Payment institutions are like special banks 💼 that help people and businesses send and receive money 💸. They need permission 📜 from financial leaders to work. They can help you transfer money 💵, change currencies 🌍, or use electronic money 📲. They also have tools 🛠️ to stop fraud and manage data 💽. These institutions are great for quick online payments 💻 and help those who don’t use regular banks 🏦.

💳 Set up payment institution in Lithuania with Eesti Consulting

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🤔 Payment institution or EMI License called?

The electronic money institution, often referred to as an EMI license or E-money license 💳, is a regulated financial institution designed to offer services connected to electronic money and payments. Holding the full E-Money license means there’s no expiry date and no restriction on the type of activity. When a company secures a license as an electronic money institution in Lithuania 🇱🇹, it gains the freedom to serve across the European Economic Area (EEA) without needing extra approvals in other EU nations. In essence, once licensed in Lithuania, the institution can expand its services to other EEA countries by opening branches there 🌍.

Services that need a license in Lithuania 🇱🇹

🔹 Depositing money into a payment account and managing that account.

🔹 Withdrawing cash from a payment account and all related tasks to manage that account.

🔹 Carrying out payment tasks, like transferring funds between different accounts, whether they’re with the same provider or a different one. This includes one-time payments, using payment cards, or setting up regular transfers.

🔹 Completing payment activities where the user has a credit line. This encompasses direct one-off charges, transactions via payment cards, or setting up repeated transfers.

🔹 Giving out or receiving payment tools.

🔹 Managing money transfers.

🔹 Handling payments where users approve transactions using phones, computers, or other digital devices. The tech or telecom company only acts as a go-between, connecting the seller of a product or service with the buyer.

Share Capital Requirements for EMI, PSP, and E-Money Licenses” 📈

• 🏦 “Service allowing money deposits into a payment account and all necessary operations to manage it.”
• 💵 “Service that facilitates cash withdrawals from a payment account and all essential tasks to run that account.”
• 🔄 “Payment activities, which include fund transfers to accounts either within the same institution or to another payment service provider. This covers direct debits, transactions via payment cards, and setting up regular transfers.”
• 💳 “Transactions where the money comes from a user’s credit line. This includes one-time direct debits, card transactions, and regular transfers.”
• 🛍️ “Issuing or acquiring payment tools and handling payment transactions.

Authorization Process for Payment License in Lithuania” 🇱🇹📜

The Bank of Lithuania 🏦 takes an open approach to authorising payment institutions and other entities, initiating the journey even before the formal application lands on their desk. For those considering obtaining a license, the Bank advocates for early engagement 📆, offering a platform to understand which financial activities necessitate licensing. Early discussions set the stage for a comprehensive understanding of the roadmap ahead – detailing procedural steps 📋, critical requirements, potential challenges, and the Bank’s expectations 🎯.

The heart ❤️ of the authorization procedure is the submission of an application to the Bank’s Supervision Service. This step is accompanied by a rigorous review 🧐 of the submitted materials. Although the aim is to conclude this review within a three-month window ⏳, the need for supplemental data or documentation might necessitate additional time. Once the assessment reaches its conclusion, the Bank of Lithuania’s Board takes the reins, deciding the fate of the application – to grant the coveted license 📜 or not.

Step-by-Step Guide to Obtaining an EU E-Money License in Lithuania” 🇪🇺📜🇱🇹

STEP 1️⃣ COMPANY REGISTRATION

• Certificate of incorporation
• Power of attorney ( notarial deed)
• Register of shareholders
• Drafting of the articles of association
• Beneficial owners list
• Technical documentation of new fintech company
• Company income statement over the last few years
• UBO income statement for the last few years
• Directors of the company
• CV and professional experience
• AML certificates
• Current procedures regarding company wallet accounts

STEP 2️⃣ FILLING OUT APPLICATIONS

• Fintech business plan
• Company organizational structure
• IT security – schemes
• Financial forecasts in the form of schametes

STEP 3️⃣: FINANCIAL DOCUMENTS

• Opening a bank account
• Registration for VAT
• Contract for accounting and financial statements
• AML KYC CTS training
• Risk management
• Meeting with bank representatives

11 Advantages of Obtaining a PSP License in Lithuania” 🇱🇹🔑

1️⃣ Welcoming Non-Residents 🌍: Lithuania doesn’t mandate the company’s management board to be its residents.

