FINANCIAL LICESNE / FINTECH LICENSING

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UK financial institutions will lose EU “passporting rights” after the BREXIT, EU chief negotiator Michel Barnier says

23-11-2017 “BREXIT means BREXIT, everywhere. Those who claim that the UK should pick parts of the single market must stop this contradiction. The single market is a package, with four

The Bank of Lithuania launches real time pan-European payments available for the clients of Lithuanian licensed FinTech companies

22-11-2017 The Bank of Lithuania (financial regulator) has opened up the possibility for the banks and non-banking financial institutions to offer their clients the most cutting-edge innovation in the field

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Head of the group

Inga Karulaitytė
Partner, Attorney at Law
inga.karulaityte@ecovisproventuslaw.com
+370 5 212 40 84

Finance institutions licensing in a single European market

Fintech companies, banks, electronic money institutions, payment service providers, insurance companies, investment managers and investment funds, forex dealers, securities brokers and other finance institutions in Europe are subject to higher regulation and risk management requirements. Licensing of a finance institution in one of the member states within the European Economic Area (EEA)/European Union (EU) opens up business opportunities to provide services in all other EEA/EU states, enjoy benefits of a Common Market of 500 million wealthy citizens and over 20 million businesses.

Fintech company or other finance institution registered and licensed in Lithuania provides significant competitive advantage and opens up European financial market at a significantly lower incorporation and operational costs. Favourable regulatory environment, excellent infrastructure, the fastest internet and quality talent pool make Lithuania and primarily its capital Vilnius attractive for large international finance institutions as well as Fintech start-ups.

The official policy of the Bank of Lithuania (regulator) and the Government is a creation of regulatory environment and favourable ecosystem for foreign Fintech companies, in order to attract foreign finance institutions and FinTech start-ups into Lithuania. Regulatory behaviour and significantly lower finance institution incorporation, licensing and maintenance costs is what makes Lithuania preferred jurisdiction for the finance business people from around the world, seeking licensing for their European activities.

Why ECOVIS
See the reasons why
The reasons which make ECOVIS different from other service providers
Electronic Money Institution
See main requirements
Wide range of payment services with licencing time up to 3 months
Payment Institution
See main requirements
Perfect solution for payment processing with licensing time up to 3 months and equity capital starting from EUR 20 000
Specialised Bank
See main requirements
Unique finance institution allowing almost all traditional banking services in EEA/EU with only 1 million Euro equity capital
Investment Management/Investment Fund
See main requirements
Efficient and cost effective pan-European investment management vehicle
Crowdfunding
See main requirements
Platform helping lenders to find businesses who need financing and ideal for start-ups financing
Peer to Peer
See main requirements
Platform helping lenders to find consumers who need credit – modern alternative to the bank financing
Securities Broker
See main requirements
Cost effective pan-European investment advisory and securities brokerage license
Consumer Credit Provider
See main requirements
Non-banking vehicle helping consumers find financing.
Blockchain, cryptocurrency and ICO
See main points
Licensing solutions for blockchain, cryptocurrency and ICO
Insurance Company
Key requirements
An insurance company has the right to engage in insurance activity

The reasons why Lithuania is one of the top jurisdictions in EU for Finance Institution licensing:

  • No particular requirement for company management to reside in Lithuania or Europe.
  • Application for a license submitted without establishing a company. Incorporation of the company starts only after the decision to grant the license is taken.
  • Fast licensing process. Issue of Payment or E-money institution license within period of 3 months and even faster.
  • Licensing documentation can be submitted in English and amended “on the go” instead of formal writing forth and back.
  • Possibility for non-banks get own sorting codes for IBAN client accounts generation.
  • Non-banks have direct access to SEPA through SEPA-MMS retail payment system managed by the Regulator.
  • Remote client verification. Innovative “know your customer” processes for remote client verification allows open client accounts without physical presence of the client.
  • Fast and easy license passporting procedure in to the other EU jurisdictions, taking 1 month. Regulators in other EU jurisdictions cannot raise additional requirements.
  • No regulatory sanctions for the first year. The Bank of Lithuania is committed to support start-ups and not to punish them during the first year of operation for minor infringements.
  • Start-up visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
  • Companies licensed in Lithuania allowed being direct members of the stock exchanges, depositories and clearinghouses registered in any other EU jurisdiction.
 

REFERENCES

They fully handle all aspects of financial or corporate matters
From our perspective, they fully handle all aspects of financial or corporate matters with a highly professional dedicated team. Their knowledge of the financial services industry within their local market is supporting us in our efforts across Europe. I would not hesitate in recommending ECOVIS ProventusLaw as a strong and reliable law firm for any dealings with the regulatory body in Lithuania and as a gate for the for international financial services companies to Europe.

Oliver Bellenhaus

CEO

Perfect 10/10
Always on time. Always reliable. Always professional. This is how this team works with us and deals with regulatory authorities in our sector.

Mindaugas Rizgelis

CEO of UAB Alternative payments

Working with the firm is always constructive, friendly and solution-oriented
They fully handle all aspects of financial or corporate matters with a highly professional dedicated team. Working with the firm is always constructive, friendly and solution-oriented. I would not hesitate in recommending ECOVIS ProventusLaw as a strong and offering when dealing with the regulatory body in Lithuania. Working with ECOVIS ProventusLaw we got the real international expertise brought to the local Lithuanian situation. From our advisers we got new and effective solutions to our persisting problems. That was a really new and positive experience on how to solve our legal matters.

Clients' referals on the Guide to the World's Leading Financial Law Firms IFLR1000

All FinTech team

Head of the Group, Attorney at law
Licensing and regulatory of Fintech, Payments, Electronic money, Banking
Attorney at law
Mobile payments, Data protection, Compliance, Employment, IT&IP
Attorney at law
Banking, Securities, Investment management, Investment funds, Start-ups
Senior Associate
AML, ATR, KYC, Compliance, Start-up visas
Specialized banks, AML, KYC, Compliance
Electronic money institutions, Payment institutions
Electronic money institutions, Payment institutions