Company registration in Lithuania - YB Case 2024
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Lithuania

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You can register a company in Lithuania by visiting our office in person or remotely via the Internet

Features of jurisdiction

Lithuania is one of the largest countries in the Baltics, which considers itself the economic centre of the region. Undoubtedly, due to a combination of factors such as a stable economy, low inflation, low labour costs and a liberal business environment, the state has managed to attract a significant inflow of foreign investment. Investors and foreign entrepreneurs also note the possibility of entering the European Union market by registering a business in Lithuania.

  • In-demand business areas

    Due to its territorial location and domestic policy, among the most popular areas of business activity in Lithuania are: IT, business services, logistics, agro-industry.

  • Possibility of remote registration

    Remote company registration in Lithuania is possible.

  • Corporate taxes

    The corporate tax rate in Lithuania is 15%. There are tax exemptions for certain business areas.

  • Attitude towards foreign investors

    Lithuania is open for foreign investments, which makes it a sought-after country for establishing business among foreign entrepreneurs.

  • Banks

    Siauliu Bank, Medicinos Bankas, платежная система Ibanera.

  • Legal system

    Lithuania's legal system is based on the continental common law system, similar to other EU countries.

Company registration process in Lithuania

Company registration in Lithuania takes from 1 week and includes the following steps:
Initial consultation
Meeting with YB Case representatives in the office to clarify details and requirements of the client. Starting the process of incorporation of the company in Lithuania (initial consultation is possible in remote format).
Name reservation
The name of the future company must be unique and contain the abbreviation of the company's legal form.
Submission of the application for company registration in Lithuania
The articles of association and memorandum of the company are prepared and notarised, the applicant signs all necessary documents, which are submitted to the local regulator for review.
Consideration of the application for company registration in Lithuania by the regulator
After receiving all the necessary documents, the regulator (The Register of Legal Entities) considers the application and makes a decision on incorporation of the company in Lithuania.
Receipt of the certificate of incorporation
Upon the results of incorporation of the company in Lithuania, the founders receive a certificate of incorporation containing the company's registration number. After receiving the certificate, the company must be registered for tax purposes in Lithuania.

Primary prerequisites

  • The minimum paid-up capital depends on the GFC and field of activity
  • Number of founders depends on the GFC and area of activity
  • Registered local address
  • Minimum one director (no residency requirements)
  • Filing of financial statements once a year
  • Annual meeting of members (can be held remotely)
Company registration in Lithuania

Company registration in Lithuania

Lithuania is the superlative of the Baltic Polities. In latter times, the governance has proficiently enticed a substantial affluence of extraneous allocators engrossed in inaugurating an enterprise in Lithuania. Visionaries are enticed by the amalgamation of a steadfast pecuniary system, comparatively inconspicuous workforce expenditures, and an untrammeled commercial milieu. Enrolling an enterprise in Lithuania for a non-dweller has a myriad of other benefits. These encompass the feasibility to carry out mercantile undertakings in the EU, levy advantages, opportune locale, and the feasibility for originators to ambulate unreservedly within the EU without a visa.

There exist duo alternatives for a sojourner to commence an enterprise within the nation:

  • Enrollment of a novel establishment in Lithuania;
  • Acquisition of a Lithuanian readily-formed enterprise.

