Company registration in Lithuania

A Few Basic Insights into Types of Companies “Born” in Lithuania

1. 1. Public Society (AB)

This is a form of business with its own share capital divided into shares.

Pros:

1. 1. • It’s a good option if you aim to develop your business on a larger scale and attract numerous investors.

Cons:

1. 1. • You should be prepared to lose some control over your company and be subject to decisions made by shareholders and regulators.
   2. Private Company (UAB)

This type has fewer requirements for share capital, accounting, and reporting, making it the most popular and convenient company type in Lithuania.

Pros:

1. 1. • You can choose your shareholders and directors, as well as define rules for profit and risk distribution.
      • UAB is suitable for various types and sizes of businesses.

Cons:

1. 1. • As UAB shares are not traded on the stock market, you can’t easily sell them or issue new shares to attract investors.
      • You’ll need to pay corporate income tax on your company’s activities and dividend tax on the profits you receive.
   2. Partnership (TUB) or Limited Partnership (KUB)

This is a company type based on trust and collaboration among partners.

Pros:

1. 1. • You can establish TUB or KUB without a minimum share capital.
      • This type is suitable for small projects or family businesses where you know and trust your partners.

Cons:

1. 1. • You should be prepared for full or partial responsibility for your company’s debts.
   2. Branch or Representation of a Foreign Company

This type of division allows you to operate in Lithuania under your main company’s umbrella. It’s suitable for those who want to test Lithuania’s market or have contact with Lithuanian clients or suppliers.

Pros:

1. 1. • You can establish a branch or representation without creating a new legal entity.

Cons:

1. • You should be ready to fully comply with the laws and taxes of your country of origin.

What is Small Business (MB)?

This business concept is less than a decade old. It’s designed to facilitate the launch and initial steps of startups and innovative projects.

Pros of this well-thought-out approach are undeniable:

• You can start with any amount of money or property you’re willing to invest in your venture.
• You’ll benefit from a straightforward accounting and taxation system, paying only a 5% tax on profits during the first 10 years.
• Government support and financing are available to help you if you face challenges. This includes consultations, training, grants, loans, and more.

Requirements from you:

• You should be an individual, not another company or organization opening a new venture.
• You shouldn’t be a shareholder of another enterprise.
• You shouldn’t exceed the participant limit (10 participants max).

Where to Begin:

• • Come up with a unique and catchy name.

Finexmo specialists can assist you in analyzing it to ensure it complies with Lithuanian language norms and laws and is available for use. We can also reserve it for six months, preventing others from using the same name while we do preparatory work.

• • Compile the necessary documents and prepare the Articles of Association (Bylaws).

The Articles of Association is the cornerstone of your project’s fortress. It must be solid, stable, and meticulously thought out.

• • Register your business in the Register of Legal Entities.

Our specialists will complete the JAR-5 form and ensure that the examining authority has all the information for a favorable decision.
After registration, which takes a few days, you’ll receive a certificate and taxpayer code. Finexmo can also register you with the tax inspection and other state authorities.

How to Open a Company in Lithuania

The most common methods of establishing a business in Lithuania that work effectively for Finexmo clients:

Need More Opportunities: Register a Subsidiary/Branch

 

You need to have:

• A business abroad and a desire to expand into the Lithuanian/European market.

To do this:

• • Contact Finexmo specialists to discuss details.

Cost of Finexmo’s consulting and organizational work: 1450 euros.

For Delegation Experts: Opening a Company in Lithuania by Proxy

 

You need to have:

• Share capital of 1000 euros.

To do this:

• • Notarize the power of attorney.

Cost: 790 euros.

All Under Control: Registering a Company by Visiting the Country

 

You need to have:

• A legal address in Lithuania and share capital.

To do this:

• • Complete all necessary paperwork with a notary in Vilnius.

Cost: 480 euros.

For Those Who Know What They Want: Purchasing an Existing Business

 

You need to have:

• A clear understanding of the type of enterprise that best suits your project’s needs.

To do this:

• • Come up with a rebranding strategy for the newly opened firm.

Cost: __ euros.

Register a Company in Lithuania, especially if you work in these fields

• Information and communication technologies
• Biotechnology
• Metal processing, engineering, and electronics
• Plastics, furniture, woodworking, and paper industry
• Textiles and clothing.

Lithuania offers numerous investment opportunities, particularly in the aforementioned sectors of its economy. However, no matter the field you plan to work in, remember that the energy and efforts you invest now, along with collaboration with Finexmo, can be the keys to your future success.