Lithuania is an appealing destination for entrepreneurs seeking to establish their enterprises in Europe. The country’s pro-business-company circumstances, strategic location, and membership in the European Union make it an enticing choice. This step-by-step guide will navigate you through the process of Lithuanian company register, assuring you have all the essential information to get started.

Choose the Type of Lawful Entity

The initial step in enrolling a company in Lithuania is selecting the type of lawful entity that best aligns with your business-company needs. The most common types are:

• Private Limited Liability Company (UAB): Ideal for small and medium-sized enterprises. Requires a minimum share fund of €2,500.
• Public Limited Liability Company (AB): Suitable for larger enterprises intending to issue shares to the public. Requires a minimum share fund of €40,000.
• Individual Enterprise (IĮ): Best for small, sole proprietorships. No minimum fund demand.
• Partnerships (TŪB or KŪB): General and limited partnerships for enterprises operated by multiple partners.

Reserve a Company Name

After choosing the type of lawful entity, the next step is to reserve a company name. The name must be unique and not already in use. You can check the availability of your desired company name through the Lithuanian Register of Lawful Entities.

Visit the Register of Lawful Entities website.

• Use the search function to verify if your desired name is available.
• Reserve the name online, a process that typically takes a few days.

Prepare the Required Documents

To enroll your company, you’ll need to prepare several documents, including:

• Articles of Association: Outlining the company’s structure, purpose, and internal regulations.
• Founding Act/Agreement: A document signed by the founders agreeing to establish the company.
• Shareholder’s Agreement (if applicable): Details the rights and obligations of the shareholders.
• Proof of Payment of Share Capital: A bank statement or receipt showing that the share fund has been deposited in a temporary bank account.

Open a Temporary Bank Account

Before enrolling your company, you need to open a temporary bank account to deposit the initial share fund. This involves:

• Choosing a bank in Lithuania that offers firm banking favors.
• Opening a temporary account in the company’s name.
• Depositing the minimum required share capital.
• Obtaining a certificate from the bank confirming the deposit, needed for the enrollment process.

Register with the Center of Registers

With all your documents prepared, you can proceed to enroll your company with the Center of Registers. This can be done online through their website or in person at one of their offices. The steps include:

• Filling out the registration form, including details about the company’s name, address, founders, and activities.
• Submitting the Articles of Association, Founding Act/Agreement, and Proof of Payment of Share Capital.
• Paying the registration fee, which varies based on the type of company and processing speed.

Obtain a Business License (if required)

Certain types of enterprises in Lithuania require a business-company license to operate lawfully. This applies to sectors such as finance, healthcare, and food services. If your business-company falls into one of these categories, you will need to:

• Identify the specific license(s) required for your business-company activities.
• Submit an application to the relevant authority along with any additional documentation they may require.
• Pay any applicable fees for the license.

Register for Taxes

Once your company is enrolled, you must enroll for taxes with the State Tax Inspectorate (VMI). This includes:

• Obtaining a VAT number if your annual turnover is expected to exceed €45,000.
• Registering as a taxpayer to assure conformity with corporate tax obligations.
• Ensuring registration for social security contributions if you have employees.

Register with Social Security

If your company plans to hire employees, you must enroll with the State Social Insurance Fund Board (Sodra). This involves:

• Registering your company as an employer with Sodra.
• Understanding your obligations regarding employee contributions and benefits.
• Submitting regular reports on employee earnings and paying the necessary social security contributions.

Set Up Accounting and Reporting Systems

Lithuanian law requires companies to maintain accurate accounting records and submit regular financial reports. To comply with these demands, you should:

• Set up a reliable accounting system or hire a professional accountant.
• Keep detailed records of all financial transactions.
• Submit annual financial statements to the Center of Registers.
• Ensure compliance with Lithuanian accounting standards and tax regulations.

Obtain Necessary Permits and Comply with Regulations

Depending on your business-company activities, you may need to obtain additional permits or comply with specific regulations. This can include:

• Health and safety permits for enterprises in sectors such as construction and manufacturing.
• Environmental permits if your business-company activities impact the environment.
• Compliance with industry-specific regulations and standards.

Start Business Operations

With all the formalities completed, you can now start your business-company operations in Lithuania. Ensure that you stay compliant with all ongoing lawful and regulatory demands, such as filing annual reports, paying taxes, and renewing licenses as needed.

Additional Tips for Successful Business Registration in Lithuania

• Consult with a Professional Lawyer: Navigating the lawful landscape of a new country can be challenging. Consulting with a local lawful expert can help assure that you understand and comply with all demands.
• Utilize Business Support Services: Lithuania offers various business-company support services, including those provided by Invest Lithuania and Enterprise Lithuania. These organizations can offer valuable assistance and resources for new enterprises.
• Stay Informed about Changes in Legislation: Business regulations can change, so it’s important to stay informed about any updates that may affect your company. Subscribe to newsletters from relevant authorities and organizations to keep up to date.

Conclusion

Registering a company in Lithuania involves several steps, but with the right preparation and guidance, it can be a smooth process. By following this step-by-step guide, you can assure that you meet all the lawful demands and set your business-company up for success in Lithuania’s dynamic and growing market. Whether you’re a small startup or a large corporation, Lithuania offers a supportive environment for business-company growth and innovation.