Lithuania

Description

Lithuanian corporate entities may be founded without any limitations by both Lithuanian residents and foreign citizens, by private individuals or legal entities. Lithuania is the biggest Baltic country and is considered to be a source of economic activity of the whole region.

Main requirements for a company registration in Lithuania:

  • payment of 100% of registered share capital (minimum 2000 EUR);
  • appointment of a board member (private individual from any country);
  • legal address;
  • Private Limited Company (Lithuanian – UAB) is the most popular corporate form, around 96% of new companies;
  • minimum registered share capital for an UAB is 2900 EUR
  • branch office
  • representative office (cannot perform any commercial activity)
  • association
  • agricultural enterprise (ZUB)

If necessary, UniverseLAW will provide you with a legal address.

Advantages

  • Beneficiary owner is not disclosed and not available to third parties;
  • Not listed in black lists of OECD, FATF, Ministry of finances;
  • No currency control;
  • Large amount of bilateral agreements (50);
  • Favorable business environment for small businesses, for example, IT-startups;
  • Possibility to register small enterprises, the tax rate for which is 5%;
  • Possibility to pay dividends with no tax to any jurisdiction in particular conditions;
  •   Availability of free economical zones (in Klaipeda and Kaunas).

Taxation

Obtaining a taxpayer status (VAT number)

Similar to Latvia, in order to obtain a taxpayer status (VAT number) in Lithuania, it is required to submit information about future business partners and provide project agreements with potential business partners. In some cases it is required to arrive to Latvian tax office in person for the interview.

Taxes in Lithuania

  • Income tax is 15%
  • Taxation for transactions in Lithuania is 21%
  • Taxation for transactions in EU is 0%

Accounting

Accounting statements are filed every month, until the 15th day of the month, and VAT report is filed until the 25th day of every month. Income tax is paid once a year until 31th of May.

Documents

Company formation process in Lithuania

  • Preparation of documents for company registration;
  • Preparation of documents for notary office;
  • Procedure of filing the documents to the Registry;
  • Registration of the company in the Registry.

Time required for company registration: 5 working days.

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