Company Formation in Lithuania

POSSIBLE OPTIONS TO REGISTER A COMPANY IN LITHUANIA

Purchase of a ready-made company in Lithuania

In addition to the establishment of new companies, we also propose to acquire an already established company, whose authorized capital is fully established. It is possible to purchase a finished company completely remote...
from 1,000 EUR

Company registration by visit to Lithuania

Legal address in the territory of Lithuania and registered capital (2,500 euros) is obligatory. For the establishment of the company you need to be present at the notary in Vilnius...
from 1,200 EUR

Opening a company in Lithuania by a power of attorney

Legal address in the territory of Lithuania and registered capital (2,500 euros) is obligatory. A notarized power of attorney...
from 1,500 EUR

Subsidiary/branch registration in Lithuania

A branch of a foreign company in Lithuania has the right to conduct commercial activities in Lithuania, to receive profits, pay taxes, receive VAT number, hire personnel...
from 1,900 EUR

Additional Services

OPEN A COMPANY IN LITHUANIA

Lithuania ranks 11th in the world in terms of ease of doing business (World Bank Report «Doing Business, 2020)

The most common form of business presence in Lithuania is a limited liability company – UAB.

Uždaroji akcinė bendrovė (UAB) in translation from the Lithuanian language means Closed Joint-Stock Company. The statutory capital of the UAB is divided into shares which can be sold in whole or in part, donated or hereditary. UAB must have at least one owner/owner (natural or legal person) and at least one director (natural person) authorized to sign on behalf of the company.

Company formation in Lithuania

Forms of business in Lithuania

There are four main types of company registration in Lithuania for foreign investors and they are:

All business entities must be registered in a single Register of Legal Entities.

Starting your business, you have to decide on the legal form for the enterprise. The most common forms of company registration in Lithuania are a closed joint-stock company, a small company and an individual enterprise. The most convenient option is considered to be the opening of a JSC, as indicated by the statistics.

More than 90% of all enterprises of the Republic of Lithuania are registered in the form of a closed joint-stock company (Uzdaroji Akcine Bendrove, abbreviated UAB). The founder may be a natural or legal person (up to 250 shareholders), and there are no restrictions on citizenship.

Management bodies are the general meeting of shareholders, the supervisory board and the head of which may become an individual, including a non-resident. Instead of a sole manager, a collegiate body can manage the company.

According to the legislation of the Republic of Lithuania, the statutory capital of a closed joint-stock company must be not less than 2,900 euros. At the time of registration the company has to pay 25% and the rest is paid within a year after its opening. The authorized capital is formed by transferring funds from any bank, including an account abroad, as well as by paying cash into the savings account of the enterprise.

The main advantage of UAB is limited liability to creditors. Shareholders and owners are not accountable for their personal property.

If the company employs 50 or more people, the company’s assets are estimated at 720,000 Euros or more, the company’s settlement accounts charge at 1,400,000 Euros, and a mandatory audit is required.

Why you must register company in Lithuania?

Company registration in Lithuania is an opportunity to broaden horizons, enter the European market at low cost and increase the number of potential customers. Strategically Lithuanian company is a conductor between Russia, Ukraine, Belarus, other CIS countries and the European Union.

Company registration in LithuaniaLithuania is the most suitable country in the Baltic region to start a business abroad, as it has a stable economy, a dynamic financial sector and low rates of profit taxes. To open a company in Lithuania means to expand horizons and bring business to a new level that meets world standards. The Republic of Lithuania ranks high second in Europe in the Investment Attractiveness Index and 11 in the world in the ease of opening its business, and has also risen by 13 in the ranking of the freest economies. The labour market is estimated at 1.5 million professionals.

The decision to register a company in the territory of the Republic of Lithuania is relevant to the establishment of a transit point and further access to the European market, which includes 27 States, which allows you to multiply the number of potential clients and to conduct your business more efficiently. The entrepreneur can also open a branch in any European Union country, so the Lithuanian company becomes a conduit between Russia, Ukraine and other CIS countries on the one hand and the European Union on the other.

Why Lithuania

  • The profit tax is 5% and 15%
  • Trade without customs barriers (within EU)
  • No double taxation
  • Opening a company in Lithuania gives the right to receive GNH
  • No exchange control
  • Return and account for VAT code
  • Strategically, Lithuanian company becomes a conductor between Belarus, Russia, Ukraine and Europe, allowing easier and faster to conclude contracts with EU residents ready to grant deferred payments up to 30 days
  • The registration procedure lasts no longer than 5 days

The Republic of Lithuania is an attractive jurisdiction for obtaining a residence permit in Europe, as a result of which you will be able to move freely in the Schengen area without a visa.

Lithuania’s tax system is loyal. It has some of the lowest rates throughout the European Union. Only 5% of the profit is paid if the annual income is about EUR 289,620 and the number of employees is not more than 10. The VAT rate is 21%. Moreover, the entrepreneur can use legal ways of tax exemption and can avoid double taxation, as special agreements have been concluded with a number of countries, including Russia.

Purchase of a ready-made company in Lithuania

The fastest approach to opening a company in Lithuania will be to acquire a ready registered company. You can easily avoid bureaucracy, immediately start your business and make a profit.

Also, the purchase of a company with the existing name will be interesting to customers already operating in their country, who want to enter the European Union market and create a company with the same name.

The process of converting a company to a new owner involves updating the data in the Register Centre. Despite the fact that the procedure will take some time, it is possible to start and run a business only a couple of days after the purchase of the firm has been made.

Taxation

In Lithuania, income tax on enterprises is 15 per cent, and source-of-income tax 15 per cent. Small companies may apply for a reduced rate of profit tax of 0 per cent or 5 per cent under certain conditions. The total VAT rate is 21%.

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