Company Registration
Halt | February 2, 2022 | 0 Comments

Company Registration In Lithuania – Full Information

Why Open A Legal Entity In Lithuania?

In recent years, Lithuania became one of the most economically successful countries in Eastern Europe. It improved the strength of its currency and successfully concluded several lucrative trade agreements. In the past, the country faced a severe shortage of direct foreign investments and now it boasts a budget surplus and has a reputation for being one of the most convenient and cost-effective jurisdictions for setting up a business. The low rates and an overall liberal approach to the taxation of profits have been a catalyst for local Lithuanian enterprises and contributed to a rapid, sustained rise of the country’s international business ranking. Right now, there are many, many businesses, start-ups, and ambitious entrepreneurs setting up shop in Lithuania, looking for the easiest way to undergo company registration in Lithuania!

How Long Will It Take To Do A Company Registration In Lithuania?

How Long Will It Take to Register a Company in Lithuania

The process itself shouldn’t take longer than five business days. It should be obvious to everyone that Lithuanian authorities have their best interests in mind when making sure that the process of company incorporation/creation goes as smoothly as possible. That would entail that there are no nitpicks or either national or regional levels that might cause a delay or rejection. The process might take longer if some of the documentation isn’t available, or if the notaries aren’t on their best behavior.

From the VERY start to finish, the process of opening a business should take no longer than two months. Naturally, it depends on the experience levels of the business register company involved.

How To Open A Bank Account In Lithuania For A Legal Entity?

Local banks offer a broad range of services to foreigners and overseas investors as well. You will be able to take advantage of many of these services such as converting foreign currency or international wire money transfers.

Any Lithuanian legal entity needs a local bank account. It’s very easy to set up and the entire process takes no longer than several days. Usually, it’s taken care of by the company that guides you through the procedure of creating a company or purchasing a readymade business.

How Did Lithuania Become A Hub For Entrepreneurs?

How Did Lithuania Become a Hub for Entrepreneurs

As briefly alluded to in the past, Lithuania became a hub for entrepreneurs because of a slew of financial incentives and lucrative policies. For instance, the companies are taxed at a much lower rate (15%) than those registered in adjacent nations such as Poland, the Czech Republic, and Slovakia. The government is ready to provide businesspersons with the best conditions possible for their startups: the Start-Up Visa Program, for instance, makes it very simple to come to Lithuania and establish a business with no additional costs. So, basically, what we have is a true entrepreneurial oasis in one of Europe’s most promising countries.

What Organizational / Legal Things To Consider Before Even Starting A Company In Lithuania?

Prior to starting your business in Lithuania, you need to consider quite a few things. Some are pure technicalities and some might impact the success of your company. Down below, we will provide you with some of the questions that need to be addressed prior to setting up your business in Lithuania. Please note that the list of questions is in no way exhaustive. It was created to get you started on the right track and not to be comprehensive in any way.

  • What will be the name of your business?
  • Which business structure is better suited for your needs?
  • Who will run the company?
  • Who will pay the charges for starting your business?
  • How will you cover the taxes?
  • When do you expect to make profits?

Why Is It So Easy To Do Business In Lithuania?

Business Lawyer

There are numerous key factors that made the so-called Ex-Soviet Silicon Valley a great place for people to do business in. Here are the things that make it extremely easy to do business in Lithuania:

  1. Educated, young, and inexpensive workforce.
  2. Liberal government is committed to providing the best business climate possible.
  3. Friendly approach to businesses.
  4. Incentives for innovative and digital businesses.
  5. Friendly business community.
  6. Strong work ethic from all across the country.

Why Do People Choose Lithuania For Starting A Company?

Some of the advantages were already highlighted in the past, but let’s recap:

  1. Investment incentives centered around 3 Special Economic Zones.
  2. Laxer tax regime for foreigners.
  3. Low cost of doing business.
  4. Lithuania is a member of both the EU and NATO.
  5. Highly digitized economy.
  6. Skilled, experienced, and multilingual workforce.
  7. E-governance and other convenient online services.

Is A VAT Number Necessary In Lithuania?

If you want to start a business in Lithuania, you already know that there is not much paperwork or many hoops to jump through. However, your company is required to have a valid VAT number.

The process of obtaining such a number is not difficult. In accordance with guidelines, having a Lithuanian financial representative/agent is NOT required for companies originating from EU countries. Non-EU businesses will however be required to present such a person in order to start the process of VAT registration. Usually, a company that provides assistance throughout the registration process will be willing to provide a representative for no additional cost. The process generally takes 2-3 days.

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