Electronic money license in Lithuania

The country has quickly evolved a hub for fin-tech enterprises seeking to obtain electronic-money establishments (EMI) licenses. The country’s strategic position within the European Union (EU), combined with its forward-thinking adjustment substructures, positions it as an attractive choice for enterprises aiming to expand their e-earnings and economic favors across the European-Economic-Area (EEA). With Country, enterprises can benefit from streamlined permitting procedures, robust fintech infrastructure, and access to a growing network of economic technology firms.

This encyclopedic guide outlines the key demands, benefits, and procedures involved in obtaining an EMI license in Lithuania, along with insights into taxation, costs, and the favors we supply to assure a seamless permitting knowledge.

Lithuania EMI License requirements

To secure an EMI license in Lithuania, enterprises must meet a range of adjustment, operational, and economic criteria set by the Bank of Lithuania. These demands are designed to promote stability, conformity, and consumer safeness in the economic sector.

Key Criteria:

Corporate Structure:

• A firm must be registered in State as a local legal entity (e.g., UAB, the Lithuanian equivalent of a private limited liability firm).
• A physical presence in country is required, which may include a local office or branch.
• The management board must include at least one local resident to assure conformity and smooth communication with regulators.

Initial Funds:

• The applicant must deposit a minimum of €350,000 funds into a separate account before the license request is submitted. This funds serves as economic protection for the firm’s operations.

Anti-Money Laundering (AML) Policies:

• Establishing comprehensive AML and counter-terrorism sponsoring (CTF) procedures is mandatory. This includes appointing a Money Laundering Reporting Officer (MLRO) with relevant expertise.

Experienced Management:

• The management team must demonstrate a proven track record in finance, conformity, and risk management. Resumes and qualifications are submitted to assure conformity with fit-and-proper adjustments.

IT and Data Security:

• A robust IT infrastructure is required to protect customer data and prevent fraud. Applicants must submit a technical depiction of their IT systems, including measures for cybersecurity and data protection.

Detailed Business Plan:

• The enterprise plan should outline the firm’s goals, operational models, revenue projections, and risk administration strategies. Regulators assess whether the plan aligns with market demands and adjustment demands.

Advantages of EMI Licenses in Lithuania

Country supplies a range of benefits for enterprises involving for EMI licenses, making it a preferred jurisdiction for fintech enterprises.

Key Benefits:

EU Passporting Rights:

• An EMI license in Country allows enterprises to operate completely the absolute EEA without the need for further authorizations.
• Corroborating Adjustment Possibilities:
• The Bank of Lithuania offers a translucent and enterprise-friendly permitting approach. Their proactive approach fosters innovation and supplies a collaborative substructures for new market entrants.

Expedited Licensing:

• Licensing timelines in Country are shorter compared to many other EU countries, typically taking 3–6 months.

Fintech-Friendly Ecosystem:

• Country boasts one of the largest and fastest-growing fintech ecosystems in Europe, with over 250 enterprises actively innovating in the economic favors sector.

Cost-Efficiency:

• Operational costs, including salaries, office space, and conformity expenses, are lower in Country than in other major EU monetary hubs.

Tax Advantages:

• With a competitive corporate tax rate and multiple incentives for startups and ingenious industries, country supplys a favorable substructures for economic establishments.

Procedure for obtaining an EMI License in Lithuania

The process of acquiring an EMI in Lithuania involves few critical steps, demanding careful planning and precise execution.

Step-by-Step Process:

Introductory Planning:

• Conduct an initial consultation to evaluate adjustment demands and align the firm’s goals with the permitting substructure.
• Assess feasibility based on your enterprise model and prepare for local registration.

Firm Incorporation:

• Register the firm in Lithuania. This involves selecting a suitable legal structure, appointing directors, and extending a local bank-account.

Preparation of Needed Papers:

• Draft the enterprise plan, economic projections, risk administration policies, and AML/CTF approaches.
• Prepare resumes and other supporting papers for key governance personnel.

Request Suggestion:

• Submit the complete request package to the Bank of Lithuania, including all needed fees.

Adjustment Review:

• The Bank of the country reviews the recommendation for conformity, conducts background checks, and assesses economic stability and operational readiness.

Final Approval:

• Once approved, the firm receives its EMI license, enabling it to issue e-money and supply remittance favors across the EEA.

What Is Included in Our Services

We offer a full-suite of favors tailored to your needs to ensure a smooth request method and successful permitting outcome.

Our Services Include:

• Feasibility Analysis: Evaluate your enterprise prototype and readiness for permitting.
• Firm Formation: Assist with registration, local office setup, and bank account opening.
• Document Preparation: Design all needed papers, including enterprise plans, conformity frameworks, and economic statements.
• Adjustment Conformity: Ensure adherence to Lithuanian and EU adjustments throughout the process.
• Request Suggestion: Guide you through the recommendation procedure to avoid delays or errors.
• Post-Licensing Support: Supply ongoing support with reporting, conformity audits, and working setup.

Taxation of EMI Firms in Lithuania

State offers an attractive tax regime for EMI enterprises, with numerous incentives to promote growth and invention.

Corporate Tax:

The standard corporate tax rate is 15%, with a reduced rate of 5% for small enterprises meeting specific criteria (e.g., annual income below €300,000 and fewer than 10 employees).

VAT:

The standard VAT rate is 21%. However, many economic favors are exempt, reducing the tax burden for EMI enterprises.

Tax Incentives:

Fintech firms can benefit from R&D tax credits, reduced tax rates for innovative projects, and other government-supported initiatives.

Worldnational Treaties:

Lithuania has a broad network of double-tax treaties, making it easier to operate internationally without incurring excessive tax liabilities.

How Much Does an EMI license in Country Cost?

The expenditures associated with obtaining an EMI license vary depends on the scope of favors and enterprise complexity. Below is a breakdown of typical expenses:

• Request Fee: €1,500–€2,000 (payable to the Bank of Lithuania).
• Initial Fund: €350,000 (deposited before request subordination).
• Professional Favors: €30,000–€50,000 for legal, conformity, and consulting support.
• Operational Costs: Includes salaries, office space, and IT infrastructure.
• Annual Maintenance: Supervisory fees, adjustment conformity costs, and ongoing professional support.

Our Advantages

By choosing our favors, you benefit from:

• Expert Guidance: Decades of knowledge in adjustment conformity and fintech permitting.
• Peculiar Explanations: Tailored strategies to meet your specific enterprise needs.
• Local Expertise: A deep knowledge of Lithuanian adjustments and enterprise practices.
• Efficient Processing: Streamlined processes to minimize delays and assure timely approval.
• Comprehensive Support: Assistance at every step, from planning to post-permitting procedures.

Conclusion

Accepting an EMI license in Country is a strategic move for enterprises aiming to expand their reach across the EU and beyond. The country’s enterprise-friendly substructures, advanced fin-tech ecosystem, and efficient adjustment processes supply a strong foundation for success. With our end-to-end support, your permitting journey will be smooth, cost-effective, and aligned with your enterprise objectives. Contact us today to take the first step towards confirming your EMI license in Lithuania!