Jurisdictional Prerequisites & Company Formation – Lithuania
As the largest of the Baltic states, Lithuania is a delightful and scenic country in northeastern Europe. Officially known as the Republic of Lithuania, it has a population of 2.68 million. The World Bank is currently projecting its economic growth for 2022 at 1.8% with stable inflows from EU funding. Lithuania company formation is a good solution for busy entrepreneurs needing assistance in starting a business here.
The Government is currently driving regional development and investment initiatives to attract foreign direct investments (FDIs) and private-sector collaborations. The country’s major imports include crude petroleum and cars, while its exports are refined petroleum, furniture, and wheat. Its gross domestic product (GDP) for 2022 is on its way to achieving its forecast of USD52 billion. 3E Accounting United Kingdom has some great enterprise solution packages for businesspeople looking to start a company in Lithuania.
Types of Business Entities – Lithuania
The legal framework in Lithuania that governs all concerns, including company formation, is the Civil Code. The Code imparts legal status to all companies operating in the country, and the most popular entities include the following:
- Limited Liability Company: can be Private (UAB) or Public (AB) and is ideal for foreign investors. Requires a minimum of one director and one shareholder, who can be a resident or non-resident.
- Branch or Representative Office: must have one resident representative, and only the branch office can carry out income-generating activities.
- Partnerships: can be Limited (KUB), General (TU) or Small (MB) and require two or more partners. It also needs a signed and notarized partnership agreement.
- Individual Enterprise: similar to a Sole Trader and has unlimited liability.
Foreign investors with board or higher management positions must apply for temporary residence permits. Limited liability companies have different minimum share capital amounts and must submit yearly financial audits. Shareholders of an AB may also incur subsidiary liability in certain circumstances.
Some entrepreneurs may require rapid business mobilization or wish to explore the country’s commercial scene. In such instances, acquiring a ready and fully registered shelf company is viable. 3E Accounting United Kingdom offers such versatile solutions in its Lithuania company formation packages.
Starting the Entrepreneurial Journey – Lithuania
As companies in Lithuania generally have legal status, the registration process begins with a visit to the Centre of Registers. The first step is to register their company name, submit the company’s notarized constitutional documents, and acquire an electronic signature. Investors also need to open a corporate bank account, which should include a settlement bank account to facilitate commercial activities.
Following successful tax and value-added taxes (VAT) registration, the Trade Register will issue a certificate of Incorporation. Companies will then need to apply for the relevant permits and licenses as well as register for insurance.
3E Accounting United Kingdom offers one of the most comprehensive and competitive Lithuania company formation solutions. Our team of professionals can customize each package to suit your unique business needs and streamline the entire process. Contact us today for a one-stop modern way to do business.
