Company Set Up In Lithuania
Nestled in Europe’s Baltic region, Lithuania is known for the fresh and lucrative business opportunities it offers. The country boasts impressive biotechnology, laser, aviation, information technology, and telecommunications industries.
The largest among the three Baltic States, Lithuania, features an abundance of natural resources. In fact, it has the highest standard of living among the three Baltic States. Located conveniently close to the Baltic Sea shelf, Lithuania has sizable oil reserves. The profitable and plentiful resource is exported to the rest of the world, using the country’s sophisticated transportation network that comprises rails, roads, airports, and seaways.
The Lithuanian ICT, metal processing, heavy machinery, and electrical equipment sectors are all viable investment opportunities. The wood industry and related sectors, including the paper and furniture making industries, have risen to prominence over the years and continue to be a notable business area in the country. Biotechnology and outsourcing are also two of the most thriving branches of the Lithuanian economy.
The Lithuanian government is well aware of the country’s investment potential and continues to provide various incentives to foreign investors who wish to expand to Lithuania. Tax benefits and low-rate bank loans are just a few of the plethora of these powerful incentives!
Forms Of Companies In Lithuania
- UAB – “Uždaroji akcinė bendrovė” – Private Limited Liability Company
- AB – “Akcinė bendrovė” – Public Limited Company
- KŪB – “Komanditinė ūkinė bendrija” – Limited Partnership
- TŪB – “Tikroji ūkinė bendrija” – General Partnership
- “Individuali veikla” – Sole Proprietorship
What is the difference between UAB and AB in Lithuania?
Most entrepreneurs choose to establish a UAB, – limited liability company as with a capital deposit of EUR 1000 which must be paid prior to company registration in Lithuania. This form of company can be established remotely for non-residents. For even faster process we have ready shelf companies for transfer.
An AB is suited for large-scale business operations; it must have at least 40,000 EUR of share value deposited in its business bank account, and at least 1 shareholder and 1 director are mandatory. The company can trade publicly.
Fundamentals Of A Limited Liability Company
Corporate Tax in Lithuania | VAT in Lithuania |
|---|---|
16% | 21% |
Fundamentals of limited liability companies in Lithuania
| Limited liability company | UAB |
| Minimum Share capital | 1000 EUR. Must be paid in full |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
| Local Director required | No |
| Other requirements | No |
| Bank signatory must travel | Yes |
| Timescale for company formation | 5 - 10 days |
| Timescale for bank account opening | 7 day |
| Timescale for obtaining VAT number | 7 days |
| Statutory audit requirements | Yes, if turnover exceeds EUR 1.4m |
| Shelf companies available | Yes |
The process for setting up a company in Lithuania?
- The client will complete our application form and deliver due diligence documentation.
- preparation of company documents: Articles of Association, Founding Act/Agreement, Shareholder decision to appoint director.
- registration the name of the company with the Register
- payment of the share capital
- Translation of documents in some cases
- Submission of the incorporation documents to the Register
- Registration the company with the Register
- Once the company has been formed, we will inform the bank to finalize account opening and release share capital to company
Once the company has been set up, the client can choose to:
- Open online business bank account remotely
OR
- Open the bank account in a high street bank (In this case, a visit will be mandatory and CompyCo can provide assistance accordingly)
Requirements for company registration in Lithuania
Minimal requirements for UAB – limited liability company in Lithuania
- Minimal share capital of company in Lithuania has to be not less than 1000 EUR – must be paid in full
- minimum 1 shareholder, maximum 249 shareholders
- any country national can be director or shareholder of company in Lithuania
- Registered office address is mandatory to have
- We can assist with online bank account opening remotely or the client can visit Lithuania for 1 day to open an account in physical high-street bank.
In case of registering subsidiary, we will obtain mother company documents which will need certification and sworn translation in Lithuania. We will guide you through the process and assist with all the services.
Check out Company registration in Croatia or in Ireland
Bank Account Opening
Lithuania offers a variety of banking options for international businesses.
Whether your company has high-risk activities or is structured for non-EU residents, CompyCo has the experience and network to coordinate your bank account opening. Accounts can be opened remotely via online banks or in person at high-street banks.
Based on information about your directors, shareholders, business activity, and expected transactions, we can guide you on which banks to approach.
Some of the most established and trusted banks in Lithuania include:
- Swedbank
- S|E|B
- Luminor
- DNB
- Citadele
- Nordea
With CompyCo’s coordination, your bank account setup can proceed smoothly.Learn more about opening a bank account here.
Accounting & Taxation
Once we have set up a company in Lithuania for you, we will offer competitive accountancy and tax services for you to consider. However, you can always proceed with other service providers.
The accounting and taxation obligations to take into consideration are:
- The corporate income tax is levied at 16%. Reduced rate of 0% will apply for first year of operation and 6% for subsequent years should there be less then 10 employees and annual revenue not exceeding EUR 300,000.
- Annual tax returns must be paid every year by the 1stof June. Penalties are applied in case this filing is not on time, up to 50% of the amount of tax returns of the company.
- VAT returns must be filed every month.
How can you employ staff in Lithuania?
Alternatively, if you want to employ individuals in Lithuania for remote work, your foreign company can register as an employer and pay salaries and related contributions directly to your Lithuanian employees according to local regulations. There is no need to establish a company in Lithuania or incur additional costs such as office space, accounting, and taxes.
Your main costs in this scenario would be the employee salary, contributions, and the services of a local payroll expert to prepare payslips—all of which can be managed from your foreign company account.
