Lithuania company registration
Advantages of Lithuania as a jurisdiction for business
The tax regime in Lithuania is quite democratic, especially for new companies. The costs of maintaining and Lithuania company registration – relatively small. Lithuania boasts a good level of banking, local institutions are reliable and have a good reputation.
Requirements for Lithuanian companies
The authorised capital must be 100% paid up, but it is not possible to pay immediately, you have to pay at least 25% in cash contributions (and in the amount of not less than 2,500 EUR, the rest can be paid with money or property contributions within 12 months.)
The Lithuanian company may have only one shareholder, there are no requirements to its residency. The director of a Lithuanian company can only be an individual. Possibly a non-resident. Lithuanian companies must submit annual reports. Under certain conditions, annual audits are also required.
Lithuanian companies must submit annual financial statements to the Company Register, which is open. A Lithuanian company may carry out any activities not prohibited by law. However, some activities require a paid license.
If a legal entity has registered real estate, it should pay real estate tax (depending on its value) – from 0.30% to 3.00%. Dividends and other income from distributed profits are taxed at a rate of 15%. NDFL in Lithuania is equal to 20% of the amount withdrawn for personal needs. State social insurance contributions are paid at 50 per cent of the amount withdrawn for personal use. It will also be necessary to allocate funds for compulsory health insurance, which ranges from 6.98 to 50 per cent of the amount withdrawn for personal needs.
The process of company registration in Lithuania
When establishing a legal entity in Lithuania, it is necessary to have premises in which the legal address of the legal entity to be created can be registered. Depending on the type of activity planned, the list of documents may vary. The Register of Legal Entities registers enterprises, institutions and NGOs and collects detailed data on Lithuanian legal entities as well as on branches and representations of foreign companies and organizations. The Register contains full information (and historical data) about the organizational and legal form and status of the legal entity, areas of its activity, size and structure of the authorised capital, composition of single and collegial management bodies, acquired licenses. A service that does not require paper documents relies heavily on an electronic signature based on public key infrastructure (PKI). So far this electronic service on creation and registration of legal entities is available for Lithuanian citizens, but the Center of Registers makes every effort to realize equal opportunities for foreign investors.
Term of registration of UAB in Lithuania
Registration of UAB with foreign participation takes at least 4 working days, as well as the registration of the Representative Office or Branch. When planning registration dates, take into account that time is required for the preparation, translation of documents and shipment. In the event that the re-registration of the already prepared company will be carried out – the period of such re-registration will be from 5 working days.