The New Entrepreneurship Movement Toward Europe

Every year, thousands of entrepreneurs from Asia, the Middle East, Africa, and CIS countries look to Europe as the next frontier for business growth. Lithuania stands out as one of the most attractive locations due to its strategic access to the European Union, Schengen zone, and a highly digital, business-friendly environment.

On paper, setting up a company in Lithuania looks simple — and because of that, hundreds of service providers worldwide advertise “company incorporation in 24 hours” or “EU company registration for €300.”

But what they never advertise is what happens after the company is incorporated.
And that’s where most entrepreneurs get trapped.

They form a company…
They receive their registration documents…
And then they realize:

No bank will open a business account for them. Not in Lithuania. Not in the EU. Not even remotely.

This creates a paralyzing loop:

• You need a bank account for your company to function.

• But banks won’t open an account without strong ties, physical presence, or proper documentation.

• And without a bank account, your newly registered company becomes unusable — a legal shell with zero operational value.

This article explains why this happens, the real risks that most incorporation-only services never tell you, and how Pathways.lt solves the problem through a complete business + banking + residency visa solution.

1. The Dangerous Reality Behind “Cheap Incorporation Services”

Most competitors in this space offer only one thing:

“We can register your company in Lithuania.”

And yes — that part is simple. Anyone can incorporate a company online through the Registry Centre.

But here is the truth they won’t tell you:

Lithuania does NOT guarantee banking access — especially for foreigners without EU residency, business background in Lithuania, or physical presence.

Banks in Lithuania are extremely strict because of:

• EU anti–money laundering regulations

• increased monitoring from the European Central Bank

• high-risk country lists

• historical cases of foreign financial activity abuses

As a result, banks reject the majority of foreign applicants — even if they have a legally registered company.

So the real danger is this:

You can pay hundreds of euros to incorporate a company that you will never be able to use.

Your company will exist legally…
…but it cannot send or receive money.
…but it cannot hire employees.
…but it cannot issue invoices.
…but it cannot start operations.
…but it cannot meet tax obligations.

In other words, you paid to register a company that is functionally dead on arrival.

And cheap service providers don’t care — because their job ends the moment your company is incorporated.

2. Why Entrepreneurs Get Stuck: The “Banking Dead-End” Explained

To operate any business in the European Union, you need a verified business bank account.

But here are the rules Lithuanian banks follow:

(1) They require proof of real economic activity in Lithuania

Without proof that your business will operate locally, banks assume your company is:

• a shell company

• a holding company

• a vehicle for external operations

• a potential AML concern

(2) They require proof of residency or at least a long-term presence

If the director or UBO (Ultimate Beneficial Owner) is not living in Lithuania or the EU, banks reject nearly all applications.

(3) They require in-person interviews

Banks require the director to physically appear for compliance checks — especially after 2020.

(4) They reject companies from high-risk or sanctioned regions

Entrepreneurs from:

• Pakistan

• India

• Bangladesh

• Nepal

• Afghanistan

• Middle East

• Africa

• CIS countries

…face automatically higher levels of scrutiny.

(5) They want proof of business legitimacy

This includes:

• contracts

• business plan

• invoices

• supplier agreements

• local office usage

• employees or future employee plan

Most entrepreneurs starting a new company don’t have these yet, which leads to rejection.

3. The “Incorporation Trap”: Why This is the Biggest Hidden Cost

Here is the scenario that happens every week:

1. An entrepreneur buys a “company registration package” from a competitor.

2. The company gets registered in 2–5 days.

3. The entrepreneur asks for assistance with banking.

4. The service provider says:
   “We don’t provide banking support. Try contacting the banks yourself.”

5. The entrepreneur applies to banks — and gets rejected.

6. Without a bank account, the company cannot function.

7. The entrepreneur now owns a useless EU company and must either:

   • abandon it

   • close it (which costs more money)

   • or spend months trying to fix the situation

The result?

They lose money. They lose time. And they lose access to the EU opportunity they originally hoped for.

