At Lawhill, we specialize in the establishment of Public Institutions (Viešoji Įstaiga or VŠĮ) in Lithuania. Whether you aim to start a non-profit organization, a social enterprise, or an educational institution, we ensure the entire formation process is smooth, efficient, and compliant with Lithuanian regulations.
STEP-BY-STEP PROCESS
At Lawhill, we provide end-to-end support in forming a Public Institution in Lithuania. Our services include:
- Consultation: We start by understanding your business goals and advising you on the most suitable structure for your needs.
- Document preparation: Our experts handle all the necessary documentation, including the Articles of Association and registration
- Name Reservation: We assist in choosing and reserving a unique name for your company.
- 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.
- Registered Address Service: If needed, we can provide a legal address in Lithuania for your Individual Company.
- Submission to the Registry: We manage the submission of all required documents to the Lithuanian Centre of Registers to finalize your company registration.
- Bank account: After the company is formed, we assist in opening a bank account remotely, ensuring compliance with all necessary regulations and documentation.
KEY REQUIREMENTS
A Public Institution can be established by one or more individuals or legal entities. Both residents and non-residents are eligible to act as founders.
The institution must have a clearly defined non-commercial purpose aimed at providing public benefits.
The management structure typically includes a director and a management board (if applicable), ensuring proper governance of the institution.
Every Public Institution must have a registered office in Lithuania. We can provide a registered address to meet this obligation.
WHY CHOOSE A PUBLIC INSTITUTION?
A Public Institution is a suitable legal form for those looking to establish an organization focused on non-commercial activities and public benefits. Key advantages include:
- Non-profit status: Public Institutions are designed to operate without the goal of generating profits for shareholders, making them ideal for socially-driven missions.
- Flexible funding options: They can receive income from various sources, including donations, grants, and contracts with public or private entities.
- Limited liability: Founders are not personally liable for the obligations of the institution.
- Public benefit orientation: Activities can focus on education, health, social services, culture, sports, or other public interests.
- Eligibility for tax benefits: VŠĮ organizations can qualify for certain tax exemptions and government support, depending on their activities.
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 a Public Institution 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.