Set up payment institution in Lithuania with Eesti Consulting
What is called the payment institution or electronic money 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
- services enabling cash to be placed on a payment account as well as all operations necessary for operating a payment account;
- services enabling cash withdrawals from a payment account, as well as all operations required for operating a payment account;
- 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;
- 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;
- issuing and / or acquiring payment instruments;
- money orders;
- 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.
Share capital for EMI , PSP, EMONEY license
|>= 20 000 €||Not less than EUR 20,000 if the payment institution intends to provide only money transfer services – transfers – “money transfer services”|
|>= 50 000€||Not less than EUR 50,000 if the institution intends to provide payment initiation services|
|>= 125 00 €||Not less than EUR 125,000 if the institution will provide services from the following catalog*|
“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) 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.