2️⃣ Post-License Company Registration 📜⏭️🏢: Begin forming your company only after securing the license.

3️⃣ License First 📝: Submit the license application even before company establishment.

4️⃣ English Proficiency 🇬🇧: Documentation can be prepared entirely in English.

5️⃣ IBAN Access 🌐: Customers enjoy access to the IBAN system, receiving their own IBAN accounts.

6️⃣ PSD2 Ready 🔗: Embrace PSD2 to offer payment initiation service (PIS) and account information service (AIS).

7️⃣ Remote KYC & AML 🖥️✅: Use advanced tech for remote customer verification, like the systems used by Paysera or Mistertango.

8️⃣ SEPA Access 💶: Direct entry into the single payment area in EUR within the SEPA framework.

9️⃣ EU Gateway 🚪🇪🇺: Operate across the European Union with a single Lithuanian-issued license. Fun fact: Google has a license from Lithuania!

🔟 Grace Period for Newbies ⚖️🚫: No financial penalties during the first year for minor infringements by new businesses in the regulated sector.

BANKING SOLUTIONS FOR CRYPTOCURRENCY BUSINESS

You’ve heard that it’s difficult to open a bank account for cryptocurrency services. Today we will tell you how to start preparations for opening such an account.

Customers who contact us say they are refused to set up an account. They set up companies in EU countries and then encounter difficulties in opening a bank account.

Is it even possible to open such a bank account?

ACCOUNT TYPE FOR CRYPTO CLIENTS

HIGH STREET BANK It is crypto-friendly bank, who operates as traditional high street bank – financial institution

PAYMENT SERVICE PROVIDER

It operates under the E-Money License – it works like fintech apps – likes Revolut, Trasnferwise but it is crypto-friendly

OUR FEES

We will help you estabilish bank account or PSP service for your cryptocurrency business.

A beneficial owner is a natural person who owns the benefits of ownership even though right to some form of business is in another name. It also indicates any individual or group of individuals who, both directly or indirectly, has the ability to vote or control the transaction decisions regarding specific security, such as shares in a company

In the event of natural person holds at least 25 % shares in the company, he is treated as a beneficial owner.   Most of the companies have only 1 director and 1 shareholder with 100% shares.    In this scenario, the beneficial owner is the 100% shareholder, who are together the director of the company.

Look at the other example.    Company has 5 shareholders:

A keeps 20% shares, B – 30%, C-30%, D – 10% and E – 10% shares

in the share capital of the company.  Who is the beneficial owner of the company in this case?  Only B and C candidates because they have more than 25% shares in the company capital.  Persons called “B” and “C” should fullfill statutory duties and be appointed as “Beneficial Owners” to Commercial Registrar.

2.  WHICH ENTITIES ARE OBLIGED TO SUBMIT THEIR DATA TO REGISTRAR?

• Private limited companies (OU companies)
• Public limited companies
• General partnerships
• Limited partnerships
• Commercial associations
• Foundations
• Non-profit associations
• European company and European Economic Interest Grouping

3. BRANCH OF FOREIGN COMPANIES

As article no. 384 (2) of the Commercial Code stipulates:

“(2) A branch is not a legal person. The company shall be liable for the obligations arising from the activities of the branch.”

The legal entity registered under foreign law is responsible for its branch and receiving information concerning the beneficial owners, who control the company.    Branch of foreign companies is not obliged to appoint beneficial owners to Commercial Register.

SHAREHOLDERS, WHO ARE LISTED COMPANIES ON REGULATED MARKETS

Only subsidiaries belonging to companies listed on the stock market are obliged to appointing of beneficial owners.
Others – listed companies do not need to do it. If the not listed company has one shareholder – listed company
on the regulated market – you do not need to indicate the beneficial owner.

PENALTIES AND NOTIFYING OF RIK ABOUT UBO

The beneficial owner’s data needs are submitted within 60 days of 1 September. The entered data of beneficial owners in the RIK can be changed, confirmed or added. Needed details of beneficial owners in case of private limited companies:

1) The name of the person
2) The personal code from e-Residency card
3) Country of living
4) Place and date of birth in the event if e-ID is not issued
5) data of the manner in which the person exercises control

Max amount of penalty for a natural person is 32,000 EUR for the failure of submitting UBO to Commercial Register.