Meanwhile, the cheap service provider already made their profit.

4. The Financial Risks of Having a Company With No Bank Account

A company without a bank account is worse than having no company at all.

Here’s why:

Risk #1: Tax Penalties

Even if inactive, your company must:

• submit annual returns

• report financial activity (even if zero)

• maintain accounting

If you fail to do so — penalties.

Risk #2: Forced Liquidation

If your company appears non-operational or non-compliant, Lithuania can force it into liquidation.

Risk #3: Your future EU applications may be flagged

A failed company in Lithuania may affect:

• Schengen visas

• EU business visas

• future company applications

It signals to the authorities that you opened a company but never operated it — which is a red flag.

Risk #4: You lose your investment

Not only the money paid for incorporation…
…but also the money required for:

• accounting

• registered address

• yearly maintenance

All for a company you cannot use.

5. Why Most Competitors Avoid Banking & Visa Assistance

Because it is hard, regulated, and requires connections and local presence.

Opening a bank account requires:

• strong documentation

• local business justification

• residency ties

• in-person verification

Most service providers simply do not have the infrastructure, expertise, or legal partnerships to support this.

So they avoid it — and only offer incorporation.

This is why their offers are cheap.

But cheap becomes expensive later.

6. How Pathways.lt Solves the Problem Completely

This is where Pathways.lt is different from 99% of the market.

We do not stop at incorporation.
We provide the entire ecosystem a foreign entrepreneur needs to succeed.

Our Complete Solution Includes:

✔ Company Incorporation

We set up and structure your business properly from Day 1.

✔ Business Bank Account Assistance

We work with banks and fintech institutions that are open to foreign founders.
Our team prepares:

• business justification

• documentation

• compliance support

• in-person scheduling

• banking interview preparation

This massively increases approval rates.

✔ Residency Visa / TRP Support

This is the key difference.
With residency status, banks treat you like a legitimate long-term business owner — not a foreign risk.

We assist with:

• Temporary Residence Permit (TRP)

• Business visas

• Entrepreneur visas

• Family member visas (if applicable)

This changes everything.

✔ Accounting Setup

We ensure the company is fully compliant from the start.

✔ Local Legal + Administrative Support

You’re not alone after registration — you have a full local team.

7. Why Banking + Visa = A Functional EU Business

Think of it like a puzzle.

• Incorporation = the legal entity

• Banking = the operational engine

• Visa/Residency = the legitimacy and long-term access

If even one piece is missing, your business will fail.

Pathways.lt ensures all three pieces are in place, so you never get stuck in the “incomplete company loop.”

8. Why Lithuania Is Still the Best Entry Point to the EU — If Done Correctly

Despite strict banking rules, Lithuania remains an excellent choice when you have the right support:

✔ Fast residency routes

✔ Access to Schengen

✔ Strong digital infrastructure

✔ Transparent legal system

✔ Easy access to European markets

9. How Pathways.lt Protects Entrepreneurs From Risks

We prevent you from wasting money.

Because we don’t register a company unless we know you can actually operate it.

We ensure banking feasibility before incorporation.

We pre-check your profile to avoid rejection.

We plan your residency pathway from the beginning.

This is the key to unlocking EU opportunities.

We provide realistic timelines and expectations.

No false promises, no shortcuts that fail later.

We build long-term success — not short-term transactions.

10. Conclusion: Don’t Just Register a Company — Build a Complete EU Entry Path

The number one mistake foreign entrepreneurs make is believing that “company incorporation” equals “EU business access.”

It doesn’t.

The real gateway to Europe requires:

• A company

• A business bank account

• A long-term visa or residency pathway

• Local legal and compliance support

Without these, your company becomes a burden instead of an opportunity.

Pathways.lt offers the only fully integrated solution that protects entrepreneurs from the risks, traps, and hidden barriers that other providers ignore.

If you want to start a real business in Lithuania — one with banking, legitimacy, and access to the EU market — then you need more than incorporation.

You need a partner who understands the full system.

You need Pathways.lt.