Company Registration in Lithuania – Starting Info
It’s no big secret that more and more businesses are looking to expand in the next few years as the financial sector shifts in focus on the crypto economy. More companies want to attract new clients, talents, and jobs easily. That’s the reason why they turn to such opinions as foreign company registration in Lithuania. This option is trendy within the crypto and FinTech communities on the accord of offering lax regulatory policies and being very crypto-friendly.
Most in-demand legal entities in Lithuania include LTDs, IEs, and PLCs. Below, we will compare and contrast them.
Comparison of Types of Legal Entities for Company Registration in Lithuania without Physical Presence
Private limited liability company / LTD
- A possible number of participants: 1 to 249 shareholders.
- Minimal share capital requirements: 2500 €.
- Management: Director and board of directors.
Private non-limited liability company / IE
- A possible number of participants: 1 owner.
- Minimal share capital requirements: Unidentified
- Management: IE owner automatically becomes the director, even though another person can be selected for this role in a company in the jurisdiction of Lithuania.
Public limited liability company / PLC
- A possible number of participants: Unlimited stockholders.
- Minimal share capital requirements: 40000 €.
- Management: Director and/or board of directors.
If you plan to establish a company in Lithuania remotely, you have to select the type of legal entity based on your business’s specific set of needs and budgetary constraints. It’s never a good idea to turn to non-specific texts that describe how to start a company without taking into account certain specific technical requirements of your company.
The key steps of establishing a company are as follows:
- Selecting and reserving a company name. It’s a very important step that is closely related to brand recognition and branding in general.
- Preparing the required paperwork for future submission. This step can and should be done in a swift fashion to avoid delays.
- Gathering share capital. Opening a bank account (if required).
- Sending the paperwork to be notarized.
- Sending the notarized paperwork to the official Lithuanian register of legal entities.
Critical steps for registration of a legal entity in Lithuania can differ on a case-to-case basis. Still, the above can be seen as an excellent example of a simple, reasonably ordinary process.
Sometimes, an online application is all it takes to start your immensely profitable business. The expenses for getting your business started should not be a big concern. In total, it takes you a little more than 750 Euros to register a new company in Lithuania remotely. The process should be finished in 5 to 10 business days.
Main Steps: Purchase a New Company in Lithuania
The key steps of buying a company are as follows:
- Agreeing on terms of the acquisition. Preparing the documents to be signed after the agreement.
- Paying for shares. This step is essential for both parties and should be treated with the attention it requires.
- Penning the purchase agreement for a Lithuanian business.
- Sending the finalized documents to the official Lithuanian register of legal entities.
The state fee that you have to pay when acquiring a readymade company in the jurisdiction of Lithuania is close to 750 Euros. Usually, the deal is fully finished within 5-10 business days.
Do Any Restrictions Exist for Foreign Citizens Looking to Launch or Purchase a Business in Lithuania?
Foreign citizens looking to launch or purchase a business in Lithuania will not be subjected to any special restrictions. All the limits and conditions are the same for Lithuanians and foreigners alike.
Is Company Registration in Lithuania Without Physical Presence Even Possible?
It’s possible to register a business without setting foot on Lithuanian soil. With proper authorization, everything can be carried out with minimal participation from the person(s) that wants to establish or purchase the business. The whole process can be wrapped up in less than ten business days.
What are the Tax Rates on Corporate Income?
One of the most important questions for people thinking about registration of a legal entity in Lithuania has everything to do with taxes. They will be pleased to learn that even though the standard CIT rate is 15%, there are certain ways that a company can lessen its tax burden. In case certain conditions are met, small businesses can apply for a reduced CIT rate of 5% or 0%. This is possible to do for a company in Lithuania remotely.
Is It Possible to Acquire Lithuanian Residency Through Investment?
It’s entirely possible to qualify for Lithuanian residency under the current immigration law. Foreign company registration in Lithuania plays a pivotal role in this regard. Once again, certain conditions have to be met.