Eternity Law International — News — Opening a payment system account in Lithuania

Opening a payment system account in Lithuania

Published:
September 3, 2024

Lithuania became one of leading EU-operating centers for financial technologies, including e-money and systems for payments. Loyal legislation, low taxes and a simplified procedure for obtaining licenses attract many companies to the country who want to open accounts in payment systems or even create their own EMI. Opening a payment system account in Lithuania allows firms to effectively manage finances, make international payments and integrate into the global financial system. This opportunity is available not only to local companies, but also to international organizations that want to take advantage of the privileges of Lithuanian jurisdiction.

We provide a full spectrum of consulting and practical services for opening accounts in payment systems. Our many years of experience and deep professional knowledge allow us to achieve the best results for our clients.

Privileges of opening Lithuania payment services account

  1. Attractive legislative basis: it offers one of the most transparent and favorable legal systems for working with FinTech. Local national Bank, which is the regulative authority, sets clear and understandable normative points for organizations acting in e-money field.
  2. EU membership: by getting Lithuanian accounts, firms gain access to Single EU Payments Area (SEPA), which greatly simplifies intra-EU euro transfers and reduces international transaction costs.
  3. Tax incentives: Lithuania provides a number of tax incentives for financial organizations, which makes the country particularly attractive for business-activities.
  4. High safeness level: EMIs are covered by strict controls of Lithuanian Bank; it ensures a highly-set security level.
  5. Flexibility and innovations: jurisdiction progressively supports development of Fin-industry, creating conditions for introduction of new technologies and innovations in systems for payments.

Payment system account Lithuania requirements: legislative and regulative basis

To open Lithuania bank account for payment system, you need to follow some legislative and regulative normative points set by Lithuanian Bank.

  1. Official firm launching: it must be registered in Lithuania or another EU-country and be able to prove its legal activities.
  2. AML/KYC procedures: all companies are required to meet AML/KYC-regulations, which includes verifying customers’ identities and controlling operations.
  3. Capital: depending on funds that will be held in accounts, organizations may be required to maintain a certain min capital.
  4. Reporting: firms are required to report to Lithuanian Bank, confirming correspondence with established norms and points.
  5. Technical standards: payment systems must meet high standards of data security and protection of personal information.

How to open a payment system account in Lithuania: step-by-step process

  1. Lithuania payment system account process requires documentation collection: first stage is the collection of necessary documentation, incl. company’s constituent documents, passport data of owners and managers, as well as confirmation of correspondence with AML/KYC-standards.
  2. Official firm launching: If your firm is not yet registered in Lithuania, you must go through the registration procedure with the commercial register.
  3. Selecting a payment processor: This is followed by selecting a suitable payment processor or EMI that suits specific needs and business-requirements.
  4. Submitting application: After choosing payment system, you need to submit application, providing necessary information about the company and confirming correspondence with regulative norms.
  5. Verification and approval: The payment processor or EMI implements submitted data verification, including verification of documents and correspondence with AML/KYC-norms.
  6. Account opening: After successful verification and approval, account will be opened and you will have access to financial instruments.

Our specialists are ready to accompany you at every stage of Lithuania financial system account opening, guaranteeing its successful completion. We also provide assistance in opening accounts in payment systems for enterprises in Kazakhstan, Poland, Estonia, Latvia, Georgia and other countries.

Costs and fees

Opening secure payment system account Lithuania may include next-mentioned costs and fees.

  1. Account Opening Fee: Many payment processors charge a one-time account opening fee, which depends on EMI chosen and services provided.
  2. Monthly Fees: processors may charge monthly fees for account-maintenance, including transaction processing and additional services.
  3. Transaction Fees: Each transaction made through a payment-processor may be subject to a fee; its amount is based on transaction’s type and volume.
  4. Additional costs: these may include costs for currency conversion, international transfers and other services.

For a firm, servicing after payment system registration Lithuania can reach up to 250 euros, depending on the type of organization and its business-activities. Companies that are not EU residents typically pay fees ranging from €40 to €50, while Ukrainian business-projects face fees ranging from €5 to €10.

Internal and incoming SEPA-transfers are generally free of charge, and for outgoing SEPA transfers, EU residents pay between €2 and €3, while non-residents pay between €4 and €6. Incoming SWIFT transfers usually come with a fee of 0.1%-0.2% of the transfer amount, with a minimum fee of €10 and a maximum of €100.

Tax breaks and incentives

Best payment system account Lithuania offers a number of tax breaks and incentives for firms acting in e-money and FinTech niche.

  1. Low corporate taxes: jurisdiction offers a relatively low corporate tax rate, pushing this country to be attractive for business.
  2. Tax credits: organizations engaged in research and development (R&D) can receive tax credits and incentives, which helps promote fintech innovation.
  3. Freedom of movement of capital: Lithuania, as a member of the EU, provides freedom of movement of capital, which facilitates international transactions and investments.
  4. Tax agreements: Lithuania has concluded a number of global agreements to avoid double taxation and reduce the tax burden on business-activities.

Income tax rate is set at a competitive 15%, with small businesses with annual income of less than €300,000 benefiting from a preferential rate of 5%. Companies that engage in research and development are able to write off 100% of their R&D costs, which helps support innovation.

There is also a reduced VAT rate of 9% for some categories of goods and services. Personal income tax has a progressive scale, and taxpayers can take advantage of various deductions to reduce their tax base.

Common problems and solutions

Next-mentioned difficulties may arise.

  1. Difficulties in complying with AML/KYC regulations: Compliance with these regulations can be complicated and time-consuming procedure. To simplify it, it is recommended to prepare all documentation in advance and follow regulative instructions.
  2. Delays in document revision: It may take longer than expected. To avoid delays, ensure that all documentation is done as required.
  3. Communication Barriers: Language barriers or lack of knowledge of local regulations can complicate all processes. In this case, it may be helpful to engage local consultants or law firms to assist with communication and ensure correspondence.

Legal assistance on accounts in payment systems in Lithuania

Lithuanian account opening might need significant knowledge of local laws and norms. To ensure this procedure goes smoothly and with success, it is recommended to seek legal assistance from experts with experience in this field. We offer the following.

  1. Legal advice: our lawyers can provide advice on current legislation, incl. local Bank’s norms and other regulative points.
  2. Collection and verification of documentation: we will help in preparing all documentation and check them for correspondence with regulative points
  3. Fully-covering support: our specialists accompany you at every stage of opening an account, from submitting application to its approbation.
  4. Solving legal issues: in the event of legal problems or disputes, our lawyers will promptly provide the necessary assistance and protect your interests.

Thus, it’s a complicated procedure requiring thoughtful preparation and knowledge of local conditions. However, with the right approach and the support of professionals, this can be an important step towards successfully doing business in Europe. We are ready to fully assist you in this matter and give detailed consultations on existing payment systems and their features. Contact us to quickly and efficiently start your business.

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