At Lawhill, we offer comprehensive services to assist in the formation of Associations (Asociacija) in Lithuania. Whether you aim to create a non-profit organization for social, cultural, or professional purposes, we ensure the process is efficient, transparent, and compliant with legal requirements. process.
STEP-BY-STEP PROCESS
At Lawhill, we guide you through every step of forming an Association in Lithuania. Our services include:
- Consultation: We start by understanding your business goals and advising you on the most suitable structure for your needs.
- Name reservation: We assist in selecting and reserving a unique name for your company, ensuring compliance with Lithuanian naming regulations
- Document preparation: Our legal team drafts and finalizes the Articles of Association and other required documents.
- Opening a bank account: We assist in opening a bank account remotely, ensuring compliance with all necessary regulations and documentation.
- Remote Formation Services: With Lawhill, you don’t need to be physically present in Lithuania. We offer fully remote company formation services, including document submission, local representation, and communication with authorities.
- Registration with the Registry: We handle the submission of all required documents to the Lithuanian Centre of Registers to finalize your company registration.
- Obtaining VAT Registration (if needed): For companies engaged in VAT-applicable activities, we guide you through the VAT registration process to ensure compliance.
- Business Launch: Once the company is officially registered, we provide continuous support to help your business thrive in Lithuania.
KEY REQUIREMENTS
An Association can be established by at least three individuals or legal entities. Founders can be both residents and non-residents.
While there is no formal minimum capital requirement, sufficient resources should be allocated to achieve the Association’s goals.
The governance of an Association typically includes a general meeting of members, a management body (e.g., board), and, if necessary, a supervisory body.
Every Association must have a registered office in Lithuania. We can provide a registered address to meet this obligation.
WHY CHOOSE AN ASSOCIATION?
An Association is a versatile legal structure ideal for individuals or entities seeking to collaborate on non-commercial activities. Key benefits include:
- Non-profit nature: Associations are designed for public benefit purposes rather than generating profits for members.
- Collaborative approach: Allows individuals and organizations to unite and pursue shared goals.
- Tax benefits: Depending on its activities, an Association may qualify for tax exemptions and government support.
- Ease of Management: With clear regulations and straightforward compliance requirements, managing a UAB is both efficient and predictable.
ADDITIONAL SERVICES
At Lawhill, we provide comprehensive accounting and payroll services tailored to meet the needs of your business. From bookkeeping to tax filings, we ensure your financial records are compliant with Lithuanian regulations. Our team handles payroll management, ensuring timely and accurate payment for your employees.
Navigating the banking system in a foreign country can be challenging. We assist you in opening local and international bank accounts, guiding you through compliance requirements and documentation. Whether for operational needs or capital deposits, we streamline the process to secure your accounts efficiently.
Establish a professional presence in Lithuania with our virtual office services. We provide a legal address required for company registration and offer correspondence management to ensure you never miss important communication. This service is ideal for businesses operating remotely or without a physical office in Lithuania.
Certain industries in Lithuania require specific licenses to operate legally. At Lawhill, we help you obtain necessary licenses such as transport, pharmaceutical, Virtual Asset Service Provider (VASP), and temporary employment licenses. Our experts ensure the application process is smooth, saving you time and effort while adhering to all legal requirements.
We offer a full range of legal services tailored to businesses, including contract drafting, regulatory compliance, dispute resolution, mergers, and acquisitions. Our experienced legal team ensures that your business is fully protected and operates within the framework of Lithuanian and EU laws.
F.A.Q
Forming an Association in Lithuania typically takes 1 to 2 weeks after receiving all necessary documents from the client, making the process both efficient and straightforward.
- Corporate Income Tax: 6% for companies with an annual turnover of up to €300,000; 16% for companies with an annual turnover exceeding €300,000.
- Dividend Tax: A flat rate of 15% applies to distributed dividends.
- Value Added Tax (VAT): Standard VAT rate in Lithuania is 21%.
- Member of NATO and the EU: Lithuania has been a stable and secure member of NATO and the European Union since 2004, offering businesses access to one of the largest markets globally.
- Competitive Tax Environment: Lithuania boasts one of the lowest corporate tax rates in the EU, including special tax incentives for small businesses and startups.
- Strong Economic Growth: Ranked 1st in the EU for real GDP per capita growth from 2000 to 2020, Lithuania is an emerging leader in economic development.
- Fast and Simple Business Setup: Lithuania offers a straightforward process for company registration, making it easy for businesses to get started quickly.
- Multilingual and Skilled Workforce: The vast majority of young professionals in Lithuania are proficient in English, with many also fluent in other major European languages, ensuring smooth business communication.
- Strategic Geographic Location: Positioned at the crossroads of Europe, Lithuania provides excellent logistics and connectivity, making it a strategic hub for businesses targeting the European and global markets.
- Modern Digital Infrastructure: As a leader in digital innovation, Lithuania offers a robust infrastructure, ideal for startups, fintech companies, and tech-driven businesses.
- Business-Friendly Policies: Lithuania fosters a startup-friendly ecosystem with government incentives and grants for innovative businesses, including tech and green energy industries.