Launching an investment start-up in Lithuania: the attractiveness of the country

  1. The realm is fraction of the European Coalition and the Schengen precinct. EC corporations bask in toll exemptions, entry to the toil bazaar, and streamlined migration. Thanks to the euro changeover in 2015, pecuniary motion has turned out to be more straightforward.
  2. Lithuania's unparalleled geographical whereabouts renders it a portal to the souks of Scandinavia, the Occident, and the Orient.
  3. Lithuania garners the foremost standing in Central and Eastern Europe with regard to the caliber of motorway structure.
  4. It possesses a steadfast pecuniary system.
  5. It garners the 13th standing in pecuniary autonomy and the 11th standing in the simplicity of instigating a trade.
  6. Universally distinguished corporations have already inaugurated their bureaus in the Commonwealth (e.g., NASDAQ). Hence, unveiling a corporation in Lithuania is an admittance to a new-fangled entrepreneurial stratum that aligns with lofty norms.
  7. Relatively modest overheads of business management.
  8. Corporate toll 15%, one of the most meager tariffs in the EC.
  9. 0% VAT on an extensive assortment of exchange dealings in the EC.
  10. R&D backing is galvanized by the institution of an extraordinary toll framework that sanctions a triple toll allowance for R&D.
  11. Non-dwelling financiers can register a corporation in a Lithuanian free zone. There are 6 expediently sited free economic precincts that delight in distinctive lawful and economic handling.
  12. The Commonwealth vigorously deploys technology. Civic amenities are almost totally approachable through electronic frameworks, and it is conceivable to tender reports/applications, complete declarations online.
  13. A propitious milieu has been engendered in the terrain of the realm for the triumphant progression of diminutive trades, allowing for information/technology launch-ups.
  14. It is conceivable to enroll a Lithuanian corporation remotely.

The most popular requests among foreign investors are:

  • launching ICO and blockchain projects in Lithuania;
  • registration of a Lithuanian logistics company;
  • launch of an IT startup in Lithuania;
  • launching a FinTech startup in Lithuania.

Business incorporation in Lithuania in 2024: jurisprudential classifications

There exist myriad primary categories of commercial organizations for non-citizens, specifically:

  • joint stock company (AB);
  • a limited liability company (UAB);
  • general (TUB) or limited (KUB) partnership;
  • branch/representative office (RO);
  • individual enterprise.

Registration of a limited liability company in Lithuania

UAB (corollary of LLC) affords its proprietors with circumscribed responsibility for commercial obligations. The requisite pecuniary outlay for inaugurating UAB in Lithuania is 2500 EUR. Minimum 1 principal (individual) and 1 progenitor. Maximum quantity of progenitors - 250.

Which manuscripts are necessitated to enroll a limited liability company in Lithuania?

  1. Consent of all directors.
  2. Articles of Association.
  3. Report of the constituent assembly.
  4. Verification of inaugurating a fiscal repository in Lithuania.

Establishment of a joint stock company in Lithuania

It is a prevailing commercial implement for sizable enterprises, analogous to CORPORATION. AB shares may be widely accessible. The pecuniary essential for CORPORATION enrollment in Lithuania is 40 myriad EUR (minimal 25% liquid). Can be instituted by min. 1 administrator and 1 stakeholder (dwelling does not signify). Yearly scrutiny of pecuniary declarations is obligatory. Stakeholders have confined obligation. Monitoring committee must be designated. Once a Lithuanian AB enterprise is instituted, its shares can be effortlessly conveyed or enumerated on the indigenous bourse.

Documents for AB registration in Lithuania

  1. Indications that every overseer have concurred to establishment.
  2. Scrolls of Affiliation.
  3. Statute of the elemental conclave.
  4. Verification of inaugurating a ledger in a Lithuanian pecuniary institution for the lodgment of merest assets and enrollment of equities with the Securities Bureau.
  5. Scrutinizer's testimony.

Other forms of economic activity

The most uncomplicated genre of commerce is enrolling as a solitary entrepreneur in Lithuania. Characteristics:

  • no minimum capital;
  • the owner can receive all profits.

Nevertheless, the possessor is responsible to the degree of its holdings.

It is feasible to enroll a universal concord in Lithuania or institute a confined concord in Lithuania (where the obligation of the reserved companions is confined). For both universal and confined concords, there must be a compact amid the associates, endorsed by all of them and attested.

