How to Acquire a Cryptocurrency License in LithuaniaOct 26, 2022, 2:06PM
Registering a company and obtaining a crypto license in Lithuania can be rather complex and not every business is qualified.
How to Register and Manage a Local Legal Entity
The process of registering a company, obtaining a Lithuania crypto license, and successfully running a profitable business can be rather complex and not every business is qualified to do so. The solution is to utilize the services of third-party businesses that specialize in establishing and managing local legal entities in Lithuania. If you want to cut costs, at least hire this kind of company for the first stages of company creation. This is the most difficult stage of the entire process, and some mistakes can be made that can either slow down or stall a company. Therefore, if you want to maximize the benefits of choosing Lithuania as your jurisdiction, hire a licensed specialist.
How to Open a Local Office (No Physical Office Required) with a ZIP Code
There's a strict requirement to have a physical address for every company working in Lithuania. However, it's possible to create a virtual office at a low cost. Once again, many reputable businesses are offering their services online. For example, you could open a virtual office through a local or international company that helps other companies create legal entities. That way, you can circumvent the additional hassle, and the costs will be minimal. If you choose to do this independently, there is enough information regarding precise requirements and the process on the official websites.
How to Open a Corporate Bank Account in Lithuania
A company operating out of Lithuania does need to have a local bank account to operate. Even though a Lithuanian citizen can open a bank account in a matter of minutes, the process is much more complex for a foreigner. You will have to provide a lot of paperwork detailing your identity, your name, and your business activities. You should also have proof of the validity of authorized capital along with other business-related documents. This will ensure your company can operate in Lithuania. The decision will be reached in five business days, approximately.
How to Register Company Information in Lithuanian Registers
This country's center of registers is a state-backed body that catalogs and archives all the information regarding companies. The registration and disclosure of the information can be done virtually. Each new business has to meet registration requirements in order to be added to the main registry. For instance, the required paperwork for company creation includes the following:
- ID copies for key personnel;
- Proof of residence (outside of details);
- Contact details;
- Details for online identity verification;
- Company name and description;
- Company membership details.
That's just a short list of the required documents. However, there's a lot of overlap with requirements across Europe, so you're not in for a surprise.
How to Prepare Information About Company Officials
To successfully register a company in this jurisdiction, you must provide important data regarding key employees. Here are a few of the documents that will need to be submitted to the appropriate governing bodies:
- Copies of IDs (apostilled)
- Proof of no criminal record
- Proof of qualification in the field of digital currencies
The process of preparing these documents may vary slightly depending on the initial jurisdiction but usually doesn't pose a problem for citizens. If the documents are all in order, Lithuanian authorities will quickly approve the document, and you'll be added to the company directory.
What Documents Are Required to Confirm the Official Origin of Funds?
It's mandatory for all companies based out of Lithuania to share previous tax statements or other documents corroborating the origins of their capital. In addition, the documents will be cross-checked against the official databases before any decision is reached. As you know, Lithuania prides itself on economic safety and transparency, and a company is required to keep records of the finances related to it. If the documents are in order, you're good to go. The verification process might seem strict at first, but there's nothing to worry about if the funds that will be used as the initial budget were acquired via fully legal means, be it business activity in your country, payments from the government, or donations.
How to Apply to the Lithuanian Tax Service for a Permit
Every company has to have a valid tax ID to carry out business activities, including running a cryptocurrency exchange. You will have to get in touch with the tax agency to register your company, but it's a straightforward process. The governing body that needs to be contacted is called the National Revenue Administration. It operates under the Ministry of Finance of the Republic of Lithuania. All the up-to-date information regarding the registration process can be found on either the official website of the Tax Department or on the government portal where all forms must be filed. There are certain intricacies of your registration that will vary depending on your economic activity. If it's a retail service, the process of applying for a tax permit and adhering to the current financial reporting is relatively simple. For the crypto businesses, it might be more complex.
How to Pay State Fees
At the time of writing, you are required to pay a state fee of approximately EUR 57 in order to set up an LLC. There are also notary fees that can cost anywhere between EUR 100-232. Additional translation services will probably be required and can also have a major influence on the final cost. Even though the cost of creating a business is relatively low when compared to other European countries, there's still a question of how to pay the fees. All fees can be paid via online banking. You can also use cash. The Lithuanian government makes it easy for the citizens and foreign investors to manage this process.
How Long Does it Take to Get a License?
The timeframe might differ significantly based on the initial circumstances of the company. Also, people that choose to enlist the help of a professional attorney or a 3rd-party company that specializes in creating businesses usually take much shorter to get a license. At the end of the day, it's all about whether or not you choose to spend the initial funds on speeding up and simplifying the process or start the process from scratch and risk prolonging the process.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.