Lithuania is looking to become the first ever country to offer entities from around the world the opportunity to register and manage companies using blockchain technology.
These Virtual Limited Liability Companies (VLLCs) would benefit from an innovation-friendly “sandbox” regulatory system that helps newcomers to set up operations. VLLCs would give companies a range of advantages. These 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.
The Lithuanian Centre of Registers (the manager of the country’s Register of Legal Entities) has already started to draft a proposal on legal amendments needed to make VLLCs a reality next year.
The ability to remotely establish and manage a company in the EU is on the wish-list of many fintech companies. Analysts from Invest Lithuania, a foreign direct investment and business development agency, believe companies from Singapore, the US, Israel and other non-EU locations would all be interested in such a service.
This new breed of VLLCs could range from small companies owned by a single individual to large corporations with publicly-traded shares and other securities. They would be fully-recognised corporate entities under Lithuanian law and would file financial statements and pay taxes in Lithuania.
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Reported by: LeapRate