Benefits of license
The main advantages of having an EMI license in Lithuania are: The minimum amount of the authorized capital for the establishment of electronic money institution – 350 000 EUR. Additionally a license issued in Lithuania may be recognized in other countries of the European Economic Area (EEA). In other words, a license issued in Lithuania allows an electronic money institution to operate in other EEA countries after the notification procedure. An important advantage is electronic money institutions can join the SEPA payment infrastructure and offer their customers personal accounts with IBAN codes. The license can be issued within 3 months (about 6-9 months faster than in other EEA countries), and all license documents can be submitted in English. The Bank of Lithuania offers the opportunity to test a business idea in a real environment without obtaining full authorization (the “regulatory sandbox” mode). The main difference is that the establishment of electronic money, leading a limited activity, does not require a minimum equity capital.
Steps of the licensing process
The very first step is to analyze the project and business-model. We will analyze and verify whether it is reasonable and possible to apply for EMI license in Lithuania. Afterwards we’ll assist you to prepare all required documents and assist with registration of a new or expansion of the existing company. It requires the collection of constituent documents, personal data of all investors and shareholders. Then goes opening an account with registered capital. This is a necessary procedure even for those who already have corporate accounts in other countries. Then we will assist you with collection of documentation and bringing the package in accordance with the regulations of Lithuania. The process includes translation, reconciliation of data for legal errors, as well as certification of interpreted forms and copies. Finally we submit all packages to Central Bank of Lithuania. Further assistance for running EMI might be also provided from our side.
Since January 1, 2017, a new regime has been applied to specialized banks in Lithuania. This mode can be used for payment institutions and electronic money institutions that are considering the possibility of expanding the scope of their services and improving the security of their customers. Services allowed for specialized banks:
Issuance of electronic money;
Lending, including mortgage;
Acceptance of deposits and other repayable funds;
Issuance and implementation of other means of payment;
Credit inquiry services;
Safe storage services;
Specialized banks are not allowed to provide investment services, engage in asset management activities or other activities of a similar nature. The minimum authorized capital for such a bank is 1,000,000 EUR (for comparison, a fully serviced bank is 5,000,000 EUR).
Term and fee
of license registration
Our company has successfully helped more than 10 companies to obtain EMI licenses in Lithuania. Licensing in Lithuania is one of the fastest and easiest options in comparison with other EU member states. On average the whole process takes ca 5 months, and the state fee for license issuance is just 1448 EUR.
Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help to open and register the business activity in Lithuania. Please contact our specialists to get more information on licensing procedures, requirements for management board/shareholders and costs.