Open Company Branch or Subsidiary in Lithuania

One way of investing in Lithuania is through establishment of a company branch. A Lithuanian branch is not considered a separate legal entity from the parent foreign company. The liability of the branch is attributed to the parent company which is responsible for the branch's debts and obligations. The process of incorporation for a Lithuanian branch does not differ much from establishing a regular Lithuanian company, however it requires more documentation.

Preliminary activities prior to registering a company branch in Lithuania
A Lithuanian company branch is required to register with the Company Register of Lithuania before commencing its activities. However there are a few steps that need to be completed before submitting the application for registration. The managing board of the foreign company wishing to incorporate a Lithuanian branch must appoint a representative to carry out the registration procedures. The individual should be authorized through power of attorney. Also the foundation documents of the company must be prepared and notarized, as well as the by-laws of the parent company. The company must open a bank account for future transactions and obtain a bank certificate.

Registering a Lithuanian company branch with the Company Register
In order for the company to engage in commercial activities it must register with the Company Register of Lithuania, a procedure that is mandatory for all business entities. The founders, or representative must submit an application containing the notarized articles of association of the Lithuanian branch, the object of activity and a list of names and addresses of the managing board. Also a proof of existence of the foreign parent company is required and this usually consists of a certificate of registration from the relevant institution of the foreign country. The registration certificate is usually issued in three days.

Simultaneously with the submission of the registration application, the Lithuanian branch can be registered for tax purposes also at the Company Register. The institution automatically forwards the notice to the Tax Office and the representative must file a single form.

Registering a Lithuanian company branch from abroad
The Lithuanian government encourages foreign investment in many sectors, and entrepreneurs find a great business environment. In order to set up a branch a representative must be authorized through power of attorney. Also a permanent address for the company branch is required and at least one manager of the branch must be resident of Lithuania.

How long does it take to set up a company branch in Lithuania?
Even though the process of incorporation for a Lithuanian company branch is straightforward and does not require complex procedures, the time period required varies a lot. Opening a bank account and preparing the required documentation is finished in one day each. In three days the registration certificate is obtained. However, registering for tax purposes may take up to 15 days. Usually a company branch is registered in three weeks.