Lithuanian Electronic Money Institution (EMI) License

A Lithuania EMI license, officially known as an Electronic Money Institution license, is issued by the Bank of Lithuaina (Lietuvos bankas) and allows firms to issue IBANs, cards, as well as prepaid card programs throughout the European Union. No other country has granted as many licenses as Lithuania, making it the jurisdiction of choice for payment firms looking to enter or expand into the European Union.

Lithuania EMI License Highlights

  • The defacto hub for payments licensing in the European Union
  • Ability to access SEPA payments via the Bank of Lithuania’s CENTROlink
  • Capital requirements set at €350,000
  • Ability to passport permissions across all 30 EEA member countries
  • Estimated license approval timeline: 4 – 7 months
  • 2 major license types: Electronic Money Institution (EMI) and Payment Institution (PI)
  • Corporate income tax set at 17%

Lithuania EMI License Terminology

When exploring the payments sector in the European Union, it is important to familiarize oneself with the terminology surrounding payments.

Single European Payments Area (SEPA)

As part of the European Economic Area’s integration program, SEPA’s goal is to harmonize electronic / cashless payments across Euro member states.

CENTROlink

CENTROlink is a payment system developed by the Bank of Lithuania. The main advantage of CENTROlink is to provide direct SEPA transfers so that licensed EMIs are not dependent on 3rd party banks for these type of payments.

UAB

In Lithuaina UAB stands for Uždaroji Akcinė Bendrovė which is a private limited company. All licensed entities in Lithuania operate as UAB entities.

PI

PI stands for Payment Institution license. The main difference between PI and EMI centers around the ability to offer payments throughout the European Union member states as opposed to within Lithuania itself.

IBAN

IBAN stands for International Bank Account Number. One of the main benefits in obtaining a payments license in Lithuania is the ability to issue a unique IBAN to clients.

EMI

EMI stands for Electronic Money Institution. Licensed firms holding an EMI license are able to issue IBANs, cards as well as prepaid cards to their clients.

Applying For a Lithuania EMI – Key Requirements

  • €350,000 initial capital
  • Minimum of 2 directors with a strong background in financial services / payments
  • Compliance officer
  • Money Laundering Reporting Officer (MLRO) which is a separate position from the compliance officer
  • IT Security plan
  • Physical office in Lithuania
  • A complete AML / CFT plan which follows current EU AML directives
  • Step 1: Initial Consultation: Arrange a discussion with one of our consultants to review your firm’s requirements, business model, plans for the EU, and budget. During this call, we’ll explain the benefits of obtaining an EMI license in Lithuania and provide an overview of the timeline, requirements, and costs.
  • Step 2: Proposal & Engagement: If Lithuania is determined to be a suitable jurisdiction for your payments business, we’ll discuss the various license types PI vs EMI and provide a detailed proposal outlining our consulting fees, government fees, and any additional costs associated with the licensing process.
  • Step 3: Document Collection: Once engaged, we’ll begin gathering the documentation required by the Bank of Lithuania. A dedicated WhatsApp or Telegram group will be created to facilitate communication and provide ongoing feedback throughout the application process.
  • Step 4: Preparation of Key Documents: Our team will prepare the business plan, compliance manuals, AML policies, and other supporting documentation required for the license application. All documents must be finalized prior to submission.
  • Step 5: Lithuania Company Formation: We will reserve your preferred company name and incorporate a new entity in Lithuania, known as a UAB company.
  • Step 6: License Application Submission: Following incorporation, we will submit the complete EMI application package to the Central Bank for review.
  • Step 7: Regulatory Review & Communication: Throughout the review process, we will liaise with the Cental Bank on your behalf, provide status updates, and coordinate responses to any requests for additional information.
  • Step 8: License Approval: Upon license approval we’ll assist with the CENTROlink onboarding and overall ongoing business framework.
  • Step 9: Banking Setup: Following approval of the license, we can assist with the establishment of banking relationships outside of CENTROlink.

How Much Does It Cost to Obtain Lithuania EMI / PI License?

Based on our professional experience, the recommended budget for a Lithuania license is €500,000. Note that the majority of this budget consists of capital as seen in the table below.

Item Details
Capital €350,000
Local Office Starting at €1,000 / month
Monthly Staff

Starting at €15,000 – €20,000 / month
Annual Audit & Accounting Fees €10,000 per annum
License Application & Government Fees  €2,000
License Consultation Fee Contact our team for a price quote
Taxes 17% corporate tax

How Long Does it Take to Apply For a Lithuania EMI license?

Our experience has shown that a new application for an EMI / PI license will take approximately 4 – 7 months. This estimate is based on our positive track record of licenses approvals. We are happy to provide references if needed.

Lithuainia Application: Timeline Breakdown

  • Gather KYC: 1 month
  • Prepare the application, draft documentation, company formation: 2 months
  • Submit application & await Central Bank feedback: 2 – 3 months
  • Apply for bank account: 1 month

Permissible Activities for a Lithuanian EMI Licensee

  • Creation and management of electronic money products, including digital wallets, prepaid cards, and stored-value solutions.
  • Provision of payment accounts for clients, including the allocation of unique IBANs.
  • Processing of payment transactions such as credit transfers, SEPA payments, and direct debit operations.
  • Facilitation of card-based payments, including both issuing and acquiring under major card networks like Visa and Mastercard.
  • Payment initiation services (PIS), enabling transactions to be triggered directly from customer accounts held with third-party banks under PSD2.
  • Account information services (AIS), allowing aggregation and access to financial data across multiple banking institutions via Open Banking frameworks.
  • Merchant acquiring solutions, offering businesses the ability to accept and process customer payments efficiently.
  • Execution of international remittance services, supporting both incoming and outgoing cross-border transfers.
  • Foreign exchange services associated with payment activities, including real-time currency conversion.
  • Standalone money exchange services, facilitating the conversion of one currency into another.

