EMI license in
Lithuania 2024
Lithuania, emerging as a dynamic fintech hub within the European Economic Area (EEA), offers a prime opportunity for financial ventures seeking growth and expansion. With Electronic Money Institution (EMI) license in hand, you gain the capability to provide an extensive pool of electronic money services throughout the EEA, facilitating seamless access to the broader EU market.
Lithuania continues to solidify its position as a premier fintech destination with its progressive approach to financial regulation, particularly through the issuance of Electronic Money Institution (EMI) licenses. A Lithuania EMI license offers a gateway to the broader European market, enabling companies to issue electronic money, provide payment services, and facilitate digital transactions with efficiency and security.
The country’s robust regulatory framework, combined with a supportive business environment and access to a vast pool of tech-savvy talent, makes Lithuania an attractive choice for fintech companies looking to expand their operations in Europe.
Regulations for EMI license in Lithuania
Bank of Lithuania (Lietuvos Bankas), operating under the Electronic Money Institutions Law in Lithuania, serves as the principal regulatory and supervisory authority governing Electronic Money Institutions (EMIs) in the country. Its core objectives include:
- Elevate Lithuania’s reputation as a leading fintech destination within the European Economic Area (EEA), ensuring it is perceived as a secure and credible hub for financial activities.
- Supervise electronic money services to guarantee compliance with regulatory standards, transparency, and ensuring fairness among all market participants.
- Enforce adherence to the Electronic Money Institutions Law and other relevant regulations, establishing and upholding high regulatory standards to maintain the integrity of the financial ecosystem.
- Issue licenses to Electronic Money Institutions (EMIs) or Payment Institutions (PIs) and oversee their operations to ensure alignment with regulatory frameworks, while also taking firm measures, such as license revocation, when necessary, to uphold market integrity.
- Safeguard the interests of consumers through diligent regulatory practices, enhancing the security and reliability of the EMI sector in Lithuania.
Obtaining an Electronic Money Institution (EMI) license in Lithuania involves adhering to a comprehensive regulatory framework designed to ensure the integrity and stability of the financial system.
Key regulations include:
- Capital Requirements: Applicants must have a minimum initial capital of EUR 350,000. This ensures that the institution has sufficient financial resources to operate effectively and absorb potential losses.
- Corporate Structure and Governance: The management team and board members must meet fit and proper criteria, demonstrating relevant experience and a clean regulatory history. The institution must also have a clear organizational structure with defined responsibilities.
- Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Compliance: EMIs must implement robust AML and CTF measures, including customer due diligence, transaction monitoring, and reporting suspicious activities to relevant authorities.
- Operational Requirements: The institution must have appropriate IT systems, risk management procedures, and internal controls in place to ensure the security and efficiency of its operations. This includes safeguarding customers’ funds and maintaining detailed records of transactions.
- Consumer Protection: EMIs must comply with consumer protection laws, ensuring transparency in fees and terms, providing clear information to customers, and handling complaints effectively.
- Reporting and Auditing: Regular reporting to the Bank of Lithuania is required, including financial statements and compliance reports. Additionally, EMIs must undergo periodic audits to verify compliance with regulatory requirements.
- Passporting Rights: Once licensed, an EMI in Lithuania can leverage EU passporting rights to operate across the European Economic Area (EEA) without needing additional licenses, facilitating business expansion.
- Application Process: The application process involves submitting detailed documentation, including business plans, risk management policies, and information on the ownership structure. The Bank of Lithuania reviews applications rigorously to ensure all regulatory criteria are met.
By complying with these regulations, EMIs in Lithuania can benefit from a stable and supportive regulatory environment, fostering innovation and growth in the financial technology sector.
