QUESTIONS

Question was asked by Peter

There is a legal requirements for the LLC company establishment – 2500 eur. It could be more, and it should be more when client wants to migrate under Business purposes (up to 30 000 eur) and if transport company (depending on how much cars would be there operating for the company).

Question was asked by Benedict

We provide a business address for the company , first year – for free, the next year 100 eur.

Question was asked by Viktor

Accounting services 100+VAT (1 employee, 10 invoices), when VAT company – 150+VAT. VAT in Lithuania – 21%.

Corporate Income tax – 15 %. Taxable profits of entities whose average number of employees on the staff list does not exceed 10 and whose income during a tax period do not exceed EUR 300 000 shall be taxed at a rate of 0% during the first tax period, and at a rate of 5% during other tax periods, except for the cases specified in the law.

Dividends and other income from distributed profits shall be taxed at a rate of 15 %.

Question was asked by Robert

There is no official requirement for that. Just one director, bookeeping.

Question was asked by Elena

Company registration services cost -650 EUR, that doesn‘t include postal services, notary and translation. For the company formation on behalf of third party I will need Power of Attorney , translated into Lithuanian language (we usually do here). We also need to know, who is going to invest authorized capital in the sum of 2500 EUR , since we can do it from our side , or the client can do it himself.

Question was asked by Roman

A ready-made firm is 650 euro, +200 eur if you want to change the name. Bare in mind, that these firms have basic authorized capital in the sum of 2.500 EUR.

Please, note that if you are going to sell goods and services in the EU and the total amount of money for the period of 12 months is – 14.000 EUR , then you will be required to have VAT number for the company.

If you want to proceed with new company registration, you are also welcome, but the process takes time and we will need a Power of Attorney from you with Appostille.

Now, we offer our clients to work with PaySera, for more details,  please visit their website: www.paysera.com

Or ManoBankas manobank.lt

These are online banks, you can open remotely.

Question was asked by Mark

To start a business in Lithuania, you will have to register a company. The most popular type of company for doing business – UAB (LLC). We can help you with that, as well as we offer ready-made companies for sale.

After you complete registration/ buy a company you will have a business address, but if you will need a real office, we could also help you in finding the one.

Question was asked by Natalja

For this case, we would need a Power of Attorney (Notary paper) from you to act on behalf of you. We usually send a sample form of the paper. Further, we will need to decide upon investement of registered capital in the sum of 2500. Either you do that, or we can help you with that.

Moreover, we can offer you a ready-made company for sale, please check the list of available companies here: https://inlegal.eu/en/established-companies/

Question was asked by Oleg

Corporate Income tax – 15 %. Taxable profits of entities whose average number of employees on the staff list does not exceed 10 and whose income during a tax period do not exceed EUR 300 000 shall be taxed at a rate of 0% during the first tax period, and at a rate of 5% during other tax periods, except for the cases specified in the law.

Question was asked by Lena

The name of Lithuania company must correspond to the Lithuania language institute and end in -as, -is, -us, -a. An additional services is also available: registering of the company with an English name.

Question was asked by Thomas

Monthly employee salary taxes are income tax and social security fund. in total, these taxes amount to 55 per cent of the employee’s salary.

VAT- 20 percent.
Dividend tax is 15 percent.

Income tax is paid annually from 5 to 15 percent. The reduced profit tax in the amount of 5 percent can be used subject to the following conditions:

• The company must have an annual turnover of no more than 300 000 EURO per year.
• the company is allowed employ no more than 10 employees,
• shareholders may not hold more than 50 per cent of shares in other Lithuanian companies.

Question was asked by Ejaz

This is the customs code that is used in the customs zone for export/import transactions. It must be assigned to the company befor eth goods are brought to customs.

Question was asked by Marta

Yes. The main thing is to conclude contracts on the basis of which you work. Works/services may be provided in any country with a company that has an agreement with you.

