Lithuania, a vibrant Northern European country, strategically positioned at the crossroads between the East and the West, offers abundant opportunities for foreign entrepreneurs intending to extend their business reach. Thanks to the country’s welcoming business environment, strong information technology infrastructure, conducive regulatory framework and robust economy, setting up a company here is regarded as a worthwhile choice. This article offers practical steps on how to register a company in Lithuania as a foreigner.
To successfully register a business in Lithuania, one requires to follow a streamlined procedure with clear-cut rules. However, it is important to note that having a clear understanding of the Lithuanian language is beneficial, given that much of the registration process is conducted in the local vernacular.
Step 1: Determine your Business Structure
First off, decide on the business structure that resonates with your business strategy. Will your business be a small liability company (UAB), a public limited company (AB), a branch, or a sole proprietorship? Each business entity has its benefits and drawbacks, and it is prudent to consider legal counsel to make an informed decision.
Step 2: Identify a Unique Company Name
Choose a unique business name that is not yet registered in Lithuania. This can be done by searching the Register of Legal Entities. Keep in mind that the company name must comply with Lithuanian Law, for instance, it must not contradict the public interest or principles of morality.
Step 3: Register Office Address
Every enterprise in Lithuania is required to have a registered office address where official documents can be served. The office location need not necessarily be the place where the business undertakes its operations.
Step 4: Opening a Bank Account
Foreign entrepreneurs need to open a corporate bank account in Lithuania. This account will be primarily used for the deposition of share capital and day-to-day business transactions. Various international and local banks provide diverse opportunities for corporate banking.
Step 5: Preparation of Incorporation Documents
You should prepare all necessary incorporation documents, which typically include the memorandum and articles of association. Most importantly, you will need notarized personal identification documents. All documents are required to be translated into Lithuanian language.
Step 6: Business Registration
After meeting the above prerequisites, the next step is to officially register your company with the Register of Legal Entities. At the same time, the company must be registered with the Lithuanian Tax Authority.
One of the key benefits of opening a business in Lithuania is that the registration process is straightforward and quick. Generally, it takes about one week to register a business in Lithuania. The country’s commitment to digital infrastructure also makes it possible to register a business online, without having to physically visit Lithuania.
Aiding Business Growth
Post-registration, the Lithuanian government offers lots of support to ensure business growth and sustainability. Lithuania boasts a dynamic and educated workforce, quality infrastructure, and a strong legal regime that guarantees property rights. Additionally, the country has a strongly performing economy, offering incentives such as low corporate taxes and tax exemptions for specific sectors.
To sum up, while Lithuania’s advantageous geographic location, rapid internet speeds, enthusiastic tech-savvy population, are major selling points, it also brings to table a conducive business environment and a regulatory framework that is ideal for business growth and expansion. Registering a business here could be the key to opening doors to European and international markets, propelling your venture into the next era of success.