Lithuania EMI License: Unlocking Opportunities in the Electronic Money Industry
Payment system license in Lithuania
Entrepreneurial activity in the segment of electronic systems for payments is actively gaining momentum. Many businessmen are already interested in the possibility of obtaining the status of an issuer of electronic money and organizing a neo-bank. But for legal work, a payment license is required. And one of the best jurisdictions for this is the Republic of Lithuania.
Brief information note
In Lithuania, all transactions with electronic money are carried out through the Electronic Money Institution or EMI. The founder of a neo-bank receives the right to work with individuals and organizations according to a scheme that, in general terms, looks like this:
● issuance of virtual currency;
● exchange for customer cash;
● mandatory redemption from holders as requests appear.
● Also, within the framework of special systems for e-payments, funds are stored. If necessary, you can store money on smart cards.
The licensed organization is authorized to:
● credit money to clients’ accounts;
● provide cash withdrawal services;
● perform transactions of various types (credit, direct transfers, by cards and more);
● make payments with the participation of credit limits;
● issue plastic cards to pay for goods and services;
● transfer funds without opening an account.
A payment institution license entitles a legal entity to operate only in the territory of the issuing country. But in case of registration in one of the jurisdictions that are part of the European Union, it will be possible to work in any of the EU states.
Lithuania EMI license provides a lot of advantages:
● support for the Sandbox program;
● the ability to check clients remotely in several ways;
● relatively quick verification and consideration of the application (about six months);
● the possibility not to live in the issuing country;
● no requirements for the presence of a legal entity at the time of application.
The last point requires clarification. A payment system license is issued only upon the existence of a legal entity registered in the same jurisdiction where the application is being considered. But according to the laws of the republic, the applicant is given six months from the moment of filing papers to open a neo-bank.
Lithuanian registration also gives the company a long list of preferences:
● one of the lowest tax rates in the region;
● loyal requirements to the authorized capital;
● relatively simple procedure.
In connection with the above, most businessmen choose Lithuania for themselves.
EMI in Lithuania has two varieties:
● small (SEMI);
Depending on the category, the registration procedure is modified.
A small payment license is suitable for legal entities whose activities are limited to three million euros per year. The application is submitted to the Commission with the following papers:
● company information;
● a complete package of data on founders and shareholders;
● business plan for a three-year period;
● confirmation of the security of the funds borrowed from the individual entrepreneur and legal entity;
● evidence of non-involvement in money laundering.
The Commission has the right to request any other documentation.
A full EMI can only be issued to firms that:
● have been registered with the Commission;
● have an authorized capital of 350,000 euros (it must be divided into different categories);
● rented an office
● acquired a legal address;
● accepted to senior positions of a resident;
● confirmed the qualifications of their employees;
● provided proof of financial solvency;
● provided the technical part of the work.
The standard package of documents must include:
● papers on the education and experience of employees, proving their competence;
● certificates of no criminal record;
● office lease agreement;
● bank account statement.
It is important that the founder of the organization also has a specialized education. Also, officials will be asked to provide evidence of at least three years of experience in the segment.
Despite the apparent simplicity, the procedure is quite complex and confusing. Therefore, applicants are advised to contact professionals for registration.