Company Formation Lithuania
Lithuania is a Baltic state that borders Sweden, Denmark, Latvia, Belarus, and Poland. Lithuania is a small country with about 2.8 million people and a GDP of more than $102 billion. The country joined the European Union in 2003 and has a growth rate of more than 3.8%. It is also a member of NATO, Schengen, and OECD. Lithuania is best known for its historic sites and its strong agricultural and industrial sectors. Lithuania is ranked at position 11 on the ease of doing business ranking.
Why Register a Company in Lithuania?
- Lithuania is one of the most business-friendly countries.
- Lithuania has developed infrastructure that makes it ideal for operating a business.
- Lithuania has a youthful population that is ready to work.
- Lithuania is known for its low corporate tax
- Lithuania is a member of the European Union, which makes it possible to reach more customers.
Types of Businesses in Lithuania
There are a number of types of companies you can register in Lithuania. These are:
- Individual enterprise – This is also known as a sole proprietorship. It is ideal for very small businesses.
- Private limited liability company (UAB) – This is a company that is separated from its shareholders’ assets. The minimum share capital is EUR 2,900.
- Public limited liability company (AB) – This is a company that is similar to a UAB. There is no limit to the number of shareholders. The minimum share capital is EUR 43,445.
- General Partnership (TUB) – General partnerships are companies with unlimited liability. It is formed as a joint agreement between several individuals. There is no minimum shareholder capital.
- Branches and representative offices (TUB) – These are branches of foreign companies that want an exposure in Lithuania.
- Co-operative enterprise (KBI) – It is an economic entity that is established on a voluntary basis by a group of at least five people.
How to Register a Company in Lithuania
Here are the steps you need to register a company in Lithuania.
- Find a company name – This is a process that costs just EUR 16.
- Articles of association – Ask a lawyer to create your articles of association. There are templates that can help you do this.
- Bank account – Open a bank account and deposit the minimum share capital. You can deposit just 25% of the funds.
- Notarize the documents – Find a local notary office and notarize the documents. This is a relatively long process that takes 2 to 3 days. It can consume between EUR 72 and EUR 290.
- Register the company in the register of legal entities – This is another simple process that takes about 3 days. You will need to pay at least EUR 57.
- Convert the bank account into a settlement account – This process takes about 2 to 7 days.
FAQs on Registering a Company in Lithuania
How long does it take to register a company in Lithuania?
It takes about two to three weeks to register a company in Lithuania. You should set aside at least a month to do this.
What is the corporate tax rate in Lithuania
The standard corporate tax is 15%. This is reduced to between 0% and 5% for some small companies. Consumers pay a 21% value added tax.
Do I need to be present physically?
No. You can work with a consultant to help you register a company in Lithuania. At GFSC, we are the leading business consultant in Lithuania. We have offices all over the European Union and in some offshore countries. We serve hundreds of companies every month.
Apply for our Lithuania Company Formations Services
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