Cryptolicense in Lithuania 2022: how to get it
Getting a cryptocurrency license in Lithuania 2022 means opening access to the EU market. The country has a high business and financial reputation, and any company registered in Lithuania is trusted and demanded. Another plus is that the country supports crypto startup and promotes their development, so the procedure for obtaining a license is as simple as possible.
What cryptolicense can be obtained in Lithuania
The service that investigates financial crimes - FCIS - is responsible for issuing cryptolicenses in Lithuania. If a company plans to work with cryptocurrency, it is necessary to obtain a permit for the following activities:
- Exchanging tokens for fiat money and earning on commissions;
- Creating virtual wallets to store the tokens.
There is no single license in Lithuania, so if you plan to work in these areas, you must take two permits. This requires more hassle, because you have to collect another package of documents, but if you compare it with Estonia, it justifies itself. The price of the Lithuanian cryptolicense is lower. Another plus is that permits are issued faster. Lithuania considers the application up to 4 weeks, Estonia - 3 months.
How to get a cryptolicense
Lithuania has signed an anti-money laundering agreement, so it carefully checks the documents. This means that you have to present complete, accurate information, and the owners of the company must provide a certificate of no criminal record and prove that they are not associated with any fraudulent schemes.
To get a cryptocurrency license in Lithuania 2022, you must create a limited liability company (UAB), which must meet such requirements:
- The company's shareholders must be approved by the Investor Appraisal Commission (IAC);
- All the data on the beneficiaries must be provided, as required by the regulatory authority;
- The minimum requirement for the structure of the company is 1 person. S/he can be shareholder, director, and anti-money laundering compliance officer. To hold the latter position, one has to be a local resident. For the shareholder and director there are no requirements for citizenship and residence;
- The amount of registered capital - from €2500;
- It is necessary to rent a local office;
- The company must develop and present a clear business plan;
- Open a bank account after the registration of the company.
Cryptocompany, after receiving the license, must keep a detailed report of all clients and transactions in accordance with AML/KYC rules. The FCIS monitoring authority may require data on the operation of the business, especially with respect to compliance with anti-money laundering regulations.
Taxes and cryptocurrency activity
- The standard VAT rate is 21%, but in some cases can be reduced to 5% and 9% (our specialist will tell you more);
- Virtual currency exchange services are not subject to VAT;
- Invoices for services (e.g. sales invoices) in virtual currencies are subject to normal VAT rules;
- The corporate tax is 15%. Small companies with fewer than 10 employees and annual revenues of less than €300,000 can get a 5% discount;
- Income tax - 15% on gross dividends.