CompyCo has the experience and network to coordinate registrations, employment agreements, payroll, and other HR requirements.
Have any questions? Take a look at our HR services page for more information about our International HR services!
Register a Company in Lithuania
Some Tips For Starting A Business In Lithuania
So you’ve decided to start a business in Lithuania. Great decision! Here are some tips to help you get started: 1. Do your research. There’s a lot of information online about starting a business in Lithuania, but make sure to read and research everything carefully before making any decisions. Chances are, you’ll find at least one detail that will change your mind about starting a business in Lithuania. 2. Get registered with the government. In order to doing a business in Lithuania, you must first register with the government and obtain a tax ID number (TIN). This can be done through the Ministry of Economy’s website or by visiting a local bureau de change (money changer). 3. Figure out your financing options. Financing your business in Lithuania is not as easy as it may seem. Before starting any negotiations, be sure to do your research and have an idea of what you are looking for. You may also want to consider seeking advice from a financial advisor or bank representative. 4. Make sure your business is legal and compliant. Once you have registered your company with the government, it’s important that you conduct due diligence on all aspects of
Tips for setting up a business in Lithuania
If you are thinking of starting your own business in Lithuania, there are a few things to keep in mind. Lithuania has a population of just over 3 million people, so it is not the most populous country in Europe. However, its economy is growing quickly, so there is plenty of opportunity for new businesses.
First and foremost, make sure you have a good business plan. In order to get started, you’ll need to submit an application for a business registration with the relevant authorities. This process for setting up a company in Lithuania can take some time, but it’s well worth it as it will help protect your investment and ensure that you’re doing everything you can to run your business successfully.
Another important thing to remember is that Lithuanian law is very protective of private enterprise. This means that you’ll need to be prepared to invest time and effort into building up your business case before launching operations. Make sure you have enough capital available to cover initial cost for setting up a company in Lithuania
and potential losses – don’t expect the government or other businesses to pick up the slack!
Finally, be prepared for challenges and obstacles along the way. Doing business in Lithuania isn’t easy – but if you are determined and work hard, success is definitely possible!
How to register a company in Lithuania?
If you are thinking of starting your own business in Lithuania, there are a few things you should know. First, you will need to register your company with the appropriate authorities. Second, you will need to find the right investment or funding options. Third, make sure to create a strong marketing strategy. Fourth, be prepared for some challenges along the way!
To register your company in Lithuania, you will first need to visit the Ministry of Economy website and complete an online registration form. Once you have completed the form, you will need to provide some basic information about your business, including its name and address. You will also need to provide evidence of ownership (such as a copy of your company’s certificate of incorporation), as well as financial statements and other documentation related to your company’s operations. Finally, you will need to pay a required registration fee.
Once you have registered your company with the Ministry of Economy, it is important to ensure that all relevant documents are up-to-date and in proper order. This includes filing annual reports and making any necessary changes to your corporate registry profile. It is also important to keep abreast of any changes affecting your business sector – for example, new legislation or regulations that may impact your operations.
To help promote your company in Lithuania, make sure to develop a strong marketing strategy. Plan how you will market yourself and your products/services; target key demographics; create effective advertising campaigns; and build a
How to find investors for your Lithuanian business
Finding investors to help you take your Lithuanian business to the next level is not always easy, but it is definitely possible. Here are some tips for finding potential investors for company set up in Lithuania:
1. Do your research. First and foremost, you need to do your homework before approaching any potential investors. You want to make sure that the company you are looking to invest in is legitimate and has a good chance of succeeding. Furthermore, be aware of the regulations surrounding investing in businesses in Lithuania. It is important to know what is required from both the investor and the company in order to avoid any misunderstandings or legal issues down the road.
2. Networking is key. Not only will networking give you access to potential investors, but it will also allow you to learn more about what they are looking for when investing in lithuania. In addition, meeting with several different people will give you a better sense of which type of investor might be right for your Lithuanian venture.
3. Seek out angel investors. Another option for funding your Lithuanian business could be through angel investors. These are individuals who are interested in investing smaller amounts of money into new businesses, and they typically have a lot more experience dealing with businesses than mainstream investors do. If you can find an angel investor who is interested in your particular project, they may be able to provide valuable advice and support along the way.
4. Consider crowdfunding platforms like Seedrs or Un Half A Chance If crowdfunding doesn’t seem like
How to deal with red tape when starting a business in Lithuania
Red tape can be a major hindrance to starting a business in Lithuania. Here are some tips on how to navigate the process for company set up in Lithuania:
1. Know what you need to do
The first step is to figure out what formalities you’ll need to complete in order to set up your business. This includes filing paperwork with the relevant authorities, obtaining licenses and permits, and making sure your company is compliant with local regulations.
2. Get organized
Once you have a good idea of what’s required, get organized and start gathering the necessary documents. Make copies for yourself as you go, so that you don’t have to search for them later on when things get busy.
3. Speak with an attorney
If there are any tricky regulatory issues or questions that still remain, it’s advisable to speak with an attorney before taking any further steps. They can provide expert advice on how best to proceed and help protect your interests should anything go wrong along the way.
Conclusion
Starting a business in Lithuania can be an exciting and challenging experience, but with the right preparation and planning, it can be rewarding. Here are some tips for company set up in Lithuania to help you get started: -Research the market: Know what type of business you want to start and do your research so that you can tailor your pitch accordingly. -Get organized: Have a clear plan for what you need to do in order to start your business up and running, from finding office space to developing marketing plans. -Be patient: It can take time to establish yourself as a credible player in the Lithuanian market, so don’t expect things to happen overnight.