Lithuania as the best country for obtaining a license

In EU countries, the number of crypto enthusiasts is snowballing, so the number of crypto organizations is increasing. Many of them prefer to get a Lithuanian crypto license, as there are no strict rules for obtaining a work permit in this jurisdiction, and there are all conditions for business development.

How to get a permit in this country?

Each jurisdiction establishes its own rules for regulating the crypto business. Some of them ban the industry entirely, while others have set rules. Among all countries in the EU, Lithuania has established clear and logical rules for regulating the industry.

To get a Lithuanian crypto license, you must complete several necessary steps. So, you must register an organization, open a bank account and pay a fee, and check the company’s readiness to obtain a work permit. The above points are of great importance, so we advise you to consider them in more detail.

To be sure that you will get a work permit, it is better to seek the help of professionals. They will help you get a turnkey license or do some of the errands you ask for.

Register an organization

First, you need to register an organization. You can do this remotely. You can submit documents electronically. It usually takes about five business days for your application to be processed.

If you want to be sure that all documents are drawn up correctly, we advise you to seek help from specialized specialists.

In some cases, it makes sense to buy an already registered organization, this can speed up the process of obtaining a permit, but such a service is more expensive.

Check compliance with regulatory requirements

Government authorities set strict requirements for companies that want to obtain a crypto exchange license in Lithuania. Particular attention should be paid to compliance with KYC and AML policies.

So, it would be best if you had robust tools to verify your customers and not provide services to people involved in fraud or money laundering.

You also need to make sure that you have a good protection of personal data and financial assets. Many exchanges are regularly hacked, and attackers want to gain access to users’ financial support or personal data to blackmail.

Please involve specialists to test your software and ensure you are ready to be tested.

cryptocurence

How to open a bank account? Do I need to pay a fee?

You must open a bank account where the company’s authorized capital will be stored. Money must be credited to the account in one payment. You can choose any bank ready to open an account for a crypto organization. It is generally accepted that such a business is risky, so you must be prepared for failure. Our specialists will help you choose the most suitable bank, depending on your preferences.

You also need to pay the fee. The amount of this is fixed, regardless of the company’s size.

Collect papers

All documents in your organization must be up to date. We advise you to invite specialized lawyers who check which documents are missing and how well the papers are drawn up correctly.

Obtaining a cryptolicense is a complex process. Government agencies will scrutinize your documents. If they notice errors, they may ask for them to be corrected, which can significantly increase the time it takes to obtain a permit.

Apply

When all the preparatory stages are over, you must apply for a Lithuania crypto exchange license. You can submit documents yourself or through a trustee. Government agencies have 2 weeks to review your application and make a decision.

How much does it cost?

The cost of obtaining a crypto license consists of three points – the size of the authorized capital, fees, and legal services.

You can ask lawyers to supervise your project entirely, or you can do some work yourself (for example, open a bank account or find an office). Thus, if you want to know the exact cost of obtaining a permit for your organization, we advise contacting specialists.

What requirements must your organization meet?

This jurisdiction does not impose complex requirements for applicant companies. Among the most important are the following:

  • Viable business plan;
  • No criminal records for all team members;
  • Authorized capital – 125 thousand euros;
  • At least one director and shareholder;
  • There should be a security specialist on staff;
  • Good protection;
  • Compliance with KYC and AML requirements.

Previously, the minimum authorized capital was 2,500 euros, but they changed and increased it to 125,000 euros this year. It makes this jurisdiction less accessible to small startups.

To work with Lithuanian cryptocurrency, you must consider the risks, evaluate them correctly and make the right decisions.

What requirements must your employees meet?

None of the team members must have a history of legal trouble. So, You must provide a certificate of a criminal record.

Also, the company’s owner must have experience in managing similar organizations and the necessary stock of knowledge. If the company’s owner is a non-resident, they must hire a resident director who will reside in that country.

Particular attention should be paid to the choice of a security specialist. This person will oversee the work of other team members and client transactions. They must prevent fraud and money laundering, prepare reports for government agencies, and much more. This specialist must have a specialized education, an excellent reputation, and experience in a similar position. It will be good if this person is a resident of the country. In addition, this specialist can combine the role of an organization’s shareholder.

Required documents

You need to collect a package of documents in advance, which will include the following papers:

  • Copies of passports;
  • Business plan, which includes a detailed description of the business model and the services you will provide;
  • CVs of all team members;
  • Website address;
  • Certificate of good conduct.

If you want to ask the specialists of our company to do all the work for you, you need to draw up a power of attorney. In this case, they will be able to act on your behalf and reduce your participation in this process to a minimum.

Reporting Requirements

The government does not set special reporting requirements for crypto companies. It would be best if you kept the accounting records the same way as all organizations in this jurisdiction do. You can create a staff of accountants within your company or outsource these services.

How is the crypto industry taxed?

The government of this country has established relatively simple rules for taxation. So, each company must pay 15% of the income. However, small companies have benefits – if your company has less than 10 employees and an annual turnover of up to 300 thousand euros, the tax rate can be reduced to 0-5%.

Cryptocurrency exchanges are not subject to VAT, but other transactions may be.

If you want to know more about this, you can contact our specialists. They will calculate how much tax you have to pay, considering your financial turnover.

Benefits of this jurisdiction

Getting a work permit in this jurisdiction has a large number of advantages, but the most important ones are:

  • Low requirements for organizations;
  • Lack of corruption and redundant bureaucracy;
  • Stable economic situation;
  • High speed of obtaining a permit;
  • Suitable for large organizations and small companies.

Getting a permit in this jurisdiction allows you to work legally throughout Europe. It makes this country very attractive to foreign investors.

The legality of the crypto business

If you want to work legally, you need to get a license. Otherwise, your company will be recognized as a fraudster, you will have to pay a fine, the site or mobile application will be blocked, and the owner may have problems with the law.

Crypto enthusiasts who store crypto-assets do not need a permit.

FAQ

Yes, you can obtain a work permit in this country, after which you can start activities legally.

Get a work permit if you register a company and pass the background check.

Yes, this country has strict rules for regulating the crypto industry. You must register a company and pay taxes regularly.

Yes, if you decide to operate without a permit, your company will automatically be recognized as a fraud, and you will get in trouble with the law.

If your organization meets the requirements of the regulatory body, then you can get a work permit within a month.

Yes, non-residents can hold a crypto license in this country, but recent legal changes require you to hire a resident director.