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Establishing a Company in Lithuania

Establishing a company in Lithuania

Lithuania belongs to the 3 countries know as "The Baltics", and is located in northeastern Europe, on the southeastern shores of the Baltic Sea, which separates between Lithuania and Sweden. Lithuania shares terrestrial borders with Latvia to the north, Belarus to the east and Poland to the south, alongside a small Russian enclave named Kaliningrad. In the past, Lithuania was part of the Soviet Bloc of countries and gained independence in 1990. In 2004 Lithuania joined the European Union and the NATO Alliance, and later on it joined other leading international bodies. Despite its being a small country with a population of only 2.8 million people, Lithuania has a well-developed economy, an educated population and high standards of living, as compared both to its neighbors and to Western standards. This combination provides many advantages when establishing a company in Lithuania.

In contrast to other Soviet Bloc countries, Lithuania was part of the Soviet Union for a relatively short period of time, between 1944 – 1990. For hundreds of years beforehand, the country was either independent or a member of one of the strategic alliances that ruled the Baltic area. Lithuania's capital city is Vilnius, which is also its largest city. Lithuania maintains a successful and very impressive combination of being a well developed and progressive nation that synergistically coexists alongside the country's rich and ancient political history and cultural heritage. In terms of natural landscape, Lithuania offers a mixture of pleasant beaches and long summer days, together with spectacular forests and untamed wilderness. Culturally, the country benefits from its proximity to Europe and to Scandinavian influences, while preserving the Lithuanian people's strong Baltic and national identities.

For Viewing Lithuania in Google Maps - Click Here

Three Things You Probably Didn’t Know About Lithuania

  • Although Lithuania has long standing connections to Russia, the country's language is Lithuanian, one of two enduring Baltic languages and one of the oldest European languages still actively used today.
  • If you recently purchased wooden furniture from IKEA, there's a very good chance that it was built from Lithuanian wood. IKEA owns the largest wood manufacturing and processing companies in Lithuania, and the country is a central source of wood for the Swedish giant's products.
  • Over 25% of Lithuania’s energy comes from renewable sources, a very respectable statistic that continues to climb. Of the remaining 75% of the country's electricity, nearly all of it comes from Lithuania’s neighbor, Sweden, via an underwater cable that lies on the bottom of the Baltic Sea.

The Lithuanian Economy

Lithuania's economy is considered a progressive economy with elevated income levels and a very high ranking on the Human Development Index. These superior rankings also apply to the country's standard of living and other measurements of civilian well-being, including citizen rights, freedom of press and Internet, democratic governance, peaceful coexistence with its neighbors and others. Lithuania is a full member of the European Union, including participation in all of the Union's institutions and the Eurozone. Lithuania's GDP stands at approximately $102 billion and the per-capita GDP at nearly $37,000 a year.

Lithuania's population is very well educated, a fact that has formed a certain deficiency in the basic workforce needed for manual and industrial labor. However, the country's membership in the European Union and the freedom of movement within the Union, allow Lithuania to try and attract  laborers for such positions from outside its borders.

Alongside its membership in the European Union, Lithuania is a full member of the World  Trade Organization and is party to a large number of trade agreements with countries in the region and various countries throughout Europe. Lithuania's largest trade partnerships are, first and foremost, with Russia, followed by Germany and its neighbors, Latvia and Poland. The United States also maintains trade relationships with Lithuania summing to several billion dollars a year. Oil is the country’s primary export, and its leading economic sectors are services and, to a lesser extent, industry and agriculture. The many and differing qualities of Lithuania and its progressive economy make the country an attractive business and commercial entryway to the Baltic states, to the European Union and to the rest of the world.

Additional Information Regarding Establishing Companies in Lithuania:

General
Type of company
Private Limited Liability Company (UAB)
Relevant Companies Law
The Commercial Law, 2012
Offices
Businesses are required to provide the authorities with an address of a local office.
Language of original incorporation documents
Lithuanian
Finance and Taxation
Currency
Euro (EUR)
Corporate tax rate
15%
Standard share capital
2,500 Euros
Office Holders
Secretary
Obligation to appoint company secretary
Not required
Obligation to appoint local secretary
Depends on the specific Emirate
Type of entity that may function as company secretary
Depends on the specific Emirate
Director
Obligation to appoint company director
Required
Obligation to appoint local company director
Not required
Minimum number of directors
1
Type of entity that may serve as company director
Individual
Shareholders
Obligation to register shareholders
Required
Obligation to register local shareholders
Not required
Minimum number of shareholders
1
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Registered shares
Accessibility of Information
Company registrar
Information regarding shareholders is publicly accessible. The personal details of the beneficiaries
Annual Assembly and Reporting
Obligation to hold annual assembly
Required
Obligation to prepare financial reports
Required
Obligation to submit financial reports
Required