Open Business in Lithuania, Opening Lithuania Business
Opening a Business in LithuaniaUpdated on Friday 05th June 2015
How easy is it to set up a business in Lithuania?
The process of company incorporation in Lithuania can be pretty demanding but with a help of a lawyer specialized in such operation it can be completed in maximum three working days. The process consists in opening a temporary bank account which will become permanent after starting the commercial transactions, registering the notarized documents of incorporation at the Company Register(in the same time as the registration at the Revenue Authority and State Social Insurance Fund Board) and obtaining the company stamp.
How easy is to hire personnel in Lithuania?
The investors from Lithuania willing to hire personnel are advised to request the help of a specialized employment agency with experience in this field, or to create an account on the specialized sites.
If the entrepreneur wants to hire a foreign individual, there is a requirement for obtaining a work permit. This work permit can be obtained by delivering the below documents to the specific authorities: an application ,a copy of the passport of the foreign citizen, a copy of a diploma or other document attesting the person’s qualification and if necessary the copy of a resolution of recognition of professional qualifications from competent institution, a qualification assessment certificate Centre for Quality Assessment in Higher Education, in certain cases a proof that the foreigner has at least two years professional work experience during the last three years, a proof of a foreigner’s improvement of a possessed qualification, a Certificate of studies issued by a Lithuanian higher education institution related to second and a subsequent year of study in Lithuania, a document signed by the employer stating the reasons why the foreign employee must be hired.
What are the main points of interest for foreign investors?
Reasons why foreign investors should invest in Lithuania are especially related to the workforce: the candidates are usually highly educated, with a high quality of spoken English and adaptability to other languages. The salaries offered in Lithuania are very competitive, the minimum wage being situated up to 300 EUR.
Lithuania has a location which offers access to the Western Europe, Scandinavian countries, Russia and the Commonwealth of Independent States.
The financial incentives granted to the foreign investments are considerable. For example, the small and medium companies can beneficiate from guarantees on bank and credit unions loans and administer loan interest subsidies granted by INVEGA.
The companies involved in R&D projects can have their expanses deducted from taxable income at least three times. Also the companies involved in R&D activities have their assets used in these activities depreciated within two years. The companies involved in investments made in new technologies can reduce their taxable profits by up to 50%. All the expenses above this amount can be postponed to later, consecutive tax periods (up to five years).
What are the advantages of a holding company in Lithuania?
The main advantages acquired by the holding companies opened in Lithuania are related to the double tax treaties signed by this country all over the years which grants smaller or exempt withholding taxes on dividends, interests and royalties paid to its subsidiaries or from those subsidiaries and exempt or credited corporate income tax.