Get a Lithuania EMI License

Advantages of working with Prifinance:

Advantages of PI and EMI licenses in Lithuania

Lithuania has become one of Europe’s leading jurisdictions for fintech development, attracting both startups and established companies. Below are the key benefits of obtaining an EMI or PI license in Lithuania.

1. Strategic access to the EU market
   • The EMI license grants full passporting rights across the European Economic Area (EEA).
   • Licensed institutions can provide payment services in all EU countries without needing additional local authorizations.
2. Progressive regulatory environment
   • The Bank of Lithuania acts as a single regulator, ensuring a transparent and compliance-oriented licensing process.
   • The regulator is known for its support of fintech innovation, including crypto-related projects under proper AML and KYC supervision.
3. Efficient licensing procedures
   • The application process is faster than in many other EU member states, typically taking 6–9 months.
   • The regulator provides structured guidance throughout the application process, ensuring clarity and predictability of requirements.
4. Cost efficiency
   • Licensing and operational costs are lower compared to traditional financial hubs like Luxembourg or Ireland.
   • Lithuania offers tax incentives for some innovative fintech companies and a startup-friendly environment.
5. Qualified workforce and fintech ecosystem
   • A highly skilled talent pool in finance, IT, and compliance.
   • Lithuania has built one of the most dynamic fintech ecosystems in the EU, with over 300 active fintech entities operating in Vilnius.
6. Reputation and international recognition
   • Lithuania is recognized as the second-largest hub in the EU in terms of issued EMI licenses.
   • This strong reputation boosts trust and credibility when working with foreign partners, investors, and international clients.

Comparison of EMI and PI licenses in Lithuania with other leading jurisdictions

When evaluating EMI or PI licenses, investors and companies often compare Lithuania with major jurisdictions such as Ireland, Luxembourg, Estonia, Poland, and the United Kingdom.

1. Ireland and Luxembourg: Licensing cost and timeframe
   • Ireland and Luxembourg are prestigious financial hubs, but their licensing processes are more complex and significantly more expensive.
   • Approval timelines often exceed 12–18 months, compared to 6–9 months in Lithuania.
   • Lithuania offers the same EU passporting rights at a much lower cost.
2. Estonia: Regulation and reliability
   • Estonia is known for its e-residency program and advanced digital infrastructure, but in recent years, its regulator has tightened rules for electronic money and crypto companies.
   • Lithuania provides a more predictable compliance framework and enjoys stronger international trust.
3. Poland: Requirements and market standing
   • Both Lithuania and Poland are attractive to payment providers in Central Europe.
   • Lithuania has issued more EMI licenses, positioning itself as the regional fintech leader.
   • Licensing requirements in Poland are more formal and involve longer application reviews.
4. United Kingdom: Brexit impact and EU market access
   • The UK remains a major global financial center, but after Brexit, UK-based firms no longer have passporting rights within the EU.
   • Lithuania provides direct access to all EU markets, which is crucial for cross-border operations and scaling.

Requirements for obtaining EMI and PI licenses in Lithuania

To obtain an EMI (Electronic Money Institution) or PI (Payment Institution) license, a company must meet strict standards designed to ensure financial stability, consumer protection, and full AML/KYC compliance.

The Law governs the legal framework for EMI/PI activities in Lithuania on Electronic Money and Electronic Money Institutions of the Republic of Lithuania.

1. Corporate structure and management
   • Establish a Lithuanian legal entity with a registered office.
   • Appoint at least two experienced directors responsible for strategic and operational management.
   • Appoint a Compliance Officer with proven expertise in AML, KYC, and risk assessment.
   • Disclose beneficial ownership and ultimate control structure in official documentation.
2. Capital requirements
   • PI: initial capital between EUR 20,000 and EUR 125,000, depending on the type of payment activity.
   • EMI: minimum initial capital of EUR 350,000.
   • The institution must maintain sufficient financial resources to cover operational costs and potential financial risks.
3. Compliance framework
   • Develop internal AML/KYC/anti–money laundering policies and transaction monitoring procedures.
   • Implement IT systems capable of tracking transactions, preventing fraud, and maintaining regulatory reporting.
   • Establish risk management procedures to ensure the safeguarding of client funds and secure data storage.
4. Documentation and application process
   • Apply for a detailed business plan, operational forecasts, financial statements, and compliance manuals.
   • Demonstrate financial capability and the sustainability of the business model.
   • Upon approval, the company is entered into the official register of licensed financial service providers in Lithuania.
5. Ongoing requirements
   • Submit annual audited reports to the regulator.
   • Maintain proper accounting, including detailed logs of operations, transactions, and AML reviews.
   • Ensure continuous compliance with Lithuanian law, EU regulations, and the supervisory guidelines of the Bank of Lithuania.

