Lithuania as a financial start-up
Today, Lithuania gives the highest rates among fintech start-ups in the EU. These indicators appeared due to loyal regulator and control, flexible banking infrastructure and access to the European market.
Another distinguishing feature of Lithuania from other potential investment directions within the EU is the terms and legislation.
Registration of a payment company in Lithuania
It only takes a few days to register a company in Lithuania, however, it usually takes 6 to 10 months to receive the status of a payment institution or receive a license for electronic money.
Other benefits include the Know Your Customer (KYC) methods, low income tax, visa support options and sandbox mode for Fintech startups in the first year.
License of a financial institution in Lithuania
Financial institutions registered in Lithuania benefit from the Single Market of the EU and the Single Euro Pay (SEPA).
If your company already has a financial license in Europe, then moving such a license to Lithuania will not be a problem, that is, in just one or two weeks you will have a new start license with a passport in the EU.
Fintech operations in Lithuania
FinTech operations are regulated by the Bank of Lithuania.
CENTROlink – the payment system of the Bank – aligns the field for non-banking institutions, offering them the same conditions for payments as banks and credit unions. CENTROlink allows other companies, for example, such as Revolut, Paysera, Contis Group and InstaReM, not only to easily cover 34 SEPA countries, but also to issue IBAN accounts without the participation of third parties.
By the way, some of their listed companies have redeployed.
About a year later, Lithuania will be able to offer the first of its kind sandbox platform. The service, codenamed LBChain, will become one of the factors that increase the number of blockchain startups in the country.
Read an interesting article on this topic:
Regulatory sandboxes are a kind of the reaction of states to changing the financial market. Within the framework of such a sandbox, an organization will be able to test its innovative development, observing certain rules (for example, restrictions on the number of clients or the volume of transactions), but they are exempt from all or some of the regulatory requirements (for example, on obtaining a license, minimum capital or other .).
Lithuania managed to organize both IT infrastructure and banks, plus, an important fact for attracting start-ups, is the cost of living – it is much lower.
Lithuania and Crypto-currency
Earlier in our articles we already wrote about the negative attitude of Lithuania to the crypto currency.
Therefore, Lithuania is an excellent choice for creating a payment system that works with a currency and does not work with crypto currency.
For over 5 years our team is specialized in the FinTech sector, receiving payment licenses and licenses for electronic payments, as well as licenses for working with crypto currency.
We will find the right version of the license and jurisdiction for you.
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