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 full payment institution license with paid up capital of 125,000 Euros. In this post we will discuss Lithuania Full Payment Institution 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 of the lower license that is to say Money Remittance License PLEASE CLICK HERE
Payment Institution – Full Payment Institution 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 Full Payment Institution?
The features are as below
|Type 2||Full Payment Institution|
|Services that can be licensed||1) services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account;|
|2) services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account;|
|3) execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders;|
|4) execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders;|
|5) issuing and/or acquiring of payment instruments;|
|6) money transfers;|
|7) 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||It can hold client funds|
|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||€35,000|
|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||49,500 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