What documents are required to start a company in Lithuania?
To register a UAB (Limited Liability Company), you will typically need passport copies of shareholders and directors, proof of address, and a power of attorney if you are not present. You will also need to provide company name options, a description of business activities, and information about the share capital. Our team will provide a detailed checklist and assist in preparing all necessary documents.
What is the minimum share capital for a UAB?
The minimum share capital required for a private limited liability company (UAB) in Lithuania is €1,000 (as of 2023). This amount must be deposited into a temporary bank account before the company can be formally registered. We can guide you through the process of opening the necessary bank account and making the deposit.
Can a foreigner be a director of a Lithuanian company?
Yes, there are no restrictions on the nationality or residency of directors in a Lithuanian company. A director can be a citizen and resident of any country. However, there may be practical considerations and tax implications that we can advise you on, depending on the director's residency status and the company's operational model.
What are the ongoing compliance requirements for a company?
After registration, a Lithuanian company must adhere to several ongoing obligations. These include maintaining proper accounting records, filing monthly or quarterly tax declarations (e.g., VAT, social security), and submitting an annual financial statement and corporate income tax return to the authorities. Our firm provides comprehensive accounting and compliance services to ensure you meet all deadlines and requirements.
How does EU VAT work for a Lithuanian company?
A Lithuanian company registered for VAT will receive an EU VAT number, allowing it to trade goods and services across the EU. It must charge Lithuanian VAT (currently 21%) on domestic sales but can typically zero-rate sales to other VAT-registered businesses in the EU (intra-community supply). We provide full support for VAT registration, compliance, and reporting to ensure you navigate the system correctly.
What is the corporate income tax rate in Lithuania?
The standard corporate income tax (CIT) rate in Lithuania is 15%, which is one of the most competitive rates in the European Union. Furthermore, micro-enterprises with fewer than 10 employees and an annual revenue below €300,000 may qualify for a reduced CIT rate of 5%. We can assess your eligibility and structure your business to optimize your tax position.