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литва

  1. 1. BUSINESS IN LITHUANIA
  2. 2. 1. The most popular forms of legal entities (companies) inLithuania, and their differences.2. Establishment of a company. Steps, expenditures, andterms.3. Purchase of a company. Steps, expenditures, and terms.4. Taxes and minimum costs for maintaining a company
  3. 3. 1. The most popular forms of legal entities (companies) in Lithuania, and their differences.The most popular and the most common registered legal entities(companies) in Lithuania are:• Private Company Limited by Shares (LTD)• Individual Enterprise (IE)• Public Limited Company (PLC);• Other.Since September 1, 2012, in Lithuania, it is allowed to establish anew form of a legal entity, which is Limited Liability Partnership(LLP).
  4. 4. The following table compares the legal entities Legal form Liability Number of Minimum amount Management participants of authorized capital LTD Limited civil 1-249 10 000 LTL Director; also there could be an liability * shareholders executive body, which is the board IE Unlimited civil 1 owner undetermined IE owner is also a director of the liability ** company, although, other person can also be appointed for this position PLC Limited civil Number of 150 000 LTL Director; also there could be an liability* shareholders is executive body, which is the board unlimited LLP Limited civil 1-10 members Undetermined Meeting of the members (there liability * (Amount of should be an appointed contributions is representative) or Sole governing determined by the body (director) members of LLP)
  5. 5. * Limited civil liability: it means that participants (shareholders,owners, or members) with their assets are not liable for theobligations of a legal entity (company).** Unlimited civil liability: it means that if there is insufficientamount of assets to fulfill the obligations of a legal entity(company), a participant (owner) is liable for company’s obligations,and pays with his/her own assets.
  6. 6. 2. Establishment of a company. Steps, expenditures, and terms.The main steps of establishing a company:1. Selection and reservation of a company’s name;2. Preparation of establishment documents;3. Formation of the authorized capital, opening a saving account in a bank (when needed);4. Provision of the establishment documents for the notary’s confirmation;5. Provision of notary’s confirmed establishment documents to the Registry of Legal Entities.
  7. 7. Expenditures of establishing a company:1. Temporary inclusion of a company’s name in the Registry of Legal Entities - 56 Lt;2. Registration of a company in the Registry of Legal Entities – from 107 to 198 Lt;3. Notary fee - around 400 Lt;4. Legal services – by appointment;5. Stamp – around 75 Lt.
  8. 8. Term for establishing a company: 7 working days and more.
  9. 9. 3. Purchase of a company. Steps, expenditures, and termsThe main steps of selling-purchasing a company:1. Agreement. Preparation of;2. Paying for shares;3. Signing sale-purchase documents of the company;4. Registration of sale-purchase documents at the Registry of Legal Entities.
  10. 10. Expenditures of selling-purchasing a company:1. Registration in the Registry of Legal Entities – 10 Lt;2. Extract from the Registry of Legal Entities – 17-32 Lt;3. Legal services – by appointment.
  11. 11. Term for selling-purchasing a company: 7 working days and more.
  12. 12. 4. Taxes and minimum costs for maintaining a companyThe main taxes in Lithuania:Should be paid each month Object of tax Tax and rate Wage State social insurance contributions: 27.98% (Paid by an employer) 3% (Paid by an employee *) Compulsory health insurance contributions:Should be paid each month 3% (Paid by an employer) 6% (Paid by an employee *) Personal income tax: 15% (Paid by an employee *) Contributions to the Guarantee Fund: 0.2% (Paid by an employer) Supply of goods / Value-added tax: 21% Supply of services
  13. 13. Should be paid each year Object of tax Tax and rate Profit Profit tax: Should be paid each 15% or 5% ** year Real estate Real estate tax: 0,3%-1% (specific rate is determined by the municipality)
  14. 14. Monthly minimal costs for maintenance of a company:1. Mandatory monthly taxes (indicated in the table above);2. Employees’ wages;3. An accountant: around 300 Litas and more (when needed);4. Office rent: by agreement (when needed).
  15. 15. LEGAL HELP, FREE CONSULTATIONS ANDADDITIONAL INFORMATION IS PROVIDED BY: JURIST CONSULT GROUP A. Juozapavičiaus str. 9A, LT – 09311 Vilnius Тel. + 370 6 186 1886 Тel. + 370 5 2 40 9509 Fax: + 370 5 2 40 9509 Email: info@jcg.lt www.jcg.lt

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