Types of EMI licensing in Lithuania
In Lithuania, the licensing of Electronic Money Institutions (EMIs) is structured to cater to different business models and operational scopes. Here are the primary types of EMI licenses available in Lithuania:
| License type | Description |
|---|---|
| Full EMI License | This is the most comprehensive license, allowing institutions to issue electronic money and provide a wide range of payment services across the European Economic Area (EEA). With a full EMI license, companies can offer services such as issuing and managing electronic money, processing payments, executing direct debits, transferring funds, issuing payment instruments, and acquiring payment transactions. |
| Small EMI License | This type of license is designed for smaller operations with lower transaction volumes and limited geographic scope. Small EMIs are subject to simplified regulatory requirements compared to full EMIs, making it easier and faster to obtain. However, they are restricted in terms of the total value of electronic money issued and the scope of services they can provide. This license is ideal for startups and smaller fintech companies looking to enter the market with a lower regulatory burden. |
| Payment Institution (PI) License | Although not strictly an EMI license, a Payment Institution license allows companies to provide payment services but not to issue electronic money. This includes services such as executing payment transactions, money remittance, and payment initiation services. For businesses primarily focused on payment processing without the need to issue electronic money, a PI license might be more appropriate. |
| Money Remittance License | Offers basic payment services such as executing payment transactions, issuing and/or acquiring payment instruments, and executing credit transfers, with a primary focus on direct dealings with customers’ payment accounts. |
| Payment Processing License | Includes all services of the limited range license plus money remittance, and the execution of payment transactions initiated via telecommunication devices, digital or IT device, suitable for businesses that engage in broader payment services. |
Key Differences Between Full and Small EMI Licenses
Capital Requirements
- Full EMI License: Requires a minimum initial capital of EUR 350,000.
- Small EMI License: The capital requirement is significantly lower, reflecting the reduced scale of operations.
Scope of Services
- Full EMI License: Can provide a comprehensive range of payment and electronic money services.
- Small EMI License: Limited to issuing electronic money and providing certain payment services up to specified thresholds.
Operational Restrictions
- Full EMI License: No specific restrictions on the volume of transactions or the value of electronic money issued.
- Small EMI License: Subject to limits on the total value of electronic money issued and the volume of transactions.
Regulatory Oversight
Both types of EMI licenses are regulated by the Bank of Lithuania, which ensures that institutions comply with relevant EU directives, such as the Second Electronic Money Directive (EMD2) and the Payment Services Directive (PSD2). This regulatory framework aims to ensure the security and stability of the financial system while fostering innovation and competition in the fintech sector.
By choosing the appropriate type of Lithuania EMI license, companies can align their regulatory obligations with their business models and strategic goals, enabling them to effectively serve their target markets.
With EMI license in Lithuania you can provide following services:
- services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account
- services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account
- execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
- execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
- issuing and/or acquiring of payment instruments
- money remittance
- execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunications terminal equipment, digital or IT device and the payment is made to the telecommunications network or IT system operator, acting only as an intermediary between the supplier of the goods or services and the payment service user
- Account information services
- Issuance of e-money
Overview of requirements to obtain EMI license in Lithuania
- Incorporate the company under the Lithuanian Companies Act with no requirements for citizenship
- Appoint a minimum of three local team members
- Ensure the board demonstrates an impeccable reputation and understanding of the financial sector
- Secure adequate financial standing to cover at least the initial share capital along with an additional capital reserve.
- Establish a physical business presence in Lithuania
- Provide a detailed and realistic business plan
Estimated time frames
Company formation
1-2 weeks
Documents preparation
4-12 weeks
PI / EMI license obtainment from BoL*
3-9 months
*The timeline also depends on the workload of BoL and any clarifications and queries that BoL may request in relation to the application.
Legal services for obtaining EMI license in Lithuania
Basic Package
25,000 EUR initial set up
- Turnkey company formation
- Legal address for 1 year
- Corporate documents
- Due diligence for shareholders and key directors
- Overview of the business plan
- Overview of financial forecasts
- Overview of an organizational structure
- Analysis of the internal documents
- Applying for the license
Registration of the EMI / PI licensed company under the minimum regulatory requirements
Additional services on request
- Preparation of individual business plan
- Preparation of required documents for the licensing
- Accounting services
- Assistance in opening bank account, including segregated and safeguard accounts
- Connection with SEPA system
- Connection with SWIFT
- Connection with card issuance programme
- Apostilled corporate documents
- Introduction to confirmed software provider
- Legal support
Ready-Made solution
available on request
- Registered company
- Legal address for 1 year
- No debts, no liabilities – clean company
- Active license
- Corporate documents
- Assistance with transfer of ownership
Edgar Mironov
Head of FinTech Projects
Detailed Requirements for EMI licensing in Lithuania
List of required documents
- Application Form
- Description: Completion and submission of the official licensing application form to the Bank of Lithuania.
- Purpose: Serves as the formal request for the EMI license, containing basic information about the applicant.
- CVs and Qualifications
- Description: Detailed CVs for shareholders, board members, and key team members.
