Virtual Limited Liability Companies (VLLCs) working on blockchain technology will be launched in Lithuania. The country considers the possibility of allowing entities from different parts of the world to register and operate their fintech companies there. A draft has been already processed by the Lithuanian Centre of Registers.
“Physical borders between countries are becoming a thing of the past. This ambitious project is the next logical step for Lithuania, given our track record in the field of fintech,”
says Ieva Tarailiene, acting director general of the Lithuanian Centre of Registers.
Such blockchain-based VLLCs will get an opportunity in an environment that looks like a sandbox that ensures freedom of action and guarantees the security of each foundation related to the financial technology. Furthermore, all companies can be remotely managed, as every transaction will be conducted via the blockchain tech behind cryptocurrencies.
The Lithuanian Centre of Registers has created a draft containing necessary regulations for VLLCs to enter the financial market in 2019. The initiative has already gained the support of the country’s main financial regulator, the Bank of Lithuania, which has demonstrated so far only a good attitude toward implementation of fintech trends in the country.
Virtual Limited Liability Companies will be regarded as legal businesses possessing the full right of recognition and will be required to pay taxes as well as file financial statements.
According to analysts from Invest Lithuania, the VLLC system will be interesting for a wide range of institutions, including those from the USA, Singapore, Israel, and many others. There are a lot of companies seeking a chance to launch and remotely operate a subsidiary in Europe.