Establishing a payment institution in Lithuania
Authorization of Payment institution
Company gets the full API license and right to conduct the following activities:
- Licensed company;
- Internal regulations and procedures (AML, compliance, security)
- Hosting solution;
- Company website;
- Correspondent bank accounts;
- SaaS basic configuration, set-up fee included (CORE and WEB)*
- Software configuration and customization according to your requirements
- Integration with third party service providers
- SWIFT membership
- Connection to SWIFT and SEPA
- Co-branded cards issuance
- VISA and MasterCard membership
- Connection to the internet acquiring systems of one of our partner banks
- Implementation of internet acquiring gateway
- Opening of additional correspondent bank accounts
- Business consulting services
Lithuania - new hub for Payment Business in EU
Lithuania may be considered now as one of the best countries in the EU for establishing a payment business and acquiring an e-money or payment institution license.
Country has adopted a new state policy to attract european financial institutions transferring their activities to Lithuania, new course has become more topical against the background of Brexit and its possible consequences (expectations to lose financial passporting rights). The government has improved the legislation and regulatory environment. And it is officially declared that all european financial and payments institutions are welcomed.
Here are some of the reasons why leading financial institutions such as Western Union, Contis Group, Barclays, Revel Systems, Revolut have already decided to establish branches in Lithuania:
- Application for a license can be submitted without establishing a company.
- No particular requirements for management of payment institutions to be residents of Lithuania.
- Short timing for obtaining a license — 3-4 months. EU API-s get preliminary answers within one week before starting a full application process.
- The documents can be submitted in English.
- Commitment from Central Bank of Lithuania to support fully start-ups.
- SEPA — payment or e-money institutions established in Lithuania become members of EU Common Market and Single Euro Payments Area (SEPA) having possibility to get their own national sorting codes for IBAN accounts for their clients.
- Favourable taxes and fees. Turnover taxes and fee for the issuance of a license and annual license fees one of the lowest in the EU.
- Remote client verification: the provision of innovative ”know your customer“ processes using electronic means and via third parties.
- No municipal tax in Vilnius.
- Easy procedure to passport payment and e-money institution licence to other EU jurisdictions. The passporting to other EU countries takes from 1 to 3 months and is free of charge.
- Startup Visa. Special visas for citizens of non-EU/EEA countries, who wish to run innovative businesses in Lithuania.