Registration of a company in Lithuania is an opportunity to expand horizons and enter the European market at a low cost. Strategically, the Lithuanian company is a conduit between Russia, Ukraine, Belarus, other CIS countries, and the European Union.
Benefits of registering a company in Lithuania
Lithuania is the most suitable country in the Baltic region to start a business abroad, as it has a stable economy, a dynamically developing financial sector, and low-income tax rates. You can register a company in Vilnius, Alytus, Panevezys, Kaunas, and other cities.
Main advantages of opening a company in Lithuania:
- Stable market economy;
- Entering the European market (27 participating countries) and increasing the number of customers;
- Opening a representative office in any state of Europe;
- Low income tax rates – 5% and 15%;
- Double taxation protection;
- VAT refund when trading on the European market;
- Lack of currency control;
- The right to temporary residence in Lithuania;
- Ability to move freely in the Schengen area without prior visa processing;
- Trade within the European Union without customs barriers;
- Business loans on preferential terms;
- Registration in your name or a vehicle company;
- Relatively low costs of maintaining the company.
Forms of company registration in Lithuania
Starting your own business, you first need to decide on the legal form for the enterprise. The most common forms of company registration in Lithuania are closed joint-stock companies, small companies, and individual enterprises. The most convenient option is the opening of a closed joint-stock company, as evidenced by statistics.
More than 90% of all enterprises of the Republic of Lithuania are registered as closed joint-stock companies. The founder can be an individual or a legal entity (up to 250 shareholders). There are no restrictions on citizenship.
According to the legislation of the Republic of Lithuania, the authorized capital of a closed joint-stock company must be at least 2,900 euros. By the time of registration, the company needs to pay 25%, the rest is paid within a year after its opening. The authorized capital is formed by transferring funds from any bank, including a foreign account, as well as by depositing cash to the company’s accumulation account.
The main advantage of the company is its limited liability to creditors. Shareholders and owners are not liable for their personal property.
Documents for registering a company in Lithuania
Documents for registering a company with your presence:
- copies of the passport with personal data and registration;
- home address;
- company name;
- Kind of activity.
Documents for registering a company without your presence:
- copies of the passport with personal data and registration;
- home address;
- company name;
- Kind of activity;
- power of attorney for company registration.
Certain activities require a license that is valid throughout the EU. Licensing in Lithuania is subject to restaurant and gambling business, tourism, investment activities, trade-in alcohol and antiques, construction, and pharmaceuticals.
Company registration procedure in Lithuania
The conditions for registering a new company in Lithuania are the same for residents and non-residents. According to the legislation, a resident of any state can open a company without restrictions.
The process of registering a company in Lithuania step by step:
Selection of a unique company name
First of all, you need to decide on the name of the company. If this is an individual entrepreneur, you can use your last name with initials. In the case of registration of a legal entity, any word written in Latin letters is suitable. It must comply with the rules of the Lithuanian language. This is monitored by the State Commission for the Lithuanian Language. As a result, the applicant is granted permission to use a specific name.
Opening a bank account
The next step is to open a corporate account in a bank in Lithuania. It is imperative to obtain a certificate of depositing the amount of money since it must subsequently be attached to the application for registering a company in Lithuania.
Choosing a legal address
The presence of a registration office in the Republic of Lithuania is required. Official documents are sent to this address.
Preparation of constituent documents
All necessary documents are drawn up in Lithuanian. The memorandum and articles of association are prepared as constituent documents. If the founder is one person, then instead of the memorandum of association, an act and a decision on opening an enterprise in Lithuania are drawn up. All documents are certified by a notary.
Payment of the authorized capital
After the preparation of the constituent documents, the authorized capital must be paid in the amount of 25%. The rest is paid by an enterprise in Lithuania within 12 months after its opening. It is allowed to contribute in the form of movable and immovable property.
Company registration in the register of legal entities
After preparing the necessary documents, an application for registration of a company is filled out. If there are no complaints from the state body, information about it is entered into the register of enterprises. Then the director of the organization is appointed.
Registration with the social insurance fund and the tax office
The company registration procedure is completed by registration with the tax and social insurance fund. It must be done within 5 working days from the date of receipt of documents on adding the company to the register of legal entities.
