Many foreign entrepreneurs are looking for a comprehensive option that will allow them to establish a company in Europe and stay there. Lithuania is one of the ideal solutions for such purposes. Lithuania offers simple and convenient conditions for starting a business. Moreover, the company registration is quite cheap there. This allows you to immediately create a business in a European country and obtain a residence permit in Lithuania.
Advantages of Lithuania for business immigration
It is very easy to register a company in Lithuania. You need a minimum package of documents and a good business plan only. Briefly, the stages of creating a company can be outlined as follows:
- checking the availability of the name in the Registry of Companies;
- preparation of all necessary forms and declarations;
- submission of documents and forms for registration;
- opening a bank account for depositing the minimum amount of the authorized capital of 2.500 euros;
- company registration and preparation of a package of documents;
- notarization of documents, apostille (if necessary);
- production of a seal, preparation of the final set of documents;
- sending originals of documents and printing to the desired address.
The registration period takes no more than 5 days from the date of submission of all documents to the registering authority.
To establish a company in Lithuania, there are no residency requirements for founders, directors, and shareholders. This means that a company can be registered with 100% foreign participation.
The standard corporate income tax rate in Lithuania is only 15%.
Budget registration and not very high prices for living. Since the company must show the minimum values that allow its founder to maintain residence in the country, the cost of living is of great importance. In Lithuania, the cost of living is not high, and therefore it is quite possible to achieve the indicators necessary for extending a residence permit.
Doing business with counterparties from Lithuania is a pleasure. Due to a similar mentality, many of our clients note that comfort and ease of communication with business partners from Lithuania is one of the biggest advantages of setting up a Lithuanian company.
How to get a residence permit by opening a company in Lithuania?
Lithuania offers one of the most affordable and convenient ways to immigrate to the country and obtain a residence permit through company registration. When the company is registered, you can immediately apply for a residence permit.
Among the documents that must be provided, there must be:
- Statutory documents for a company in Lithuania (or for a parent organization if a branch or subsidiary is established in Lithuania);
- Business plan. The business plan should reflect the type of activity of the company, as well as the plan for its development;
- Identification documents for the founder / CEO of the company in Lithuania (passports, proof of address of residence, etc.);
- Certificate from the account of the founder and CEO of the company. The balance on the account must be sufficient to develop business and ensure residence in Lithuania;
- Medical insurance;
- A document confirming the creation by the applicant of at least 1 job for local citizens.
- One seat is the minimum to meet the requirements. It is desirable to provide 3-5 jobs to minimize the risk of refusal to issue a residence permit.
After all the documents are submitted to the Lithuanian Migration Service, an interview with the applicant for a residence permit will be scheduled. Upon successful completion of the interview, having a good business plan, providing jobs in a Lithuanian company, as well as proof of sufficient funds to live in the country, a decision will be made to issue a residence permit in Lithuania.
However, it is not so important to get a residence permit, as it is important to keep it, extend it, and after a while apply for permanent residence and citizenship.
Requirements for renewal of residence permit in Lithuania
When a company is just being created, of course, there are no strict requirements for it, and therefore a competently drawn up business plan and a decent balance on the cash account is enough to get a residence permit allowed. However, as the company matures, the requirements for the applicant will become stricter, and to extend the residence permit, these requirements must be carefully observed.
What is necessary to ensure that the residence permit in Lithuania is extended?
First, you need to show that the company is profitable. A successful project that generates income sufficient to cover all the company’s expenses, such as salary payments to employees, office rent, as well as living in the country, minimizes the risk of refusal to renew the residence permit.
If the company demonstrates the good potential and growing profits, there will be no complaints against such a company, and the business owner will easily extend the residence permit. However, if the company is unprofitable from the second year of its existence, the renewal may be refused.
Secondly, it is necessary to increase the number of jobs for residents of Lithuania. The state is interested in reducing the unemployment rate and increasing jobs, and therefore the growing number of vacancies in your company can serve as an excellent advantage for extending a residence permit.
Thirdly, it is necessary to provide evidence that the holder of the residence permit has sufficient financial resources to live in Lithuania.
In addition to the above criteria, such as the usefulness of the project for the Lithuanian economy, the company’s potential for the development of areas that are underdeveloped in Lithuania, the innovativeness of the products offered, and others can be assessed.
