Lithuania

Lithuania is situated on the Baltic Sea coast, where the shortest route to Sweden and Denmark runs. In the north, there is the longest land frontier with neighboring Latvia. In the east and southeast the state borders on Belarus, in the south - Poland and the south-west - the Kaliningrad region of Russia. In recent years, Lithuania has attracted a growing number of investors from different countries. Since 2004, the state is a full state member of the European Union and NATO.

Advantages:

- stable market economy, low inflation;

- stable banking system;

- strategic geographical position: Lithuania provides the connection between the EU and the CIS;

- developed infrastructure.

Legislation:

Company law 1994

 Law amending the Law of Companies 2000 (amended in 2003)

Civil Code of the Republic of Lithuania 2000 (amended in 2010)

 Taxation:

Corporate tax is 5% if annual turnover is not more than 144 000 euro. If turnover exceeds this amount, the tax rate is 15%.
VAT rate is 21%.
Tax on dividends: 15%

The main legal forms of companies:

Private limited company (UAB) - a private company with limited liability.

The minimum number of shareholders of the company is 1, the maximum - 250. Shareholders can be both physical and legal persons. The minimum number of directors is 1. Director of the company may be only a physical person. In Lithuania the nominal service is possible, and the director can be a resident of Lithuania. Director and shareholder can be the same person. When opening a bank account the personal presence of the customer is not required, it can be done with the PoA help.

The company does not have any restrictions on share issue: it is possible to issue common and preferred shares, registered and bearer shares.
At the time of company registration its share capital must be fully paid. Minimum share capital is 2896 euro.

Public limited company (AB)

This is a limited liability company the authorized capital of which is divided into shares. Shareholders can be both physical and legal persons. There is no maximum number of shareholders. The director can be only a physical person, there are no residence requirements. The minimum share capital is 43 443 euro, 25% of which must be paid at the time of registration. It’s required to hold a mandatory annual audit in the company.

Company report:

Annually the company is required to pass a financial report. Deadline for submission is October 1 next year to the Tax Inspectorate. The fiscal year begins January 1 and ends December 31.
In the UAB audit is held if the annual turnover exceeds 1.4 million euro.

Currency control:

 No.

Confidential information:

Information about the shareholders and directors of the company is open.

DTA agreements:

Lithuania has concluded such agreements with Estonia, Sweden, Switzerland, Czech Republic, Croatia, France, Finland, Ukraine, Uzbekistan, Turkey, USA, Slovenia, Slovakia, Singapore, Romania, Russia, Portugal, Poland, Norway, the Netherlands, Moldova, Malta, Latvia, China, Canada, Kazakhstan, Italy, Spain, India, Iceland, Ireland, Denmark, Georgia, Germany, Hungary, Bulgaria, Belgium, Belarus, Armenia, Azerbaijan, Great Britain.