The Republic of Lithuania has become an increasingly popular destination for crypto
and blockchain businesses. It’s no wonder why: the Baltic country offers a range of
incentives to businesses operating within its borders. Moreover, the nation recently
introduced a set of laws that made it easier for blockchain startups to operate there.
As such, many crypto companies have started registering entities in Lithuania with
the intention of launching their business from this base. In this article, we explore the
details of these new laws and explain which benefits they can bring to your business
if you choose to incorporate in Lithuania.
Read more on https://www.eestifirma.ee/en/service/crypto-license-in-lithuania/
What are Lithuania’s Blockchain and Crypto Regulations?
Lithuania’s new legislation was introduced in May of this year. The aim of these rules
is to make the country more attractive to blockchain companies and other
organizations that operate in the crypto space. The new laws cover the regulation of
Initial Coin Offerings (ICOs), crypto exchanges, and crypto wallets. They also touch
on the creation of utility tokens and the regulation of blockchain companies. They
were introduced to encourage fintech businesses to operate in Lithuania. The
nation’s authorities hope this will help diversify the economy and create jobs.
Tax Benefits for Blockchain Companies in Lithuania
Both individuals and businesses in Lithuania are entitled to a range of tax
exemptions. These include: • Companies that issue tokens will not have to pay taxes
on the profits made from these tokens during the first three years of operations. –
Individuals who earn money from crypto-related activities (e.g. trading, mining, etc.)
are exempt from paying taxes for ten years. – Crypto-related profits are treated as
miscellaneous income and are not subject to any tax. – Crypto exchanges and
miners will not have to pay taxes on their profits for the next ten years. – Individuals
who hold at least 10% of the tokens issued by a blockchain company will receive an
annual tax break of 15%.
Confirming the Decision to Incorporate in Lithuania
If you need more convincing that Lithuania is a good place to incorporate your
business, here are a few more reasons to choose this jurisdiction: – Lithuania is a
member of the European Union (EU), one of the world’s largest economies. – The
nation’s authorities are open to blockchain companies and crypto-related
businesses. – It’s easy to navigate the bureaucracy in Lithuania, making the process
of incorporating a business relatively straightforward. – If you choose to incorporate
in Lithuania, you will have access to a strong network of investors and partners. –
The official language in Lithuania is English, which makes it easy to operate in the
country. – The cost of incorporating a business in Lithuania is low compared to many
other jurisdictions. – The Lithuanian economy is growing and offers plenty of
opportunities for fledgling businesses.
Lithuania is a good place to incorporate your business if you’re involved in the crypto
space. The Baltic nation’s authorities have introduced a range of laws that make it
easier to operate there. These laws cover the regulation of Initial Coin Offerings
(ICOs), crypto exchanges, and crypto wallets. They also touch on the creation of
utility tokens and the regulation of blockchain companies. If you decide to
incorporate in Lithuania, you will benefit from a strong network of investors and
partners. You’ll also have access to a low-cost and straightforward registration
process. For these reasons, the Republic of Lithuania is an excellent choice for
setting up your business.
Eesti Firma is a team of experienced advisers and experts in the field of
commercial law and accounting.