5 reasons to get a payment license (EMI) in Lithuania.
Choosing the jurisdiction for registration of a payment license is one of the main factors for the successful development of the project. We recommend you to consider Lithuania to start the Electronic Money Institution (EMI), due to the following factors:
1. Regulator is business oriented
The Lithuanian financial regulator (The Central Bank of Lithuania) is not an ordinary government body where you have to wait weeks for clarification of any issue or to make an appointment. This is a new level of relationship between the state and the client. During the first year of operating, the Central Bank of Lithuania shows loyalty to possible shortcomings in the organization of business. Also, in Lithuania there is a special visa program that allows the founders of start-ups to obtain a residence permit under the simplified procedure.
2. Access to SEPA for payment companies in Lithuania
The Bank of Lithuania, through its infrastructure, provides technical access to the SEPA (Single Euro Payments Area) for all types of payment service providers (banks, electronic or payment institutions) licensed in the EEA. Within this system (Centralink), the client has an opportunity to open IBAN (International Bank Account Number) and make money transfers throughout the entire territory of the European Union.
3. The number of fintech projects registered in Lithuania
In 2018, about 170 Fintech companies operatid in Lithuania, and this, compared to 2017 (117 companies), demonstrates a positive tendency in the development of the Fintech industry. 70% of all Fintech projects operating in Lithuania have a registered company in Lithuania, while its other enterprises are located in other European countries and beyond, for example, in Singapore and Hong Kong. Fintech companies are developing dynamically in Lithuania, due to the fact that over the past two years their number has doubled, in particular, in 2018 47 EMI and 33 PSP licenses were obtained.
4. A unique platform (Sandbox) for testing fintech projects
Fintech companies that develop innovative financial products can test their services on the technology platform – Sandbox. 170 companies based in Lithuania have already used the Sandbox platform to test and improve their innovations.
5. Preferential taxation of Lithuania
Lithuania is a very popular jurisdiction for obtaining the above licenses, because it is a country with competitive business tax rates. In turn, the corporate income tax rate (0-15%) is the third among the lowest in the EU, and the personal income tax rate (15%) is the second in the same rating.
Compering to other jurisdictions, Lithuania has one distinguishing feature: clear strategic objectives for the functioning of the entire fintech industry. The regulator is interested not only in rapid development, but also in the adaptation of the ecosystem to changes.
The specialists of our company recommend to start your project in Lithuania, because it has all of the most favorable conditions for its development. Considering the above, we can make an obvious conclusion: Lithuania has all the opportunities to become a new Fintech hub in Europe.