Open a company
The most efficient approach to the registration of a company in Lithuania is the acquisition of a new ready-made company, since the process of establishment can be a problem for non-residents due to various hidden requirements, for example, for the payment of share capital.
Company forms in Lithuania
Limited Liability Company (UAB) is the most common form of business in Lithuania because its shareholders do not bear personal property liability for the company’s obligations. Ready-made Lithuanian limited liability companies are registered in the Commercial Register, have an active registration number and have not performed any transactions. It is also possible to create a new company on request.
All Lithuanian ready-made companies are offered with a 100 per cent guarantee of net balance, with a prior full authorised capital of €2,500 and pre-registration, so the client is not required to invest in capital. Every new firm has a bank account with a local bank. There are no restrictions on the number or nationality of shareholders and board members.
The main feature of company registration in Lithuania
The open a company in Lithuania can be established remotely by a power of attorney issued to us or by an appointment with a notary in Vilnius. PoA must be notarized and have an apostille. We are preparing a complete legal documentation package and on behalf of the client all applications – on your part we only need basic information to complete and submit the documents. The full package of documents will be sent after the Lithuanian Business Register has processed all changes. It usually takes 5 working days for the Register to update its database, company information and add one or more new shareholders and board members to its database.
Necessary services for opening a company in Lithuania
Lithuania provides a full range of corporate services, including legal and tax advice, virtual office, accounting and bank account opening. The services of secretary and nominal shareholder are available upon request. Virtual office service is a flexible solution for companies that do not need a physical office in Lithuania.
For registration in the Commercial Register and as an administrative postal address will be used special legal address. Mail addressed to your company will be sent to you by e-mail in the form of a scanned copy or by regular mail as agreed. Individual local telephone and fax numbers as well as a local domain name with web hosting are also available.
Business registration in Lithuania: features of bank accounts
Lithuania is one of the jurisdictions where businessmen are represented by many banks to open an account. It is recommended to choose a bank based on the type of activity of the company, as this will depend on the tariffs and the list of available services. To register a company in Lithuania, it will be a mandatory step to deposit the authorised capital. To do this, the bank will open a technical account for you. The funds can be used immediately after the opening of the company, but before that you need to inform the bank about your intentions, as well as completely pass the procedure of identification of the legal entity.
Fundamentals of corporate taxation in Lithuania
In Lithuania, the income tax from enterprises is 15%, as is the income tax of 15%. Under certain conditions, small companies may apply for a preferential rate of income tax of 0% or 5%. The total VAT rate is 21%. The standard corporate income tax rate in Lithuania is 15%, but small companies with less than ten employees and a gross annual income of less than 300,000 euros can benefit from a reduction of the income tax rate to 0-5%. As a rule, income tax applies to taxable income received by a Lithuanian tax resident from his local and international activities. Taxable income is calculated by reducing the total income of a certain tax period, taking into account deductible expenses and non-taxable income.