According to the changes in the legislation of the Republic of Lithuania that took place in 2008, all residents of the country who have temporary annual residence permits can freely (i.e. without visas) visit the countries of Europe that have signed the Schengen Agreement.
The legislation of the Republic of Lithuania provides for the possibility of foreigners conducting business on its territory.
In this regard, questions about how to open a business in Lithuania and obtain a residence permit began to arise more often among our fellow citizens. Consider the nuances of business immigration to Lithuania in more detail.
Basic concepts
A business registered in Lithuania by a foreigner enables him to obtain a residence permit for a period of one year with the right to renew it later. As a result of five years of operation of an enterprise in Lithuania, its owner, subject to knowledge of the language, has the opportunity to register for permanent residence in the Republic of Lithuania. In addition, the existing business in Lithuania allows its foreign owner or co-owner to freely acquire real estate and land in this country.
The most popular forms of enterprises in Lithuania
In the Republic of Lithuania, an analogue of a Russian LLC (limited liability company) has the name CJSC (closed joint-stock company) or JSC (joint-stock company). One of the most convenient and economical ways to obtain citizenship in Lithuania is to open a closed joint-stock company (in Lithuanian UAB) through an intermediary company. You can deal with all issues of organization and design on your own, but in this case you can’t avoid wasting money, time and nerves.
Registration of a closed joint-stock company in accordance with local laws allows not only opening a business in Lithuania, but also transferring an operating company from Russia to its territory.
Myths
Recently, it has become widely believed that you can obtain a residence permit in Lithuania by registering a fictitious company or by imitating activities.
Cases of registration of pseudo-companies in the Czech Republic, Estonia, Slovakia, and the Republic of Lithuania, where immigration laws have become significantly tougher, have been more and more common recently. But the opinion that it is possible to open a company in Lithuania, to obtain a residence permit and not to conduct real business, is a mistake.
Often such pseudo-entrepreneurs, the country's regulatory authorities quickly deprive the residence permit and deported. Therefore, registration of a company on the territory of the Republic of Lithuania is advisable only when there is an intention to really conduct business or relocate to this country for permanent residence.
Company registration
How to open a company in Lithuania for a residence permit? Where to go? What documents must be provided for this? What legal conditions must be observed? First things first.
It is possible to register entrepreneurship (CJSC) in Lithuania, as already mentioned above, independently. The first thing that is necessary for this is to come to Lithuania, open a bank account and deposit authorized capital on it to open a future company. The minimum authorized capital for opening a closed joint-stock company in Lithuania is 10,000 litas (3,000 euros).
Then it will be necessary to assure the entire set of constituent documents with a local notary. With certified copies, the future owner of the company is sent to the local state registrar. After that, you should contact the Migration Service to apply for a residence permit in Lithuania. The time for consideration of the application is four to six months.
At this time, the company is already considered active, the director is appointed, and therefore taxes will have to be paid. In addition, it will be necessary to find a room, personnel, equip an office, obtain a license to conduct business. Moreover, without knowing the language during the registration of the company, it is unlikely that Lithuanian officials can talk about anything.
Registration through an intermediary
There is an alternative, more convenient and economical option - contact a company specializing in such matters. Such intermediaries can be found both in Russia and directly in Lithuania. Registration of a closed joint-stock company with the help of an intermediary in Russia will cost approximately 1,000 to 3,000 euros.
This includes assistance in registering a company, opening a bank account, preparing and translating all documents into Lithuanian, notarizing them, making a seal, obtaining a license to conduct business, finding a legal address, and equipping an office.
It is noteworthy that Lithuanian specialists, on the basis of the power of attorney granted to them, will do the same for 1000 litas (300 euros).
In addition, they can make a company be considered active only when its founder receives a residence permit in Lithuania. Consequently, taxes will not be wasted.
In order to save time and money, you can go one more way - buy a ready-made business in Lithuania or arrange an IP (individual enterprise).
Business conditions for obtaining a residence permit
According to Lithuanian law, in the first 12 months of activity, the company is considered as “sleeping”. At this time, she only prepares all the tools for work, and therefore may not receive any income as such. In subsequent periods, the company must confirm its legal capacity - the monthly income of the company must be at least 100 euros.
In addition, each month from the salary of each employee, the company must pay 150 euros. Otherwise, the tax and migration services may suspect that the company is fictitious.
Lithuanian tax law
We have already decided how to open a small business in Lithuania, now it’s worth dealing with taxes. In the Republic of Lithuania, tax legislation is not strict, and therefore many entrepreneurs have the opportunity to make good profits.
There are many types of taxes, but most of them relate to certain types of activities. Tax reports in Lithuania should be submitted in the state language, therefore if the entrepreneur himself has a low level of knowledge of the Lithuanian language, he can turn to local accountants for help. Their services are usually inexpensive - from 100 to 500 euros per month.
Basic taxes in Lithuania
This is, first of all, income tax (0%, 5% and 10%). Social and agricultural enterprises are subject to income tax in the amount of 0%. Companies whose annual income does not exceed LTL 1 million and the number of employees is up to 10 people pay 5%. If the income exceeds LTL 1 million or the number of employees exceeds 10, such a company is taxed at a rate of 15%.
The value added tax in Lithuania is 21%. Privileges are given to enterprises manufacturing drugs (5%), books, periodicals (9%).
All citizens of the country (15%) and individual entrepreneurs (5%) pay income tax.
The Lithuanian law provides for contributions to compulsory health insurance: each employee of a Lithuanian company pays 6% of his salary, and an individual entrepreneur pays 9% of his income.
A social insurance tax of 3% is calculated on a monthly basis from the salary of each employee. The company pays 31% of the accrued salary to the employee.
Contributions to the guarantee fund must be paid by all enterprises registered in Lithuania (except for representative offices of companies of other countries).The company pays 0.2% of the accrued salaries of employees once a year (if the amount of contributions does not exceed 150 litas) or twice a year (if contributions are from 150 to 300 litas).