Lithuania receives great marks for both economic freedom and human development. Lithuania’s production, property, and transportation industries constitute more than half of its GDP. Since 2000, the nation’s economy has almost doubled. This indicates that the country is a worthy place for forming a business presence.
Registering a Business: legal forms
In Lithuanian jurisdiction, one of the following legal entities may be incorporated:
- Sole Enterprise: an entity that is held by a single individual who is liable for all of the company’s debts. The personal property of the owner is not deemed to be distinct from those of the commercial. The Civil Code and the Law on Individual Enterprises govern how this form of entity is created. Since there is no legal obligation for a min. capital, such a corporation is ideal for startups and small businesses.
- Partnerships:General: an entity created by two or more people who have unbounded liability for the enterprise. Partners are all jointly responsible for the debts of the organization.
- Limited: similar to the below-mentioned one, but it has two types of participants: general members, who are liable for the company’s debts in full, and limited, the liability of which covers only the capital they contributed.
- Private LLC: it must have between one and two hundred and fifty shareholders who are either domestic or foreign residents and who have limited responsibility for the business. The min. capital is €2,500.
- Public LLC: is a legal entity that allows for unlimited shareholder numbers and public share trading. Its min. allowed capital must be €38,000. Unless a shareholder commits a tort, their responsibility is limited to the amount they contributed to subscribe for shares.
- Branch: a foreign corporation may establish a branch office. Such a place of business may handle trading, contract signing, and invoicing.
- Representative Office: is only permitted to carry out market research or advertise the parent company’s products. In Lithuania, it is not legal to carry on business or execute contracts. It is exempt from taxes on the profits of a corporation.
Pros of Lithuanian Business Opening
The main benefits of establishing a commercial presence in this jurisdiction are as follows:
- The country adheres to the Western paradigm of domestic and crossborder politics and is a member of the EU and NATO. The nation permits unrestricted capital and dividend transfers inside the EU.
- There are double tax avoidance agreements with more than 50 nations, including China, Canada, and the United Kingdom;
- Lithuania’s ordinary corporation tax rate (15%) is one of the lowest in the EU.
- Lithuania’s general population is educated and bilingual, thus finding talent is not complicated.
- Lithuania is regarded as a hub for research and innovation and has very advanced ICT.
Incorporating your business with ELI Lithuania
ELI Lithuania is an all-in-one service provider that aids in the registration of enterprises and assists with the paperwork and legal processes. We can take care of your passport, visa, and license requirements thanks to our extensive domain experience and understanding of local legislation, ensuring that your business may launch without needless bureaucratic headache.