OUR ASSISTANCE

We can help you manage corporate records to indicate correctly the Ultimate Beneficial Owners of the company. We need to do with diffirent ways:

• as your Attorney ( on grounds of Power of Attorney ) – you will issue POA in your country of living in the form of notarial deed and post this POA to our estonian office)
• as your Attorney ( you will grant access via RIK with using e-ID e-Residency card)

OUR PRICING

APPOINTING OF BENEFICIAL OWNER for e-Residents

€ 100 ONE TIME FEE

APPOINTING OF BENEFICIAL OWNER by notary public (POA)

€ 300 ONE TIME FEE

Another reason to work and do business in Estonia is the fact that it has one of the most flexible taxation laws in the European Union as well as the rest of the world. The 0% tax on retained and reinvested profits alone has got local and foreign investors on a rat race trying to squeeze their way through immigration just so they can have a piece of that proverbial “pie” of the Estonian economy. But there are more tax benefits from Estonian company that any investor could enjoy if he decides to
start a business in Estonia that are just too good to ignore.

TAXES IN ESTONIA

1. Corporate Income Tax
2. Labour Tax
3. Value Added Tax (VAT)
4. Personal Income Tax

CORPORATE INCOME TAX – 0% TAX IN ESTONIA!

As stated above there is no more corporate income tax on retained and reinvested profits, which means that local and foreign companies alike no longer have to pay this kind of tax to the Estonian government. Only distributed profits will be taxed at the amount of 20% of the net
amount (both actual and deemed).

WHAT MEANS “DISTRIBUTED PROFITS” ?

• Distributed corporate profits during tax period
• Gifts, donations and representation expenses
• Payments and expenses that are not connected to the business
• Asset transfers of the business entity that has a permanent establishment in Estonia
• (local or foreign) to its head office or to different companies

LABOUR TAX

Labour taxes also called social taxes is 33% of the total the share of labour costs attributable to
income taxes and social-security contributions minus cash benefits. It is divided into 2 parts one
being the social security (20% of the labour tax goes here) and health benefits (13% of the
labour tax is allocated to this as well). Estonia also levies an unemployment tax to businesses at
0.8% is paid on the gross salary. The government also withholds an additional 1.6% tax from
the employee’s wages.

VALUE ADDED TAX

The standard VAT rate is 20% for a business or a taxable person (if
your business is just a sole proprietorship), then it can be reduced to 9% depending on the circumstances of your acquisition of goods.

E-TAX SYSTEM

The e-Tax System is not a form of tax law but just a means to easily and efficiently file your
taxes on an electronic platform on the internet. In fact, 95% of all taxes in Estonia are declared
online which makes government transactions from their agency that handles the taxes of
Estonia get processed smoothly.

There are 3 ways of setting up company in Estonia:

• FOR E-RESIDENCY CARD HOLDERS – This way is dedicated especially for e-Residency card holders. Company formation remotely from your home country.
• COME TO TALLINN AND GO TO THE LOCAL NOTARY – We will assist you if you come to Tallinn. Ask our staff about setting up of appointment in the notary office for company formation purpose.
• STAY AT HOME AND PROVIDE US WITH PROXY – Issue Power of Attorney in the form of notarial deed in your country of living. Arrange courier postage and let us act in your name for company registration in Estonia.

START

1. Collect basic information about the company. Decide how many shareholders and directors there will be in the company.  Select the subject of activity and decide if the share capital (2500 EUR minimum) will be paid or you will use a non-monetary contribution.

Here you can check if the company name is available – https://ariregister.rik.ee/lihtparing.py

Here you can check the classification of the subject of activity https://emtak.rik.ee/EMTAK/pages/klassifikaatorOtsing.jspx The company name must end with OU – known as osaühing or OÜ.

CHOOSE SERVICE PROVIDER

It is necessary to select a registration address in Estonia – a virtual office and a “contact person” – a legal person required if the board is outside of Estonia. The fee for the registration address and contact person is paid every year. We invite you to familiarize yourself with our packages.

Our company formation packages are visible here:

https://eesticonsulting.ee

VAT REGISTRATION

Registration to VAT taxation can be volountary in the event the custommer will decide to register to VAT from incorporation date. In the event when business transactions exceeds 40 000 euros from the begining of calender year, the OU company needs to be VAT registered obligatory.

