No, joint audit is not valid in Lithuania.
Lithuania, known officially as the Republic of Lithuania, is a country in north-eastern Europe, and is one of the 3 Baltic states (the other 2 being Estonia and Latvia). Lithuania is a member of the European Union (EU) and the North Atlantic Treaty Organization (NATO), and is also a Schengen country. It is rated high on human development and economic freedom. Over half of Lithuania’s GDP comes from manufacturing, real estate and transportation sectors. The country’s economy has nearly doubled since 2000.
Company Incorporation in Lithuania
A company in Lithuania can be incorporated as one of the following legal entities:
- Individual Enterprise: An individual enterprise in Lithuania is a company owned by a single person, who bears unlimited liability for it, i.e., he/she is liable for the debts and obligations of the company in personal capacity. The assets of the owner are not treated as separate from the assets of the company. The formation of an individual enterprise is regulated by the Civil Code and the Republic of Lithuania Law on Individual Enterprises. Such a company is suited for small businesses and start-ups as no minimum initial capital is required by law.
- General Partnership: A general partnership in Lithuania is a company formed by 2 or more people who bear unlimited responsibility for the business. All the partners of a general partnership are jointly liable for the debts or obligations of the company.
- Limited Partnership: A limited partnership is similar to a general partnership, except that it has two types of partners: general members – who bear unlimited liability for the debts and obligations of the company, and limited members – who are liable only for their capital investment in the company, as specified in the Articles of Association.
- Private Limited Liability Company: A private limited company, or private stock company, must have 1 to 250 shareholders, who bear limited liability for the business, and can be nationals or foreigners. The minimum authorized share capital for a private limited liability company is €2,500.
- Public Limited Liability Company: A public limited company, or public stock company, can have any number of shareholders, and its shares can be traded publicly. Its authorized capital must be at least €38,000. Unless there is a tort on the part of a shareholder, he/she is liable only to the extent of the money paid for one’s shares subscribed.
- Branch: A foreign corporation can set up its branch office in Lithuania. Such an office can engage in business activities involving invoicing, contract signing or trade.
- Representative Office: A representative office is allowed only to conduct market research or promote the business of its parent company. It is not authorized to conduct business or sign contracts in Lithuania. It is not subject to corporate tax.
Benefits of Company Incorporation in Lithuania
Following are the advantages of company setup in Lithuania:
- Lithuania is a member of the EU and NATO, and follows the Western model of internal and foreign politics. The country allows unrestricted movement of capital and dividends across the EU.
- The standard corporate tax rate (15%) in Lithuania is one of the lowest in the European Union.
- Lithuania has entered into double tax avoidance treaties with over 50 countries, including China, Canada and the United Kingdom.
- The general populace in Lithuania is well-educated and multilingual, so acquiring a talent pool here is not difficult.
- Lithuania is highly advanced in Information and Communications Technology (ICT), and considered a research & innovation hub
Who We Are
Business Setup Worldwide is a platform to help you set up your business in Lithuania. Right from incorporation, registration and licensing to establishing your office space, we facilitate the formation of your company through counselling and incubation.
Business Setup Worldwide is a one-stop-solution provider that helps businesses in not only setting up their operations in Lithuania, but also supports in necessary documentation and legal formalities. Wide domain experience and familiarity with regional laws help us to take care of your passport, visa and licensing requirements, and ensure that your company gets started without unnecessary bureaucratic hassle.