Lately, it has transpired feasible to enroll a diminutive concord (MB) in Lithuania. The decree does not stipulate the quantity of allotments of MB participants, these allotments are determined by the participants themselves. The utmost count of adherents is 10. The governing conclave is the overseers' convocation. The obligation of MB adherents for the liabilities of the concord is confined.

A strange corporation may inaugurate a bough in Lithuania or enroll a Lithuanian envoy bureau. The progenitor establishment will be responsible for all obligations of the bough. The RO can advance the undertakings of the progenitor corporation, but cannot engage in mercantile undertakings. When constituting these configurations of commerce, at the minimum one administrator must reside in Lithuania. There are no official scrutiny requisites.

Procedure for registering a business in Lithuania

When planning to open a company in Lithuania as a non-resident, you will need to go through the following stages of the process:

  1. Enlist an unparalleled appellation.
  2. Dispatch duplicates of duly authenticated certification of instauration and Charters of Affiliation to the Supervisor.
  3. Arrange a duly authenticated mandate of proxy if it is an inquiry of enlisting a corporation in Lithuania without a sojourn.
  4. Enlist a lawful habitation in this polity.
  5. Designate distinguishing statistics and annex duplicates of private manuscripts of conductors/pioneers.
  6. Inaugurate a treasury chronicle for the Lithuanian enterprise.
  7. If requisite, petition for a commercial authorization in Lithuania.
  8. Enlist with the Tribute Agency.

Other opportunities for foreign investors

If you are not inclined towards enrolling a concern in Lithuania, you have the option to procure a pre-established Lithuanian enterprise. In this instance, an accord for the acquisition and disposition of corporate prerogatives is formulated, subsequent to which you can commence commercial pursuits. Despite its expeditious nature and the capacity for restructuring, it necessitates pecuniary infusions.

Regulatory and legal environment in Lithuania

  1. The governance is devoted to an untrammeled marketplace with an openhanded commercial milieu.
  2. Capital laws adhere to European Union benchmarks.
  3. Overseas financiers are unrestrained to acquire a Lithuanian corporation.
  4. Unhampered mobility of wealth.

Domicile authorization in Lithuania

Domicile authorization in Lithuania is granted for 12 months. There exists an opportunity for nonindigenous financiers to petition for a domicile authorization in Lithuania on the grounds of habitation under an investment schema. The visa is accessible for nonindigenous financiers arriving to inaugurate an enterprise in Lithuania.

Taxation

When scheming to inaugurate an enterprise in Lithuania, it is primarily imperative to possess a conception of the fiscal doctrine of this European realm.

Corporation Tax.
The fundamental percentage is 15%. This pertains to such categories of gain as mercantile pursuits, capital increments, investment proceeds, and sundry dynamic/indolent categories of gain. The diminished percentage of 5% is pertinent to diminutive enterprises with an annual revenue of under 300 thousand EUR and no exceeding 10 laborers.
Dividend Tax.
The customary ratio for a fiscal inhabitant of Lithuania is 15%. Nevertheless, the statutory framework affords dispensations. Lithuania is a realm wherein dual tax evasion tenets are implemented. Accordingly, should one enterprise possess no less than 10% of stakes in an alternative enterprise enlisted in the Eurozone for a span surpassing one annum, the gain derived from the progeny is non-imposable (provided the progenitor enterprise has remitted taxes in Lithuania in their entirety).
VAT.
The elemental proportion is 21%. It is imperative to enlist a venture in Lithuania to remit Value-Added Tax (VAT) if the aggregate sum of gain from dispensing commodities and/or amenities is 45 myriad EUR within 12 lunar cycles. Certain sectors function at a diminished proportion of 9% or 5%.
  • Property tax: 0.3-3%.
  • Social tax.

The current rate of this tax is 34.09%.

Any pecuniary inducements?

