Types of companies in Lithuania
- Soleproprietorship
- Responsibility
- Minimum capital
- Min. shareholders
- Recommended for
- Soleproprietorship
- Unlimited
- No
- 1
- Sole trader
- Joint-stockcompany
- Limited
- 2,500 €
- 1 (max. 249)
- SMEs
- Open joint-stock company
- Limited
- 40,000 €
- 1
- Big companies
- Partnership
- Unlimited
- No
- 2 (max. 20)
- associates
- Limitedpartnership
- Unlimited
- No
- 2 (max. 20)
- associates
Corporate tax rate in Lithuania
In Lithuania corporate tax rate is at 15%. But there are some reductions:
- Companies of less than 10 employees and with an annual income under 300 000€ are tax-exempt the first years and pay a 5% rate afterwards,
- Income from scientific research and experimental development are also taxed at a 5% rate.
Questions
Why should I incorporate my company in Lithuania ?
- Lithuania belongs to the Euro area and OECD.
- The location is optimal between the European Union and Russia, thanks to a border with the enclave of Kaliningrad.
- External and public accounts are in a good state.
- Energy supply is diversified thanks to Klaipeda’s gas terminal, shale gas reserves and electrical connections with Poland and Sweden.
Which difficulties can be encountered in Lithuania?
- The labour market is stretched, workforce decreases and unemployment is very high.
- Lithuania becomes less competitive because of the lack of productivity.
- The underground economy is very present, around 26% of GPD.
- Local exportations have little added value.
Which are the cultural specificities of the world of work in Lithuania?
- Formal dress is demanded.
- Hierarchy is very important.
- Avoid personal matters during a meeting.
