You are interested to set up a payment institution in Europe but you are not yet sure of which license to apply for. In this post we will discuss the money remittance license with paid up capital of 50,000 Euros. In this post we will discuss Lithuania Money Remittance License. Do not hesitate to contact us at [email protected] for more information on this matter. Also if you want ready made payment institution please note that we always have ready made for sale. So contact us if you want a ready made and we will let you know what we have available.
For more information on the full payment institution license (125,000 Euros capital) PLEASE CLICK HERE
Difference between Small Payment Institution and Money Remittance company
A Small payment institution will be easier to set up and will require less capital (20,000 Euros) but
- a small payment institution for money remittance cannot be passported. You can receive funds from client or sent funds to clients worldly but it cannot be passported and is just a local company
- a small payment institution for money remittance is only permitted a turnover of 2,500,000 Euros per month. Above this amount a license for payment institution will be required as shown below
Payment Institution – Money Remittance License
Why Lithuania? Firstly because the local authorities are easier to deal with than for example UK, or Bulgaria. Secondly because set up costs and maintenance costs will be cheaper than in other European country
What are the features of a Payment Institution for Money Remittance?
The features are as below
|Type 1||Money Remittance|
|Services that can be licensed||Money Remittance,|
|Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunications terminal equipment, digital or IT device and the payment is made to the telecommunications network or IT system operator, acting only as an intermediary between the supplier of the goods or services and the payment service user.|
|Money Exchange||Money exchanged Forex is included when for money remittance (for example client give Euros and want to transfer in USD)
|Holding Client Funds||Only for the time necessary to proceed with client transaction. Not more than 3 days|
|Passporting||Yes, can be passported in all EU|
|Monthly transaction limits||None|
How much does it cost to set up a Money Remittance Company in Lithuania?
|Our fees and costs||Euros|
|Preparation of the application to get a payment institution license and required legal documents for submission to the Central Bank||€25,000|
|Incorporation of applicant company and opening bank account||€5,000|
|Dealing with the Central bank during authorization process||€5,000|
|Legal advice on preparation of the business plan||€4,500|
|TOTAL ALL INCLUDED||39,500 Euros|
What are the management team requirement?
Please note that minimum management team/employees number is a requirement in all jurisdiction
The advantage of Lithuania is that only one member of the management team need to be employee and it is the local director
They are the same for all type of licensed payment institution.
Management team of PI and EMI
Needed 6 persons both for PI and EMI, i.e.:
1 General manager (should be employed),
3 Board members (one of them could be General manager)
3 supervisory board members.
Board members and Supervisory board members do not need to be employed and reside in Lithuania.
Other function like compliance etc. could be outsourced.
What are the monthly operating costs
Other approx. costs after getting a licence. Factual cost depends on the scope of the operations and amount of the transaction, etc.: Based on our experience monthly cost would in average be as follows
|Monthly running costs||Euros|
Also, the Audit cost would be around 8500 Euros per year
Do not hesitate to contact us at [email protected] for more information on this matter