CHOOSING YOUR BUSINESS FORM
There are two ways of conducting business in Lithuania:
The decision on the form of activities can be made based on the following criteria:
Comparison of individual activities with business activities of a legal entity
|1. Incorporation procedures||Invidual activity
Documents for submission: fewer documents are required for submission; these documents are simple and require no special knowledge to produce them.
Time resources: 4 to 10 working days.
|Activities performed by a legal entity
Documents for submission: the list of required documents is considerably bigger. The majority of incorporation documents must be certified by a notary.Cost: notary fees, duties paid to the Centre of Registers, etc.
|2. Requirements and preconditions for the launch of activities.||The authorised capital: this requirement is not relevant, since the legal acts do not specify any requirements related to solvency (the available assets).
Staff employment: a person may act on his own (however, legal acts provide for a possibility for employing other employees).
|The authorised capital: legal acts specify the required amount of the authorised capital.
Staff employment: more employees, are usually required, therefore, it is necessary to conclude job agreements with them.
|3. Business activity termination options||Usually it is not difficult to terminate business activities irrespective of the person’s liabilities.||Activities conducted by legal entities are terminated through reorganisation or liquidation. The procedure of termination of business activities lasts longer, because the legal entity must meet all its commitments.|
|4. Requirements for the implementation of business activities||Activities: limited choice of activities.
Safety at work: no legal regulation is applied.
|Activities: any legal activities may be conducted. Certain activities may require certain authorisations.
Safety at work: legal acts provide for conformity with the requirements for safety and health at work.
|5. Accounting procedures||Simplified accounting procedure.||More sophisticated and thoroughly regulated accounting procedure.|
|6. Taxes||Key payable taxes: personal income tax, compulsory health insurance contribution, SODRA contributions.||Apart from the key taxes (personal income tax, compulsory health insurance contributions, SODRA contributions), income tax, contributions to the guarantee fund, and other payment are imposed.|
|7. Scope of business activities||For micro-business purposes||Possibilities for a large-scale business exist. More suitable seeking to attract additional investments or capital from outside.|
A. Goštauto st. 40 A, LT-03163 Vilnius, Lithuania
Phone: +370 (5) 249 90 83
Company code: 302454111
VAT number: LT100005125012
Monday – Friday 8.00 – 17.00
Lunch break 12.00 – 13.00