Lithuania is a very appealing investment destinationfor foreign investors from both the EU and outside it.
The local workforce which comprises young and well-prepared individuals, the legislation which favors foreign direct investments and the easy registration procedure of a company are just a few of the appealing factors for starting a business in Lithuania.
Speaking about the company registration procedure, one of the most important steps when starting a business in Lithuania is obtaining the necessary licenses and permits in order be able to operate.
Below, our company formation agents in Lithuania offer information about the main types of business licenses and permits needed to open a company.
Business license and permit types in Lithuania
There are two main categories of business licenses and permits to be obtained when opening a company in Lithuania. The first one is related to the ordinary permits, such as the business license issued upon company incorporation, while the other category is related to the licenses required for specific activities.
The following business licenses must be obtained by certain companies in Lithuania:
- • the catering license for companies operating in the food manufacturing industry;
- • the construction license which is required for construction companies in Lithuania;
- • the license for selling and manufacturing tobacco and alcoholic products;
- • the pharmaceutical license used by companies producing and marketing pharmaceutical products;
- • the business permit required to manufacture and sell oil-based products;
- • the transportation license employed by local transporting companies.
It must be noted that separate licenses are required to transporting goods and passengers.
How to obtain business licenses and permits in Lithuania
The Civil Code is the main law stipulating that all Lithuanian companies need to obtain one or more business permits before starting any economic activity. In order to obtain any business license in Lithuania, a company must:
- • prepare the necessary documents related to its activities;
- • prove certain qualifications, where the case requires;
- • file the business licensing application only after the company is registered.
How can Lithuanian companies acquire business licenses?
After completing the process of company formation in Lithuania, a business can have many other obligations to complete, depending on the particularities of its case.
One of them is to acquire business licenses and permits. There are 2 main categories that can be distinguished here:
- business permits and licenses that can be required for almost all businesses;
- business permits and licenses that are imposed only to specific sectors.
Please mind that in Lithuania businesses can apply for the issuance of a business license by using the online system offered by the State Tax Inspectorate.
Another option is to directly address the institution and book an appointment at one of the offices working in the region where the business is registered.
Depending on the license the business requires, different procedures can apply and the business can be imposed with different minimum requirements. In the list below, investors who want to open a company in Lithuania can find out few important matters:
- • in general, a business license requested through the State Tax Inspectorate can be issued in a period of 4 days since the date of the application;
- • the shortest amount of time needed for the issuance of a business license is of 1 day, in the case of those who need a trade business license;
- • companies that need a manufacturing business license can wait a minimum of 5 days in order to obtain the document;
- • companies developing gaming and gambling activities must expect for a decision on the issuance of a license for a period of approximately 30 days;
- • companies involved in cryptocurrency operations are also required to apply for a license, a mandatory requirement imposed starting with 2020.
What are the regulations for gambling companies in Lithuania?
Local and foreign investors interested in opening a company in Lithuania operating in the gambling industry are required to comply with many stringent rules, regulated by the Ministry of Finance and applied by the Gaming Control Authority.
When applying for a license in this industry, the company may be required to obtain one or more licenses, depending on the activities that will be developed by the company.
The law in Lithuania distinguishes between the following types of gaming licenses:
- licenses for Category A machine gaming;
- licenses for Category B machine gaming;
- licenses for betting operations;
- licenses for bingo activities.
These licenses are necessary for physical places of business. For companies that are also interested in developing online gaming activities, through a web platform, a different type of license must be obtained.
You can request in-depth information concerning the application procedure and the documents the company’s representatives need to prepare from our team of consultants in company registration in Lithuania.
What documents must a Lithuanian gaming company prepare?
A company that will want to obtain a gaming license (or more gaming licenses) should prepare a basic set of documents. First, it is necessary to fill out an application form for the necessary gaming license.
Then, the investors must prepare the company’s registration documents (statutory documents and other certificates issued by the Lithuanian state authorities), as well as information on the capital of the company.
Please be aware of the fact that the capital requirements vary depending on the type of gaming activities the company will develop here.
Further on, the investors have to present information concerning the management structure of the company. Here, one needs to present details of the company’s founders, the supervisory board, the board of directors, etc.
Besides these, it is mandatory to present documents which attest the way in which the shareholders have obtained the funds that were used for setting up the business.
For full information on how to apply for business licenses and permits, please contact our company registration consultants in Lithuania.