Question was asked by Anna

Strategically, the Lithuanian company is becoming a vehicle between Belarus, Russia, Ukraine and Europe, making it easier and faster to conclude contracts with EU residents, ready to provide payment deferrals for up to 30 days.

You need a firm in Lithuania, if:

• you have many European partners who are ready to work only through European companies,
• you place a large number of orders, but from different countries and in small batches, and you need to import everything to Russia, Belarus or another CIS country,
• you are constantly required to have passport transactions to buy currency at a good exchange rate,
• you have a large business in one of the CIS countries, and if there is a risk that if everything is taken away and you will lose everything, you can take care of the future and safety of your family.

Question was asked by Zain

There are two ways of doing business in Lithuania: provision of services as an independent entrepreneur (in Lithuania one uses the abbreviation IĮ) or establishment of a company. The most popular is the registration of a company in the form of a private limited company (UAB), but there is also the possibility of opening a public institution (AB) or a small association (MB). We will consider the registration procedure of a company on the example of UAB, which is almost no different from the concept of a limited liability company that we all know.

Question was asked by Mohan

The price is set by agreement, or you pay a standard sum of X for a certain job.

Question was asked by Gerome

Closely held corporation (UAB), company limited by shares (АB), corporation sole (IĮ), unlimited company (TŪB), kommandit partnership (KŪB), agricultural association (ŽŪB), cooperative society (KB) and government-owned institution (VšĮ). You can find more information about each of them on the following website: https://inlegal.eu/en/open-a-company-in-lithuania/

Question was asked by Margaret

The minimum share capital of CJSC is EUR 25,000.

Question was asked by Faisal

A chief officer may be a citizen of Lithuania or a citizen of another EU or non-EU country.

Question was asked by Omer

Income tax is paid annually from 5 to 15 percent. The reduced profit tax in the amount of 5 percent can be used subject to the following conditions:

• the company shall have an annual turnover of no more than EUR 300,000 per year,
• the company is allowed employ no more than 10 employees,
• shareholders may not hold more than 50 per cent of shares in other Lithuanian companies.

Question was asked by Tom

Dividend tax in Lithuania is 15 percent.

Question was asked by Lauris

The annual profit tax shall be paid every year until June 1. The reporting period for VAT is every month up to 25 days.

Question was asked by Anush

In Lithuanian.

Question was asked by Stephen

The cost of renting an office – from 8 euros per square meter. The cost of renting production space – from 5 euros per square meter.

Question was asked by Artur

No, there are no such mandatory payments in Lithuania.

Question was asked by Natalia

More information can be found here: http://www.bss.biz/atlyginimo-ir-mokesciu-skaiciuokle/

Question was asked by Daniel

More information can be found here: http://www.bss.biz/atlyginimo-ir-mokesciu-skaiciuokle/

Question was asked by Amaya

From 6 percentage.

Question was asked by Silva

The bank needs to show the company’s turnover of 6 months.

Question was asked by Kami

We have to shown the company’s turnover in at least six months.

Question was asked by Edvard

This is a new service for those who do not have their own office, are abroad and cannot properly manage their Lithuanian company, or simply do not have time for everything.

Question was asked by Oskar

Monthly employee salary taxes are income tax and social security fund. in total, these taxes amount to 55 per cent of the employee’s salary. VAT- 20 percent. Dividend tax is 15 percent. Income tax in the amount of 5 to 15 percent is paid annually.

If you have any questions, please contact us – we will provide qualified assistance in tax matters in Lithuania. Professional tax advice is especially important for foreigners who are going to start or have already started a business in Lithuania.

Question was asked by Zabel

Startup Visa is issued in the country from 1 January 2017. It can be obtained within up to 2 months on general terms or up to 1 month on emergency terms. More information about the visa procedure can be found on the website of the Lithuanian Embassy in your country.

Question was asked by Latif

A foreign national may apply for a Lithuanian visa as a 100% shareholder and director, attaching an application to the embassy in his or her country of residence.

