Lithuania Country Profile business trade issues

Lithuania

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Companies can contact the Ministry of Finance and the Vilnius Department of Industry and Trade to get information on setting up procedures in Lithuania. Investors can also contact the Development Agency of Lithuania.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
Personaliné Imoné or PI is a sole proprietorship	Maximum 1 shareholder.	No minimum capital.	Liability is unlimited.	LTL 200
THE UAB (Uzdaroji ackiné bendrové is a close joint-stock company	1 to 50 shareholders	LTL 10,000. 25% of the capital must be released at the constitution.	Liability is limited.	LTL 500
THE AB (Akciné bendrové) is an open joint-stock company.	Minimum 5 shareholders, no maximum.	LTL 100,000. 25% of the capital must be released at the constitution.	Liability is limited.	LTL 500
TUB ( TIKROJI UKINÉ BENDRIJA) is a general partnership.	Minimum 2 shareholders. Maximum 20 shareholders.	No minimum capital.	Liability is unlimited for all the partners.	LTL 400
The KUB (Kommanditiné Ukiné bendrija) is a limited partnership.	Minimum 2 shareholders. Maximum 20 shareholders.	No minimum capital.	Liability is unlimited for 1 partner and limited for the others	LTL 400

Registration and licensing procedures
Considering the size and particularity of each Baltic State, it is recommended to have an agent in each State. Current regulations allow an expatriate to manage an agency; the local workforce is also well skilled. Formalities to set up an agency, a Public Limited Company or a Private Limited Company are rather simple and fast. The Register of companies must be contacted.

Foreign exchange control
Free transfer of foreign currencies is carried out free and currency exchanges are controlled by the Treasury and the Central Bank. Transfers of dividends are legal. Profits and dividends repatriation of non-residents companies are not taxable. Transfer of social shares is also tax-free.
On the exchange market, free conversion of the litas is carried out.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Lithuania.

Foreign Direct Investment inflows in Lithuania

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	179	773	1009	68/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update