Various supervisory laws regulate the licensing requirements for transactions on the capital market in Germany:

• the German Banking Act (Kreditwesengesetz, KWG) regulates the permits for banking transactions and financial services
• the Insurance Supervision Act (VAG) regulates the supervision of insurance companies
• the Payment Services Supervision Act (ZAG) regulates payment services and e-money business
• The German Investment Code (KAGB) regulates investment funds.

The Federal Financial Supervisory Authority (BaFin) examines whether transactions by new companies before they enter the market or new business models of companies already operating on the market require permission under statutory regulations. This is the case for most transactions in the financial sector and serves the integrity of the financial market and the protection of consumers.

Since the legal basis does not provide a reliable statement for every business model as to whether you as an entrepreneur or your company require a permit, BaFin must determine in these cases whether your business is subject to the permit requirement. The reason for this is the permanent and rapid development of business models in the financial sector as well as the variety of circumstances that must be covered by the law.

BaFin will determine whether you are subject to the licensing requirement on the basis of your application. You can submit this by e-mail or by post. Fintech companies also have an online contact form at their disposal.