Country, we will examine today offers favorable terms for fintech corporations wishing to acquire a virtual money permission or a monetary system license and work and manage in EU zone.
Extension of fintech in Lithuania
Lithuania is recognized as one of the fastest growing Financial Technologies communities in the EU region and worldwide. The country offers favorable circumstances for fintech businesses, has a clear legal framework and a stable political environment.
Additionally, the Central Lithuanian Bank offers a pilot habitat for monetary innovation and supplies developers of innovative monetary products with the opportunity to test them in a real habitat under the oversight and administration of the General Bank.
Reasons to get PI license in Lithuania
A permission obtained in the territory of country makes it possible to provide favors throughout the European Union without additional licensing. The term for obtaining a license is 3 months, and the minimum authorized fund of a business-company engaged in the provision of monetary favors under this permission is 20,000 euros. Lithuanian regulation is aimed at supporting businesses, especially in the field of fintech, so the costs for opening such an enterprise are lower here, and the terms for achieving permits are shorter.
Requirements for PI license in Lithuania
- Demand to protect the client’s funds using a separate bank account or insurance policy.
- The governing body of the PI in Lithuania must have a good reputation and have the appropriate qualifications.
- A Lithuanian private paying institution needs to have one director or representative who can make decisions and is available to the Central Bank.
Documents for request to PI license in Lithuania
- A completed form, including a description of what financial services the applicant plans to supply;
- Evidences confirming the legal status of the company;
- A confirmation the right to sign for company representatives;
- A confirmation the payment of the fee for issuing a license;
- Operational plan;
- Business plan for 36 month;
- Documentary confirmation of the availability of funds for equity;
- Evidentiary confirmation of the existence of an account for keeping client funds or confirmation by the bank of the intention to open it;
- Description of the structure of the organization;
- Questionnaires of company owners and key officials;
- Evidence confirming that the average amount of outstanding money of the e-money institution will not exceed 900 thousand euros, and the usual total amount of payment transfers performed by the PI in Lithuania for sale in the previous 12 months will not overrun 3 million euros per month (only for small licenses);
- Questionnaire on the operational risks of the company’s activities.
Step-by-step instruction how to obtain PI license in Lithuania
- Evaluate your business idea and compare it to the suitability of a PI in Lithuania license for sale. Hinging on your business model, we may offer an alternative and more appropriate license option, such as an e-money license or a banking license.
- Confirm license terms such as primary fund and operational demands.
- Create and establish your legal entity in the country.
- Start preparing the application.
- The regulator may come back with additional questions. In this case, prepare your answers and contact the regulator.
- Once the adjuster approves your request and you provide all the needed legal papers, such as proof of initial capital and guarantees, the regulator will issue a license.
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