Licensing of a Credit Union

We provide a legal advice and draft necessary documents for obtaining a licence of credit union. The Bank of Lithuania grants a licence to a credit union. Company which is willing to provide to its members the services of the acceptance of deposits and other repayable funds, lending and other financial services to satisfy the economic needs of its members, must have a licence of payment institution. While obtaining licence, we normally help with the following matters:

• Advise how to obtain a licence of a credit union;
• Assist in dealings with governmentalauthorities;
• Draft documents, necessary for obtaining a licence;
• Provide necessary information for obtaining a license.

Knowledge & Insights

Licensing process

In order to be granted a credit union licence, a company founders and members of a credit union must fulfil requirements. The founders of a credit union can be solely natural persons. The smallest number of members of a credit union, apart from associate members, is 150.

Legally capable natural persons meeting at least one of the following admission criteria selected by a credit union may be members of a credit union:

• If they live, work or study in the territory of the municipality of  the Republic of Lithuania, where the credit union has its registered office or in the territories of other municipalities bordering this municipality specified in the articles of association of the credit union.
• Work in enterprises, undertaking engaged in the same type of economic activity;
• Belong to a trade union or an association of the relevant branch of economic activity.

The spouse (cohabitant), children (adopted children) living together and parents (adoptive parents) of a member of a  credit union can be the members of  the credit  union, regardless of the above-named criteria. 

The other important requirement is that equity capital of credit union must be from EUR 85 000 to 350 000 EUR.

Timing 

The Bank of Lithuania enters a decision to issue a licence within 3 months.