How to start own business
Having decided to start a business, you need to go through the necessary procedures. The website of Enterprise Lithuania (http://www.enterpriseslithuania.com/en/start-your-business) indicates that you have to choose a business form, which you can register electronically and save time (https: // www.verslilietuva.lt/lt/business-isation-procedures).
Possible business forms to set up in Lithuania:
- Registration of individual activity: in order to receive an individual activity certificate, you need to submit a completed application form for registration to the State Tax Inspectorate. Data and documents can be submitted to the Tax Inspectorate upon arrival at the office personally, by post or e-mail (Enterprise Lithuania).
- Registration of a business license: in order to receive a business certificate, you need to check if business licenses are issued for your chosen activity (list of activities eligible for the acquisition of a business license https://www.e-tar.lt/portal/lt/legalAct/TAR.2D6424EE2BEB/jUfVFaHvMV). You must submit the following documents to the Territorial State Tax Inspectorate (upon arrival at the Tax Inspectorate office personally, by post or e-mail): application for a business license; ID document; other documents necessary in individual cases (a document on the basis of which a lower established Municipal Council income tax rate may be applied, author’s license agreement concluded with audiovisual producers and phonogram producers, etc.). The business certificate is issued within 4 working days from the date of documents submission (Enterprise Lithuania). All information about the individual activity and business certificate can be obtained by calling 1882.
- Company registration covers several stages: clear choice of objectives and tasks of activities; choosing the most appropriate company’s legal form (according future activity); choice of a registered office; consent of the owner of the premises to provide premises to a legal person for a registered office (certified by a notary), if the owner of the premises is not the founder; choice of the legal entity‘s name and registration; census of establishment documents; opening an accumulation account; payment of the necessary initial contributions (if any); establishment of statutes / regulations; convening of the constituent assembly, during which the articles of association are approved, management and supervisory bodies (manager, board, council, etc.) are elected; granting of credentials for representing in the Register of Legal Entities; submission of documents to the notary and the Register of Legal Entities. Establishment, management, operation, restructuring, liquidation, rights and obligations of the owners of these enterprises, rights of management bodies, duties, responsibilities, disposal of property, accounting, the provision of information to interested parties, etc. are governed by the Civil Code, the laws of the Republic of Lithuania on the legal form of a respective company (Law on Companies of the Republic of Lithuania, Law on Individual Companies of the Republic of Lithuania, Law on Public Institutions of the Republic of Lithuania, Law on Associations of the Republic of Lithuania, etc.) and other legal acts (Enterprise Lithuania).
- Establishment of JSC (joint-stock company). Taking into account the number of founders, the documents of incorporation are signed (establishment act is signed when there is one founder; the establishment agreement is signed when there are more than one founder); the company’s establishment document gives the right to open a cumulative account of the company being established (there must be at least 2500 Euro) in a bank chosen by the founders; the founders pay the initial contribution specified in the documents of incorporation for the subscribed shares; company statutes are concluded; an inaugural meeting is convened; before submitting to the Register of Legal Entities a request for registration of the joint-stock company, the notary confirms authenticity of the data recorded in the application, compliance of the statutes with the requirements of the law and the fact that it is possible to register the joint-stock company; the documents are submitted to the Register of Legal Entities; the company is considered to have been established since its registration in the Register of Legal Entities (Enterprise Lithuania).
- Establishment of a Minor Partnership. Only natural persons can be founders of a Small Community. There can be no more than 10 founders of the Small Community. The establishment of a Small Community depends on the chosen method of establishment, i.e. electronically or not electronically, the number of its founders (one or more founders). If the founder is one person, then the Establishment Act of the Small Community is concluded and its regulations are drawn up. If there is more than one founder, the agreement of establishment of the Small Community is established and regulations of the Small Community are drawn up. These documents are signed by all founders or their designees. The actions set out in the establishment agreement or the establishment act are performed and the obligations specified therein are fulfilled (when it is established that they must be fulfilled prior to registration of the Small Community). In the case when the Small Community is established not electronically, a Register of Legal Entities must receive: an application for the registration of the Small Community; the agreement of the Small Community or the Establishment Act (and amendments if the Establishment Agreement or the Establishment Act has been changed prior to the registration of the Small Community ); regulations of the Small Community (2 copies); license, if by law the license is to be issued prior to the establishment of the Small Community. Before submitting documents to the Register of Legal Entities, they must be submitted to the notary for confirmation of the authenticity of the data recorded in the application, the conformity of the provisions with the requirements of the law and the fact that the Small Community can be registered. On establishing a Small Community electronically, the above-mentioned documents (application, establishment agreement, etc.) must be submitted directly to the Registrar of the Register of Legal Entities and notarisation is not required. Other terms for setting up electronically must also be followed. Documents must be signed with a qualified electronic signature. All these actions are carried out in the information system of the Register of Legal Entities. A Small Community is considered to have been established since its registration in the Register of Legal Entities. After registration of the Small Community, its founders become members of it (Ministry of Economy of the Republic of Lithuania).
Information on the establishment of companies, documents which are required to complete and submit to the notary and the Register of Legal Entities can be found on the website of the State Enterprise Center of Registers http://www.registrucentras.lt/en/. On this page you can find all the required application forms.
Info phone of Center of Registers: 8 5 268 8262; short phone number: 1637.
Important! Foreigners can work according to business license and individual activity certificate, but these business forms do not provide a background to apply for business – related residence permit in Lithuania.