The most common type of companies which are used for trading activities, property ownership and construction of holding structures is Closed Joint-Stock Company (UAB) with limited liability and an authorized capital divided into shares.
Requirement to the minimum authorized capital is at least € 2 900. The minimum number of shareholders – 1. Shareholder can be both individual person and legal entity, resident or non-resident of Lithuania.
- Corporate profit tax – 15 %;
- VAT – 21 %;
- Dividends* – 0-15 %;
- Tax on the income of individuals – 15 %;
- Social security tax for the employee – 9 %;
- Social security tax for the employer – 30,98-31,7 %;
- Real property tax – 0,3-1 %.
* There is a regime of liberation from the dividends in the tax legislation of Lithuania. Whereby such dividends can be exempted from tax if the recipient of dividends owns 10 % of the shares more than 1 year.
Accounting. Audit. Bookkeeping.
It is necessary to submit the accounting reports of the company before the 15th day of every month and the VAT report before the 25th. Dividends can be paid annually or once every 4 months but in this case the company should submit the quarterly balance sheet. The profit tax is paid annually before the 31st of May.
Mandatory audit is required if at least 2 conditions coincide at the same time:
- Property of the company is € 1 750 000;
- Turnover is € 3 500 000 per year;
- There are more than 50 employees in the company.
Information about the directors and shareholders is available to third parties on the website of the Company Register.
- Returnable and not large authorized capital and the possibility of opening accounts in European banks;
- Minimum number of employees is required for registration.
- It's necessary to submit monthly final annual report and accounting reports to the tax authorities.