Question was asked by Camilla

You get a residence permit as the owner and director of a Lithuania company. As long as the activity of your company  does not require your permanent presence in Lithuania, nobody is interested in it. Your company’s good standing is important, i.e. regular payment of employees’ salaries, taxes and social security contributions. it is also important to have a minimum activity, i.e. not to have a zero balance in a year.

Question was asked by Dan

If the customer buys or open a company, he must be in business for at least 6 months before applying for a residence permit. The following documents confirm the conduct of the business: Agreements with customers, partners, invoices, bank statements, annual tax returns, lease agreements, etc. The firm has to make profit. There are no profit requirements. After the submission of the residence permit, the decision is made within 2-4 months. Two months in fast track, four months in normal track. The firm should continue its activities after the submission of the documents. A shareholder may stay in Lithuania on the basis of a vise until a decision o issue a residence permit is made.

Question was asked by Kristina

No, you do not have to start your own company. A foreigner may live and work in Lithuania as a manager or specialist of a representative office, branch or company of a foreign company.

In such a case, a temporary residence permit in Lithuania is issued to a foreigner when the following conditions are:

1. A foreigner arrives in Lithuania to work for no more than 3 years in a representative office, branch or enterprise of a foreigner company that  belongs to the same group pf companies established in Lithuania as a director or specialist;
2. Prior to the day of arrival in Lithuania, a foreigner has been working in a foreign company for at least 1 year and whose business knowledge or high professional quantification is necessary for the activity of a company, representative office or branch established in Lithuania.

By the way, when working as a manager or specialist of a foreign company, a foreigner does not need to obtain a work permit. Besides, family members immigrate with him. At the same time, the owner’s family can receive a residence permit only two years after the owner of the company has received a temporary residence permit.

Question was asked by Tamara 

The desire to get bank financing is a normal desire of every entrepreneur to develop and expand his business. But banks also need to make sure that the client is solvent enough to repay the loan. Therefore, banks of Republic of Lithuania take into consideration the documents of the companies that have worked in Lithuania for 6 months or more, the balance sheet of the company and the business plan.

Question was asked by Oleg

Yes, but the bank must present a notarized power of attorney, which must specify the right to open an account.

Question was asked by Ali

To get a license, you need to pay 9.000 EURO for the first car and 5.000 EURO for each additional one. In order for vehicles to be able to carry goods to Russia, the company must be a member of the TIR system , which costs about 30.000 EURO, and still have to deposit 8.000 EURO. Of course, it is possible not to buy a TIR system, but then it will be necessary to carry out transportation from another company that has it.

Question was asked by Kyra

• There are no requirements for the company’s management to reside in Lithuania.
• An application for a license is submitted without establishing a company. The establishment of a company begins only after obtaining a license.
• Fast licensing process. Licensing within 3 months or even faster. Business-centric registration.
• Documents can be submitted in English and changed “on go”, which excludes official bilateral correspondence.
• Possibility for non-banking institutions to receive their own codes for generation of individual IBAN client accounts as in a bank.
• Non-banking institutions have direct access to the Single European Payments Area (SEPA) through the CENROlink payment system managed by the Bank of Lithuania (Regulator). Only banks in other jurisdictions can work directly with SEPA Bank of Lithuania creates an infrastructure for instant payments.
• Implementation of PSD2, allowing the initiation of payments (PIS) and account information (AIS).
• Remote client identification. The innovative “know your customers” process for remote verification allows you to open accounts without the physical presence of the customer.
• The license allows the provision of financial services throughout the European Union without any additional licensing. Fast and simple licensing procedure in other European EU/EEA jurisdictions.
• No sanctions in the first year. During its first year of operation, Bank of Lithuania strives to support start-ups without punishing them for minor violations.
• Startup visa. Special visas for non-EU/EEA nationals who manage innovative enterprises operating in Lithuania.