BaFin license

• Deposits and lending are banking business. They need authorization under section 32 of the Banking Act (KWG), at least 5 million euros of capital and two managing directors who are fit and proper, according to BaFin. For a CRR credit institution the ECB takes the final decision.
• Factoring and finance leasing are financial services under the KWG, licensed without a minimum capital in the KWG.
• Payment and e-money institutions need authorization under section 10 or 11 of the Payment Services Supervision Act (ZAG). Section 12 ZAG sets the initial capital at 20,000 euros for money remittance only, 50,000 euros for payment initiation only, 125,000 euros for other payment services and 350,000 euros for an e-money institution.
• Account information services need a registration under section 34 ZAG, which is lighter than a full authorization.
• A crowdfunding platform needs a license under the EU Crowdfunding Regulation, described on crowdfunding in Germany.
• Investment firms need authorization under the Investment Firm Act (WpIG), see investment firm regulation.
• Crypto-asset services need a license under MiCAR, see the CASP license.

BaFin is the first point of contact and issues the license, and for banks and financial services firms it examines the application together with the Deutsche Bundesbank. A bank applicant hands in a business plan with the nature and scope of the business, projected figures, the organizational structure and its risk management. Once the file is complete, a six-month period starts, at the end of which BaFin has to say whether it grants the license. The fee for a KWG application depends on the time BaFin spends on it and is charged even if the application is withdrawn or rejected.

Before a launch, BaFin asks fintechs to check whether their model needs a license, and it offers a fintech contact form that assigns a contact person. BaFin is not allowed to give legal advice, and it points out that doing business without the required license can be a criminal offense.

BaFin's database of companies lists the banks and financial services firms it supervises, with their address, activities and the type of authorization each holds. Payment and e-money institutions are also in BaFin's register of ZAG institutions, and ESMA keeps EU-wide registers of licensed crowdfunding platforms and crypto-asset service providers. A firm licensed in another EEA country can work in Germany through the European passport and then appears in these lists as well.

A license number on a website proves nothing on its own. BaFin regularly warns about websites that pose as licensed firms, so the check belongs in BaFin's own database.

Finance Loop is the meeting place for the legal, compliance and licensing teams at banks, payment institutions, crypto firms and fintechs, and for the lawyers who take them through an application. It connects the finance, IT and AI communities in Germany, Austria and Switzerland, with events in Frankfurt, Munich, Berlin and Hamburg.

At the Bybit EU Crypto Evening at TechQuartier, supported by Finance Loop, the talks covered compliance under MiCAR. Finance Loop also announced KI Exchange 2026 in Hamburg, a Payment & Banking conference on AI in finance with speakers expected from BaFin.

For a bank, BaFin has six months from the complete application to decide. A payment institution license under the ZAG has a shorter legal deadline, explained on payments regulation in Germany. In practice the time before the file counts as complete often takes longer than the decision itself.

BaFin charges a fee per application. For factoring and finance leasing it is 4,646 euros; for an application under the KWG the fee depends on the time spent. On top come the capital the law requires, from nothing in the KWG for a factor to 5 million euros for a bank, and the cost of legal advice.

Search the company name in BaFin's database of companies, which shows the type of authorization. For payment and e-money institutions, check the register of ZAG institutions; for crypto firms and crowdfunding platforms, the ESMA registers.