Company Formation and Business Registration in Lithuania, Lithuanian Company Incorporation, Bank Account in Lithuania, Lithuanian Corporate Services

COMPANY FORMATION IN LITHUANIA - REGISTER A COMPANY IN LITHUANIA WITH EURO COMPANY FORMATIONS!

Introduction

Lithuania is the biggest of the Baltic states and regards itself as the region’s economic powerhouse. Certainly it has succeeded in attracting significant inflows of foreign direct investment, with investors encouraged by a combination of a stable economy, low inflation, low labor costs and a liberal business environment. Corporation tax is 15%, one of the lowest rates in the EU. But investors are advised to tread carefully. If you are thinking of opening a company in Lithuania, please contact us and we will help you every step of the way. Please contact us for further details today.

What are the main types of company in Lithuania?

There are four main kinds of business entity for foreign investors, and they are as follows:

public limited company (AB)
private limited company (UAB)
branch or representative office

What are the main features of a public limited company?

the most common business vehicle for medium/large companies
minimum share capital is €43,443, at least 25% to be paid up
minimum of three board or supervisory council directors
auditors required to prepare annual financial statement
company and its shareholders have limited liability

What documents are required to register a public limited company?

incorporation agreement or act of incorporation
the company’s articles of association
minutes of the founding meeting
confirmation of Lithuanian bank account
confirmation of share registration with Securities Commission
report on company together with auditor’s opinion

What are the main features of a private limited company?

popular format for smaller foreign investors
minimum share capital is €2,896, at least 25% to be paid up
no requirement for board or supervisory council
maximum number of shareholders is 250
company and its shareholders have limited liability
conditional requirement for auditors (e.g., if annual revenue exceeds €1.4m)

What documents are required to register a private limited company?

incorporation agreement or act of incorporation
the company’s articles of association
minutes of the founding meeting
confirmation of Lithuanian bank account

What are the main features of a partnership?

available as a general or limited partnership
general partnerships have unlimited liability
limited partnerships have limited liability

What are the main features of a branch or representative office?

foreign parent is responsible for all liabilities
ranch office can conduct trade within scope set by parent
representative office can promote but cannot trade
at least one manager must reside in Lithuania
no formal auditing requirements

How easy is it to recruit staff in Lithuania?

Lithuania used to be known as Soviet Silicon Valley, such was the reputation of its workforce for innovation and productivity. The Soviet era may now be over but its reputation remains intact. Lithuania’s workforce is generally young, well educated and very highly motivated, while labor costs are among the lowest in Europe. Recruitment is straightforward – contact us if you require local help with this, as well as information on setting up a company in Lithuania

What is the regulatory environment like?

government committed to free-market economy liberal business environment
member of the WTO and has ratified most international treaties
investment laws conform to European Union standards
foreign investors are free to buy Lithuanian companies
unrestricted movement of capital and dividends
double-taxation agreements with many countries

Are there financial incentives available?

Investment incentives in Lithuania are centered on three Free Economic Zones in the cities of Klaipeda, Utena and Kaišiadorys. They include the following:

tax holidays and tax reductions for companies investing over €1 million
no taxes on dividends paid on foreign investments
EU support funds for companies setting up in Klaipeda

And what about banking facilities?

Lithuanian banks offer the standard range of facilities, including foreign exchange and international payments. There are no foreign exchange restrictions. You will need a local bank account if you open a company in Lithuania and we will be happy to help you with this.

How can I get more information?

Our company formation service makes it easy for you to open a company in Lithuania, so please contact us for further details, and we can help you register a company in Lithuania in the quickest possible timeframe!