What next for the Lithuanian e-residency programme?

E-residency in Lithuania is a recurring topic, but so far has raised more questions than it provided answers. Works on the Lithuanian e-residency are still in progress, despite the fact that the first Lithuanian e-residents were supposed to get their electronic signatures on 1 January 2021. However, at the moment, e-residency in Lithuania has not been launched yet. When will that happen? How will the procedure for becoming a Lithuanian e-resident look like? Find out more below.

E-residency in Lithuania – what does it have in common with the Estonian e-government model?

Estonia is undoubtedly a current pioneer in e-government, as it started digitising its administration many years ago. One result of these works is the introduction of an e-residency programme, i.e. a certified qualified signature, available not only to Estonian residents (whose electronic signature is encrypted in their ID card) but especially to foreigners; it took place in 2014. Will e-residency in Lithuania work the same way? The e-residency programme in Estonia offers many conveniences, including the possibility to establish a company in Estonia via the Internet, remote business management from anywhere in the world, signing agreements with contractors (provided they also have e-residency) or signing official documents. The above e-government system represents a role model for many countries in the world, including Lithuania, which has decided to introduce its own Lithuanian e-residency programme. How will e-residency be organised in Lithuania? Will it be as successful as the Estonian e-residency programme?

Development of e-residency in Lithuania

Current works on e-residency In Lithuania are aimed at providing access to Lithuanian e-government services

not only for Lithuanian citizens but also for residents of other countries. In practice, this would mean that the eligible applicant would receive his or her own digital identity card offering access to a wide range of administrative, public and commercial services. Lithuanian e-residency would allow access to all these areas via the Internet, just as the Estonian e-residency programme does now. After obtaining Lithuanian e-residency, foreigners, not only those living in Lithuania but also those residing outside the country, will gain access to online public service platforms, just like Lithuanian citizens.

Thanks to Lithuanian e-residency, foreigners would have the opportunity to register a company, book medical appointments remotely, file tax returns or perform other administrative actions that at the moment require a personal, on-site visit to an institution or office. The intention is that having an e-residency in Lithuania will enable Lithuanian e-residents, including those abroad, to open a bank account in Lithuania. However, it should be borne in mind that the banking procedures may require a personal appearance as part of the mandatory KYC procedure, and thus it may be assumed that the status of a Lithuanian e-resident, residing abroad will be insufficient to open a bank account in Lithuania remotely.

In principle, the planned Lithuanian e-residency is very similar to its Estonian counterpart. What about the e-residency procedure in Lithuania? Will it also be as simple as obtaining Estonian e-residency?

The procedure of obtaining e-residency in Lithuania

Works on e-residency in Lithuania are still in progress, so the previously proposed procedure of obtaining Lithuanian e-residency may change. For the moment, it is assumed that in order to obtain the status of a Lithuanian e-resident, it will be necessary to submit an application to the Migration Department or, in the case of persons residing abroad and applying for the status of Lithuanian e-resident, to the Lithuanian Visa Centre.

After the application has been approved, a Lithuanian e-resident certificate and an electronic signature device are issued.

According to the current bill, what conditions must be met to obtain Lithuanian e-residency?

The main conditions to be met in order to become a Lithuanian e-resident are as follows:

• The status of Lithuanian e-resident may be granted to a foreigner who is at least 18 years old.
• The application is to be completed via the Lithuanian Migration Information System (MIGRIS) and submitted to the Migration Department. If the applicant for Lithuanian e-resident status resides abroad, the application is to be submitted through an external service provider selected and approved by the Migration Department.
• After completing the application, an applicant for Lithuanian e-resident status must report within 4 months to the Migration Department or an external service provider, as appropriate, to provide identity-confirming biometric data.
• Once the biometric data have been submitted, registry checks verifying whether the applicant has not been refused entry into Lithuania and the Schengen area will be carried out automatically. Depending on the results of this verification, an automatic decision on granting (or refusing) e-residency in Lithuania is issued.
• The status of e-resident in Lithuania is granted to a foreigner from the moment of registration in the Register of Foreigners for a period of 3 years.
• Once a foreigner obtains the Lithuanian e-resident status, the Centre for Personal Document Issuance automatically places an order for the issuance of electronic identification and electronic signature.

Can the status of e-resident in Lithuania be revoked?

Once granted, the status of Lithuanian e-resident may be revoked only for reasons provided for by the law, e.g. if the status was obtained as a result of fraud, by providing false data, counterfeiting or illegally obtained documents, if a foreigner is convicted of a serious or grave crime, or if there are serious grounds to believe that the foreigner is involved in illegal financial transactions.

Temporary residence in Lithuania and the Lithuanian e-resident status

Citizens of the European Union are currently allowed to enter and stay in the territory of the Republic of Lithuania for a maximum period of three months, starting from the first day of entry. In case of a stay exceeding 3 months, an application for a document confirming the right of residence in Lithuania is required. The document confirming an EU citizen’s right to temporary or permanent residence in Lithuania is a certificate issued using a form set out by the Minister of Interior; Lithuanian e-residency would represent an excellent convenience for foreigners residing or conducting their business in Lithuania.

Currently, in order to secure an electronic signature, it is necessary to declare a temporary stay (of minimum 3 months) and obtain resident status. It is possible to apply online; however, after that it is necessary to visit an office in Lithuania in person.

Temporary residence is issued to persons:

• who intend to work in Lithuania
• who are involved in commercial and economic activities (issued for 5 years)
• who reside in Lithuania and have a legal source of income (issued for 5 years)
• who start their education at an educational institution (issued for 12 months)

The status of e-resident in Lithuania will allow foreigners to access administrative, public and commercial services in Lithuania, such as establishing companies, declaring taxes or opening bank accounts. This will create faster and more favourable conditions for new investments and technologies, and thus the e-residency programme in Lithuania will have a positive impact on the country’s economic development.

The launch of the Lithuanian e-residency programme was scheduled for 01.01.2021; unfortunately, to date the e-residency programme in Lithuania is not ready. No specific dates for the actual launch of the Lithuanian e-residency project have been announced.

We will update this information on our website as soon as the programme is launched.

As we will still have to wait for the Lithuanian e-residency, Estonia remains the leader in e-government, thus making it easier to conduct business and foster its development. Perhaps in the near future, Lithuania will join the group of countries where all matters can be handled electronically, and the Lithuanian e-residency will be available to anyone interested in conducting their business in this particular country. However, the crucial aspect will be not only access to e-government itself but also its English versions, accessible to a broad audience. Currently, most Lithuanian websites are available only in Lithuanian. Regardless of the date of launching e-residency in Lithuania, Thompson&Stein provides comprehensive services supporting company registration in Lithuania.