Company Formation Lithuania
Updated on Monday 23rd April 2018
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Lithuania is an appealing destination for foreign investors wanting to set new companies. BridgeWest offers tailored solutions for clients who want to incorporate a company in Lithuania.
BridgeWest provides company formation services in Lithuania. Our assistance includes:
- drawing up the articles of association that can be signed through power of attorney (Lithuanian laws require power of attorney for any public notary proceedings);
- drawing up documents for company incorporation in Lithuania: specimen signatures, identification papers copies, application form required by the Lithuanian Company Registration Office;
- arranging public notary proceedings (all procedures for company incorporation are done in front of a Lithuanian public notary);
- providing a registered office in Lithuania on demand; the registered office serves as headquarters for the company in Malta and it will be made public;
- setting up a bank account for the company in Lithuania; BridgeWest will help in setting up the share capital bank account, as well as a current bank account once the company is incorporated;
- recommending a Lithuanian accountant, as accounting services are needed for new businesses in Lithuania.
Types of companies in Lithuania
- Lithuanian private limited company (Uždaroji akcine bendrove –UAB) - the Lithuanian private limited company is the most common type of company because it requires minimum one shareholder and maximum 250, a director who can be an individual or a legal entity. The minimum share capital for a private limited company in Lithuania is 10,000 LTL (approximately 2,900 EUR) and it must be subscribed in the articles of association of the company. Shareholders are held accountable for the company’s obligations and debts to the extent of their share contribution. The shares of private limited companies cannot be traded on the stock exchange.
- Lithuanian public limited company (Akcine bendrove - AB) - The Lithuanian public limited company is required to have at least one shareholder, one director and a supervisory council or a management board. The shareholders of a public limited company in Lithuania are held liable for the company’s debts and obligations to the extent of their share contributions. The minimum share capital for a public limited company in Lithuania is 150,000 LTL (approximately 44,000 EUR) and the shares can be transferred or traded on the stock exchange.
- Lithuanian Branch, Subsidiary or Representative Office - Foreign companies are allowed to set up separate enterprises from the parent company, where the foreign company will be a shareholder in a Lithuanian company. Foreign companies can also open extensions of the parent company in Lithuania.
Taxation in Lithuania
- The corporate tax in Lithuania is 15%, but a reduced rate of 5% applies to agricultural companies.
- The standard VAT rate in Lithuania is 21%, but reduced rates of 9% and 5% apply to books, respectively pharmaceuticals.
- Capital gains and dividends are taxed with 15% in Lithuania, unless participation exemption or double tax treaties apply.
BridgeWest is also able to offer ready-made Lithuanian companies and VAT registration.
Please contact us for more information and prices.