On 15/12/2020 the Republic of Lithuania Parliament made amendments in the Law on Companies enabling a business to open bank accounts for shared capital formation in credit and electronic money institutions (EMI). Before these amendments, the companies were able to open accounts only in the banks.
The main goal of these legislation changes is to attract foreign, non-EU companies to establish a business in the Republic of Lithuania faster and simpler. Traditional banks usually look to foreign, non-EU companies suspiciously and burdensome, asking to provide mountains of the documents and even then the bank account opening is not guaranteed. Whereas credit and EMI institutions are more liberal and more flexible in terms of business accounts opening.
Another reason for the above-mentioned legislation changes was fostered by political instability and unrest in Belarus when the number of the companies decided to relocate their business to more stable countries like the Republic of Lithuania. The Parliament reacted to this situation in Belarus and provided an opportunity for convenient relocations. We think that these changes are long-awaited are very welcome.