The company director is required to submit an application for VAT registration to the EMTA. In the case of voluntary registration – the tax office may ask the client about his clients and the connection with Estonia. In order to issue an EE VAT number – the office sometimes asks for contracts with contractors, invoices or commercial correspondence.

There is no stamp duty for VAT registration. Here you can find VAT registration forms from EMTA directly:
https://www.emta.ee/eng/business-client/income-expenses-supply-profits/general-information-value-added-tax/vat-forms

BANK ACCOUNT OPENING

Opening an account in Estonia does not have to be difficult. We work with SWEDBANK and LHV banks – we represent our clients and help prepare for meetings with banquets.

The customer may wish to open a bank account outside of Estonia. In this situation, we have prepared an offer for countries such as Lithuania, Latvia, Estonia, Poland, Switzerland or Great Britain.

Many customers want to open an account on PSP – Payment Service Providers such as Transferwise or Revolut. Cryptocurrency companies (with issued license) do not have an easy way to open an account, which is why we have a specially prepared offer for high-risk businesses here.

Most of the e-Residents is looking for solutions for collecting payments from their customers. They consider highstreet banking vs fintech Payment Service Providers. The goal of this article is showing you the way of the opening bank account at LHV Pank – biggest domestic financial institution, employing over 400 people in Tallinn and Tartu cities, holding 177,000 clients.

If you are e-Resident card holder, please execute these steps
as follows:

1) Fill the application form for the business client – https://www.lhv.ee/assets/files/applications/Application_to_open_an_account_in_LHV_Pank_natural_person-EN.pdf
2) Fill the online application form with using your e-Resident card.
3) Attach your ID document (EEA card or passport) and send to the address info@lhv.ee.

Application need be signed electronically with e-ID software. Considering of application takes 7 business days. Then the bank will notify about the positive or negative decision. In the case of a positive decision of concluding the relationship, mandatory is visiting local LHV branch and present passport or EEA identity card for the purpose of signing the agreement.

HOW TO GET A POSITIVE DECISION FROM LHV?

Estonian banks treat KYC (Know Your Customer) and AML/CTS seriously.
Moreover, they want to check your connection with Estonia. If you are
non-resident and live out of Estonia and you won’t demonstrate that you have counterparties in Estonia, you can forget about setting up an account.

I will describe to you what is the method of explaining them your business presence in Tallinn.

1) Tax reasons for the opening company in Estonia and bank account is not indifferent.
2) Find your business partners on upwork.com or peopleperhour.com and outsource them your job. You can show the bank print-outs from upwork.com, quotes, invoices or cover letter.
3) Find your business clients in Estonia ( translate your website into Estonian language and show the bank that you have a business presence in Tallinn)
4) Use a trusted company formation partner (likes Eesticonsulting.ee). A trusted company will provide you legal address, that will be accepted by the bank.
5) Setup Estonian domain (.ee) and phone number (+372) for the purpose of contacting with counterparties.

The Ministry of Finance in Estonia changes the rules for issuing crypto licenses. The application is being reviewed from 30 to 90 days and the price from 345 EUR to 3300 EUR for one license – comments Paweł Krok – CEO at Eesticonsulting.ee.

[wpsm_quote author=”M. Helme from Ministry of Finance – Estonia” float=”left” width=”100%”]We have learned our lesson from the banking sector the hard way, and we must now deal with new international risks, with cryptocurrencies among the most urgent of these[/wpsm_quote]

The Ministry of Finance in Estonia changes the rules for issuing crypto licenses. The application is being reviewed from 30 to 90 days and the price from 345 EUR to 3300 EUR for one license – comments Paweł Krok – CEO at Eesticonsulting.ee.

The Estonian government introduced changes to the granting of cryptocurrency licenses. Minister of Finance – Martin Helme tells that this is only the first step in the field of prevention of money laundering. The bill

introduces numbered formal obligations. Application processing time will be extended from 30 to 90 days. Required will be company incorporation in Estonia or running a branch of a foreign company. Moreover, registered office address and board of directors need to be in Estonia. So far, the fee

stamp for the issuance of the license was 345EUR, and the amendment increases it 10 times to 3330 EUR from one license – adds Paweł Krok from Eesticonsulting.ee. Current license holders have a deadline until 31 December 2019 to fulfil statutory requirements under pain of withdrawal

license by the Estonian financial market regulator – Financial Intelligence Unit (FIU).

