Lithuania attracts everyone with its proximity to Western Europe, as well as its good social and economic situation. Business immigration to Lithuania is gaining momentum, but on the way to the goal, you cannot do without difficulties and nuances, which you should familiarize yourself with in advance.
General information about business immigration in Lithuania
One of the legal ways to obtain a residence permit in the Baltic state is to try to open your own business.
In 2017, on January 1, innovations in the law on the legal status of foreign citizens came into force. In this legal act, the Lithuanian authorities have established that in order to obtain a residence permit, citizens must comply with the fundamental requirements and rules.
What is business immigration in general
Business immigration is a process that involves the relocation of citizens of Russia, Belarus, Ukraine or another state to the territory of Lithuania in order to build their own business. It is assumed that the citizen will invest his money and investments, which will partially support the economy in the country.
The person undertakes to fulfill several requirements that apply to immigrant businessmen.
What is a business visa and what type of visa you can get in Lithuania
Today there are a lot of companies and organizations that are ready to provide mediation in the preparation of this document.
Registration procedure:
- First you need to get an invitation, which was approved by the Department of Migration of the Republic of Lithuania;
- The next step is to provide your documents. This is a copy of the passport, registration documents, e-mail address and a certificate of income;
- Based on this information, a Schengen business visa will be issued within a few weeks, which will also be valid on the territory of Lithuania.
What type of business is more profitable to open in Lithuania
What kind of business to open in Lithuania? Experts assure that the most profitable thing in this country is to open a medium-sized business or large corporations.
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Small business will not bring good income, but you will have to pay enough taxes on it. That is why many Russian companies open branches of existing companies in Lithuania, rather than create something from scratch.
Type of business | Description |
| Agricultural sector | Fresh fruits, vegetables, meat are in great demand and never fall in price. This is the most promising direction. |
| Transport sector | Logistics is an equally interesting area. If we manage to equip a transport company with reasonable shipping rates, we can assume that a gold mine has been found. |
| Production | There is little large-scale production in the country. The emergence of new factories would bring the country's economy to a new level. |
Russians in Lithuania open branches of their banks, microfinance organizations, cafes and restaurants.
If we are talking about small business, then prevailing:
- Beauty Salons;
- Bookstores;
- Grocery stores.
Conditions of immigration to Lithuania for entrepreneurs
Entrepreneurs are subject to special conditions for business immigration. After all, we are talking not only about building a successful business in the country, but also about obtaining a residence permit. And with this document it is not far to citizenship.
Choosing the required visa, conditions for obtaining it
A citizen who wants to open a business in Lithuania needs to obtain a multiple-entry business visa. To do this, a Russian must have a contract between two legal entities. This document will allow a citizen to move freely throughout the territory of the European Union.
A citizen will be issued a business visa on the territory of the state only if the following requirements are met:
- The company in Lithuania must have an official address where the office is located;
- The tax inspection should control the business;
- The company must maintain accounting records by a specially hired employee;
- The office must have constituent documents not only in Russian, but also in Lithuanian;
- The documentation must be certified by a notary;
- The company must have its own charter, which does not contradict the legislation of Lithuania;
- The share capital must be paid up.
Before registration, a state fee is paid in the amount of 32 euros.
Conditions for obtaining a residence permit, permanent residence, citizenship
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The procedure for obtaining citizenship consists of several separate steps:
- To begin with, a person who intends to do business in Lithuania must obtain a tourist visa;
- On the basis of this document, a citizen arrives in the country, begins the paperwork, opens his own business;
- Applies to work at least two Lithuanians;
- After that, the citizen returns to his homeland and already draws up a business visa at the immigration service;
- With a business visa, the person must provide an investment package and a business plan;
- Upon consideration and verification of all requirements, the person is issued a residence permit.
With a residence permit, a citizen has the right to stay in Lithuania for 5 years, preferably without leaving. To do this, you need to pay a state fee in the amount of 100 euro... Citizenship registration takes one month.
