Company in Lithuania

The most popular and common company established in Lithuania is a Private limited liability company (LLC)/ Closed joint stock company. The authorised capital of the Private limited liability company/ Closed joint stock company must be not less than 2 500 Euro. The law provides for a maximum number of shareholders in the Private limited liability company/ Closed joint stock company– no more than 250 shareholders. The management body is the manager, or, a collegial supervisory body is formed – the Board.

One of the advantages of the Private limited liability company/ Closed joint stock company is that its liability is limited, i.e., the company’s participants (shareholders, owners, members) shall not be liable for its obligations to the extent of their personal property.

Apart from the Private limited liability company/ Closed joint stock company, there also exist other private legal entity forms in Lithuania, such as a Public limited liability company/ Joint stock company, individual enterprise, small partnership, etc.

Public limited liability company (PLC)/ Joint stock company. The law provides that the amount of the authorised capital of the Public limited liability company/ Joint stock company must be not less than 40 000 Euro. The number of shareholders shall not be limited; the shares may be traded in publicly. The management body of a Public limited liability company/ Joint stock company is the manager or the Board. Liability is limited, i.e., the company’s participants (shareholders, owners, members) shall not be liable for its obligations to the extent of their personal property.

Individual enterprise (IE). The law does not provide for any required minimum authorised capital for an individual enterprise. The main and sole participant in the enterprise is the owner of the enterprise. The individual enterprise is managed by the manager – a business owner or another person that may be appointed as a manager.

Liability of the individual enterprise is unlimited, i.e., the owner of the individual enterprise (IE) shall be liable for its outstanding obligations to the extent of his/her personal property. This is one of the major adverse features of this legal entity form.

Small partnership (SP). A legal form of a legal entity recently emerged but not yet popular in Lithuania. The law does not impose on members any mandatory contributions to the small partnership – they are established by the members of the small partnership themselves. A possible number of members: 1 to 10. The management body is the manager or the members’ meeting.

Liability of the small partnership is limited, i.e., its members shall not be liable for its obligations to the extent of their personal property.

Basic documents for the establishment of a company in Lithuania:

1. Copy of a passport;
2. Filled in questionnaires (we provide);
3. Power of Attorney.

Time limits for the establishment of a company: 5-10 working days after the receipt of the required documents.

Price of the establishment of a company: 750 Euro.

Basic documentsfor the purchase of a company in Lithuania:

•  Copy of a passport;

•  Filled in questionnaires (we provide).

Time limits for the purchase and sale of a company: 5-10 days after the receipt of the required documents.

Price of the purchase and sale of a company: 750 Euro.

Key company taxes in Lithuania:

1. Taxes that are paid on a monthly basis:

Taxes on the allocated wage accounts for about 55% of the allocated wage. The minimum wage in Lithuania – 380 Euro.

Value Added Tax (VAT) – 21%. Paid if a company is a VAT payer, registered in the VAT register. The obligation to register as a VAT payer in Lithuania arises to a company when the amount of the earnings from the supply of goods or services in the territory of Lithuania within 1 year exceeds 44 891 Euro.

2. Taxes that are paid on an annual basis:

Income tax - 5% or 15%. Income tax equal to 5% is paid by a Lithuanian company, if the number of its employees is up to 10 people, and income during the tax period (1 year) is up to 289 620 Euro.

Immovable property tax – 0.3% to 1%.

Minimum company maintenance costs in Lithuania:

• Monthly charges;
• Employees’ wages;
• Accountant. If a company's activities are minimal – about 100 Euro per month, or, 950 Euro per year;
• Office rent - according to an agreement. Virtual office – 200 Euro per year.