System for remote registration of non-EU resident companies
Foreign companies will be able to remotely register and manage enterprises in the European Union using a blockchain system from next year.
The Lithuanian Central Bank has approved the idea of the system. According to Marius Jurgilas, board member of the bank, the regulator is now working on LBChain blockchain solutions that will support the financial technology sector.
The emergence of LBChain will be one step towards a larger goal – the creation of the LTChain system, which will enable the transfer of important social services to blockchain technology.
According to analysts at Invest Lithuania, such an opportunity would attract companies from the United States, Israel and Singapore, as well as other non-EU residents.
“Fintech companies can already obtain a Payment Institution or Electronic Money Institution license in Lithuania in 3 months – the fastest period among EU countries,” notes Mantas Katinas, Managing Director of Invest Lithuania.
The new blockchain system will also be used by small and large companies that list their shares on stock exchanges. Such companies, according to Lithuanian law, will be treated as legal entities. Filing financial statements and paying taxes will be mandatory conditions for conducting business in the jurisdiction.
If the necessary changes to the legal framework are made, organizations from all over the world will be able to register virtual companies in Lithuania in 2019.