Payment System License in Lithuania
If a legal entity registered in Lithuania plans to provide payment services to clients, it must obtain the appropriate authorization from the regulatory authorities. Often, companies apply for an EMI license, which gives entrepreneurs the right to issue their own electronic money, perform various payments, and more.
In Lithuania, a payment system (PS) license is a document issued to companies for an indefinite term. Licensed entities can provide their services across the entire European Economic Area without the need to obtain additional licenses in individual countries.
Why obtain a payment system license in Lithuania: advantages of licensing
Obtaining a PS license in Lithuania offers the following advantages for business owners:
- A relatively straightforward licensing procedure.
- Corporate tax, state duties, and mandatory annual fees are among the lowest in the EU. There are no municipal charges.
- A payment system license in Lithuania allows participation in SEPA (Single Euro Payments Area). In this zone, the distinction between domestic and international EUR payments is eliminated. This improves the efficiency of cross-border transactions and fosters the integration of national markets across countries: and a Lithuanian PS license grants access to all these benefits.
Another notable advantage is the ability to apply for a license without initially creating a company. If the license is granted, the applicant must register the appropriate legal entity within 6 months. This means that companies are not required to freeze assets in share capital until licensing is successfully completed and business activities begin.
What a payment system license in Lithuania provides
A licensed PS gains numerous opportunities and the right to provide a wide range of services:
- Issuing various payment instruments;
- Processing money transfers;
- Carrying out different types of payment operations, e.g., to a client’s account or to a supplier’s account;
- Providing clients with IBAN accounts;
- Accepting payments from international accounts within the SWIFT system, and much more.
Requirements for obtaining a payment system license in Lithuania
Before applying, legal entities must meet the following requirements:
- Minimum share capital: from EUR 350,000;
- Availability of documents confirming the source of funds;
- No restrictions imposed by Lithuanian or EU regulators;
- A physical office located in Lithuania.
When applying for a payment system license in Lithuania, the applicant must prepare a large set of documents, including a business plan, company structure description, and more. Errors during preparation or submission, or the need to provide additional documents, will extend the licensing timeline.
Usually, obtaining a license takes about 3 months; if extended, up to 6 months. To simplify the process and minimize the risk of rejection, contact our company. We will handle all necessary actions and prepare the documents for licensing your PS.
Free initial consultation on legal issues related to the daily activities of the business
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Our team will handle all legal formalities, prepare the required documents, and open a payment system account for you. We work with payment systems from the EU, USA, Hong Kong, Singapore, and other countries.
learn moreFrequently Asked Questions:
To obtain a payment system license in Lithuania, you must prepare a business plan, AML policy, and other documents, register a company, and hire specialists for mandatory positions (director, AML officer, etc.). A bank account and paid-up share capital are also essential elements for obtaining the license.
When choosing a payment system, it is necessary to consider its license, service coverage regions, and available payment methods. The system must also match the company’s characteristics (country of registration, residency of participants, etc.). The tariffs offered by the payment system are also an important factor.
If all requirements for maintaining the company are met, the license is indefinite. However, it may be revoked in case of prolonged inactivity and/or violations of operational rules.
The final cost of obtaining a payment system license in Lithuania depends on various factors (the target region of the payment system, projected turnover, etc.). You can find out the exact cost by consulting our specialists.
