Comapny in Lithuania
Lithuania is one of the countries where offshore companies are very popular.
This country offers a lot of different types of entities to run a business. One of the most popular types of companies is UAB uždaroji akcinė bendrovė wich is a Limited Liability Company (LTD or LLC). This prevents any kind of personal responsibility for the members of the board and the partners.
Benefits of runnnin g a company in Lithuania:
- lack of capital gains tax for foreign investment,
- a very good investment law that benefits foreign investemtns,
- low corporate income tax which equals to 15% and possibility to lower it to the level of 5% by applying for a exemption, exemption is granted for companies with less than 10 people and revenue less than 300 k EUR,
- flat incom tax equal to 15%,
- VAT tax equal to 21% with many exemptions,
- intellectual property tax equal to 10%,
- lack of obligation to set up a board of directors,
- full report obligation only fo rcompanies with revenue above 6 million LTL,
- huge polish diaspora wich allows to run business when speaking Polish,
- big business network with Russia and Byelorussia that widens your client base,
- no taxes when buying cars and equipment for the companies,
- special economic zones that grant tax exemptions for businesses for a certain period of time,
- lack of social security costs,
- stable and clear tax regulations,
- a short time of incorporation of a company – up to 20 work days,
- required company’s base capital equal to 2896 euro,