Electronic Money Institution
EMI license in Lithuania is a profitable tool, increasing the prospects of your business's growth and development
Allowed activities
Payment services/money remittanceIn and out
Fiat currency exchange
Issuance of E-moneyOpening multicurrency accounts, e-wallets
Lending to businesses and individual
Deposits to businesses and individuals
Investment services, clearing, securities emissions
EU Passporting to provide services in all EU countries
Payments System by Central BankFor EUR settlement in SEPA area
Why EMI
Every company engaged in issuing electronic currency in Lithuania must obtain an EMI license to legally operate in this jurisdiction. Having a license will allow offline/online payments, providing sub-accounts within a bank account, creating electronic wallets, providing individual IBANs, and transferring money to foreign accounts.
Holders of a Lithuanian license are allowed to provide the above services in the European Economic Area (EEA) without having to obtain an additional license in another EEA state. This license is passported for these activities, which allows you to work in other states. In addition, an entrepreneur may obtain a limited EMI license and provide its services only in Lithuania. In this case, certain restrictions may apply to the company's turnover.
Advantages of a Lithuanian EMI license
- Relatively fast and simple procedure for obtaining an EMI license.
- Customers can obtain a personal IBAN
- Possibility of SWIFT transfers
- Remote opening of payment accounts for individuals and legal entities
- The company can issue Visa or MasterCard payment cards
- The company can transfer payments with global banks in different currencies
- The company can make its own payment decisions and open accounts. In addition, correspondent accounts around the world
- Providing services for cash deposit or withdrawal and all transactions necessary for payment account operation.
- An extremely attractive tax system with relatively low taxes ranks 6th in the international ranking of Tax competitiveness
- The duration of the license is not limited to time.
- Passporting the license to other EU countries.
- All documents can be submitted in English. In addition, the jurisdiction of Lithuania complies with EU norms and therefore does not require in-depth research.
- Ability to conduct customer checks remotely as part of KYC procedures, through video link, digital signature, or electronic copies of documentation.
- Virtually no fines in the first year of the institution
Requirements table
| Share capital | The minimum share capital of 350,000 euros (no share capital requirement for a restricted license) |
| Finances origin | Proof of origin and receipt of finances are required |
| Office | Opening of a local office is required |
| Bank account | Lithuanian bank account must be opened |
| AML | Eligible AML officer should be available |
| Reputation | Impeccable reputation of the companys beneficiaries |
| Education | A director or manager must have higher education in law or economics, management or business administration, and have an impeccable reputation, competence, and practical experience as the head of the institution. |
| Residency | There must be at least one individual among the shareholders, Lithuanian residency is not required. The main requirement is the age over 18 and impeccable business reputation. |
Documents table
| Documents |
|---|
| Charter of the payment institution |
| Corporate documents |
| Company requisites |
| Detailed business plan |
| Action program and activity structure |
| Proof of minimum share capital |
| Bank account |
| Founders passports and certificate of registration |
| A detailed description of the generally accepted measures to protect and regulate clients funds |
| Local office lease agreement |
| Criminal records of all beneficiaries |
| Description of the use of internal management controls, including administrative procedures, risk management procedures, and accounting procedures |
| Description of the internal management control mechanism for the performance of duties to prevent money laundering and terrorist financing |
| Description of company policies: customer funds protection measures, risk and accounting controls, AML, organizational structures, and branches |
Detailed roadmap
For example, if you make a prepayment tomorrow 31.10.2023
Preliminary assessment of the project
Preliminary analysis of the client prepares for the initial meeting with the Bank of Lithuania, which includes:- Analysis of the documents that client have on hands
- Preparation of materials for the meeting with the Bank of Lithuania
- Preparation for initial meeting with representatives of the Bank of Lithuania
- Representing the client on the initial meeting with the bank of Lithuania
~3 weeks21.11.2023Pre-Licensing process
After the successful meeting with Bank of Lithuania conducts pre-licensing process which includes the following:- General consulting regarding the EMI licensing process
- Initial assessment for infrastructure require
- Preparation of (a) Business plan (b) Program of Operations (c) preliminary Financial Forecasts
- Shareholders and Group Companies Due Diligence
- Local Company Formation and assistance with Bank account opening for share capital contribution
- Human resource (at least 4 employees shall be in Lithuania) -assistance in essential staff recruitment process; drafting employment agreements
- Premises search (HQ should be based in Lithuania)
~2 months30.01.2024Licensing
Preparation of legal, financial and IT documents (non-exhaustive list):- Description of the Management Structure
- Compliance documentation (AML/KYC/KYT etc.)
- Financial documentation and forecasts
- Operational Risk Procedures
- IT Procedures
Application for the license- Submission of the application for the license
- Representation and guiding through the entire licensing process
- Payment of the state fees
~4 months8.06.2024Infrastructure set-up
The stage is necessary for the license holder to be fully operative and be capable of initiating activity. Deliverables include the following:- Setup of IT Systems -mediation in finding an IT system supplier and/ or facilitation of IT; system development to meet EMI License requirements
- Compliance – consulting and training of employees on KYC process, AML and terrorist financing check tools according to the specs of the project
- Banking Partner – to meet the requirements on clients funds segregation, provide FX and/or cross-border transfers, and other financial services
~2 months18.07.2024Maintenance and add-ons
This stage is necessary to support and maintain the structure and includes:- Accounting services
- Auditing
- Opening of safeguarding accounts
- Connection to SWIFT payment scheme
- Agreement for the issuing own brand MasterCard cards
- BIC/SWIFT and LEI codes acquisition
- Reporting to Central Bank on the regularly basis
- Applying for activity in other jurisdictions (incl. passporting)
- Consulting on the arising issues from Central Bank
18.07.2024
All indicated time frames are illustrative. The timing may depend on many factors, such as but not limited to: the number of public holidays, the time of delivery by courier, the workload of government departments. We do not take responsibility for the delays beyond our control.
Extra services
ConsultationAdditional consultation regarding the best practices in business activity and taxes in a selected jurisdiction.1 hour150€3 hours400€10 hours1,050€
In total
Basic cost:
45,000€Additional services:
0€
Total:
from 45,000€
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