- Purpose: Demonstrates the qualifications, experience, knowledge, and skills necessary for independent duty performance. The Bank of Lithuania may conduct interviews to assess these qualifications further.
- Operational and Organizational Structure
- Description: Comprehensive documentation of operational procedures and organizational structure, including detailed scrutiny checks for Management Board members, CEO, and Head of Branch Manager.
- Purpose: Ensures a reliable operational framework and appropriate governance structure are in place.
- Business Plan
- Description: A detailed plan outlining the services offered, budget forecasts for the first three financial years, marketing and promotion strategies, and key market segments.
- Purpose: Provides a strategic vision and financial roadmap for the institution’s operations.
- Activity Program
- Description: Documentation detailing the services provided and operational locations.
- Purpose: Clarifies the scope and geographic reach of the EMI’s activities.
- Internal Policies and Manuals
- Description: Includes policies for risk management, business continuity plans, and measures to protect electronic money holder funds.
- Purpose: Ensures the institution has robust internal controls and procedures to manage risks and protect customers’ funds.
- AML/KYC and IT Security Policies
- Description: Detailed procedures and third-party engagements for Anti-Money Laundering (AML) and Know Your Customer (KYC) processes, and IT security policies, including data centers and cloud storage solutions.
- Purpose: Demonstrates compliance with AML/KYC regulations and ensures the security of IT systems and data.
- Compliance with Liability Insurance
- Description: Proof of meeting liability insurance requirements.
- Purpose: Provides financial protection against potential liabilities.
- IT Infrastructure and Architecture
- Description: Information on IT solutions employed, agreements with third-party IT service providers, and details on IT infrastructure.
- Purpose: Ensures the institution has the necessary technological capabilities and reliable IT infrastructure.
- Questionnaire on Operational Risks
- Description: A detailed questionnaire to assess the risks associated with the operational aspects of the business.
- Purpose: Helps the regulator evaluate how operational risks are managed and mitigated.
- Questionnaire on Information and Communication Technologies and Security Risk Management
- Description: A questionnaire to evaluate the risks related to IT systems and data security.
- Purpose: Assesses the institution’s preparedness in managing IT and security risks.
- External Audit Partnership and Quote
- Description: Engagement with an accredited external auditor to ensure compliance and financial transparency, along with a quote for external auditing services.
- Purpose: Ensures ongoing compliance with financial regulations and provides an independent assessment of the institution’s financial health.
Share Capital and Government Fees
- Minimum Share Capital: For obtaining PI license in Lithuania the minimum share capital is 20 000 EUR and for obtaining full EMI license in Lithuania is 350 000 EUR. In addition, it is necessary to have extra capital reserve to ensure a capital adequacy ratio of at least 1.3 – 1.5 EUR is advisor.
- Government Fees: The application fees for PI or EMI license in Lithuania is €1,463 under Resolution No 1458.
Bank account requirements
- Safeguarding Account: Detailed arrangements for the establishment of a safeguarding account with an EU credit institution to manage funds separately from those of non-electronic money holders. This may include reliance on the CENTROlink system for account setup, pending final licensing approval.
- Operational Bank Accounts: Necessary for managing daily operational expenses and transactional purposes, facilitating the processing of customer transactions through current accounts.
- Current Account: For transactional purposes, allowing for the receipt and sending of payments related to the services offered.
Personnel Requirements
- Management Board: Minimum of three members, with the CEO possibly being a board member.
- Local AML and Compliance Officers: Responsible for compliance with regulatory standards and AML regulations.
- Local Executive Director: Fluent in Lithuanian, responsible for operational management in Lithuania.
- IT Security Officer: Can be outsourced; manages IT security measures to protect data and operational integrity.
- Internal Audit Officer: Can be outsourced; ensures ongoing internal compliance and operational audits.
- Local Data Protection Officer (DPO): Depending on the scale of the data processing activities and the nature of the data handled, EU GDPR may require the appointment of a Data Protection Officer (DPO) if the organization’s core activities consist of data processing operations that require regular and systematic monitoring of data subjects on a large scale.
Not sure about the number of staff you need to employ for your PI/EMI project? Contact Legalaes experts to define the right personnel structure for your business model.
Business premises requirements
- To obtain an EMI license in Lithuania it is necessary to establish a physical office in Lithuania for document storage and providing a working space for staff, affirming the company’s operational base in Lithuania.
