Since the enactment of the EU’s Electronic Money Regulations and Payment Services Directives, Lithuania has made substantial efforts to become a fintech hub.
The Baltic nation is the most prolific EU member state, when it comes to Electronic Money Institutions (EMIs) and Payment Institutions (PIs), with hundreds of licensed companies operating in the jurisdiction and some of the quicker licensing processes in Europe.
For instance, the (Central) Bank of Lithuania developed and established CENTROlink, a payment system available for all electronic money institutions so they can have direct access to SEPA payment processing, have their own BIC and ability to issue IBANs - without the need for a correspondent commercial bank. The ability for electronic and payment institutions to provide EUR payment services without the need to go through intermediary banks is only available in Lithuania.
Another factor behind Lithuania’s rise in the fintech world has been the speed and efficiency of its licensing processes. The Bank of Lithuania is known for its responsiveness which has led to one of the fastest EMI and PIs licensing processes in the EU.
Both high-profile fintech companies and numerous other fintech startups have chosen Lithuania for their financial services licenses, especially since London was left out of the European Union’s single market due to Brexit. For instance, large and well-known digital banking operators such as Revolut and N26, and more than 250 EMIs and PIs have chosen Lithuania.
The country has also been particularly welcoming to the crypto-asset industry, with numerous crypto-asset exchanges, wallets, and payment platforms obtaining licenses to operate within Lithuania. In fact, Lithuanian is one of the jurisdictions where companies in the blockchain and crypto asset industry may find a greater variety of financial institutions willing to serve them.
EMIs in Lithuania provide services to pretty much all industries one can think of, including but not limited to cryptocurrency and blockchain, e-commerce, payment processing, digital wallets, remittances, online marketplaces, peer-to-peer lending, crowdfunding platforms, insure tech, gaming, travel, subscription-based services, digital content platforms (such as streaming services), real estate tech, logistics, gig economy platforms, online education, health tech, wealth management, robo-advisors, Buy Now Pay Later (BNPL) services, and many more.
As digital-only financial service providers, Lithuanian EMIs understand online businesses. For instance, they do not generally have any requirements related to economic substance and physical presence, which makes it attractive for those startups that operate in a remote and distributed manner without a fixed physical location. The aforementioned is in contrast with most European Union’s “brick and mortar banks”, which generally onboard foreign-owned companies as long as those companies have a physical presence, as explained below.
From a traditional banking perspective, Lithuania's banking sector is dominated by several key players, including SEB Bank, Swedbank, Luminor Bank, Šiaulių Bank, and Medicinos Bankas. Many of these banks, such as SEB and Swedbank, are owned by Scandinavian banking groups.
Brick-and-mortar banks in Lithuania do onboard non-resident companies or nonresident-owned companies, but substantial activity requirements apply. Non-resident clients, both individuals and companies, typically need to demonstrate physical operations in an EU country and have commercial or operational rationale for banking in Lithuania.
Our services in Lithuania focus on assisting non-residents with opening corporate and personal accounts in Lithuanian banks and EMIs. This includes companies incorporated in offshore jurisdictions covering a wide range of business activities, including those considered high-risk such as businesses in the cryptocurrency and blockchain industries.
We work with 2 different banks in Lithuania, each bank has different eligibility requirements, types of accounts available and onboarding processes.
We invite you to carefully review each banks requirements and services to better understand if their banking services meet your needs.
The Republic of Lithuania, situated in the Baltic region of Europe, stands as a testament to resilience and progress since gaining independence from the Soviet Union in 1990. Having joined the European Union (EU) and NATO in 2004, Lithuania has become a key player in the European political and economic landscape. Bordered by Latvia to the north, Belarus to the east, Poland to the south, and the Baltic Sea to the west, Lithuania boasts a strategic geopolitical positioning.
Home to approximately 2.8 million people, Lithuania's capital and largest city is Vilnius. The official language is Lithuanian, but there are also communities that communicate in Russian.
The adoption of the euro (EUR) in 2015 replaced the Lithuanian litas (LTL) as the official currency, contributing to the country's economic cohesion with the Eurozone. Lithuania's commitment to responsible fiscal policies is evident, with public debt maintained at a prudent level relative to its GDP.
Lithuania has positioned itself as an attractive destination for tech-related industries, showcasing strengths in areas such as fintech, cybersecurity, software development, and systems integration. The nation's telecommunication and digital infrastructure provide a solid foundation for businesses, both domestic and international, seeking to leverage cutting-edge technologies.
In the spirit of fostering global connections, Lithuania has embraced the concept of e-residency. This innovative approach allows non-residents to obtain a digital identity card, facilitating access to a range of online services provided by the Lithuanian government.
In recent years, Lithuania has taken steps to enhance its business-friendly environment. The registration of companies is a streamlined process, allowing non-residents to establish businesses efficiently. The nation's tax system is designed to encourage investment, with favorable conditions for reinvested profits. These factors have positioned Lithuania as an attractive destination for both local and international businesses.
Lithuania's commitment to economic liberalism, coupled with its technological prowess and strategic geographical location, positions the country as an emerging force in the European economic landscape. As Lithuania continues to harness innovation, embrace digital transformation, and cultivate a favorable business environment, it stands poised to make significant contributions to the global economy.
Our banking support service is not just a mere introduction to the bank. We assist you in filling out the business questionnaires appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application. Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal 'back and forth' and a smooth account opening process.
Bank Account opening requirements are subject to change at the discretion of the bank. There might be additional fees charged by the bank itself. Bank account opening is not guaranteed and is subject to the bank policies and compliance department. There might be restrictions on UBO nationalities, business activities and/or jurisdictions. A refund is available if the account is not successfully opened subject to our terms of service (30% to partly cover service and payment processing and administrative costs apply).