Steps Involved in Lithuania Company Registration
Lithuania is a hub of economic activity in Northern Europe, bordered by the Baltic Sea, the Gulf of Finland, and the Atlantic Ocean. As a member of the European Union, North Atlantic Treaty Organization (NATO), and the Schengen Area, it offers numerous business advantages. Thus, it’s a prime location for entrepreneurs seeking to establish a European presence. If that sounds like something you might be interested in, keep reading.
Starting a Business in Lithuania
The country offers a favourable business climate with low taxes, well-developed infrastructure, and a highly educated workforce. Its strategic location at the crossroads of Europe makes it an ideal hub for businesses looking to reach markets in the EU, Russia, and the Baltic states. With that said, being a member of the EU, Lithuania has access to funding opportunities, and its economy has been growing with a focus on high-tech industries. The government provides incentives and support for startups, making Lithuania an attractive destination for entrepreneurs.
Pick a Business Name and Reserve It
You need to choose a unique name that is not similar to any existing company name in the country. The name should also be easy to remember and reflective of the nature of your business. Reserve the selected name with the Lithuanian Center of Registers to prevent overlap with other companies.
Prepare the Paperwork
To register a company in Lithuania, you’ll need to prepare several important documents. These include a comprehensive business plan, articles of association, and personal identification documents for all directors and shareholders. Once the necessary documents are prepared, the next step is to register with the Lithuanian Center of Registers, responsible for registering companies in the country. You’ll need to submit the prepared documents and pay the relevant fees to the centre during this process.
Open a Bank Account and Register for Taxes
Opening a bank account in Lithuania is necessary to deposit the required capital to start your business operations. Additionally, it’s important to register the company for taxes, including value-added tax (VAT) and corporate income tax. This will ensure that your business complies with the country’s tax laws and regulations and help avoid penalties or fines for non-compliance. Register for value-added tax (VAT) if your company’s annual turnover is expected to exceed €45,000.
Notifying the Lithuanian State Social Insurance Fund Board of Your Business
You must inform the Lithuanian State Social Insurance Fund Board and register your employees for social security. This is typically done to ensure that your employees are covered for social security benefits, such as pensions and medical insurance. Registering your employees with the Lithuanian State Social Insurance Fund Board is a legal requirement, and failure to do so may result in penalties or fines.
Need the Push to Get Started?
Starting a business in a new environment can get overwhelming. That’s why we’re here to help. Our expert team at 3E Accounting is here to assist. Our multidisciplinary specialists have years of experience and have established thousands of companies worldwide. Contact us today, and let us help you get started! We’ll support you through every step of the process and are available 24/7 for any questions.