By meeting these requirements and submitting the necessary documents, applicants can demonstrate their readiness and compliance with regulatory standards, facilitating the approval process for obtaining an EMI license in Lithuania.
Roadmap of the project
For more detailed road map of the project and commercial offer – get in touch with our Forex professional.
Edgar Mironov
Head of FinTech Projects
Documentation Preparation and Company Formation
The process begins with the review and preparation of company documentation, followed by the preparation of incorporation documents, engagement with a notary public and registration within the Lithuanian Companies Register.
Preparation of Documents for EMI License Application
Legal consultation regarding the business model and advice on organizational structure and management team are provided. This phase also involves the preparation and review of all documentation required for the EMI license application.
Initial Meeting with the Bank of Lithuania (BoL)
An introductory meeting with the Bank of Lithuania is organized to present the planned business model and discuss management strategies. This meeting, while not mandatory, is recommended to ensure clarity and alignment on expectations and requirements.
Investor's Clearance to National Security Interests
Documentation necessary for obtaining clearance related to national security interests from shareholders, UBOs, and the BoL is prepared and submitted. This stage also involves communication with state authorities, leading to the issuance of a decision.
Submission of the Document Set to the BoL
The complete document set is submitted to the Bank of Lithuania, accompanied by the payment of the stamp duty for license issuance. A case officer is assigned, and the application undergoes thorough assessment.
First Round of Q&A with the BoL
The initial round of questions and answers with the Bank of Lithuania occurs, requiring the submission of amendments and additional documentation as necessary. This includes handling direct communications with the BoL.
Second Round of Q&A with the BoL
Assistance is provided in preparing detailed responses to both legal and non-legal queries raised by the Bank of Lithuania during the second round of Q&A.
Second Meeting with the BoL
Preparation for a second meeting with the Bank of Lithuania is undertaken to discuss the application documents thoroughly and possibly conduct an interview with a General Manager.
Third Round of Q&A with the BoL
If additional questions remain from the BoL, a third round of Q&A follows. This stage includes providing responses to the BoL’s queries and reviewing answers to non-legal questions.
Receipt of the EMI License
Preparation for the launch of business activities follows the granting of the EMI license, with subsequent steps including applications for SWIFT and card issuing solutions.
Detailed Time Frames to Obtain a EMI License in Lithuania
The estimated time frames to obtain an Electronic Money Institution (EMI) license in Lithuania can vary depending on several factors, including the completeness and quality of the application, the complexity of the business model, and the responsiveness of the applicant to any additional information requests from the regulator. Here is a general outline of the process and the associated time frames:
1. Preparation Phase
Time Frame: 4-12 weeks
- Business Plan and Documentation: Preparation of the business plan, financial projections, risk management policies, IT security measures, and other necessary documentation.
- Corporate Structure and Governance: Ensuring the corporate structure and governance framework meet regulatory requirements, including the appointment of qualified management and board members.
- Capital Requirements: Securing the minimum initial capital of EUR 350,000 (for a full EMI license).
2. Submission of Application
Once the application is fully prepared, it is submitted to the Bank of Lithuania.
3. Regulatory Review Phase
Time Frame: up to 3 months
- Initial Review: The Bank of Lithuania conducts an initial review to check the completeness of the application. If the application is incomplete, the applicant will be requested to provide additional information or documentation.
- Detailed Assessment: Once the application is deemed complete, the Bank of Lithuania performs a detailed assessment, evaluating the business plan, financial soundness, internal controls, IT systems, AML/CTF measures, and overall compliance with regulatory requirements.
4. Response to Queries (varies)
During the detailed assessment, the Bank of Lithuania may request further information or clarifications. The time taken to respond to these queries can impact the overall time frame.
5. Decision Phase
Time Frame: up to 3 months
- Approval or Rejection: After completing the detailed assessment, the Bank of Lithuania will make a decision. If the application is approved, the Lithuania EMI license is granted. If additional conditions need to be met, the applicant will be notified.
- Notification and Publication: The decision is communicated to the applicant, and the issuance of the license is published.
Total Estimated Time
- Best Case: Approximately 6 months (assuming all documentation is in order and responses to queries are prompt).
- Typical Case: Approximately 8-12 months, considering potential back-and-forth communication and additional information requests.
Factors Influencing the Time Frame
- Completeness and Quality of Application: Well-prepared applications with thorough documentation and clear business plans are processed more quickly.
