Prior to engaging in a business activity, local or foreign businessmen who want to open a company in Lithuania have to decide on the legal entity that is most suitable for their investment plans. Our consultants can provide the necessary support when starting a business in Lithuania as a foreigner.
| Quick Facts | |
|---|---|
| Company registration fees |
For the registration of a legal entity, our team charges a fee of EUR 800. If you want to set up a subsidiary, we will charge EUR 1,300. |
|
Other fees charged by our team in connection to the registration of a company |
– EUR 250 (EORI registration), – EUR 150 (VAT registration), – EUR 900 (opening a bank account through a fintech company) |
|
Minimum shareholding requirements |
1 shareholder (for most companies) or 2 partners (for partnerships) |
| Services offered by our team for the incorporation of a legal entity |
– consultancy services, – gathering the documentation for the registration, – drafting and signing the bylaws, – submitting the application file, – assistance in registering any of the legal entities regulated by law, – VAT and EORI registration, – assistance in opening a bank account, etc. |
| Types of companies |
– private/public limited liability company – general/limited partnership – sole proprietorship |
| Time frame for the incorporation |
1-2 weeks |
| Do you supply a registered address/ virtual office? |
Yes |
| Local director required |
No |
| Foreign-ownership allowed |
Yes |
| Documents for company registration |
– the company’s incorporation papers (articles of association, partnership agreement, etc.), – minutes of the founding meeting, – the documentation attesting the corporate bank account has been set up, – reservation of company name, – proof of depositing the minimum capital (where required), – proof of registered address (a mandatory part in the process of Lithuania company formation) |
| Institution in charge with the registration |
Lithuania company formation process is completed through the State Enterprise Centre of Registers. |
| Obligation to be present for the incorporation formalities (yes/no) |
No |
| Duration of the corporate bank account setup |
Minimum 1 week, maximum 4. |
| How to obtain legal representation |
Our consultants can provide Lithuania company formation services through the power of attorney. |
| Minimum requirements for appointing directors | The director must be of minimum legal age, not have declared bankruptcy, have a clean criminal record. |
What are the main company formation services offered by your team in Lithuania?
Some of the main services on company formation in Lithuania that can be provided by our specialists are presented below (for a full list, you can address to our team):
- the preparation of the incorporation documents;
- bank account opening;
- submitting the required company documents with the Trade Register;
- tax and VAT registration;
- employment and social security registration;
- obtaining a registered address (by assisting in renting an office space or the services of a virtual office).
We invite you to watch our video below about the process of setting up a company in Lithuania:
What are the costs associated with company formation in Lithuania?
The costs associated with starting a business in Lithuania vary in accordance with the type of company you want to register, the type of office you need, the business activity and many others. However, concerning the costs charged in connection to the incorporation of a legal entity, our team will charge the following:
- basic services for company registration in Lithuania – EUR 800;
- for the registration of a subsidiary, the fee is EUR 1,300;
- EORI registration services cost EUR 250;
- VAT registration costs EUR 150.
Important: please know that these fees include the official fees charged by the institutions involved in the registration process.
What are the main types of companies I can incorporate in Lithuania?
The following types of businesses are the most popular in Lithuania:
- the sole proprietorship;
- the public limited liability company;
- the private limited liability company;
- the general partnership;
- the limited partnership.
How can I expand a foreign company on the Lithuanian market?
Foreign companies also have several types of business forms available for registration. These are:
- the subsidiary, which is an independent structure from the parent company and it can be set up as a limited liability company;
- the branch office, which will carry out the exact activities of the foreign company and will depend on it;
- the representative office which can act as a liaison channel between the parent company and clients and partners in Lithuania.
Below, you can find a short presentation on the requirements for company registration in Lithuania:
What are the main steps for company formation in Lithuania?
In the beginning of the process for company incorporation in Lithuania, the company’s representatives must:
- open a bank account and deposit the minimum share capital;
- reserve a trading name;
- draft and sign the articles of association;
- complete the registration with the Lithuanian State Tax Inspectorate (the Lithuanian Revenue Authority) for corporate tax, VAT, and State Social Insurance Fund Board (SODRA);
- obtain a company seal;
- assign a registered address for the company (a mandatory requirement in order to open a company in Lithuania).
What are the documents necessary for company registration in Lithuania?
The documents an investor should prepare when registering a local company will differ based on the legal entity that he or she has decided to register in this country. For the private and the public limited company investors will have to prepare a file for registration, containing the following:
- the application for company registration;
- the articles of association;
- any license that may be required (this can vary and it is not always a compulsory document);
- the minutes of the statutory meeting where the investors have decided on the registration of the company;
- the founding act of the company;
- the list of shareholders who have contributed at the incorporation of the company.
How long does it take to register a company?
Different timelines can apply in accordance with the legal entity preferred for incorporation. In general, the procedure can be completed in 1 week, maximum 2.
What is the minimum number of investors that can register a company?
It depends on the type of legal entity you want to register here. In most cases, a Lithuanian legal entity can be incorporated by a single investor, who can be a natural person or another legal entity. 2 or more investors are necessary for those who opt for partnerships.
Can I fully own a company incorporated in Lithuania?
Yes, you can own 100% of the shares of a company you incorporated in Lithuania. This rule applies for the majority of industries.
Is it possible to use my foreign bank account when setting up a company in Lithuania?
No. One of the prerequisites of company formation in Lithuania is to set up a corporate bank account at bank operating in this country.
Do I need to abide by any special requirements as a foreign investor?
It depends on the nationality and sometimes, the field of interest. Investors who are citizens/permanent residents of the EU have the right to set up a business in Lithuania following the same procedures available for local businessmen. Those who arrive from non-EU countries will need to complete visa formalities.
For full information on our company formation services in Lithuania, please contact us.