It’s no argument that Lithuania is one of the best countries that accommodate FinTech companies. It is known to have become the EU’s central FinTech hub, connecting the East and West European countries. Currently, it has over 210 FinTech companies in operation.
In the Global ranking for Ease of doing Business (2020), Lithuania was ranked 11th out of over 190 countries. Moreover, it has been ranked 4th in the Global FinTech ranking and 1st in the Global ranking of Vilnius in Tech startups FDi attraction Index (2019). Now, why is Lithuania the best and the right place for you to start your FinTech company? In this article, you will know some of the major reasons.
The Ideal Location
According to the Findexable Global FinTech Index of 2020, Lithuania ranked as one of the top 4 best locations for FinTech. Moreover, the Bank of Lithuania welcomes foreign companies seeking services such as Payment Institution Licensing, Investment Advisory, Insurance companies, and more. The Bank of Lithuania has made its services accessible and easy for startups to do business in Lithuania while offering substantial institutional assistance to first-year FinTech companies.
Fintech-Friendly Regulation
The main goal of the Lithuanian Government is to create one of the largest FinTech centers spanning Europe. To do this, they made Lithuania innovation-friendly for companies and provided perks other countries do not have. A regulatory sandbox was launched in 2018 to give potential and existing FinTech companies a chance to test their financial innovations and adjust when required. The sandbox provides a myriad of advantages, such as;
- access to customers for testing fresh products and services,
- access to consultations with a regulator, and
- exemption from certain requirements during participation applicable to both participants and managers.
Deep Talent Pool
Any new business needs employees, yours included. Lithuania has a deep talent pool of IT specialists that would be beneficial to the growth of your new business. When it comes to Lithuanian laws concerning employment, it is easy to understand and get around. Some things to note are,
- A written employment contract is required with scope, function, payment, and remuneration.
- You can terminate employment contracts without any fault on your part or the employee’s initiative.
- You have to inform any fired employees 3 business days in advance while paying a severance fee at minimum 6 average salaries.
- You also have no obligation to provide compulsory employment benefits.
So, you have access to one of the best talent pools in Europe and flexible employment laws that are helpful to your new FinTech company.
Low Cost And High Benefits
Lithuania lowers the cost of setting up a new business, which would benefit a new business like yours. In other places, starting a company requires a lot of time and capital that can be too high. Lithuania’s budget-friendly policies and Governmental support make it a haven to build your FinTech company. With this in mind, before and after setting up a company, you will need accounting strategies and good and competent company establishment services in Lithuania to help you with the bulk and stress of finances and strategies at the early stage of your business.
FinTech Ecosystem
Lithuania has over 210 FinTech companies, both potential and existing companies, that have helped to foster a friendly ecosystem that you will need at an early stage. Moreover, the FinTech sector in Lithuania favors dynamic and diverse business models, products, services, and clients. You will be in the spotlight of an ever-expanding market within and outside Europe. In this ecosystem, a support network is in place for potential and existing companies making it easier to share ideas, innovation, and initiatives.
Recruiting Foreign Companies
Lithuania has been attracting foreign companies and young entrepreneurs since 2016 to benefit from its business-friendly policies. For easy integration into the FinTech sector, Lithuania has a direct licensing process which makes it easier for companies to find their footing. Since Lithuania is a small country, it has transferable licenses authorized by the Bank of Lithuania, which can be used within the European Economic Area (EEA). New companies are guaranteed to have access to their target markets all around Europe.
Speed And Efficiency
You will certainly want to get things started and running without delay for your new FinTech company. Lithuania will not disappoint you while also having the help of StartBusiness. Lithuania has made it possible to authorize your Payment Institution (PI) and Electronic Money Institution (EMI) licensing within three months. Other perks include;
- A specialized bank license for challenger banks.
- A 5 times lower startup capital than for traditional banking licenses.
- Applications can be made online.
- A dedicated program to guide new CEOs.
- Freedom to pay for infrastructure.
This is undoubtedly the best out there.
Quality Over Quantity
Lithuania receives many applications because it is favorable to new FinTech establishments. This means it values quality new FinTech companies over rushed and unrefined applications. You won’t face this rejection when Start Business leads you through the right processes. You would not want your company to be at risk, so Lithuania created The Centre of Excellence in Anti-Money Laundering (AML Centre of Excellence). Based on the AML Basel Index, Lithuania ranks 9th worldwide among the lowest-risk jurisdictions for Fintechs.
Conclusion
Lithuania makes it conducive for new FinTech companies to flourish on their soil, and it is no coincidence that they are one of the biggest FinTtech centers in Europe. You, too, can join Lithuania and add more to Finance and Technology with the assurance that you will benefit in the long run. Once you have decided this is the place for you, you will need a company establishment service to set you up in Lithuania and give you the training, support, and advice, both legal and business wise, to get you started on a sure footing in Lithuania.
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