Goverment source:

https://www.rahandusministeerium.ee/en/news/granting-virtual-currency-activity-licences-set-become-tougher-under-new-bill

[quick_offer id=646]

HOW TO APPLY FOR E-RESIDENCY CARD?

GET E-RESIDENCY CARD FROM HOME
Ready this guide to know how to obtain e-Resident card smoothly from your home and run your business working worldwide borderless.

FACTS AND MYTHS

[wpsm_column size=”one-half”][wpsm_pros title=”PROS:”]

• With e resident card you can register Estonian company remotely from home
• With e-residency card you have to open remotely the bank account or PSP (Payment Service Provider)
• You can put your digital signature on business documents and the signature will be valid worldwide
• You can reserve .ee domain and approve all official documents -f.e file the VAT return, Income Tax return and financial statements to Commercial Register
• You are not obliged to travel to Estonia for the purpose of company registration or for the purpose of obtaining business licenses
• You can not travel to Tallinn for the purpose of the e-ID card. Receive the card from the local embassy located in your home country.

[/wpsm_pros][/wpsm_column][wpsm_column size=”one-half” position=”last”][wpsm_cons title=”CONS:”]

• E-Residency card has not any impact for your personal tax residency in your home country based on bilateral agreements tax regulations.
• e-ID is not a VISA
• e-ID has not influence for your temporary residence permitt in Estonia.
• You can not receive e residency card by post or by attorney , because the fingerprints are required.

[/wpsm_cons][/wpsm_column]

PLUG & PLAY

5 STEPS FROM COLLECTING E-ID CARD TO BANK ACCOUNT

[wpsm_numhead num=”1″ style=”2″ heading=”2″]APPLY FOR E-RESIDENCY CARD[/wpsm_numhead]
Go to website https://e-resident.gov.ee/become-an-e-resident/. You will need a copy of EEA card or Passport and motivation statement. Then you have to pay for the application fee €100. Then you will be patient because application review is made by Estonian Police & Border Guard Board in the timeframe of 6-8 weeks. The final step is receiving of e-Residency kit. You can collect it at the selected location, f.e in the nearest Estonian embassy in your country of living.
[wpsm_numhead num=”2″ style=”2″ heading=”2″]CHOOSE YOUR PROVIDER[/wpsm_numhead]
You can choose your “company & trust service provider”. Remember that you have to verify the provider on mtr.km.ee website. Every company that offers company registration services in Estonia needs be provided with license number by the Financial Intelligence Unit. Eesticonsulting.ee has issued license number: FIU000310.   More information you will find in About us website.
[wpsm_numhead num=”3″ style=”2″ heading=”2″]LEGAL ADDRESS[/wpsm_numhead]
Estonian legal address is required by law for the purpose of the company registration. Every company is treated as an Estonian legal resident. Eesticonsulting.ee offers the legal address for your Estonian corporation in the heart of Tallinn. We charge you grounds of the annual subscription. More about virtual office services here.
[wpsm_numhead num=”4″ style=”2″ heading=”2″]CONTACT PERSON[/wpsm_numhead]
Estonian Commercial Code § 63 stipulates that if the board of directors reside out of Estonia, “contact person” needs be appointed in this situation. We provide Contact person service, especially for nonresidents. If you won’t appoint a contact person, your firm won’t is registered.
[wpsm_numhead num=”5″ style=”2″ heading=”2″]BANKING[/wpsm_numhead]
Did you hear a story about opening a bank account in Estonia for nonresidents? A lot of advisories tell: It is not possible – really – don’t try. Believe us. We have documented the experience and positive track record. We will try to advise you how to open an Estonian bank account and PSP provider.

On December 12, 2019, the Estonian parliament approved a law that applies to companies providing virtual currency wallet service or exchanging virtual currency against fiat currency.

Companies that have licenses issued must implement new procedures by July 1, 2020. Otherwise, the Financial Intelligence Unit may revoke their licenses – says Paweł Krok from Eesticonsulting.ee.

A company that wants to obtain a license for an exchange office and a currency portfolio must provide no criminal record proof and a CV for all members of the company. Everyone involved must present a copy of the passport certified by a notary public, as well as the AML procedure as before. A company should set up a bank account in Estonia or any EEA country. Share capital should be at least EUR 12,000. The non-monetary contribution is not allowed. The company should have its own office and management on the territory of the Republic of Estonia. For new applicants – the cost of the license will change from 345 to 3300 EUR. Time for consideration of the application is 60 days. Foreign companies can establish a branch in Estonia and apply for a license from this level.

