Lithuania company registration
The main features of company registration in Lithuania
It is important to take into account the nuances of different forms of business. The decision on the form of activity can be made on the basis of several criterias. Nature of activity. The solution depends on the planned economic activity, its complexity, as well as other circumstances related to the specific planned activity. The size of the authorized capital. When creating some legal entities, its founder should have a specific amount of the authorized capital. Taxes. The amount of taxes directly depends on the form of activity chosen by the person. Degree of personal responsibility. If the entrepreneur intends in case of business problems to answer for their obligations by personal or family property, he should choose a legal entity with limited civil liability. Number of Founders. If there are several or more interested persons willing to conduct joint business activities, they must establish a legal entity to carry out this business. Type of economic activity. It is possible to carry out individual activities. Then it will not be necessary to create a management structure for the legal entity and other necessary formalities for legal persons.
Opening a bank account
Here it is necessary to choose the size and type of authorized capital. For a private limited liability company, the minimum required authorised capital is €2,500. If the authorized capital is higher than this amount, at least 25% must be transferred to a savings account (the remaining amount is paid within 12 months). To obtain a residence permit in Lithuania, your investment/cost of the authorised capital must be no less than € 14,481. It will also be necessary to recruit three Lithuanian citizens as employees. Simple partnerships and state institutions. Contributions can be in cash and in kind. The minimum amount of capital is not specified.
Additional requirements for employment
There are several types of employment contracts in Lithuania urgent, seasonal, temporary and pupil. Contract for the execution of design works. An employment contract on a part-time basis. Employment contract with several employers. If the labour law links employment to a certain level of education or training or health, the employer is obliged to require the hiring person to produce documents, confirming the level of education or training or state of health, as appropriate.
Corporate income tax - 15%. If the average number of employees on the staff does not exceed 10, and the income of the subject during the tax period does not exceed € 300,000, the profit of such an entity is taxed at a rate of 0% during the first tax period and at a rate of 5% during other tax periods, except as provided by law. VAT. Standard rate is 21%. Persons providing goods or services in Lithuania must register as VAT payers, calculate and pay VAT to the state budget. However, the taxable person of the Republic of Lithuania is not obliged to register as a VAT payer and is not obliged to calculate or pay VAT for the goods and/or services delivered, provided that the total amount received from the goods and/or services, The amount of EUR 45,000 for the last 12 months. There is always the option of voluntary registration as a VAT payer in cases where the limits are not exceeded.
transparent tax system
Key point of company registration in Lithuania
Lithuania company registration in the register of legal entities is automatically registered in the register of taxpayers on the next working day. Registration is voluntary unless the annual income from goods sold or services rendered exceeds € 45,000. In this case, if the company wants to be included in the register of taxpayers, it must submit an application and other necessary documents to the State Tax Inspectorate. During the consideration of the application for inclusion of the company in the register of taxpayers the activity of the company, as well as the scheme of its activity, the presence of a residence and warehouses, if they are necessary for the activity of the company, etc.