Widely known as an economic powerhouse, Lithuania is a suitable country in Europe to establish a business.
The country has a stable economy, a dynamically developing financial sector, and is home to a skillful talent pool.
Opening a company in Lithuania gives the possibility to enter the European market and also experience the economic stability of the country.
Additionally, establishing a business in Lithuania gives you the right to obtain a Residence Permit, and also gives you the possibility to get support from the European Union for the development of your business.
Entrepreneurs who would like to start a business in Lithuania get the option of setting up several forms of companies, and the most common form to establish your presence in Lithuania is a limited liability company (UAB – Uždaroji Akcine Bendrove).
Features of a Lithuania private limited liability company
- A Lithuania private limited liability company is qualified as a legal entity. This company structure and its shareholders have limited liability, so the shareholders’ undertaking is restricted to the amount of the invested capital amount only.
- In Lithuania, one person can be the founder of a private limited liability company, and this person could be a resident or non-resident of Lithuania.
- The Lithuania private limited liability company is managed by the shareholders, and its management structure is specified during the first general meeting of the shareholders. The number of shareholders in a Lithuania UAB must not surpass 250.
- When establishing a Lithuania private limited liability company, the minimum registered capital is EUR 2,500.
Lithuania private limited liability companies are regulated under The Republic of Lithuania Law on Companies.
The procedure for registering a Lithuanian limited liability company
The step-by-step process of registering a company in Lithuania involves the following:
- Selection of a company name and the reservation of the name.
- Opening a local bank account and depositing the required minimum share capital.
- Choosing a legal address
- Preparation of constituent documentation, e.g., Articles of Association (AoA).
- Registration of the Lithuanian company in the register of legal entities.
- Registration of the company with the Social Insurance Fund and the tax inspectorate
After the company registration procedure, the owner must hire an accountant.
The conditions for registering a l company in Lithuania are the same for residents and non-residents.
If you decided to set up a company in Lithuania, let’s go ahead and contact your Damalion expert now.
