Open a Business in Lithuania
Depending on your chosen business sector, you may benefit from such advantages as:
- One of the fastest company registration processes in the EU which saves you money and time.
- Vast availability of online services enabling you to carry out business activities and implement necessary procedures remotely.
- Strategic geographical position – right in the centre of Europe – ideal for distribution of goods.
- Four international airports that make the country easily accessible.
- World’s fastest and reliable internet connection which allows your business to thrive in a secure, productive and flexible environment (4th on the International Cybersecurity Index, 5th in CEE based on mobile download speed/mbps).
- A pool of multilingual, motivated and highly skilled talents who are eager to drive businesses forward.
- Ease of paying taxes to the Lithuanian government provides you with peace of mind, much needed for the successful development of your business.
If you’re convinced that Lithuanian business environment is promising for you, read on to learn about the different ways of becoming a company owner in Lithuania.
Establishing a New Business in Lithuania
Opening a completely new company remains one of the most popular ways to realise a business idea in Lithuania. The benefits of starting from scratch include relatively low set up costs, no unclear trading history, no debts as well as freedom to define every operational principle.
Setting up a new company in Lithuania is fairly easy if you have all the required documentation prepared for the process. It takes only a few days to register a new company and open a new corporate bank account, enabling you to start trading immediately. Prior to registering it, you’ve got to decide what type of legal entity suits you best. The most common legal entities in Lithuania are Private Limited Liability Company (UAB), Public Limited Liability Company (AB), Small Partnership (MB) and Individual Enterprise (IĮ). Our knowledgeable experts here at Company in Lithuania UAB are more than happy to consult you on the best options available for your business idea.
Once you’ve decided on the type of the company, you should determine all the requirements and permits related to the specific business sector (e.g. construction, catering or kindergarden). You can find out more about the requirements for a variety of business sectors here. This will prevent you from different kinds of regulatory friction when carrying out economic activities.
Now that all the above perspectives are considered, the following company registration steps will most likely need to be taken:
- Preparation of articles of association along with founding act/founding agreement
- Reservation of a temporary company name
- Opening of an accumulative bank account
- Transfer of share capital to the bank account
- Notarisation of the founding documents at a registered notary’s office
- Registration of the company at the State Enterprise Centre of Registers
- Conversion of the accumulative bank account into a settlement account
- Obtaining an authorised electronic signature, which is required only for online company registration
Buying an Off-the-Shelf Company in Lithuania
Off-the-shelf company is a pre-registered company with no trading history, normally run by a company formation agent until it gets sold and transferred over to a client (new owner). Acquisition of such a ready-made company generally costs more than starting a new business, but it also boasts such benefits as saving time and efforts needed for business establishment procedures in Lithuania. Another primary benefit is the age of a company, which may open doors to bidding on procurement contracts that have a prerequisite of you being in business for several years.
If you’ve decided that acquiring a ready-made company is the right path for your business in Lithuania, the next step to take is to find a reliable agent who trades such legal entities. Company in Lithuania UAB will be pleased to assist you with the search as well as with the remote re-registration procedure of an off-the-shelf company of your choice.
You’ll be able to start operating and changing such company details as business address as soon as the sales contract is signed with the notary.
Buying an Existing Company in Lithuania
Buying a company that already has a trading history is a fast yet risky move as you would be adopting someone else’s legacy, which must be examined carefully prior to making the decision. If chosen successfully, an existing company can present huge advantages that are normally gained with time and through a considerable effort.
The following advantages might be at stake:
- Start-up stage with all its challenges is omitted as a huge portion of the foundational work is done, which should allow you to focus on further business development.
- An established business has a proven record of economic activities, which simplifies securing financial support.
- A reputable company will have a base of clients, contacts and a trusted public profile which is important for continuous marketing efforts.
- The company’s operations will be maintained by the existing experienced employees.
When all the required documentation is in place, an existing company can be sold in just one business day by signing an agreement at a notary’s office. Once all the involved parties have put their signatures to it, all the information and documentation can be transferred over to the State Enterprise Centre of Registers, where the owner of the company will be re-registered.
Whichever way of starting a business in Lithuania you choose, Company in Lithuania UAB will help you to set the stage for your success by providing comprehensive legal advice on company formation, transfer, taxation as well as by offering professional financial accounting services. Contact our dedicated experts today for a tailored consultation.
Additionally, we offer a virtual office service which eliminates the need for expensive office leases, equipment and staff. It’s an advantageous solution for small businesses who are willing to create a professional image by having access to such physical office functions as a business address, meeting facilities and reception, while at the same time reducing costs and maintaining the benefits of remote work. Enquire about our virtual office here.