What is the best place to register a crypto company and why is it Lithuania?
What makes Lithuania a great place to start a crypto company?
The crypto license in Lithuania has shown in 2022 to be the quickest, cheapest and safest way to start a cryptocurrency company in Europe with a bank account. With a framework proven effective, the Lithuanian crypto license reminds of the golden age of the Estonian license, back in 2017. This does not mean that this is the ideal solution for your project, you need to weight in the nuances with a professional. A deep dive into the benefits of Lithuania as a crypto hub.
Projects of many kinds are being registered in Lithuania: centralized exchanges, metaverse projects, DAO, NFT projects, Dapps development studios… The flexibility of the framework ensures a safe and comfortable environment for every kind of crypto project.
Of course, nobody wants the legal hassle of registering a company, applying for a license, interviewing with banks and forming a legal structure for their project. This is where LegalBison enters the show to let promising projects happen.
The best way to register a cryptocurrency project in Lithuania is often the simplest. Removing all the hurdles with a trusted partner allows you to avoid useless and unplanned expenditures of time, energy and money. The world of legal corporate structure can be daunting and crypto projects leaders should rather be focusing on developing their project.
Why start your crypto project in Lithuania?
Opening a crypto licensed company in Lithuania means getting all the green lights from the various regulatory institutions. Operating under the European framework, the Lithuanian license complies with all international cryptocurrencies frameworks. Any project required by law to apply KYC rules will find in the Lithuanian framework the simplest way to do it.
Being agreed to as a legal operating blockchain project by international regulators has an important positive side effect: getting acceptance from the banks! It has never been easier and simpler to open a bank account for a crypto company, thanks to the Lithuanian license. An important disclaimer has to be made – easier does not mean easy per se. It means that it is possible to offer fiat on ramp for your clients if registered in Lithuania. Many clients registered in typical offshore jurisdictions for crypto such as the BVI, Cayman Islands or Seychelles, are not able to have a) a license there for being a VASP nor b) obtain a corporate account without extraordinary contacts in the banks.
As a framework designed to enable and incentivize innovation and initiative, the Lithuanian license is the cheapest KYC compliant license there currently is. It is also one of the simplest one and especially, one of the quickest one. The process is straightforward, and the Lithuanian regulator has clear and simple expectations. With complete crypto AML policies up to date, your entity will be operating in no time.
A very convenient aspect of this framework, in comparison to Estonia or Portugal, for example, is that there is no necessity for the board members to reside physically in Lithuania. Operate your NFT, metaverse or exchange project 100% remotely thanks to the cryptocurrency license in Lithuania. You do not need to rent an office on site, and neither to hire a resident representative nor any kind of additional expenses to comply.
How long will it take to register a crypto company in Lithuania?
It takes around 2 months, to register a crypto company in Lithuania. This time frame is conditioned on a few factors that our consulting team is used to dealing with.
When planning to start a crypto-related project in Lithuania, having in mind the right actions to take and the documents to prepare will minimize friction and maximize swiftness. This can sound like a lot of work, but with the right information, it really isn’t. When you are provided clear instructions on what needs to be done, you can get everything done in a few minutes and let our team manage the process.
How to open a bank account in Lithuania for the crypto project?
It is relatively easy to open a bank account for a cryptocurrency licensed company in Lithuania. Thanks to a higher level of regulatory flexibility, making the Lithuanian blockchain companies more solid, account opening is easier than it used to be with other European jurisdictions. Similar is true for a merchant account for crypto company in Lithuania.
Lithuania has a long-standing and proven reputation in Fintech. Host of hundreds of payment services and investment companies, Lithuania knows its deal around money, and the Lithuanian business environment is consequently open to innovative crypto projects.
The process is often blended into the whole set-up of the company and license. Documents expected by the European banking services are often alike and answer to the same KYC requirements.
Most of the banks also ask for a questionnaire, sometimes for an interview. In both cases, the more accurate the better. Careful planning is key.
Oftentimes, additional fiat services such as card payment processing services are useful additions to a Lithuanian cryptocurrency company. Most crypto projects are struggling with the processing of cash. The ones set in Lithuania benefit from easier perspectives on that matter.
What legal things to consider before starting a crypto project in Lithuania?
Starting a crypto project in Lithuania is easy, because you do not need to physically move or rent an office in the country. This allows for a worldwide effective framework that is savvy and swift. But before getting started, here are a few key points to consider:
- The business idea, even the most basic in a simple paragraph is enough. A clear plan, put into words, lays the basis for planning. Having in mind all that your crypto projects requires, it is much easier and faster to move through bases and check mark the necessary items.
- Gather the documents and communicating with the authorities. A step much easier completed when assisted by a corporate consultant: providing the required legal documents and undergoing notarization can be a hassle without the relevant guidance.
- Corporate Structure: picking a company name and sorting out the roles of the board (if more than one person is setting up the company). This should ideally be part of the business planning, but defining the organization and shares distribution beforehand makes things easier later on.
Before considering starting a cryptocurrency project registration in Lithuania, the best thing to do is planning. Having clear information at hand about the project and its members, as well as the legal documents, is going to save you a lot of time.
The assistance of a corporate consultant can save you from a lot of struggles on these matters. Our team has supervised many such formations and is experienced in designing business plans and managing the documentary package.
Why is it so easy to start a crypto company in Lithuania?
It is fairly easy to start a crypto project in Lithuania. It all comes about the will and the spirit of the regulation. When the authorities, like the Lithuania FNTT, are doing their best to enable, instead of over controlling, it goes in the best interest of the cryptocurrency projects.
It is easy to do crypto projects in Lithuania because the framework is designed to. It is simple, straightforward and designed to let crypto entrepreneurs develop their project in the best possible environment.
Concretely speaking, what makes Lithuania a simpler choice than other regulated jurisdictions is how the registration process is designed. Upon presentation of the required documents and a sustainable business plan, the regulator will shortly green light the blockchain project and provide it with a license number, which is often key to getting confidence and traction.
Why do people choose Lithuania to start a crypto company?
Every expense, every move, has to be a calculated risk and make sense to the logic of the project. This is why so many projects are now choosing Lithuania:
- low cost to set up and maintain your crypto company;
- proven trustfulness among banking services providers;
- no regulatory nonsense such as mandatory residence in the jurisdiction;
- European country with a specialization in Fintechs.
Given these aspects, Lithuania is simply a logical choice to start a crypto project. Get in touch now to pave an easy road to setting up a trusted cryptocurrency licensed entity.
Frequently Asked Questions
- How to register a crypto project in Lithuania?
Registering a crypto project in Lithuania is easy with the help of a corporate consultant such as LegalBison. You simply need to gather a few documents, describe your business in a few lines: and your project is already on the rails and moving forward.
- Is it possible to open a bank account for a crypto project in Lithuania?
Yes, crypto projects in Lithuania can open bank accounts. Our experience shows that they encounter much better success in this endeavor than other regulated European jurisdictions. It helps a lot that Lithuania is the home of many banking services providers, that will feel more secure associating with entities registered in the same jurisdiction as they are.
- How to start the process of registering a crypto project in Lithuania?
Get in touch with LegalBison’s team in order to receive guidance on the process. Our consulting team will advise you on the documents to provide and proceed to complete all the necessary actions to take for a successful registration.