Business Operation Costs
Lithuania has an attractive tax system, characterized by low and flat taxes. Both private and corporate incomes are taxed at flat rates.
More information about taxes here.
As of 2010, group taxation of corporate profit has been introduced. This allows groups to balance profits and losses within them, whereby losses can be transferred among different entities of a group if the controlling entity holds at least 2/3 of the shares of the controlled entity.
Among other favorable conditions of corporate profit taxation in Lithuania are the following: entities can reduce taxable profit if they are carrying out an investment project into new technologies; expenses incurred by companies carrying out R&D projects can be deducted thrice; 10% withholding tax on interest has been abolished for companies resident in the European Union.
According to the Doing Business 2010 report, starting a business in Lithuania requires seven steps and takes 26 days.
| Procedure | Time to Complete | Cost to Complete |
| Open a bank account with the minimum capital and get a bank certificate proving the availability of the funds; pay the registration fee and obtain the document evidencing the payment | 1 day | 6 EUR |
| Notarize the agreement /memorandum of incorporation and bylaws; notarise the application for the registration of the private limited liability company | 2 days | 145 EUR |
| Register with the Companies Register, including registration with the State Tax Inspectorate (the Lithuanian Revenue Authority) for corporate tax, VAT, and the State Social Insurance Fund Board (SODRA) | 6 days | 57 EUR |
| Complete VAT registration | 10-15 days | No charge |
| Inform the State Labour Inspectorate of the establishment of the company by letter or phone | 1 day | No charge |
| Open a settlement bank account (to handle normal commercial transactions) | 1 day | No charge |
| Obtain the official seal of the company | 2 days | 9-26 EUR |
Source: www.doingbusiness.org
