Guide to Company Incorporation in Lithuania

1. What is the minimum share capital of a Lithuanian Private Limited Liability Company?
The most common company form of Lithuania is the Private Limited Liability Company. It has a simpler structure and a less complex incorporation process. The starting capital requested by the Lithuanian Law is 10.000 LTL.

2. What is the minimum share capital for a Lithuanian Public Limited Liability Company ?
This business type is designated for business at a larger scale, therefore it has a more complex structure and the minimum capital is higher, rating 150.000 LTL.

3. Are there any special requirements for establishing a Private Limited Liability Company in Lithuania?
Lithuanian government is looking to simplify the company incorporation procedures for a better efficiency of the investment sector. Therefore a Lithuanian Private Limited Liability Company can be set up by one or more persons or legal entities, of any citizenship, provided they submit all the requested documents. There is no low regarding prohibition of foreign owned companies under the Law on Companies of the Republic of Lithuania. The liability of the shareholders is limited to the amount invested in the company's capital. Usually companies can be incorporated without the presence of the founders. However a legal representative authorized to carry on the procedures of incorporation is needed to conduct all necessary steps. Companies operating in Lithuania need to have a registered office, or a virtual office in Lithuania.

4. How can I register for VAT in Lithuania?
VAT registration is only mandatory for companies with an annual turnover higher than LTL10,000 and that commercialize products or services taxable for VAT. VAT registration is usually done by submission of an application with the Lithuanian tax authorities which release a VAT number in case the application is accepted. The procedure can be done by the representative of the company authorized with power of attorney, provided all the documents are submitted.

5. How can I open a bank account in Lithuania?
Companies that are requested to provide a starting capital need to open a temporary bank account prior to registration in order to deposit the amount. The temporary bank account becomes permanent after the company is issued the registration certificate. In order to open a bank account an extract of the registration certificate from the Lithuanian Commercial Register is needed, along with other documents that differ from bank to bank are submitted in an application. Many Lithuanian banks request for the founder to be present in the country in order to sign the contract in person. However some banks are not as strict, and allow the representative to provide all the necessary documents.

6. How can I recruit personnel in Lithuania?
Lithuania has a rather high unemployment rate, therefore the number of candidates from which a company may choose is quite high. Recruiting personnel can be done by creating company accounts on websites specialized in job placement, or by contacting recruitment agencies that provide best suited candidates following the criteria set out by the company.

7. What is the average salary in Lithuania?
Lithuanian workers enjoy a rather high quality of life, with an average net salary of over 1500 EUR.

8. What is the overall economical situation in Lithuania?
Over the years Lithuania has made steady efforts to develop a market economy. A significant percentage of state property has been privatized and trade has been diversified gradually. Lacking important natural resources the country is highly dependable on imports of fuels and raw materials. The government is constantly seeking to improve the countries productiveness by encouraging foreign investment with incentives and a welcoming environment.