Starting a Business in Lithuania

Lithuania consistently ranks highly in various business-friendly indices, reflecting its competitive environment for entrepreneurs and investors. Lithuania has secured the 11th spot in the World Bank's Doing Business report, which evaluates business conditions. This marks the highest ranking Lithuania has ever attained since the report's inception.

Benefits of Starting a Business in Lithuania includes:

• Business-Friendly Environment: Lithuania has simplified regulatory procedures and offers various incentives for startups.
• Skilled Workforce: The country boasts a highly educated and multilingual workforce.
• Advanced IT Infrastructure: Lithuania is known for its excellent digital infrastructure, which supports modern business needs.

Types of Business Entities in Lithuania:

While there are several types of business entities available in Lithuania, the UAB (Private Limited Liability Company) is the most popular due to its flexibility and limited liability protection for shareholders.

Steps to incorporate a UAB in Lithuania:

• Choose a Business Name: Ensure that your chosen company name is unique and adheres to Lithuanian naming conventions. You can check the availability of your desired name via the Lithuanian Centre of Registers.
• Prepare Incorporation Documents: The necessary documents include: Articles of Association and Incorporation Agreement (if more than one founder) or founders' decision to establish the company.
• Open an Accumulative Bank Account: An accumulative account for the future company must be opened to deposit the initial share capital (minimum €1,000).
• Notarization and Registration: Incorporation documents must be notarized and submitted to the Register of Legal Entities. Our legal team can represent you at the notary and the Register.
• Obtain Business Licenses and Permits: Depending on your business activity, you may need to apply for specific licenses and permits.
• Register for Taxes: Register your company for VAT and obtain a VAT number if your annual turnover exceeds the threshold or if you plan to engage in taxable activities.
• Accounting and Tax Reporting: Maintain accurate financial records and submit annual financial statements.
• Employment Regulations: Comply with local labor laws if hiring employees.
• Corporate Governance: Hold regular shareholder and board, if established, meetings as required by law.

Whether you are establishing a new company or expanding an existing business, Lithuania offers a competitive environment for growth and success. By choosing the UAB structure, you benefit from limited liability, flexibility, and the ability to engage in a wide range of activities.

For further assistance with incorporation and legal requirements, please feel free to contact our team. We are here to help you navigate the process and ensure a smooth start to your business in Lithuania. Please contract us at: info@sulijapartners.com

Back to the news list