Company registration in Republic of Lithuania
If you have decided to form a company in Lithuania we will be happy to assist you. The most popular legal form in Lithuania is Uzdaroji Akcine Bendrove (further called – UAB), in english it is called Limited Liability company (LLC). It is easy to run and operate such company, transfer shares to different shareholders, do necessary accountings.
Our company is focused exclusively on international companies and foreign nationality clients willing to establish a company in Lithuania. We have many years of expertise in this field. For our clients we as well assist in helping to obtain business visa or residence permit.
Company registration in Lithuania can be performed remotely, no need for personal presence!
For our clients company formation in Lithuania procedure is quite straightforward, because all the paper work will be done by our lawyers. We do not require for clients to deposit their own sharecapital to bank account. During company formation procedure we deposit our own funds to the bank account and after company is registered we withdraw the money from the bank account and transfer the company to the new owner. It is completely safe for clients. After arrival to Lithuania client can deposit the money to bank account or keep share capital amount in cash. There is no need to have share capital deposited to company’s bank account.
Minimal share capital of company in Lithuania has to be not less than 2’500 Eur. For business immigration and residence permit reason mostly higher share capital is required 14’000 Eur for one person, 28’000 Eur for two persons and 42’000 Eur for three persons. We can register a company with any size of share capital.
There is no restriction for nationalities registering a company in Lithuania!
Company registration address in Lithuania
Each company in Lithuania has to have permanent legal registration address. No worries here as well. For each company we provide registration address in Vilnius city for unlimited time. If required it can be changed to any other address in Lithuania as per clients request.
Center of registers in Lithuania is the government institution where all information and documents about each registered company is kept and archived. Each company has to meet all the requirements set by center of registers to be officially registered in Lithuania.
Types of companies in Lithuania
In Lithuania there are many types of legal forms to do business. Not of them are popular or convenient to do business with. But here we will provide you full information about available legal forms in Lithuania:
- Private Limited Liability Company, UAB;
The most popular legal form in Lithuania due to its flexibility and unlimited capabilities of doing business, hiring employees, accountings, establishing local or international branch offices, taxation. Minimal share capital 2’500 Eur, minimum 1 shareholder, maximum 249 shareholders, shareholders does not carry any responsibility about conducted business activities by the company. Founders of the company can be any kind of nationalities citizens or any kind of companies.
- Public Limited Liability company, AB;
Minimum 1 shareholder, and no limitation for maximum number of shareholders, minimum share capital 40’000 Eur, shareholders does not carry any responsibility about conducted business activities by the company. Founders of the company can be any kind of nationalities or any kind of companies. Such company shares can be listed on public stock exchange listings.
- Small Patnership, MB;
In small partnership there are no shareholders, instead there are so called members. Minimum of 1 member is required and maximum of 10 members are allowed. There are no requirements for minimum amount of capital. It can be as low as 1 Eur. Members of company does not carry any responsibility about conducted business activities by the company. Only natural persons can be members. It has simplified accounting requirements.
- Individual Enterprise, II;
In this kind of company is limited to 1 owner only, you cannot include any additional owners in the company. There are no requirements for minimal capital. Owner is directly response for the activities of the company. In case of bankruptcy all company debts are being transferred to the owner personally to cover.
- Agricultural company, ZUB;
Minimum of two member are required to form agricultural company, there are no limitation to the maximum number of members. As the name of legal form name suggest this company is dedication for agriculture business only. There is no requirements for minimal capital. As well member does not carry any responsibility about conducted business activities by the company.
- Branch or representative office.
This type of company is very similar to regular LLC company, but in this case it is a part of a foreign company or organization which performs all or part functions of mother company. Foreign company is not financially liable for company activities in Lithuania.
As already mentioned before, in 99% of all cases we always suggest to register a limited liability company in Lithuania. Bellow you will find details about company registration requirements and details.
Required documents for company registration in Lithuania:
- Passport copy of shareholder and director;
- Living place address in native country;
- Contact details;
- Preferred company name if any;
- Required share capital size.
Procedure: After deciding to incorporate a company in Lithuania we will need to get required information mentioned above to start preparing documents for a company transfer on your name. Within a day or two you will receive documents by email to sign with instructions how to properly sign each document. Then documents will have to be posted to our office address, to continue registration procedures we need to have original hardcopies of signed documents. It will take 5 business days to finalize registration procedures. Then we will post all registration documents to your provided address or you can come and collect documents personally from our office.
Branch office registration in Lithuania
In some occasions our international clients already have running business in their native country and they prefer to establish a branch office in Lithuania. It is easier to fund Lithuanian company from foreign company. As well then they can transfer their own workers between mother company and representative office in Lithuania. The procedure is similar like registering a Lithuanian company. The difference is that in this case we would require from you to arrange foreign mother company registration extract from your local register of legal entities. This extract should be legalized by ministry of foreign affairs or approved by apostille. In the certificate following details about the company should be indicated:
- Company name;
- Company identification number;
- Company legal address;
- Legal form of company;
- Register of legal entities name in which information about company is kept;
- Director, or any other person who has a right to sign documents full name.
Required documents for branch registration in Lithuania:
- Foreign mother company legalized/ approved with apostille registration extract.
- Passport copy of branch office director;
- Living place address and contact details of branch office director.
Procedure: After deciding to establish a branch office in Lithuania we will need to get required information mentioned above to start preparing documents for a company transfer on your foreign company name. Within a day or two you will receive documents by email to sign with instructions how to properly sign each document. Then documents will have to be posted to our office address, to continue registration procedures we need to have original hardcopies of signed documents. It will take 5 business days to finalize registration procedures. Then we will post all registration documents to your provided address or you can come and collect documents personally from our office.
Business running costs in Lithuania
While owning Lithuanian company doesn’t cost anything there are some operating expenses if you will be operating your business in daily basis. In sleeping mode, when there are no workers, no transactions and no business at all, there will be no operation or maintenance costs at all, until you will decide to start doing some business activities and employees will be employed in your company. Ta get a rough idea how cheap is to run a business in Lithuania, we are providing some approximate calculations.
- 200 Eur taxes from minimal salary of 400 Eur per month;
- 150 Eur for small commercial premises lease per month;
- 15 Eur for a phone and internet line per month;
- 100 Eur accounting services per month
Company Liquidation in Lithuania
There are cases when clients want to close or liquidate Lithuanian company, they do not want to proceed or they have had business for a limited time of period and now they want to leave Lithuania. Company liquidation procedures are quite difficult and long lasting. An average time to close a company in Lithuania is between 6 to 12 months. If a company was a small business with one or at least few workers, low turn over it is easier and faster to liquidate. If you have decided to close the company, then we will prepare shareholder resolution deciding to close the company and dedicate a liquidator to take care after all procedures required to shut down the company. That’s it. From this point we will do all the rest of on behalf of you.
OPENING A BANK ACCOUNT IN LITHUANIA
After company registration you will have to apply for a bank account in Lithuania for your business and personal account. Here we will explain what are the procedure for opening a bank account.
RENTING OFFICE OR VIRTUAL OFFICE?
Most of the companies will need business premises to start working in Lithuania. Find out what are the options and differences between renting whole office and ordering virtual office services.
PLANNING TO HIRE SOME STAFF IN A COMPANY?
Familiarize yourself with the rules and requirements when recruiting, hiring and firing employees in Lithuania. Don’t be breaking Labour code in any case.