With its Fintech-favorable approach, transparent legal system, and steady political regime, Lithuania has obtained the status of a new Fintech hub in the EU. It provides strong organizational active encouragement in form of policies, regulations, and monetary and non-monetary help to financial businesses in their initial year in the market. At the same time, the regulative sandbox permits businesses to launch and analyze their innovative approaches in a “live” manner provided with help of the central bank (Lietuvos bankas). One of the Fintech businesses actively capturing a share in the Lithuanian financial market is a small EMI (SEMI). To take advantage of all benefits a jurisdiction offers, a company must obtain a SEMI license in Lithuania.
Peculiarities of Fintech in Lithuanian jurisdiction
- The regulation is in the remit of the central bank which acts as a central monetary authority of the country;
- The time to acquire authorization: 3 – 6 months;
- Low operational expenses;
- The first-choice country for commercial activities in the EU for firms facing troubles due to Brexit.
- Straightforward access to SEPA and permission to offer own IBANs.
- Business-friendly jurisdiction and continuous incentives for entities.
How to get a SEMI license in Lithuania?
Licensing as a SEMI encompasses the following steps:
- Firstly, an interview is held with the Lithuanian Bank. This meeting is conducted with the purpose to clarify any issues and get informed what kind of activities the company plans to offer.
- 2nd step – creating an applicatiοn for a SEMI license to the regulative agency. The process of its procession typically lasts 5 working days, during which the regulator should notify whether all the relevant papers are included in the package. If no errors are found, the application is transferred for further assessment.
- The third phase is an assessment. The Bank checks the data and decides on the granting or refusal of authorization.
- The last thing is approval or refusal.
Overview of obligations for SEMI license in Lithuania
- Owners: the owners of a SEMI must get via checking with the CCSSO; it is a stand-alone procedure.
- Staff: The entity is necessitated to have the Board (at min. 3 directors and the CEO). It must disclose data on key employees, for example, AML officers. It is required to evidence that the team possesses good knowledge and expertise.
- Capital obligation: SEMIs do not fall within the min. initial capital condition.
Documentation for SEMI
The package of documentation for getting a SEMI license in Lithuania covers papers that:
- Prove the legal status.
- Prove the repaying fees for license.
- Show further activities.
- Prove that the average overall amount of financial liabilities related to e-money in issue will not be more than 900 000 € and the average of the foregoing year’s overall volume of transactiοns conducted by the company will not prevail at 3 million €/month.
- Describe measures to protect client’s funds.
- Describe the structure of the business.
- Internal control policies and procedures.
Our company provides professional assistance in getting a small EMI license in Lithuania. We are at your service to offer you comprehensive legal, technical, and business expertise and advisory support in licensing.