Setting up a company in Lithuania

Are you considering expanding your business to Lithuania? Located in the heart of the Baltics, Lithuania offers a dynamic and business-friendly environment for entrepreneurs and investors. With its strategic location, skilled workforce, and supportive infrastructure, setting up a company in Lithuania can be your gateway to the European market. In this article, we will guide you through the process of establishing a company in Lithuania, providing you with key information and insights to help you make informed decisions and navigate the registration process with ease.

TYPES OF COMPANIES

Lithuania provides several legal entity options for company registration, each with its own advantages and requirements. The most common types of companies in Lithuania are:

UAB (Uždaroji akcinė bendrovė) - Private Limited Liability Company: is the most popular choice for entrepreneurs in Lithuania. It offers limited liability protection to shareholders, separating personal assets from company liabilities. The minimum share capital requirement is €2,500.

AB (Akcinė bendrovė) - Public Limited Liability Company: is suitable for larger businesses and those planning to raise capital through public offerings. It requires a minimum share capital of €40,000 and complies with additional regulatory requirements.

VšĮ (Viešoji įstaiga) - Public Institution: is a non-profit legal entity suitable for organizations engaged in public, cultural, or educational activities. It requires a specific purpose and follows different regulations compared to profit-oriented companies.

KEY REQUIREMENTS FOR COMPANY REGISTRATION

To set up a company in Lithuania, you need to fulfill certain requirements and follow the registration process. Here are the key steps involved:

Shareholders: a UAB or AB can be established with a minimum of one shareholder, who can be an individual or a legal entity. Shareholders can be Lithuanian residents or foreigners, and there are no restrictions based on nationality or citizenship.

Directors: a company in Lithuania must have at least one director who is responsible for the company's management and representation. Directors can be Lithuanian residents or foreigners, and there are no specific citizenship requirements.

Registered Address: your company must have a registered address in Lithuania. This can be a physical office or the address of a professional registered agent, such as Key2Law, who can provide the necessary legal representation.

Name Reservation: choose a unique name for your company and reserve it with the Register of Legal Entities. The name should comply with Lithuanian naming regulations and should not infringe on existing trademarks or business names. Key2Law can assist you in the name reservation process to ensure a smooth and successful registration.

Share Capital: determine the required share capital for your chosen company type. A UAB requires a minimum share capital of €2,500, while an AB requires €40,000. The share capital must be deposited in a Lithuanian bank account.

Articles of Association: prepare the Articles of Association (Įstatai) that outline the company's bylaws, shareholders' rights and obligations, and other relevant details. This document must be notarized and submitted to the Register of Legal Entities.

Registration with the Register of Legal Entities: submit the necessary documents to the Register of Legal Entities, including the Articles of Association, proof of share capital deposit, identification documents of shareholders and directors, registered address information, and other required forms. Upon successful registration, you will receive a company registration number.

TAX OBLIGATIONS

After company registration, you must comply with tax obligations in Lithuania. The key taxes applicable to companies include:

Corporate Income Tax (Pelno mokestis): companies in Lithuania are subject to corporate income tax on their worldwide income. The standard corporate income tax rate is 15%, one of the lowest in the European Union.

Value Added Tax (PVM): is applicable to the supply of goods and services in Lithuania. The standard VAT rate is 21%, with reduced rates of 9% and 5% for specific goods and services.

WHY CHOOSE KEY2LAW?

When it comes to setting up a company in Lithuania, having the right support and expertise is crucial. At Key2Law, we understand the intricacies involved in company formation and are here to assist you every step of the way. Here's why you should choose us:

Experienced Professionals: our team at Key2Law comprises experienced experts, accountants, and business consultants who have extensive knowledge of Lithuanian corporate laws and regulations. We have a proven track record of helping clients establish successful businesses in Lithuania.

Comprehensive Services: we offer a wide range of services, including company formation, compliance assistance, accounting, tax planning, and ongoing compliance support. Our tailored solutions ensure that your company meets all regulatory requirements and operates smoothly in the Lithuanian business landscape. We can provide you with local experts, such as notaries, translators, and business advisors, to ensure a seamless and efficient registration process.

Personalized Approach: we understand that every business is unique. Our team takes a personalized approach, carefully considering your specific needs and goals to provide customized solutions that meet your requirements.

Setting up a company in Lithuania is a significant step towards realizing your business aspirations. At Key2Law, we are dedicated to providing exceptional service and comprehensive support to make your company registration process smooth and successful.

Contact us today for a free consultation and let our experts guide you through the process. We will assist you in fulfilling all the necessary requirements, from selecting the appropriate company type to preparing the required documentation and ensuring compliance with tax and legal obligations.

Take advantage of our expertise and let us be your trusted partner in establishing your company in Lithuania. Contact us today for a free consultation, and let Key2Law help you turn your business vision into reality.

We look forward to hearing from you. Contact us today for a free consultation and take the first step towards establishing your business in the beautiful country of Lithuania