Blockchain Share Register For Non-EU Companies Planned By Lithuaniabr>
The government of Lithuania is planning to create a blockchain system for overseas businesses to remotely register and manage their company in the European Union. The plan has been endorsed by the Bank of Lithuania, the country’s central bank.
The blockchain system would allow Virtual Limited Liability Companies (VLLC) to gain access to Lithuania’s innovation-friendly sandbox regulatory system that helps newcomers to set up operations. Additional advantages include the ability for the company to be remotely managed, and for all share transactions to be fully transparent, as they would be performed entirely on an immutable blockchain.
“Bank of Lithuania is already building LBChain – blockchain-based solutions accelerator for FinTechs,” said Marius Jurgilas, a member of the board of the Bank of Lithuania. “Initiative to create virtual companies on blockchain is a move towards even more ambitious goal – creating LTChain, i.e. moving relevant public services on blockchain.”
The Lithuanian Center of Registers has already started to draft a proposal on legal amendments needed to make VLLCs a reality next year. If the necessary amendments to the legal framework are made, entities from around the world would be able to register virtual companies in Lithuania as early as 2019.
“Physical borders between countries are becoming a thing of the past,” the Lithuanian Center of Registers said. “This ambitious project is the next logical step for Lithuania, given our track record in the field of financial technology. Yet regulatory roadblocks are still present in the procedures for expanding businesses abroad. We are striving to become the first country to offer companies the possibility to register and manage companies remotely using blockchain technology, thus ensuring transparency and security.”
Mantas Katinas, managing director of Invest Lithuania, believes companies from Singapore, the US, Israel and other non-EU locations would all be interested in such a service.
“As the world is moving towards a paper- and bureaucracy-free future, jurisdictions that adapt to the increasing demand for instant solutions will win in the long run,” said Katinas. “As of now, the country already offers FinTech companies the ability to receive a payments institution (PI) or e-money institution (EMI) license in just three months, which is 2-3 faster than in other EU countries. These draft proposals on the possibility of establishing a virtual company which can be managed remotely is another step in the right direction.”