- Regulatory Queries: Prompt and comprehensive responses to any regulatory queries can expedite the process.
- Complexity of Business Model: More complex business models may require more detailed assessment and longer review times.
- Regulatory Workload: The current workload of the Bank of Lithuania can also impact processing times.
By ensuring thorough preparation and proactive communication with the regulator, applicants can help streamline the process and potentially reduce the time required to obtain an EMI license in Lithuania.
Advantages of the EMI license in Lithuania
Obtaining an Electronic Money Institution (EMI) license in Lithuania offers several strategic and operational advantages for fintech companies. Here are the key benefits:
01
Access to the European Market
EU Passporting: A Lithuania EMI license allows companies to operate across the entire European Economic Area (EEA) without needing additional licenses in each member state. This enables seamless expansion and access to a vast market of over 500 million consumers.
02
Favorable Regulatory Environment
Pro-Business Climate: Lithuania is known for its progressive and supportive regulatory framework, making it easier for fintech companies to navigate the licensing process and comply with ongoing regulatory requirements.
Innovative Approach: The Bank of Lithuania is proactive in adopting new technologies and regulatory sandboxes, which encourage innovation and growth in the fintech sector.
03
Efficient Licensing Process
Streamlined Procedures: Compared to other EU jurisdictions, Lithuania offers a relatively faster and more transparent licensing process, helping businesses to start operations more quickly.
Experienced Regulator: The Bank of Lithuania has substantial experience and expertise in regulating fintech companies, ensuring a well-structured and knowledgeable approach to supervision.
04
Cost Advantages
Lower Operational Costs: Lithuania offers competitive operational costs, including lower salaries for highly skilled professionals and affordable office spaces, reducing the overall cost of doing business.
Attractive Tax Regime: The corporate tax rate in Lithuania is relatively low at 15%, and there are various tax incentives and benefits available for businesses, including R&D credits.
05
Skilled Workforce
Highly Educated Talent Pool: Lithuania boasts a large pool of highly educated and skilled professionals, particularly in IT and finance, providing businesses with access to top talent.
Multilingual Capabilities: A significant portion of the Lithuanian workforce is multilingual, facilitating communication and operations in a global business environment.
06
Robust IT Infrastructure
Advanced Digital Infrastructure: Lithuania has one of the fastest internet networks in the EU and a well-developed digital infrastructure, essential for the smooth operation of fintech services.
Focus on Cybersecurity: Strong emphasis on cybersecurity ensures a secure environment for digital financial transactions.
07
Supportive Ecosystem
Active Fintech Community: Lithuania has a vibrant fintech ecosystem with numerous networking opportunities, industry events, and collaboration platforms.
Government Support: The Lithuanian government actively supports the fintech sector through various initiatives, grants, and programs designed to foster growth and innovation.
08
Consumer Trust and Protection
High Standards of Consumer Protection: The regulatory framework in Lithuania emphasizes consumer protection, building trust and confidence among customers.
Transparent Practices: Strict adherence to transparency and fair practices ensures that businesses operate with integrity and accountability.
09
SEPA Integration
Direct access to the Single Euro Payments Area (SEPA) via CENTROlink payment system, enabling seamless EUR payments across 36 countries.
07
Language Convenience
All documents can be submitted in English, aligned with EU norms.
08
Unlimited License Duration
Your license isn’t restricted by time, ensuring long-term operation.
09
Global Connectivity
Access SWIFT transfers, issue Visa or MasterCard payment cards, and transfer payments worldwide in multiple currencies.
By leveraging these advantages, fintech companies can effectively establish and expand their operations in Europe, providing innovative financial services while benefiting from Lithuania’s supportive and dynamic business environment.
Links for legislation related to EMI business in Lithuania
Governs the issuance and operation of electronic money institutions in Lithuania.
II. Payments Law
Sets out the regulatory framework for payment services, ensuring safe and efficient payment systems.
Details measures to prevent money laundering and terrorist financing, aligning with international standards.
Describes the procedures for submitting and reviewing applications for financial market participant authorisations.
Specifies the process for granting authorizations to electronic money and payment institutions by the Bank of Lithuania.
Outlines the inspection procedures for financial market participants supervised by the Bank of Lithuania.
Provides guidelines for assessing the members of the management body and key function holders of financial market participants.
Details the requirements for internal control, risk management, and protection of funds received by electronic money and payment institutions.
