When it comes to expanding your business, it is a vital part to choose the right market for it. For a long time, many investors have bypassed Lithuania, but this little Baltic gem is something worth noticing. In recent years Lithuania has become a great country to expand or start your business. This article will answer some of the important questions related to starting or expanding a business here and how the right business law firm in Lithuania will help along the way.
What are the most important steps?
Before the business can fully operate in this country, there are some steps that need to be taken.
- First and foremost, the articles of association along with the founding act or agreement must be ready. Also, the general manager will have to be appointed at this point.
- The second step is optional, nevertheless recommended: reserve a temporary company name. All it takes is just an application to the Register of Legal Entities. After this, the name will be reserved for 6 months.
- Opening an accumulative bank account. This is required at the beginning of shared capital. Later on, any other bank could be chosen. Remember, the minimum required shared capital is 2500 EUR.
- Notarizing the documents. To operate, you must notarize the company’s founding documents at a registered notary’s office.
- Register the company. After these previous steps, it is finally time to register your company. Remember, the documents can only be accepted for registration if they were successfully notarized.
- Now it is the time to convert the bank account from accumulative into a settlement one. This usually takes 2-7 days depending on the chosen bank.
At the first glance, all these steps can look a bit intimidating and confusing. Without completing them fully, the business cannot be registered or started in this Baltic Country. But remember, a business law firm in Lithuania, that was chosen carefully and with consideration will help with all of the steps mentioned above and more.
What else to do?
Sometimes it can be too risky to start the greenfield investment. Should that happen, there are a few actions that will allow the business to operate in Lithuania regardless.
- A partnership. These can be formed by establishing a joint venture, a Limited Liability Company, a limited or general partnership. Also, it could be done indirectly: by appointing agents, distributors, or setting up a franchise.
- Opening a branch. This way can help in reducing costs. Nonetheless, any branches that operate in Lithuania must be registered in the registry.
- Mergers and acquisitions. One has to buy shares or assets. If it’s a branch, only the assets could be acquired.
All in all, Lithuania can be a great market to open or expand businesses. It is a member of the EU and NATO since 2004, part of the Eurozone and OECD. Also, according to the World Bank, it was ranked 11th (out of 190 countries evaluated) in the ease of doing business, which makes it even more attractive for new international businesses.