COMPANY ESTABLISHMENT
Although
the procedure to open a business in Lithuania is straightforward, the help of
experienced lawyers and specialists is needed. Throughout the years we have
helped hundreds of companies to settle in Lithuania.
At Leinonen
we offer high-quality accounting, financial, tax and legal management services,
enabling clients to focus on their core business. Therefore, we try to simplify
even more the process of opening a business in Lithuania by talking our clients
through the steps required by respectful authorities.
Leinonen’s
team provides support when selecting which establishment form would be the most
suitable for you (e.g. limited liability company, branch, etc.). It should be
noted that the company’s activity in Lithuania may not require establishment of
the company, i.e. tax registration for VAT, payroll or corporate income tax
purposes may be sufficient.
Contact one
of our experienced team members for further information regarding opening a
company in Lithuania as well as registering a legal address in the country.
TAXATION
Lithuania
is a business-friendly country. In addition to the stress-free procedure of
opening a business in the country, the standard corporate income tax is 15%
which is considered low compared with other countries. In addition, if a
company covers specific requirements, there may be no tax applied in the first
year of operation!
Furthermore,
the current VAT rate in Lithuania is 21%, although, in a few cases, there are
reductions which apply to books and non-periodical publications, public
transportation services determined by the Ministry of Communications or
municipalities as well as accommodation services. Moreover, a reduced rate of
5% is applied to technical and medical aid devices and their repair services.
If you want
to find out more regarding taxation and/or requirements for tax reduction,
contact one of out experienced tax specialists.
payroll in Lithuania
Lithuanian
labor laws apply to foreign nationals and foreign businesses in the same manner
as to domestic entities. That is why the country hosts thousands of
international companies. However, the need of experienced payroll specialist is
needed as there are specifications relevant to the legislation in the country.
Therefore, at Leinonen we offer consultations regarding payroll details
relevant to Lithuanian’s law.
It is
important to note that in Lithuania, in addition to the standard income tax of
20%, there is also social security contribution of 19.50% as well as additional
reductions such as pension funds.
Contact our
experienced team if you wish to know more about the details regarding payroll
in Lithuania.
BEING AN EXPAT
As
Lithuania is a member of EU, travelling and working in the country has been
made easier for EU citizens. However, a residence permit is required if an
individual wishes to reside in the country for longer than 90 days.
Most of the
workers reside in Vilnius and Kaunas which are the most developed districts in
Lithuania. The living costs in the country are very low compared to other
countries in EU, therefore Lithuania is a popular destination for expats.
If you wish
to find out more about laws and regulations for expats in Lithuania, contact a
member of our experienced team.
Accounting in Lithuania
Accounting in Lithuania is regulated according to the following legal acts:• Accounting Law of the Republic of Lithuania*;• Business Accounting Standards or International Accounting Standards;• Law on Company Financial Statements of the Republic of Lithuania;• other legislation governing accounting and financial statements.
An employed
accountant or a company providing accounting services is responsible for
accuracy of accounting entries. It is important to note that all accounting
records shall be supported by accounting documents (invoices, cheques, etc.).
In addition, there are regulations that require specific documentation to be
archived from 10 to 50 years. Therefore, having a reliable and experienced
accountant is an essential part of any business.
Leinonen’s
competitive advantage is the personal connection. We understand that accounting
is a very important part of the business therefore we reachable and we can
provide knowledgeable support at any time.
Contact one
of our experienced accountants for more details related to accounting processes
in Lithuania.