Establishes regulations for the calculation of initial capital and own funds for electronic money and payment institutions.
Assists potential financial market participants in evaluating opportunities in Lithuania and understanding legislative and licensing requirements.
These descriptions provide a quick overview of each act’s main purpose and its role in the regulatory landscape for obtaining EMI license in Lithuania.
Taxation of EMI Companies in Lithuania
The taxation of Electronic Money Institution (EMI) companies in Lithuania is governed by a set of tax regulations that are designed to create a favorable business environment while ensuring compliance with national and EU tax laws. Here are the key aspects of taxation for EMI companies in Lithuania:
- Corporate Income Tax (CIT): The standard corporate income tax rate in Lithuania is 15%. However, certain small companies with annual income below EUR 300,000 and no more than 10 employees can benefit from a reduced CIT rate of 5%.
- Value-Added Tax (VAT): The standard VAT rate in Lithuania is 21%. EMI companies may be required to register for VAT if they provide taxable services or goods. Financial services, including those provided by EMIs, are generally exempt from VAT, but specific conditions and exceptions may apply.
- Withholding Tax: Dividends paid by Lithuanian companies to foreign entities are subject to a withholding tax of 15%. However, this rate can be reduced or eliminated under applicable double tax treaties or the EU Parent-Subsidiary Directive if certain conditions are met.
- Social Security Contributions: Employers in Lithuania are required to make social security contributions on behalf of their employees. The total employer contribution rate is approximately 1.77% of the gross salary, while employees contribute around 19.5% from their salaries.
- Personal Income Tax (PIT): Employees working for EMI companies in Lithuania are subject to personal income tax. The standard PIT rate is 20% for annual income up to EUR 90,000, with any income above this threshold taxed at 32%.
- Tax Incentives and R&D Credits: Lithuania offers various tax incentives to encourage business development and innovation, including deductions for research and development (R&D) expenses and investment projects. EMI companies engaged in innovative financial technologies may benefit from these incentives.
- Transfer Pricing: EMI companies that are part of an international group must comply with transfer pricing regulations to ensure that transactions between related parties are conducted at arm’s length. Proper documentation and reporting are required to support transfer pricing practices.
- Reporting and Compliance: EMI companies must adhere to regular tax reporting requirements, including the submission of annual tax returns, VAT returns, and other relevant documentation. The State Tax Inspectorate of Lithuania oversees tax compliance and enforcement.
By understanding and adhering to these taxation principles, EMI companies in Lithuania can effectively manage their tax obligations while benefiting from the country’s favorable business environment.
FAQ about EMI license in Lithuania
1. Why choose Lithuania for setting up your PI/EMI project?
Lithuania has established itself as a dynamic financial hub for PI/EMI companies, highlighted by successes such as Revolut. It offers a clear process with regulator support throughout, connection with CENTROLINK for SEPA transactions, and EU passporting rights. Compared to other jurisdictions like the Netherlands and Sweden, Lithuania's lower maintenance fees make it an attractive locale for scaling your business quickly.
2. Who can apply for a Lithuanian PI/EMI License?
The ideal candidate for the Bank of Lithuania (BoL) would be companies that have prior licensing experience in other countries and those that utilize their own proprietary software. However, Lithuania welcomes newcomers to the sector, provided they have the necessary certifications/education and maintain an impeccable reputation. The Newcomer programme assists potential licensees in evaluating their business models and making necessary adjustments before the formal licensing process.
3. How long does it take to get licensed by the BoL?
The licensing process for a PI can take about 5-8 months, depending on the completeness of your application and your commitment to the process. The process for obtaining an EMI license is more comprehensive, typically requiring 8-14 months to secure approval from the Bank of Lithuania to begin operations.
4. I have a license in another country; would it be useful?
Yes, holding a license in other markets is beneficial as it demonstrates compliance with high regulatory standards. Such credentials enhance your reliability, potentially expediting the new application process in Lithuania. Pursuing a Lithuanian license can be strategically beneficial for achieving EU passporting or connecting to SEPA.
5. Should I establish an office in Lithuania?
Yes, establishing a local office in Lithuania is crucial. It acts as a secure site for storing documentation and provides a workspace for your staff, fulfilling regulatory compliance requirements. It’s also necessary to have a head of branch present in the office at all times for potential audits or inspections by regulators.
Each of our projects receives unique and tailored solutions in accordance with the initial objectives and vision of the shareholders.
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