Many entrepreneurs know Lithuania is one of the best countries for fintech startups. It has become Europe’s fintech hub, helping connect Western and Eastern Europe. Various studies on the ease of doing business have consistently ranked it as one of the best countries for doing business. The country also ranks very highly on the Global Fintech ranking index. This article will help you understand why Lithuania is so attractive so you can decide if it is right for you.
The Central Bank of Lithuania Has Created a Friendly Regime for Fintech Companies
The Central Bank of Lithuania has played a big role in helping the country become more attractive to fintech companies by easing the regulations governing the industry. This move has made the country more welcoming to foreign companies that provide services like insurance, investment advisory, payment institution licensing and fintech consulting.
The Central Bank of Lithuania also started issuing a simplified banking licence that allows businesses to provide services similar to those provided by banks, apart from investments.
The bank has also allowed service providers to access the Single Euro Payment Area, which means they can operate outside Lithuania. Businesses that want to leverage these provisions or enter the Lithuania fintech market can seek fintech consulting services from reputable companies to learn how to do so.
A Massive Talent Pool
Every business needs talented employees. Lithuania has a massive talent pool of IT and other professionals who would be incredibly useful to your business. The laws concerning hiring this talent in Lithuania are easy to understand and comply with.
Some things to know include:
- Every business must provide written employment contracts with all pertinent details including remuneration, payment, function, and scope.
- Businesses can terminate any employment contract without citing a fault on their end or the employee’s.
- Businesses must inform employees of their contract termination at least 3 business days in advance. They must also provide a severance fee equal to at least six average salaries.
- Businesses do not have to and are not obligated to provide mandatory employee benefits.
Businesses have a massive talent pool to choose from, while being supported by very friendly employment laws and regulations in Lithuania.
Low Costs and Significant Benefits for Opening a Business
Lithuania has intentionally made the cost of opening a business in the country very affordable. In other countries, and even among its neighbours, the cost of doing so can be prohibitively high.
In addition to the low startup costs, the government also provides support and has put in place budget-friendly policies that help entrepreneurs massively as they build their fintech companies.
It is important to note, though, that you will need accounting services and company establishment help in some cases. The right company providing the right fintech consulting services can help reduce stress and help you formulate strategies that ensure the success of your new venture.
Lithuania has done everything right to attract new fintech businesses to establish a presence there. The government and the Central Bank of Lithuania provide a lot of help, and businesses also benefit from the large talent pool that makes starting a business easier.