Other than banks, the modern financial system consists of a wide range of entities. Thanks to technology, it is possible to offer practically all financial services without the need to establish a bank in the conventional sense. An electronic money license (EMI) makes it viable to offer these services.
To build a profitable FinTech business, you must select an environment that facilitates the registration of a legal entity and the issuance of licenses. Lithuania is a strong option when comparing the circumstances in European jurisdictions because it is possible to obtain an EMI license quickly and with few procedural hassles.
As a legally recognized organization, EMI is authorized to:
- Offer payment services to clients;
- Issue electronic money;
- Manage the electronic money circulation process.
Table of Contents
Requirements to Obtain a Lithuanian EMI License
The Applicant
Initially, the prospective EMI license holder must meet the following requirements:
- A minimum age of 18 years
- Have a minimum initial capital of €350 for the share capital of the EMI license type
- Own a personal or corporate bank account
- Have not been subject to limitations or prohibitions by Lithuanian and EU regulatory bodies
- Possess accessible records attesting to one’s income, such as a tax declaration or a certificate from the tax control authorities
- Purchase (or long-term leasing) of real estate for the business, such as an office or building.
The Process
Gathering the Required Paperwork
The procedure starts with reviewing and preparing company paperwork, then moves on to preparing incorporation documents, meeting with a notary public, and registering with the Lithuanian Companies Register.
Getting the Documents Ready for an EMI License Application
Advice on the management team and organizational structure is given, together with legal assistance on the business concept. In this phase, the documentation needed for the EMI licensing application is also prepared and reviewed.
First Meeting With the Bank of Lithuania (BoL)
An introduction meeting with the National Bank is planned to explain the proposed business model and go over management plans. It is recommended—though not required—that this meeting be held in order to make sure that expectations and requirements are clear and in agreement.
The Approval of Investors in Regard to National Security Interests
The paperwork required to get approval from UBOs, the BoL, and shareholders for national security issues is prepared and filed.
Sending the Document Set to the Bank of Lithuania
The entire set of documents is delivered to the Bank of Lithuania along with the stamp duty payment in order to issue a license. A case officer is appointed to thoroughly evaluate the application.
Q&A Sessions With the BoL
The following stages involve Q&A sessions with the Bank of Lithuania at which time any necessary amendments and supplementary evidence must be submitted. Three sessions may be necessary to thoroughly discuss the application paperwork.
Granting of the EMI License
After the EMI license is granted, the process of getting ready to start business activities begins with applications for card issuing services and SWIFT.
Conclusion
Although obtaining the EMI license in Lithuania is not complicated, a well qualified legal assistance is necessary. As an applicant, you can expedite the process and possibly shorten the time needed to receive an EMI license in Lithuania by employing the right assistance.