Companies involved in electronic money activities, such as digital wallets, payment gateways, prepaid cards and other types of payment services providers, have to obtain an EMI license in Lithuania, if they want to operate in this country.
The EMI (Electronic Money Institution) license is obtained solely through the Bank of Lithuania, provided that the applicant complies with the minimum requirements imposed by the law. Our team of specialists in company formation in Lithuania can help businesses prepare the application file.
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What are the conditions for obtaining an EMI license in Lithuania?
For investors interested in Lithuania company formation in the e-money industry, besides the standard incorporation process, many procedures have to be completed for the issuance of the EMI license.
Please know that it is mandatory to be the holder of an EMI license in Lithuania in order to have the right to perform any business activity. According to the Bank of Lithuania, business owners should meet the following:
- the license is required for activities that are specified under the Article 5 of the Republic of Lithuania Law on Payments;
- it is necessary to make the proof of having a minimum capital of EUR 350,000 in order to obtain the EMI in Lithuania;
- the application involves the payment of a license fee, currently charged at a fixed rate of EUR 1,463, charged by the State Tax Inspectorate;
- other fees and their value are established under the Resolution No 1458 of the Government of the Republic of Lithuania of 15 December 2000 (EMI license for restricted activities costs EUR 1,235);
- for the license which grants the right to develop unrestricted activities, companies must prepare an application file as per the rules of the Annex 1 to the Rules on the Licensing of Electronic Money and Payment Institutions, while for restricted activities, the file must contain the documents stipulated under the Annex 3).
Overall, there are 13 rules of law which govern the manner in which one can obtain an EMI license in Lithuania, for restricted and unrestricted activities. Our team can offer the necessary support in order to navigate the legislation applicable to each individual case. These laws guarantee the right of developing these activities in Lithuania, as well as in other EU member states.
Our consultants can offer in-depth information on the 2 categories of activities (restricted and unrestricted). You can also rely on our team for legal representation during the process of company registration in Lithuania.
Financial requirements for restricted EMI activities in Lithuania
Investors who want to open a company in Lithuania and need an EMI license for a restricted activity do not abide by the above-mentioned rule concerning capital (EUR 350,000). Instead, the company is exempted from this and may develop its activities and apply for the license at a later date.
The exemption applies when the average outstanding digital money of the EMI does not exceed EUR 900,000 per month for a period of 6 months. Provided that the company exceeds this threshold, the application to obtain an EMI license in Lithuania must be initiated.
We mention that there is an exemption from this rule, as stipulated by Paragraph 7 of Article 12 of the Law on Electronic Money and Electronic Money Institutions. Companies that do need to apply for the restricted activities EMI license must initiate the procedure within 30 days since the threshold has been reached.
Our team of consultants in Lithuanian company formation can help clients find out more on the types of restricted activities available here and the licensing process applicable to them. The issuance of the license falls under the responsibility of the Bank of Lithuania as well.
What is the EMI license application process?
In order to apply for an EMI license in Lithuania, company owners must first establish a meeting with the bank’s representatives, where the 2 parties can discuss on whether the company can be licensed, the potential risks and other matters that can be of interest.
Provided that there is a real possibility to be licensed in this sector, the company can easily start the application process, by addressing the Supervision Service, a division of the Bank of Lithuania.
When this process is started, the company owners must prepare all the documentation required, which will be reviewed by the Supervision Service within 5 days since the documents were submitted. In the case in which there aren’t any formal issues with the application, the applicant can obtain the EMI license in Lithuania in 3 months.
The 3 months term applies for those who will develop unrestricted activities, while for those engaging in restricted activities, the license can be obtained in only 2 months. The procedure is extensive and it contains main procedures and therefore, legal assistance given by our team is always recommended. The main steps of the EMI licensing are:
- meeting with the applicant;
- the submission of the application;
- the first assessment of the application;
- the applicant can then address comments, questions to the bank’s representatives;
- the second assessment of the application;
- the 2nd round of questions, comments, submitted by the applicant (he/she can request an extension of the deadline);
- the last assessment round;
- the decision to issue the EMI license in Lithuania.
Please know that the 8th step can also result in the rejection of the issuance of this type of license, provided that the bank’s representatives are not satisfied with the overall application documentation and/or the grounds presented by the applicants for the issuance of the documents.
What are the main documents required for an EMI license?
There are many documents the applicant must prepare, but some of the most important are:
- the business plan;
- the evidence on the payment of the required capital;
- the application for the license;
- the proof of having an official business address (mandatory for all businessmen who open a company in Lithuania).
Investors must also prepare documentation concerning the company’s internal policies, among many others. For more details concerning the application file and the application process for an EMI license in Lithuania, we invite you to contact our specialists, who can help you open a Lithuanian company as well.