Process of obtaining PI and EMI licenses in Lithuania

The licensing process in Lithuania is regarded as one of the most efficient in the EU, especially for fintech companies seeking to obtain an EMI or PI license.

Stage 1. Preparation

• Conduct an internal assessment of the business model and planned activities.
• Develop AML/KYC/anti-money laundering policies and an internal compliance framework.
• Prepare financial forecasts, risk documentation, and collect all required materials.

Stage 2. Application submission

• Submit the full documentation package to the Bank of Lithuania.
• Appoint key personnel: directors, a compliance officer, and core operational staff.
• Open local bank accounts and register the legal entity.

Stage 3. Regulatory review

• The regulator reviews the application to verify compliance with Lithuanian and EU legislation.
• Additional clarifications or documents may be requested.
• The company must demonstrate its ability to effectively meet AML, KYC, and reporting obligations.

Stage 4. License approval and registration

• Upon approval, the institution is entered into the official register of licensed payment and e-money providers.
• The company can immediately begin offering payment services, issuing electronic money, and executing client transactions.

Without specialized support, the process often becomes prolonged and requires multiple revisions.

At Prifinance, we prepare the complete documentation package, develop AML policies tailored to your business, and handle all communication with regulators and banks. This approach shortens review times, minimizes the risk of rejection, and allows you to focus on your product instead of bureaucracy.

Taxation of licensed companies in Lithuania

Lithuania offers a transparent and competitive tax system aligned with EU legislation, making it an attractive jurisdiction for foreign and international fintech providers.

1. Corporate income tax (CIT)
   • The standard corporate income tax rate is 15%.
   • A reduced 5% rate may apply to small companies that meet specific requirements related to annual turnover and number of employees.
   • Certain reinvested profits may be exempt from taxation under Lithuania’s innovation support policy.
2. Value-added tax (VAT)
   • The standard VAT rate is 21%.
   • Many financial services, including payment services and electronic money issuance, are VAT-exempt.
   • Exemptions also apply to certain cryptocurrency and virtual currency exchange operations, provided AML and compliance standards are met.
3. Withholding taxes
   • Dividends: subject to a 15% withholding tax, which may be reduced or eliminated under double taxation treaties or EU directives.
   • Interest and royalties: generally taxed at 10%, but reductions may apply where tax treaties are in force.
4. Compliance and reporting obligations
   • Licensed institutions must maintain proper accounting records and submit annual audited financial reports.
   • Keep detailed records of all transactions, AML checks, and risk assessment procedures.
   • Provide periodic reports to the regulator on financial stability, funds, and client-related operations.
5. Key advantages of Lithuania’s tax regime
   • Competitive tax rates compared to other EU jurisdictions (e.g., Ireland, Germany, Luxembourg).
   • Business-friendly system supporting fintech, crypto, and digital payment companies.
   • Legal certainty through adherence to EU legislation and transparent regulatory standards.

The tax burden depends on the jurisdiction and the company’s legal structure. Prifinance analyzes your case and designs the optimal tax strategy, taking into account local regulations and your business objectives.

Timeframe and cost

License acquisition timeframe: 6–12 months, depending on the jurisdiction, completeness of documentation, business model, and speed of opening bank accounts.

What the cost includes:

1. Government fees;
2. Minimum capital requirement;
3. Legal services;
4. Notarial services, translations, and apostilles;
5. IT and compliance systems;
6. Audit services;
7. Bank fees.

The exact cost is calculated individually. We provide a detailed estimate and optimize expenses to help you avoid unnecessary costs.

Our experts

The Prifinance team manages each project comprehensively and individually, from analyzing the business model to registration in the official registry. Our lawyers’ extensive experience significantly reduces licensing time and minimizes the risk of rejection.

Each client receives a tailored compliance strategy and a solid operational foundation for sustainable, long-term market activity.