Obtaining a brokerage license in Lithuania | Law&Trust International

Brokerage license in Lithuania

The Forex market is one of the most famous stock exchanges among traders around the world. Companies engaged in this field of business are considered investment ones in the territory of Lithuania. Their activities are licensed according to the protocol on legal entities of the country's financial sector. The state regulations list all types of services that an organization of this kind can provide, as well as financial instruments available for the work of businessmen.

The procedure for obtaining a brokerage license in Lithuania is the same for both residents of the country and applicants from the republics of the European Union. In addition to these citizens, beneficial owner of an investment company from any other country can apply for a registration of a brokerage license.

However, the applicant must have a permission for brokerage activities issued by the jurisdiction of the state of establishment of the organization.

The cost of obtaining a brokerage license in Lithuania

You can request information about the price list by phone or in chat. The period for consideration of the application is 3 months and more. After obtaining a permission for brokerage activity in Lithuania, the counterparty has the right to develop business in other EU countries through a simplified passportization procedure. Free consultation is available for you today!

Forex license in Lithuania

requirements for the holder

  • Permissions are issued for this type of activity by the Lithuanian Financial Market Supervision Commission. This organization governs regulations relating to the securities market, investment and financial services. All rules for registration of new forex brokers are prescribed in the act of local legislation "On the market of financial instruments".

    All the requirements of licensors can be divided into four main groups: for shareholders, for capital, for the office and for the staff of a branch of a brokerage firm in Lithuania.

Requirements for shareholders

    1. Co-owners of the stock market organization who hold more than 10% of shares must documentarily confirm their work experience in the financial sphere at the managerial position, as well as provide diplomas or certificates that indicate knowledge of this area of capital management.
    2. If the shareholder owns securities of another corporation, which sphere of activity differs from brokerage one, then this should not prevent him from taking an active part in the development of the forex enterprise.
    3. Each beneficial owner must confirm his income level, as well as impeccability of the source of receiving funds.

     

    The Lithuanian Commission reserves the right to independently decide on the depth of knowledge of shareholders regarding stock exchanges and work experience.

Requirements for staff and office

    1. Irrespective of the jurisdiction of incorporation of the organization, when obtaining a brokerage license in Lithuania, it is obliged to employ one or two directors-residents of a given country.
    2. The managerial staff should have work experience in the financial sector from 3 to 8 years, depending on the position held and the level of responsibility.
    3. The Commission reserves the right to verify personnel and give recommendations on the dismissal of persons whose experience or reputation does not correspond to the proper level.
    4. To obtain license for brokerage activities, the applicant must organize an actual office of the company in the territory of Lithuania.
    5. If the corporation has subsidiaries, they should be engaged in the same finance industry. Otherwise, their registration is prohibited.

     

    The requirements for the authorized capital correspond to the European ones. In particular, they are very similar to the regulations of Malta. The license of the market maker for brokerage activity in Lithuania implies the availability of 730 thousand euros on the account; the STP permit is issued when there are 125 thousand in the same currency. Intangible assets are not taken into account.

    After obtaining permission, the firm must maintain capital at the proper level and multiply it. If there is a discrepancy between the amount of finance in the account and the proper prescribed norms, the license can be revoked by the representatives of the commission.

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