As an expert opinion, we’ve requested comments from the law firm specializing in corporate law AdamSmith.
Crypto companies operating in Lithuania may feel apprehensive about the country’s regulatory framework. This is because, until recently, the country was largely unresponsive to crypto and blockchain developments. However, this has changed in recent years and the Lithuanian government has taken positive steps in this regard. Given all of these changes, you may be wondering what it takes to register a crypto company in Lithuania? Here’s everything you need to know:
What is the legal status of cryptocurrency entities in Lithuania?
Cryptocurrency entities in Lithuania are not legal entities under the country’s laws. Instead, they are financial instruments that are not subject to the same regulations and laws that apply to other financial entities. In other words, as an asset, cryptocurrency entities are not liable to pay taxes. This is unlike fiat cash, which is subject to taxation at various levels. Crypto businesses that operate in Lithuania may find it difficult to secure bank accounts and other services. The lack of regulation around the operations of cryptocurrency entities has led some banks to close their doors to the industry. This means that cryptocurrency companies cannot issue invoices, accept payments or perform other functions that other financial institutions can perform. The situation is improving, however, and banks are gradually becoming more accommodating of the needs of crypto companies.
How to Register a Crypto Company in Lithuania
To register a crypto company in Lithuania, you will need a legal entity name, a business name, and a registered address. You will also want to make sure that you are compliant with relevant local laws and regulations. To obtain a legal entity name, you will need to conduct a search on the commercial registry to see if the name you want to register is available. If it is, you can apply for the name by completing a formal application form with the commercial registry. Next, you will need to select a legal entity form. This can be done by visiting the commercial registry website and following the steps outlined in the user guide. Once you have selected a legal entity form, you will need to complete the application form and select the details of the legal entity. You can also obtain a limited liability company (LLC) form. After you have completed this process, you will then have to pay a registration fee. Once the registration process is complete, the legal entity will be published on the commercial registry.
Note: For the full operation of a crypto company, after registration, you will also need to obtain a crypto license (authorization) and meet a number of parameters and requirements. More information can be found on our website.
Lithuania has recently become a key player in the global crypto scene. This is largely thanks to the efforts of the country’s government to regulate and support the crypto economy. Legislation has been passed to bring clarity and security to the sector, ensuring that investors are protected from fraudulent and illegal practices. At the same time, the government has also encouraged innovation and entrepreneurship in the crypto sector, with a view to developing the technology behind it. For example, crypto entrepreneurs can now apply to set up a Cryptocurrency Fund, which is being established by the government. This fund can be used to attract investment capital into new ventures that focus on blockchain-based services.
The Article is written
by the lawyer of the company AdamSmith