If you intend to establish a company in Lithuania, please note that the government offers investment incentives. These include the following:

  • Public income duty alleviation for investments in voluminous undertakings. Modern statute alters the Revenue Law to stimulate investment in voluminous undertakings. The statute is potent from 1 January 2021 (till 31 December 2025). Commencing an investment undertaking in the Republic of Lithuania (solely for sizable-scale undertakings) sanctions, beneath specific circumstances, to procure an immunity from Revenue Law from 2021 to 2025. This inducement is accessible to entities implicated in sizable-scale investment undertakings in fabrication, data manipulation, different interconnected undertakings. The Revenue Law immunity is accessible for up to 20 years for indigenous and non-dweller enterprises, subject to particular stipulations:
    • The corporation needs to enlist a momentous capital venture undertaking in Lithuania following the currently applicable pact on momentous capital venture undertaking.
    • The capital sum ought to be no less than 20 million EUR (30 million EUR if partaking in Vilnius or its precinct).
    • The mean count of toilers needed for the execution of the scheme throughout the levy duration must be no less than 150 individuals (200 individuals for Vilnius or its precincts).
    • 75 per centum of the firm's earnings must be procured from manufacturing, datum manipulation, and other associated amenities.
    • The establishment must possess an examination dossier validating that the requisite sum of exclusive funds has been invested.
  • If thou dost aspire to commence pecuniary pursuits in Lithuania, take heed of an alternative assortment of inducements. Entities engaged in an investment endeavor might diminish their assessable gain by unto 100% of the factual expenditures amassed for the procurement of meritorious enduring assets. Assessable revenue may be attenuated for such expenditures accrued betwixt 2009 and 2023. This boon is applicable to the ensuing classifications of belongings, apparatus, and chattels:
    • Mechanisms and equipment.
    • Computer and communications equipment.
    • Software and acquired intellectual property (IP) rights.
  • Exploration and evolution (E&E) levy stimulants. Enlistment of an enterprise in Lithuania for E&E intentions sanctions subtracting thrice in the pertinent tax epoch disbursements, excluding depreciation of immobile possessions, sustained for E&E intentions, provided that the E&E executed pertains to routine trade pursuits. An enterprise seeking such tax stimulants must formulate documentation on the E&E. This documentation must envelop the actualized venture, authenticate conformity with specific tax requisites, and denote the magnitude of E&E outlay. Commencing 1 January 2018, recent tax stimulants were instituted for enterprises investing in E&E. Such enterprises are competent not solely to subtract expenditures sustained on E&E thrice from taxable revenue but also to employ a lessened CIT pace of 5% (beneath particular circumstances).
  • Inauguration of a corporation in the Lithuanian Unfettered Economic Precinct. Individuals capitalizing in the Lithuanian UEP are authorized to fractional or complete remission from revenue toll (hinges on the sum invested), from possession toll, and 50% remission from terrain lease toll.

Conclusion

Lithuania, the most capacious of the Baltic Commonwealths, is broadly acknowledged for its distinction as an opulent nucleus. Owing to its unwavering and potent opulence, its propitious trade milieu propels alien financiers to enlist a corporation in Lithuania. You have the option to requisition an interlocution concerning the stipulation of pecuniary pursuits in Lithuania or succor in instigating a pecuniary enterprise in Lithuania from YB Case adepts.

FAQs
What documents do I need to register a company in Lithuania?

The minimum package of documents will include:

  • Duplicates of passports of the originators and overseers;
  • Domicile addresses of the aforementioned individuals;
  • Communication particulars;
  • Aspired appellation of the corporation;
  • Financial declaration on initiating an account in Lithuania and depositing the sanctioned capital;
  • Verification of indigenous residence.

Regulators may also request additional information at their discretion.

May an itinerant individual establish a corporation in Lithuania?

Yes, foreign entrepreneurs can open a company in this state in accordance with the local legislation.

Chronology and expenditure of enterprise enrollment in Lithuania
The epoch of enterprise enrollment in Lithuania is septenary days. If you are intrigued by the expenditure of enterprise enrollment in this realm - communicate with us for individualized consultative amenities.
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