EMI vs PI License: Key Differences Explained

When establishing a regulated payment institution in Lithuania, applicants typically choose between an Electronic Money Institution (EMI) license and a Payment Institution (PI) license. While both fall under the supervision of the Bank of Lithuania and enable the provision of payment services across the EU, they differ significantly in scope, functionality, and regulatory requirements.

What is an EMI License?

An EMI license allows companies to issue electronic money and provide a full suite of payment services. This includes the ability to hold client funds, issue IBAN accounts, facilitate payments, and offer digital wallets. EMIs are commonly used by fintech firms aiming to operate similarly to neobanks or digital payment platforms.

  • Issue electronic money (e-money)
  • Provide IBAN accounts to clients
  • Hold client funds (safeguarded)
  • Offer payment cards and digital wallets
  • Passport services across the EU

What is a PI License?

A PI license permits companies to provide payment services but does not allow the issuance of electronic money. Payment Institutions typically act as intermediaries, facilitating transactions without holding client funds long-term.

  • Execute payment transactions
  • Provide money remittance services
  • Offer payment processing solutions
  • Cannot issue e-money
  • Limited ability to hold client funds

EMI vs PI: Side-by-Side Comparison

Feature EMI License PI License
Electronic Money Issuance Yes No
Hold Client Funds Yes (Safeguarded) Limited
IBAN Accounts Yes Typically No
Payment Services Full Scope Limited Scope
Business Use Case Fintech / Neobank / Wallets Payment Processing / Remittance
Regulatory Complexity Higher Lower

Which License Should You Choose?

The choice between an EMI and PI license depends on your business model. If you plan to build a fintech platform with user accounts, stored balances, or card issuing capabilities, an EMI license is typically required. However, if your focus is strictly on payment processing or remittance services without holding funds, a PI license may be more cost-effective and faster to obtain.

Lithuania remains one of the most attractive jurisdictions in the EU for both EMI and PI licensing due to its efficient regulatory framework, access to SEPA, and strong reputation within the European financial ecosystem.

Eligibility Requirements for EMI Licensing in Lithuania

An Electronic money institution (EMI) has rights to issue electronic money and provide payment services. In Lithuania, an EMI license is issued by the supervisory authority for an indefinite period. Under Lithuanian law, the definition of payment services covers the following:

  • All services related to placing and or withdrawing funds from a current account.
  • The execution of payment transactions through debit or credit cards or similar means.
  • Issuance of payment instruments.

Benefits of an EMI Lithuanian Licence

A Lithuanian licensed EMI has unique peculiarities such as the underlisted, which make it popular and highly sought after in the financial services sector.

  1. Lithuania is the only jurisdiction, whose EMI license allows direct access to the Single Euro Payment Area (SEPA) for processing EUR payments.
  2. In Lithuania, EMIs (non banks) can generate IBAN for their clients without requiring a secondary account at a commercial bank.

Atomiq Consulting – Your Licensing Partner

Our team of seasoned experts will make bureaucratically challenging endeavours like obtaining an EMI license in Lithuania feel like a walk in the park. Feel free to contact us.

    Lithuania EMI FAQ

    Are there any EMIs in Lithuania for sale?

    Yes, we often have EMI licenses in Lithuania as well as other jurisdictions for sale. We suggest visiting our online marketplace to review current offers. 

    What is DORA and how is it related to Lithuania payments licenses?

    DORA stands for the Digital Operational Resilience Act. Starting in January, 2025, all Lithuania licensed EMIs are required to demonstrate compliance with this Act. Measures include the establishment of risk and technology protocols. 

    Is a physical visit to Lithuania required for license approval?

    No. As long as the necessary local directors and staff members are in place, the license can be approved remotely.  

    What does EMI stand for?

    EMI stands for Electronic Money Institution. With approved authorization, licensed institutions are able to offer a variety of payment services such as card services, electronic wallets, and the facilitation of wires.  

    What is the corporate tax rate in Lithuania for EMIs?

    30%

    What is PSD3?

    The revised EU payments framework, known as PSD3, reached a provisional political agreement on November 27, 2025. Under this new regime, the existing Electronic Money Institution (EMI) structure will be consolidated into a single, harmonized Payment Services Regulation. Licenses issued under the current PSD2 and EMD2 frameworks prior to PSD3 coming into force will benefit from a transitional “grandfathering” period of 24 months. In practical terms, this means that securing an EMI license today ensures its validity extending well beyond 2028. As a result, applying under the current PSD2 regime presents a clear strategic advantage for market entrants.

    Is there a directory of licensed EMIs in Lithuania?

    Yes, all EMIs are licensed by the Central Bank of Lithuania. One can search for the desired entity in this public directory.

    About the Author

    This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.

    Connect with Jonathan on LinkedIn

     



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