Published
Sep 4, 2023
Updates:
Dec 10, 2024
Lithuania
Price:
Delivery:
Legal forms:
Payment methods:
4 weeks
LLC, UAB
Document checklist:
1.Passport
2.Proof of Residence
Requirements:
Local legal address (Handled by B2B Hub)
Lithuania
$
3000
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Registrar
Abbreviation
Phone
State Enterprise Centre of Registers (SECR)
+370 5 268 8262
Location
Capital
Official languages
Population
Currency
ISO 4217
Vilnius
Lithuania
Lithuanian
2,718,352
LTL
Lithuanian Litas
Delivery
-
Certificate of incorporation
-
Articles of association
-
Meeting minutes
-
Company stamp
Certificate of incorporation
Company stamp (By stempil.com)
Registration documents and guidance
FAQ for company formation in Lithuania
Q: What is the process for company formation in Lithuania?
A: The process for company formation in Lithuania involves several steps, including obtaining necessary licenses and permits, registering the company with the Lithuanian Register of Legal Entities, obtaining a tax identification number, and registering for social insurance contributions.
Q: What are the requirements for company formation in Lithuania?
A: The requirements for company formation in Lithuania include a minimum of one shareholder and one director, a registered office address in Lithuania, and a minimum share capital of €2,500 for a private limited liability company.
Q: What types of companies can be formed in Lithuania?
A: Companies that can be formed in Lithuania include private limited liability companies, public limited liability companies, partnerships, and sole proprietorships.
Q: How long does it take to form a company in Lithuania?
A: The time it takes to form a company in Lithuania is relatively quick, and it usually takes around 3-5 business days to complete the registration process.
Q: What are the tax implications for companies in Lithuania?
A: Companies in Lithuania are subject to a corporate income tax rate of 15%. Additionally, there are other taxes and fees that may apply, such as social security contributions and value-added tax (VAT).
Q: What is the legal system in Lithuania?
A: The legal system in Lithuania is based on civil law.
Q: What is the currency used in Lithuania?
A: The currency used in Lithuania is the euro (EUR).
Q: Can foreign nationals own a company in Lithuania?
A: Yes, foreign nationals can own a company in Lithuania. There are no restrictions on foreign ownership in Lithuania.
Q: Are there any specific regulations for foreign-owned companies in Lithuania?
A: Foreign-owned companies in Lithuania are subject to the same regulations as domestically-owned companies. However, there may be specific regulations related to foreign investment in certain industries.
Q: What are the benefits of forming a company in Lithuania?
A: Some of the benefits of forming a company in Lithuania include a favorable business environment, strategic location in the Baltic region, well-educated and skilled workforce, and access to the European Union market. Additionally, Lithuania has a simplified tax system and a low tax rate, making it an attractive location for businesses.
Lithuania has a strong and growing economy. According to the World Bank, Lithuania's GDP in 2019 was $50.7 billion, representing a 4.2% growth from 2018. The country's unemployment rate is also low, at 5.3%, and its inflation rate is 2.2%. Lithuania has a strong export sector, with exports accounting for over 40% of its GDP. The country's main exports are machinery and equipment, chemicals, and food products. Lithuania also has a strong services sector, which accounts for over 60% of its GDP. The country is a member of the European Union and the Eurozone, and its currency is the Euro. Lithuania has a strong and diversified economy, and it is well-positioned to continue to grow in the future.
Lithuania has a tax system that is similar to other European Union member states. Here is an overview of the taxation system in Lithuania:
Corporate Taxation:
- Companies in Lithuania are subject to a flat corporate income tax rate of 15% on their profits.
- Corporate tax returns must be filed annually by March 1st of the year following the tax year.
- The payment of corporate income tax is due by December 20th of the year following the tax year.
- Companies with an annual turnover of less than €300,000 may be eligible for a reduced tax rate of 5%.
Personal Taxation:
- Individuals in Lithuania are subject to a progressive personal income tax rate that ranges from 15% to 32% on their income, depending on the income level.
- Personal income tax returns must be filed annually by May 1st of the year following the tax year.
- Personal income tax payments must be made by July 15th of the year following the tax year.
Value Added Tax (VAT):
- Lithuania imposes a VAT on goods and services at a standard rate of 21%.
- VAT returns must be filed by the 25th day of the month following the end of the VAT period.
- VAT payments must be made by the 25th day of the month following the end of the VAT period.
Tax Payment Process:
- Tax payments can be made through electronic payment systems, banks, or post offices.
- Taxpayers must file their tax returns and make their tax payments by the deadlines mentioned above.
- The Lithuanian tax authorities may conduct audits to ensure compliance with tax laws.
In summary, companies in Lithuania are subject to a flat corporate income tax rate of 15%, while individuals are subject to a progressive personal income tax rate that ranges from 15% to 32%, depending on their income level. Both companies and individuals are required to file their tax returns and make their tax payments by specific deadlines. VAT is also imposed on goods and services at a standard rate of 21%. Tax payments can be made through various methods, and taxpayers may be subject to audits to ensure compliance with tax laws.