Company formation in Lithuania
According to the Commercial Law in Lithuania, merchants have the right to conduct commercial activities. A businessman is an individual person or a commercial company registered in the commercial register as an individual merchant. Commercial companies are personal or limited partnerships and capital societies. Capital companies are limited liability companies (LLC) and joint-stock companies (JSC).
The main features of company formation in Lithuania
The true beneficiary (beneficiary) (IVP). IVP is a natural person who directly or indirectly owns or controls more than 25% of SIA’s shares. The PSI and the detailed information on how they control the SIA must be disclosed and registered. Taxpayer status. The SIA is considered to be registered as a taxpayer at the same time as the company is registered in the Lithuanian Commercial Register.
An application for the Value Added Tax Payer Number (VAT number) can be submitted simultaneously with the filing of the application for company formation in Lithuania.
Process of establishment of company in Lithuania.
You can register a company in Lithuania remotely (i.e. by signing documents in your country and issuing a power of attorney to the representative who will be authorized to carry out actions to open a company in Lithuania) or the founders/members of the board can visit Lithuania, to speed up the process. Founders/board members can save time and money using qualified electronic signatures accepted by the Lithuanian Business Register.
Documents/information required for the establishment of company in Lithuania.
Members of the Management Board : name, surname, valid passport number, date of issue and name of the body issuing the passport, personal code (if any), residence address.
Rights of board members to represent the company: if more than one board member is appointed: information on whether board members will represent the company jointly or separately. The size of the authorized capital of a company, the number and categories of shares (if established), the nominal value of one share; Legal address of a company.
Information on the IVS: name, surname, valid passport number, date of issue and name of the issuing authority, personal code (if any), date, month and year of birth, place of residence, citizenship, country of permanent residence, method of control over the legal entity, as well as documentation confirming control.
Getting a VAT number for a Lithuanian company
In some cases, a Lithuanian company requires a VAT number to work. For example, this is required by the European partners, or the company operates in the domestic market of Lithuania or the EU. Provided that the taxable turnover of the VAT company in Lithuania for the past year is more than €45,000, or one individual owns a controlling stake in shares or shares in other companies, the company must be registered as VAT payer. The procedure for obtaining a VAT number in Lithuania is quite simple, but requires the preliminary preparation of documents, contracts with Lithuanian partners, lease of premises, the presence of an account in a bank or PS. An application can be submitted to the Tax Department immediately after the opening of the corporate account. The application period is 10 working days.