Business in Lithuania

Major business partners:

Neighbouring countries: Russia (6.5% of FDI, 13.2% of exports and 30.1% of imports), Poland (10.5% of total FDI in 2009, 7.2% of exports and 10% of imports), Estonia (6.5% of FDI, 7.2% of exports), Latvia (4.5% of total FDI, 10% of exports and 6.42% of imports). Scandinavian countries: Sweden (11.8% of FDI), Denmark (10.4% of FDI), Finland (4.7% of FDI) EU-27 countries represent about 64.3% of Lithuanian foreign trade flows and more than 78.7% of FDI in Lithuania.

Investment and bilateral trade drivers:

• Crossroads of Central and Western Europe, Scandinavian and Baltic as well as CIS markets;
• Political stability and economic freedom;
• Well-developed EU prime transport center (two international corridors, ice-free seaport, international airports and railways);
• Diverse energy capacities;
• Strong knowledge economy platform, innovative businesses;
• One of the EU’s most educated and multilingual people;
• Competitive business set-up and operation costs;
• EU Structural Funds’ and State’s support;
• Largest and most diversified industry in North-eastern Europe;

Attractive business sectors:

• Shared services and business process outsourcing (BPO) – well-educated multilingual labour pool;
• Energy – well developed infrastructure and international projects;
• ICT – modern knowledge economy; companies leading among the Baltic States;
• Lasers – globally acknowledged production and inventions;
• Biotech – World-class progress; production does not have equivalents in Central and Eastern Europe;
• Plastics – with three huge plants leading in the region;
• Metal processing, machinery and electric equipment – widely-acknowledged high-tech products;
• Furniture & wood processing – one of the largest factories in Eastern Europe; among most important suppliers for IKEA;
• Textile & apparel – one of the most specialised EU countries in the textile and clothing sector;
• Food – internationally acknowledged production; widely demanded;
• Real estate – the largest market among the Baltic States with great development potential;
• Tourism – untouched ecological nature, well developed countryside tourism network, high demand for entertainment services;

Taxes:

• Corporate profit tax – 15%

• Personal income tax – 15% (+ 9% health insurance contribution)

• Value added tax – 21%

• Property tax – 1%

• Social security tax for employer - 31% 

Human resources: ~ 40% of the labour force with higher education Every third Lithuanian speaks English, and eight Lithuanians out of 10 speak Russian

Official minimal monthly gross salary – EUR 232

Average monthly gross salary – EUR 648

Property rental rates, EUR / m2 per month:

• New warehouses – EUR 3.5 to 4.3

• A-class office space – EUR 8.7 to 13

• B-class office space – EUR 5.2 to 8.7

• High-street retail space – EUR 20 to 25

• Retail space in shopping centers – EUR 6 to 25 

Business set up time:

New company formation takes up to 5-10 business days. Ready made company can be transferred to the clients liability within one day. b) Company establishment in Lithuania The most popular legal status in Lithuania is closed joint stock company JSC ( Lithuanian UAB) it has Limited liability, shareholders and director don’t carry any personal responsibility. Minimal share capital must be not less than 10’000,00Lt (appr. 2900,00Eur), it can be bigger as per request. Company Formation in Lithuania is an excellent way for international entrepreneurs to conduct business in Europe. Limited Liability Company formation is the most favorable corporate structure to fulfill your international business objectives. We provide company formation services, which meet your requirements and expectations. These services are included in the company formation fee: statutes of company, agreement of establishment, registration in state tax inspectorate, registration address for a company (no hidden annual fees), name of company confirmed in patent bureau, notary services, bank account with Internet banking service, seal of company, other required documentation and legal services. For VAT registration we charge additionally.