Link to Google Docs PR:
https://docs.google.com/document/d/e/2PACX-1vTQZEFCZtdR82sBLbXg4qjMYTbYvfJwnCCEg0GN_lfeoGpUdk1cHB3sx2WnKIOI6_r6XvQ-nO320cxg/pub

Contact information:
Paweł Krok
contact@eesticonsulting.ee

Are you digital nomad worker and would you like to stay in Estonia up to 12 months? Starting from 1 August you may apply for digital nomad visa for remote workers.

Who can apply?

You need meet all following recrutiments:

• You can work independent of your location
• You can deliver your work services remotely using internet
• You are employeed by the company registered outside of Estonia, conduct business through your own company registered abroad or work as a freelancer for clients mostly outside of Estonia.
• You have possibility to provide authorities with the evidence that confirm the minimum threshold (€3504) during the six months before the application.

TYPES OF VISA

Type C for short stay – state fee is: 80€

Type D for long stay – state fee is: 100€

LIST OF EMBASSIES WHERE YOU CAN APPLY FOR VISA FOR NOMADS

Estonian Embassy in Ankara: https://ankara.mfa.ee 

Estonian Embassy in Abu Dhabi: https://abudhabi.mfa.ee (only D-visa applications as of September 1, 2020)

Estonian Embassy in Beijing: https://beijing.mfa.ee  

Estonian Embassy in Cairo: https://cairo.mfa.ee

Estonian Embassy in Canberra: https://canberra.mfa.ee

Estonian Embassy in Dublin: https://dublin.mfa.ee 

Estonian Embassy in Helsinki: https://helsinki.mfa.ee (only D-visa applications)

Estonian Embassy in Kyiv: https://kyiv.mfa.ee  

Estonian Embassy in London: https://london.mfa.ee

Estonian Embassy in Minsk: https://minsk.mfa.ee

Estonian Embassy in Moscow: https://moscow.mfa.ee

Estonian Embassy in New Delhi: https://newdelhi.mfa.ee 

Estonian Consulate General in New York: https://newyork.mfa.ee

Estonian Embassy in Nur-Sultan: https://nursultan.mfa.ee/

Estonian Embassy in Ottawa: https://ottawa.mfa.ee 

Estonian Embassy in Paris: https://paris.mfa.ee  (only D-visa applications)

Estonian Embassy in Stockholm: https://stockholm.mfa.ee (only D-visa applications)

Estonian Consulate General in St Petersburg: https://stpetersburg.mfa.ee 

Estonian Consulate General in St Petersburg Chancery in Pskov: https://pskov.mfa.ee

Estonian Embassy in Tbilisi: https://tbilisi.mfa.ee/

Estonian Embassy in Tel Aviv: https://telaviv.mfa.ee 

Estonian Embassy in Tokyo: https://tokyo.mfa.ee

Source: https://vm.ee/en/estonian-representations-which-are-handling-visa-applications

HOW IS THE PROCEDURE OF APPLYING?

1. Visit the website https://eelviisataotlus.vm.ee/ and choose your language
2. Choose the type of VISA – short stay (C) or long stay (D)
3. Fill in the form and print it
4. Make the appointment at Estonian Embassy or Consulate
5. Take all supporting documents, evidences, identity documents like passport, identity card and submit your applicaiton
6. Wait plase up to 30 days for approval your application.

NOTE! If you reside in Estonia – please apply for digital nomad visa directly to Police and Border Guard Board office

E-RESIDENCY CARD VS DIGITAL NOMAD VISA

E-MONEY License in Lithuania – payment institution.

The electronic money institution – called often EMI license or E money license – is a regulated financial institution whose purpose is to provide services related to electronic money and payment services.

The full license for E-Money is not limited in time or type of activity. A company that has a license of an electronic money institution in Lithuania can provide any services in the European Economic Area (EEA) without having to obtain a position in another EU country. After obtaining a license in Lithuania, an electronic money institution may provide services in other EEA Member States by establishing branches.

