own funds must be monitored and scaled with loan volume. We provide ongoing compliance support and reporting assistance post‑authorisation.