Company Formation

Lithuania is a favorable jurisdiction for company formation, not only because it has few requirements but also because it offers various benefits. Here are some of the general benefits of conducting business in Lithuania:

• Reasonable Income tax rates of 5% and 15%;
• Chance to develop business in the EU markets;
• Double taxation security;
• Minimum number of tax audits;
• Steady economy;
• Possibility of VAT return;
• Provides the right to a residence permit for non-residents;
• Surfs minimum annual cost.

When considering company incorporation in Lithuania, there are some of the most common forms of legal entities in Lithuania:

1. UAB – a private limited liability company, where the liability of the shareholders is limited to the amount of their share capital contribution;
2. AB – a public limited liability company, where the shareholders’ liability is limited to the amount of their share capital. Mostly used for IPOs (Initial public offering);
3. MB – a small partnership, where the members are jointly and severally liable for the debts and obligations of the partnership;
4. Individual enterprise – where a person operates a business individually and is personally liable for all debts and obligations;
5. KŪB – limited liability partnership, where the liability of the partners is limited to the amount of their partnership contribution. Flexible internal government structure, mostly used for establishment of investment vehicles;
6. VŠĮ – public institution, usually used for no-profit activities, such as education, science, culture, social activities, etc.

• Legal entity name lookup, check for individuality and register in the local Lithuania Business Registry;
• Selecting the form of legal entity;
• Search for a company’s legal address;
• Opening company’s accumulative account in a Lithuanian bank in order to transfer the necessary authorized share capital;
• Preparation of all incorporation documents (Articles of Association, Deed of Incorporation, etc.) and certify them with a national notary;
• Provision of documents to the Lithuanian company register;
• Register your company with the Social Insurance Authority;
• Register your company with the local Tax Authority.

Lithuania Company Register has following criteria:

• Min requirement of share capital 1000 EUR (of most common form of legal entity – limited liability company);
• Appointment of the director (may be foreign);
• Local address of legal entity;
• Provision of annual financial reports;
• Other requirements may be applicable by Lithuania business registry depending of the business activities.

1. Establishment of organizational structure – assistance identifying the appropriate legal structure, incorporation of holding companies in tax efficient jurisdictions, transferring companies shares, designing ownership structure, etc.;
2. Tax advisory – guidance and advice regarding tax obligations and liabilities, minimizing tax liabilities from cross-border activities, creating a tax planning strategy, etc.;
3. Banking solutions – guidance and assistance to clients who want to open a bank account for their business or personal needs, including offshore companies, etc. Such service includes, selecting the appropriate bank, preparing the necessary documents liaising with the bank, etc.;
4. Assistance in hiring employees – guidance and support to employers who are looking to hire new staff. Such service includes potential employees background / knowledge check, interviewing, establishment of employment policies and procedures, etc.

For more please see our Services page.