The kind of services that require a license in Lithuania

1. services enabling cash to be placed on a payment account as well as all operations necessary for operating a payment account;
2. services enabling cash withdrawals from a payment account, as well as all operations required for operating a payment account;
3. execution of payment transactions, including the transfer of funds to a payment account with the payment service provider of the payment service user or with another payment service provider: execution of payment orders, including one-off payment orders, execution of payment transactions through a payment card or similar device and / or execution of transfer orders, including standing orders;
4. execution of payment transactions, in which funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions using a payment card or similar device and / or execution of a transfer order, including standing orders;
5. issuing and / or acquiring payment instruments;
6. money orders;
7. execution of payment transactions in which the payer agrees to perform a payment transaction using any telecommunications terminal equipment, digital or IT device, and the payment is made to the telecommunications network operator or IT system operator, acting only as an intermediary between the supplier of goods or services and the payment service user.

Capital for EMI / PSP / EMONEY license

NOT LESS THAN 20,000 EUR

Option 1: Not less than EUR 20,000 if the payment institution intends to provide only money transfer services – transfers – “money transfer services”

NOT LESS THAN 50,000 EUR

Option 2: Not less than EUR 50,000 if the institution intends to provide payment initiation services

NOT LESS THAN EUR 125,000

Option 3: Not less than EUR 125,000 if the institution will provide services from the following catalog:

“Service enabling cash to be placed on a payment account as well as all operations required for operating a payment account”

“Service enabling cash withdrawals from a payment account as well as all operations required to operate a payment account”

“Payment transactions, including transfers of funds to a payment account at the institution of a payment service provider or payment service user or at the institution of another payment service provider, direct debits, payment transactions via a payment card or similar charging device or the execution of credit transfers, including standing orders “

“Payment transactions in which funds are covered by a credit line for a payment service user, execution of direct debits, including one-off direct debits, execution of payment transactions by means of a payment card or similar device or transfer order, including standing orders”

“Issue of payment instruments or acquisition of payment transactions”

EMI license procedure

The collected documents will be considered by the Lithuanian central bank about 3 months from the date of submission and a decision will be issued by the Lithuanian central bank.

In the event that any formal deficiencies as to form and content are identified, the bank will ask for the missing information or the corrected form in accordance with regulatory requirements. In this case, the consideration process may be extended.

EU e-money license in Lithuania STEP BY STEP

We present the following steps to obtain the EU E-money license from Lithuania called often EMI LICENSE You will have acces to all European Countries based on 1 license coming from Lithuania.

STEP 1: COMPANY REGISTRATION

• Certificate of incorporation
• Power of attorney ( notarial deed)
• Register of shareholders
• Drafting of the articles of association
• Beneficial owners list
• Technical documentation of new fintech company
• Company income statement over the last few years
• UBO income statement for the last few years
• Directors of the company
• CV and professional experience
• AML certificates
• Current procedures regarding company wallet accounts

STEP 2: FILLING OUT APPLICATIONS

• Fintech business plan
• Company organizational structure
• IT security – schemes
• Financial forecasts in the form of schametes

STEP 3: FINANCIAL DOCUMENTS

• Opening a bank account
• Registration for VAT
• Contract for accounting and financial statements
• AML KYC CTS training
• Risk management
• Meeting with bank representatives

11 benefits of PSP license in Lithuania:

1) THEY LOVE NON-RESIDENTS

The company’s management board does not have to be residents of Lithuania

2) COMPANY REGISTRATION IN LITHUANIA AFTER…

Company formation begins only after the license has been granted.

3) SEND THE LICENSE

License application submitted without setting up a company.

4) WHAT DO I NEED TO OPEN THE FILES?

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5) ALL IN ENGLISH

Preparation of documentation in English

6) IBAN

Access to the IBAN system – every customer will receive an IBAN account.

7) PSD2

Implementation of PSD2 enabling payment initiation service (PIS) and account information service (AIS).

8) REMOTE KYC AML VERIFICATION

Remote KYC customer verification thanks to automated technologies. The customer does not have to come to the facility to open an account – examples of Lithuanian websites are: Paysera or Mistertango.

9) SEPA SCHEME

Direct access to the single payment area in EUR in the SEPA system

10) GATE TO ALL EU COUNTIRES

Do business throughout the European Union based on one license issued by a Lithuanian bank. Did you know that Google also has a Lithuanian license

11) NO FINANCIAL PENALTIES IN THE FIRST YEAR

No financial penalties for the first year for minor infringements of entrepreneurs operating on the regulated market.

Our fees

You will be charged for the plan after the admin approves your vendor account.