Before formally submitting a license application, the applicant will usually request a meeting with the competent BaFin officials to present the project and the intended business model, introduce the managers, and discuss the licensing process. This helps identify problematic points, establish trust, and clarify a possible timeline for the authorization process.

The formal process starts with the submission of a written application (for which no form is required) as well as the submission of the necessary documents (see section 5).

The BaFin will examine the documents and flag any items that are missing. Also, the BaFin will typically ask for clarifications or for the removal of deficiencies in the documents.

There is a maximum period of review in which the BaFin must decide on the application. Such a review period only starts once complete documents have been submitted, and it is the BaFin who will decide when the submission is complete.

For banks, financial services providers and investment services providers, the review period is six months. The BaFins (or the ECBs) decision is not discretionary, that is, if all requirements have been met, the license must be granted. However, the competent regulator will, in practice, always find a reason to declare that the requirements have not been met. While a denial of a license can be challenged before the courts, this is usually not done as it will be too time-consuming and it is usually easier to address the BaFins or ECBs concerns.

For payment services providers and e-money issuers, the review period is three months from the date of submission of a complete document package.

For fund managers, the review period is six months for UCITS and three months for managers of AIFs.

For credit service providers, the review period is 90 days.

There is no maximum review period for (re-)insurance undertakings or (re-)insurance intermediaries.