Doing business in Lithuania

Public liability company (in Lithuanian: “akcinė bendrovė” or abbreviation “AB”)

Private limited liability company (in Lithuanian: “uždaroji akcinė bendrovė” or abbreviation “UAB”)

Small partnership (in Lithuanian: “mažoji bendrija” or abbreviation “MB”)

Individual enterprise (in Lithuanian: “individuali įmonė” or abbreviation “IĮ”)

SETTING UP A BUSINESS BY STEP:

 The optimal procedure for setting-up the company usually takes 5-7 working days. The vast majority of companies are being established by using legal services of public notary. However, there is an option to establish the new company online, by using the internet platform of the Register of Legal Entities of the Republic of Lithuania. However, there will appear some drawbacks regarding key legal documents and issues related with the company.

The usual procedure for a company establishment is described below:

N.B. A business can be set up electronically in just one day if the entity’s establishment documents comply with the standard forms of documents.

Taxation:

Other favorable tax conditions available to foreign companies – Free Economic Zones:

Tax incentives:

Investment project incentive

Entities involved in an investment project are able to reduce their taxable profits by up to 50% of the actually incurred acquisition costs of long-term assets meeting certain requirements.

R&D incentive

Expenses incurred for R&D purposes can be deducted three times in the tax period when they are incurred.

Advanced Pricing Agreements (APAs) and Binding Rulings

Available as from 1 January 2012

Investing in land

Land (except for agricultural and forestry) may be acquired only by legal or private persons who are established or residing in the EU or in OECD, NATO or EEA member countries. Such individuals and companies are allowed to buy up to 500 hectares of farmland (or more if the buyer is a stockbreeder), provided that the buyer has at least 3 years of farming experience or has completed studies leading to agriculture-related profession.

Labour law:

The labor relation in Lithuania are regulated by the Labor Code of the Republic of Lithuania, collective agreements and (or) work regulations. Most popular types of contracts are fixed-term and non-term contracts. As the fixed term employment contract is an often used special contract form in Lithuania, please notice that:

More basic provisions:

Publisher: Law firm „Constitus”


Published:
More from this category

Doing Business in Slovenia

Doing business in Switzerland

Doing business in Sweden

Doing business in Austria