It is considered that obtaining shelf company is the best way to commence business in Lithuania. The proxy directs the process and it is unnecessary to visit a state. Moreover, a foreign entrepreneur who is about to acquire a company doesn’t need to put seed capital (2500 euros).
The incorporation process may be completed by a juridical person or individually.
Foreigners choose such an alternative of starting a business to get rid of official processes that seem unnecessary.
The pros of acquiring a company in Lithuania
The pluses of this type of business:
- Time-saving. Creating a new company requires a lot of time. Accelerated development has a certain value because of pricey capital, entrenched by authority. It is more convenient to shift a person who possesses an existing firm;
- Outstanding prestige of authority, who holds up business;
- Clarity and privacy;
- Durability. Depending on how long your company has been around, you may be able to use a range of facilities. Moreover, it is possible that bank institutions will look at a registration date before dealing with the organization;
- Past of a firm. It is known that companies with a long history are more trusted;
- The chance for foreigners to direct a firm or company.
As you can see, making business in this country is very beneficial for foreigners.
How to buy a shelf company in Lithuania
Dishonest dealers pose a threat to entrepreneurs, so you need to choose a trusted specialist who will help you implement your plans.
Acquiring a company typically takes only a few days. The enrollment with the Commercial Registry usually takes four days but two are no exception. The durability of the business entity is crucial, but changing its name can be done rapidly. In this country, having an official address is mandatory due to law, and setting up a new workplace location usually takes up to four days or can be done at the same time with the purchasing.
Basically, a lot of ready-made firms having value-added tax identification numbers are not usually up for sale. Moreover, entrepreneurs have to bear in mind that VAT-registered organizations can be more expensive.
Documents and requirements
Here is a list of necessary papers that should be reviewed when considering the purchasing an organization:
- Memorandum of association;
- Minutes of meeting;
- Shareholder register;
- Share certificates;
- The official workplace location of a company
- POA and declaration of trust
Once you have gathered the integral papers, you will be able to confidently proceed with conducting business.
It is essential to inform yourself about governing structure to avoid potential challenges. The country in question is in the European Union, which means that awareness of laws of Europe is vital.
Purchase procedure
It is significant to complete the following processes if you wish to possess a company with financial account maintained by a bank:
- The lawyers will help with all information and all integral papers;
- Assistance will also be provided regarding choosing a company;
- Collecting all important papers will take plus-minus ten days;
- Also you must create a corporate account in a bank;
- It is indispensable to submit documentation to the tax office to register and obtain a valuable-added tax number. Additionally, all applicable taxes imposed by the state country be paid;
- It is significant to get a license if the company, which you are going to buy, doesn’t have it.
You will be constantly assisted by a professional in order to not come up against challenges during the procedure of acquiring.
Taxation in a country
Dividends are liable to be subjected to commissions at 15% tax rate. However, company may be absolved from it sometimes:
- If a company holds shares in a subsidiary amounting to 10% or more per year
- Dividends were earned from a company documented in Europe.
Goods and services tax in Lithuania is 21% (minor compared to other states), this is why foreign business persons want to deal with this place.
How much does a pre-established company cost?
The prices are diverse for everyone. The expert will inform you beforehand about the price of the whole purchase process.
What is included in the cost of services
By paying for a firm, you receive a wide range of services, such as:
- Enormous spectrum of shelf companies on sale;
- Arrangement and gathering of all necessary papers;
- Undoubted support during completion of all steps;
- Essential guidance from specialists;
- Considerable list of corporate services;
- Excellent outcome almost immediately.
We believe that you will be able to implement your plans and acquire a company avoiding any issues.