Registration of Companies in Lithuania

• In order to emigrate to the Republic of Lithuania.
• In order to receive a temporary residence permit.

In its first months, in accordance with the legislation of the Republic of Lithuania, the newly found company can remain in the so-called “sleeping” period. The sleeping period can last 1-12 months. It is believed that during this period, the company prepares all the necessary instruments for work.

In future, enterprises have to perform minimal operations which would show work of the company.  The funds which are deposited and withdrawn from the bank account of a company constitute the minimal operations.  Income of the company has to be no less than 100 €. Furthermore, the company has to pay a monthly employee’s salary tax –  150 €.

If you intend to do business in Lithuania and in the EU, it might be useful for you to know, how much money is needed to maintain the company, particularly to pay the taxes.

Taxing of companies in Lithuania is not strict and allows businessmen to earn significant gains. There are lots of taxes, but one is not supposed to pay all of them, only those, which depend on the operations of one’s company. Tax reports are not difficult to fill in, but if need be, we could inquire specialists to help you (prices for framing of accounting and tax accounting reports in Lithuania ale low, prices for maintenance of a company vary from 100 €  to 500 €).

“Imigration-europe” company provides help in registration of the following types of legal entities in the Republic of Lithuania (in Vilnius):

• Stock Company (АО)  (minimum Authorised Capital – 150 000 Litas; minimum number of stockholders: 2, residency of the stockholders and he head is not restricted).
• Joint Stock Company (ЗАО) (minimum Authorised Capital – 10 000 Litas; minimum number of participants: 1, residency of the stockholders and he head is not restricted).
• General Partnership Handelsbolag (Unlimited Liability Partnership) (minimum Authorised Capital – none; minimum number of participants: 2, residency of the partners is not restricted).
• Subsidiary/Branch of a foreign company in Lithuania.

Documents, necessary for registration of a company:

• Completed application form
• Founder of a legal entity, has to provide statutory documents of a company and a decree on founding of a subsidiary/representative.
• Proof of payment of the authorised capital.
• Period of time for registration of a company:
• Stock Company  (АО)- 15 weekdays  (starting from the day of signing of all the necessary documents and payment of the AC)
• Joint Stock Company (ЗАО)– 10 weekdays  (starting from the day of signing of all the necessary documents and payment of the AC)
• General Partnership Handelsbolag (partnership) – 15 weekdays
• Subsidiary/Branch of a foreign company in Lithuania – 15 days.

The Imigrationeurope Company also helps with:

• Opening a bank account.
• Organisation of accounting reports of the company.
• Providing of a furnished office/secretarial service to the company
• Providing of a legal address.
• Acquisition of licences required for company to operate under legislation of the Republic of Lithuania.
• Assistance in obtaining work permits, residence permits for non-resident employees of Lithuanian companies.
• Registration of the company as a VAT payer.

Main taxes in the Republic of Lithuania:

• Payments to the Social Insurance Fund – 33, 98% of the wage agreed in the employment contract;
• Income tax related to labour relations – 24% of the wages agreed in the employment contract. This tax shall be deducted from the employee’s salary and transferred to the state budget by the company.
• Contributions to the Guarantee Fund – 0.2% of salary;
• VAT (Value Added Tax) – 21%;
• Real estate tax – up to 1% of the average market value of real estate;
• Income tax – 5 %;15%;
• Social tax – 4% of the income;

Income tax not related to labour relations – 15% (if the company, for instance, rents premises from a natural person).