Source:theparliamentmagazine.eu

Currently, there are 100+ Fintech-type companies operating on foreign capital in the territory of the Lithuanian jurisdiction. The popularity of Lithuania in this regard is due to the fast procedure for obtaining a permit, a loyal regulatory framework and an excellent infrastructure. When deciding to open a financial business, you should pay attention to a ready EMI license – the acquisition of an institution already configured for operation will allow you to avoid all sorts of unpleasant nuances of registration and significantly save time. Please visit this website to find out more about ready companies and license.

There are 28 states within the EU single market; there are about 500 million consumers and more than 21 million companies. Now, this market is one of the largest global points in which there are no duties, internal barriers and tariffs. This is why the European Union as a whole is the largest trading bloc in terms of its size, accounting for about 17% of global exports and imports. One of the fundamental principles is free trade between EU members, as well as a total commitment to general liberalization. Among other things, the EU is considered one of the largest exporters in the world, supplying manufactured goods, as well as an importer for 100+ countries.

Financial institutions such as banking, digital money and payment field service providers, insurance companies, investment managers, funds and brokerage organizations are subject to the strictest regulations. This is done in order to properly manage risk. A license permit is required in virtually every jurisdiction. Moreover, obtaining such a license gives its owner the opportunity to offer services in all member states of the EU economic zone, which also implies the right to enjoy all the advantages of the single market.

A company like Fintech or any institution operating in a financial environment licensed and registered by an EU state, can gain access to the single market, while incurring significantly lower costs and operating expenses. In addition, the company has a good chance to operate in a stable regulatory environment, with a well-functioning infrastructure and a wonderful ecosystem (especially foreign investors).

What Is Special about the EU Single Market for Entrepreneurs in General and the Financial Sector in Particular?

Source:prezi.com

Attractive conditions have been created in Lithuania for starting and developing a business. The country is part of the European Union, is developing steadily and confidently, adopting the positive experience of the market leaders. The fact of the rapid growth of GDP recorded over the past two years speaks volumes. A wise entrepreneur does not limit himself to geographic boundaries, he looks beyond them. If you want to reach a new level by choosing favorable conditions for your development – financial analysts recommend opening or buying a company in Lithuania.

Through the provisions of the EU directives, a unified regulatory framework was formed for the entire European space. These provisions apply in each of the EU member states. Therefore, among the services that a financial-type company has the right to provide in the EU, some of the following can be distinguished:

  • standard banking services, which are fixed in a specialized banking license;
  • process payment transactions;
  • act as an issuer of payment instruments;
  • provide advice on investment and brokerage services;
  • advise clients on transactions with securities;
  • distribute and exercise control over investment-type funds in accordance with the license;
  • act as a provider of insurance and reinsurance services for companies.

Now, the EU Commission is implementing an initiative to promote the European space as an excellent environment for launching startups. This is done through the introduction of new regulations regarding crowdfunding. For this, the commission proposed a project, by the provisions of which crowdfunding companies gain access to consumers located within the entire European Union – and this will require only one license obtained in one of the EU countries.

The mode of one license permit, operating in the EU market, is actively used by companies that supply financial services in China and other states of Southeast Asia, which seek to enter the vastness of the European market.

Below are the factors that determine the popularity of the Lithuanian jurisdiction as one of the best financial spaces in the EU.

Source:freemanlaw.com
  1. A regulatory strategy that focuses on commercial activity and minimizes the time it takes to issue licenses.
  2. Lithuania does not put forward requirements for the representatives of the top management of the company to have a place of residence within Lithuania or Europe itself.
  3. An application for a permit can be submitted without creating an organization. The company will be registered only after an appropriate decision has been made regarding the approval of the issuance of a license permit.
  4. Documentation can be submitted in English.
  5. Companies of a non-bank type can receive codes for the formation of IBAN and SEPA accounts through the Main Lithuanian Bank.
  6. The client can be verified remotely, which makes it possible to open an account for the consumer without having to call him to the bank personally.
  7. Granting a special start visa for citizens of those states that are not EU members and do business within the Lithuanian jurisdiction. In Lithuania, the outflow of young people continues, so the government is pursuing a policy of returning those who left and creating conditions for immigration. Nowadays young people often leave to study in other countries (for example, Great Britain is popular), but after receiving a diploma, they usually plan to return back.

In Lithuania it is easier to make settlements, use various payment systems and trading platforms, there are no currency restrictions. Among the tax preferences for Lithuanian companies, there is an opportunity to trade with all EU countries with zero VAT. However, here it should be especially specified that a company opened in Lithuania should be engaged in real activities. The days when “shelf” companies were created exclusively for conducting financial transactions are over. In addition, opening a bank account is not as easy now as it was some time ago. Without real activity and an office, this is almost impossible.

Source:freepik.com

Thus, Lithuania is a fairly attractive European platform for doing financial business. If you intend to take this commercial trail, you should pay attention to this state. You will definitely appreciate all the benefits.