Company registration in Lithuania

Lithuania is a member of the EU, OECD and Eurozone. Lithuania, like other Baltic countries, has a stable economy. Despite the global crisis in 2020, the following dynamics was observed in the country:

• positive foreign trade balance,
• balanced public finances,
• absence of excessive financial obligations and stagnation of the real estate market.

Economic benefits:

• Low inflation - 1% per annum as of July 2020;
• GDP - 11.5 billion euros for the second quarter of 2020;
• From January 1, 2020, the minimum wage is € 607 / month.

It should be noted that foreigners and Lithuanians are provided with the same conditions for starting a business, which is why this place is so popular among entrepreneurs.

An innovative, woodworking, construction and chemical business is actively developing in the republic. Despite the fact that the labor force here is not expensive, it provides high-quality services.

The economic relations of Lithuania are regulated by Chapter XI "Finance and state budget" of the Constitution:

Useful laws of the Republic of Lithuania for entrepreneurs:

• on tax administration;
• about accounting;
• on goods turnover tax;
• about credit unions;
• on the establishment of penalties for late payments related to labor relations;
• Regulations on the Register of Legal Entities;

Main tax laws:

• About tax administration;
• About customs.

In Austria, the following 4 organizational and legal forms are most common:

1. Limited liability company - AK;
2. Closed Joint Stock Limited Liability Company - UAB;
3. Partnership with unlimited liability - TUBH;
4. Agricultural limited liability company - ZUB;

Individuals and legal entities, residents and non-residents have the right to be shareholders in Lithuania.

Financial and economic control over the legality of the management of state property and its use and the execution of the state budget in the country is exercised by the State Control.

The list of taxes paid by Lithuanian entrepreneurs was formed under the influence of the European Union and is indicated in the Constitution of the Republic. The average tax rate in the country is below the European level, it is about 30%.

The following features can be noted in the tax system of Latvia:

• Taxation of personal income is carried out at a fixed rate;
• The subject of taxation is an individual with income (regardless of his marital status).

Taxes:

1. personal income - 15%;

for income> 104,277.6 EUR - 32%;

for some types of self-employment - 10%;

for disabled people, single parents - 0%;

2.corporate - 15% (taxable base - profit from trading operations and capital gains, passive income)

with profit <810 EURO and <10 employees - 13%;

for micro companies (<10 employees, income <300,000 EUR) - 5%;

for agricultural companies (with a profit of 50%), for companies that do not pursue a profit - 0%;

benefits for holding companies;

3. value added - 21%;

goods supplied outside the EU - 0%;

medicines, services for the disabled, periodicals - 5%;

non-periodical publications; public transport, heating services - 9%;

4. social insurance - 21.27%;

5.for dividends of non-residents - 15%

for foreign companies registered in the EU - 0%;

6. excise taxes - on sugar, chocolate, coffee, tobacco, jewelry, alcohol, fuel, electricity, some art publications;

7. on land - 0.1-4% (depends on the value of the land);

and natural resources, environmental pollution;

For all the nuances of the tax payment process, please, contact our Prifinance specialists.

A company in Lithuania can be registered in just 4 stages:

• Open a bank account and deposit minimum capital
• Receive a verified electronic signature for the company
• Reserve a name for the company
• Registration in:
  1. register of companies;
  2. SODRA (compulsory VAT registration for foreign companies);

When registering a private limited liability company, you must provide the following documents:

• company charter
• memorandum of association
• registration application
• shareholders minutes
• certificate of a credit institution on making a deposit

Our experts provide a wide range of services, ranging from obtaining licenses for certain types of activities and permits for opening companies to supporting in receiving a residence permit and citizenship. If you are interested in any stage of opening a company or its entire process - feel free to contact us by 24-hour number. As soon as possible, you will be contacted and our specialists will advise on all issues.