Foreign investors who want to open a company in Lithuania have several choices when it comes to the industries they can operate in. Among these, the human resources sector is quite prolific in Lithuania and the requirements for creating employment agencies are not very stringent, therefore, investors can easily open a recruitment company in Lithuania.
Below, our company formation agents in Lithuania explain how to create an employment company in this country.
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Registering an employment agency in Lithuania
There are no specific requirements related to opening a staffing company in Lithuania, however, the business must carry out its operations through a legal entity. From this point of view, the limited liability company is the most suitable business form. Our local consultants can help with the company registration procedure for starting an employment agency in Lithuania.
This type of company must follow the same process for company formation in Lithuania as the one applicable to any other type of business activity. Some of the main steps that must be completed by investors are presented in the list below:
- selecting the most suitable legal entity;
- stating the exact objects of activity the company will engage in;
- finding a suitable place where the company can have its registered address;
- proposing and registering a trading name;
- signing the statutory documents (the memorandum of incorporation);
- opening a corporate bank account (mandatory requirement for all investors who complete the process of Lithuania company formation).
According to the Innovation Agency of Lithuania, investors must abide by other registration requirements, one of which is to address a local notary public, where the company’s documents are notarized.
Services offered by employment companies in Lithuania
The range of services offered by recruitment agencies in Lithuania depends on the size of the company and can include:
- finding candidates and matching them with potential employers in Lithuania;
- offering career orientation services to Lithuanian citizens or foreigners entering the country;
- finding jobs for people submitting their resumes with the employment agency;
- offering human resources services for companies interested in outsourcing this department.
Foreign investors can set up traditional or online employment companies in Lithuania.
How do recruitment companies select a suitable employee?
Investors who will open a recruitment company in Lithuania may approach different strategies for the selection of a suitable employee, based on the needs of the company’s corporate clients. In general, the staffing agency will:
- carefully analyze the requirements of the client;
- decide on the best way to select a candidate, depending on the job position, experience etc.,
- contact the candidates that fit the profile;
- discuss via telephone and video call with the said candidates;
- verify the credentials of the candidates;
- present the most suitable options to the client.
Why open a recruitment agency in Lithuania?
This type of business does not require a large amount of money to get started. The employment company can also represent a great idea for bringing foreign employees into Lithuania or sending local employees outside the country.
Foreign employment in Lithuania
One of the activities that can be intermediated by a recruitment company in Lithuania refers to the legal formalities that appear when employing foreign workforce. Considering that foreign employees can arrive from both EU and non-EU regions, different immigration formalities must be addressed.
Thus, those who want to open a Lithuanian company may need to hire personnel who can help these future foreign workers in Lithuania in their visa formalities, as is the case for all non-EU individuals. In the list below, we invite you to find out some of the key elements concerning foreign employment in Lithuania:
- the country applies a quota system which, in 2024, was capped at 40,250 work permits;
- for the issuance of a work permit, fees are charged (EUR 121 for the work permit, EUR 52, for its renewal);
- the document has a validity of 1 year (the first permit is issued as a temporary residence permit);
- persons who want to arrive here for temporary employment can obtain a seasonal work permit, which has a validity of 6 months (recruitment agencies can also offer temporary recruitment services, designed for temporary work activities);
- starting with 1st of January 2025, Lithuania applies a stricter quota system to non-highly qualified foreign workers, which is limited to 1.4% of the total number of Lithuanian permanent residents.
When recruiting foreign employees, employment agencies are required to go through a lengthier process compared to the recruitment of locals, as visas, permits and other documents must be prepared. In most cases, foreigners must notarize and provide official translations to the documents in their home countries.
Of course, this can be a time-consuming process, which can take up to 3 months, but many procedures, such as work interviews, can be facilitated by recruitment specialists, who can put foreign employees in direct contact with companies where they are fit for specific job descriptions.
The employment law in Lithuania
All employees in Lithuania, both foreigners and residents, are protected under the rules of the Labour Code. Under the Lithuanian laws, companies hiring employees must ensure a suitable environment for the employees, in accordance with the specifics of each work activity.
Thus, investors who will open a company in Lithuania, including a recruitment agency, have the responsibility of complying with the local laws on health and safety standards, which must be applied in accordance with the stipulations of the Law on Safety and Health at Work.
Companies in Lithuania have the right to ask their employees to sign non-disclosure agreements (NDAs), but these documents need to abide by the rules on employment in Lithuania. The legislation stipulates that NDAs can be signed as separate documents when hiring employees or they can be included as a clause in employment contracts.
Besides these, the employment law regulates the minimum monthly wage, the number of hours an employee must work, rules on overtime, employment benefits, termination of employment and numerous others. The representatives of a staffing agency can disclose such information to individuals who are part of the recruitment process for a job position in a Lithuanian company.
The work week in Lithuania
Individuals who apply for a job or those who are recruited by an employment agency will most likely become full-time employees, as most job openings are available for this type of work obligation. In Lithuania, full-time employment defines a contractual relationship where an employee needs to work 40 hours a week.
The 40 hours a week should be divided into 8 hours of work per day, for 5 days a week. An employee should not work for more than 8 hours a day, but exemptions in this sense are granted for specific sectors, such as healthcare, childcare, energy, etc., as regulated by the law.
If you are interested in starting an employment company and need guidance, please feel free to contact our Lithuanian company formation representatives. Our team can guide you through the entire process of company registration in Lithuania.