Comapny in Lithuania

Lithuania is one of the countries where offshore companies are very popular.

Litwa - działalność gospodarcza na Litwie

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,