Lithuania is one of the best places in northeastern Europe to run a company. It has a strong economy and is the largest of the Baltic States. The country has been able to get a lot of FDI because it has a stable economy, low inflation, low labor costs, a high standard of living, advanced infrastructure, and a work environment that is open to new ideas.
Lithuania is one of the best places in the EU to register a company because it has the lowest corporate tax rate in the EU. Best of all, registering or buying a company is quick, easy, and doesn’t cost much. Since many people in this European country can speak English, Russian, French, and Polish, you won’t have any trouble filling out your application because of the language.
Requirements for company registration
This European country makes it very easy and stress-free to register a company. Lithuania was ranked 11th in the 2020 Ease of Doing Business Report, which makes sense.
As long as you have all the documents you need, you can do the whole thing online. Here is a simple, step-by-step guide on how to register your company in this Baltic State.
Before you can register your company in Lithuania, you’ll need to send in the following papers for review:
- Details about the company’s leaders and board members.
- The company’s official address is listed in the Articles of Association Act of Establishment.
- Information about what the bank likes.
- Certificate from a Lithuanian bank showing that the initial share capital has been paid.
Depending on the type of company you want to register, you may have to pay anywhere from €2,500 to €40,000. A limited liability company [UAB] is the most common type of company in the country.
Open a bank account
Investors who want to register a company in this European country must have a corporate bank account because the business’s share capital must be deposited into the account before the business can be registered.
Legal name registration
When setting up a business in this Baltic state, registering your business name is one of the most important things to do. When you register for incorporation online, you have to reserve a name for your business. You have to check with the Public Institution Register Centre to see if the name you want is still free. If the name is available, you can make a reservation. The name will be held for 6 months. When you’re ready, you can fill out form JAR-5 and send it to the Register of Legal Entities to get the name. Checking to see if a name is available is free, but making a reservation will cost you €18.
Legal address
When you file your application to start a business in Lithuania, you must include the legal address of your business. This means that if your business doesn’t have a physical address, it won’t be incorporated. If you already have a business office in Lithuania, you can move forward with forming your company. In Lithuania, you need at least €2500 in share capital to set up a limited liability company. This is an up-front fee that must be paid before the company can be added to the register of legal entities. About €540 is what the state charges to register a UAB. Notary fees can be anywhere from €110 to €260, but they are usually in that range. If a legal person is behind the company, you’ll have to pay more for translation services. The whole registration process takes about 3 working days after you give the local authorities the documents for your business.
