Doing business

Lithuania

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sole proprietorship (PI) No minimum capital.	Maximum 1 shareholder. Liability is unlimited.
Private limited liability company (UAB) EUR 2,900	1 to 249 shareholders Liability is limited.
Public limited liability company (AB) EUR 43,450	Minimum 1 shareholder, no maximum. Liability is limited.
General partnership (TUB). No minimum capital.	Minimum 2 shareholders. Maximum 20 shareholders. Liability is unlimited for all the partners.
Limited partnership (KUB). No minimum capital.	Minimum 2 shareholders. Maximum 20 shareholders. Liability is unlimited for 1 partner and limited for the others

Business setup procedures

Setting up a company	Lithuania	Eastern Europe & Central Asia
Procedures (number)	6.0	6.3
Time (days)	22.0	16.3

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Lithuania.
Trade Register, in Lithuanian.
The competent organization: The Company Register of Lithuania is the relevant organization to be contacted for formalities in setting up a business.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	1,823	172	629
FDI stock (millions USD)	12,890.6	14,009.6	13,448.6
Performance Index*, ranking on 141 economies	69	117	-
Potential Index**, ranking on 141 economies	39	-	-
Number of Greenfield investments***	46	35	-
FDI inwards (in % of GFCF****)	15.4	11.7	-
FDI stock (in % of GDP)	27.3	37.4	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Lithuania

Strong points: Lithuania is ranked among the fastest growing economies in the European Union. It offers investors a diversified economy, a skilled workforce, low corporate taxation, the best developed road network in the region and a stable and democratic political system. The country is a member of the European Union and at the same time it is close to the eastern European countries. Lithuanian legislation offers equal protection for both foreign and domestic investments.
Lithuania is going to benefit from significant European Union assistance over the period of 2007-2013, which means the country is going to be able to invest in infrastructures and business opportunities will be available to local and foreign investors.
Weak points: The country has a number of weak points:
- Lithuania's income level is still below the European countries' average. This involves re-adjusting the selling prices of products;
- There is a high rate of Lithuanians emigrating to other European countries;
- High wage inflation; and
- Relatively inefficient bureaucracy. Corruption and a lack of transparency in certain areas of the economy slow down the country's development and could discourage potential investors.
Government measures to motivate or restrict FDI: Lithuania's laws ensure equal treatment between foreigners and domestic investors. No special permit from government authorities is necessary in order to invest foreign capital in Lithuania. Apart from a few exceptions, nearly all sectors of the economy are freely accessible. To encourage investment, the government has also created free economic zones with tax benefits and one-stop-shop services.

Procedures relative to foreign investment

Freedom of establishment: Freedom of establishment is guaranteed. Foreign entities are allowed to establish branches or representatives offices ; there are no limits on foreign ownership or control.
Acquisition of holdings: A majority holding interest in the capital of a local company is legal in Lithuania.
Obligation to declare: There are no particular regulations or obligations to declare for foreign investment. However, there are some areas of the economy where investment is limited (investment in sectors related to the security and defence of the State, licensing is necessary for activities related to human life, health and which are potentially risky, non-Lithuanians are generally not able to buy agricultural or forestry land).
Competent organization for the declaration: Lithuanian Development agency
Requests for specific authorizations: Licensing is necessary for activities related to human life and health.

Finding assistance for further information

Investment aid agency: Business Lithuania
Other useful resources: Ministry of Economy