Lithuania wants to create a blockchain-based system that will allow foreign entities to register remotely in the European Union.
Lithuania plans to create a system on the blockchain, through which foreign companies will be able to register their activity in the EU. This initiative is supported by the central bank. It will allow “virtual limited liability companies” make use of the innovative system of the Lithuanian normative-legal environment.
Lithuania plans that the project will be approved by many companies that want to create and manage a business in the EU remotely. It will be especially topical for those working in the FinTech field. Analysts from the business development agency Invest Lithuania believe that such service will be acceptable for companies from the USA, Singapore, and Israel.
The board member of the central bank Marius Jurgilas said the following:
Lithuanian bank is already building LBChain – the accelerator for the blockchain-based FinTech. It’s a step to even more ambitious goal – the creation of LTChain – i.e., moving all relevant public service to the blockchain.
Mantas Katinas, CEO of Invest Lithuania, mentioned that the countries that would approve the initiative would experience a long-term profit, since the world, at last, would be able to refuse from paper documents. He said:
At the moment, the country is already offering FinTech companies the possibility to receive a license on accepting payments (PI) or digital money (EMI) for only three months, which is twice or three times faster than in other EU countries. Initiative on creating virtual companies on blockchain which can be controlled remotely is one more step in the right direction.
Katinas highlighted that both small companies and big corporations with shares and securities traded on the fund exchanges would be able to use the blockchain system. All users on the platforms will be recognized as entities according to the Lithuanian legislation. So they will submit financial reports and pay taxes in this country.
If the initiative is successfully realized, the companies from all over the world will be able to register in Lithuania starting from 2019.
Lithuania is one of the 22 EU countries which recently has signed up the Declaration on creating the European Blockchain Partnership.