Besides other company types, foreign investors have the possibility to open a joint stock company in Lithuania. This company type is regulated under the Civil Code of the Republic of Lithuania.
The legislation prescribed the types of companies one can register here, the management system of the said companies, the rights and the obligations of the founders, the competence of a management body and the liquidation procedure of each business form.
Therefore, if you want to open a company in Lithuania, you must first observe the regulations set out under this rule of law. In-depth information can also be provided by our consultants in company formation in Lithuania.
What are the characteristics of a joint stock company in Lithuania?
The joint stock company in Lithuania is a legal entity designed for the needs of large businesses. It is also known as a public company. This business form is ideally suited for 2 types of businesses – 1) medium-sized companies and 2) large companies.
In the list below, you can find out some of the characteristics of the joint stock company (AB):
- • the minimum capital requirement is of EUR 40,000;
- •upon the formalities for Lithuania company formation, investors have to deposit at least 25% of the capital mentioned above;
- • the company can be set up by only 1 shareholder (a natural person or a legal entity, resident or non-resident);
- • the legal entity must be managed by a managing bord comprised of minimum 3 directors;
- • the incorporation can be completed in a period of 1 week.
What is the documentation necessary to open a joint stock company in Lithuania?
In order to open a joint stock company in Lithuania, foreign investors have to prepare similar documents as the ones required for the registration of a limited liability company.
It is necessary to prepare the act of incorporation of the legal entity and the company’s articles of association. For these, our team of consultants in company registration in Lithuaniaremain at your service.
One of the main incorporation steps is to set up a corporate bank account for the newly founded legal entity, and this is one of basic steps to complete during the initial phases of the registration.
The investors must also submit the minutes of the meeting where the decision to set up a joint stock company was taken.
Why should foreign investors choose Lithuania for business?
The Lithuanian authorities promote many attractive investments, many aiming at large investment projects that can be developed by foreign investors who dispose of a large capital, which can start their business by opening a joint stock company in Lithuania.
According to the Lithuanian Ministry of Economy and Innovation, large investments can benefit from many tax reductions and incentives. One of the projects available in this case is for very large investments, of minimum EUR 20 million, which can create at least 150 full-time jobs.
Another criteria is to maintain the jobs created for a period of minimum 5 years. These criteria are available for those who can invest in 1) manufacturing, 2) internet hosting services, 3) data processing.
Thus, investors who can open a Lithuanian company that has these basic characteristics can benefit from a full exemption on the corporate tax (charged at a rate of 0% for a period of up to 20 years).
The project has a national coverage, but if the investors will opt to start the process of company registration in Lithuania in Vilnius, the capital requirement will increase at EUR 30 million.
This type of project can be ideally carried through a joint stock company in Lithuania, therefore we invite foreign investors to contact our team of specialists for advice on any other matter concerning this legal entity.