Buying a ready-made business and starting from scratch
Most often, businessmen seek to open a business from scratch. They need to meet all the necessary conditions and be prepared for some difficulties.
The person who intends to become the head of the company is called the beneficiary. Only one person can be a beneficiary on the territory of Lithuania.
It is necessary to take into account a number of important rules at once, without which it is simply impossible to open a company in Lithuania:
- The company must have a supervisory board in the amount of 3 to 15 people. He is responsible for the conclusion and observance of contracts;
- One CEO is appointed;
- The company must have a board of directors. The minimum number is 3 people;
- If the company has shares, then the owner has the right to dispose of them at his own discretion, based on the legislation of Lithuania;
- Starting your own business involves setting it up for tax accounting within 5 days after opening. Failure to register with the tax authorities can lead to serious fines.
An important point concerns the recruitment of Lithuanians. Their number must be at least two people. And if the staff of the company exceeds 10 people, then there should be at least half of the Lithuanians in it.
Buying a ready-made business is also a real Russian roulette. Unfortunately, not all information comes up immediately. Sometimes the firm subsequently turns out to be unreliable and has a lot of debts.
Purchase nuances:
- You should immediately sweep aside the options that are sold inexpensively: it is worth clarifying the reasons for such a low cost;
- In addition to the purchase itself, the company needs to spend money on taxes, registration, as well as the removal of restrictions on the object.
Companies in small towns simply don't live long. Therefore, most likely, the investment will be in vain.
Business ideas with minimal investment
Seasonal business is very popular.
| Type of business | Description | Attachments | Payback |
| Selling ice cream | If a citizen has little money, he can purchase a point with ice cream or soft drinks. By locating such a point in busy tourist areas, you can make a profit. The idea is not new, but very profitable. | 800-1000 euros | 1-2 seasons |
| Growing fruits and vegetables | The minimum investment will be required if a citizen buys a house with a personal plot in Lithuania and grows vegetables and fruits.You can sell these natural products among friends, as well as register as an entrepreneur and deliver to local stores. | 200-300 euros | 1 season |
| cleaning company | Small infusions are needed to set up a cleaning company. You can hire two Lithuanians. Costs come down to the need to buy detergents, auxiliary devices. And the services of such firms are very common, especially in big cities. | 500-1000 euros | 2-5 months |
Examples of
A lot of useful information can be gleaned from the blogs of emigrants who have been successfully living in Lithuania for a long time.
A young mother, who had to sit with her child while her husband was looking for work in Lithuania, started making pillow covers for small children.
Peculiar covers with animal faces conquered local mothers, and the woman's social media account began to gain popularity. Today, nursery cushion covers are sewn on an industrial scale.
Lithuanians love to buy handmade items as gifts to each other. If a person has a good imagination and is not afraid of working with his hands, he can try to open the production of pottery, clay crafts, children's mobiles made of foamiran, and so on.
Small shops with vegetables, fruits, healthy grains and fresh meat will also be successful.
Legal nuances
The following organizational and legal forms are subject to registration:
- Individual entrepreneur;
- A closed joint stock company that limits the liability of its members;
- Small company, which is a legal entity limited liability person.
These three organizational and legal forms can be registered on the territory of Lithuania.
The registration process takes about two calendar weeks:
- First you need to check the name of the organization with a special tax institution. It is important that a similar one is not registered in Lithuania. This issue is dealt with by the State Commission for the Lithuanian Language;
- A fee of 58 euros is payable;
- Submitted documents such as articles of association, list of founders, company property, and so on;
- The exchange of information on the machine about the created company is carried out. The data is transferred to the tax office;
- After that, you need to open a bank account. To do this, a financial and credit organization must be provided with a certificate of registration of the company, an order on the appointment of a head, charter and other documents;
- An account is opened - some banks may ask for this service 150 euros.
Now the company can start full-fledged work, but you need to remember about tax registration.
Taxation
Officially, there are 7 free economic zones in the Republic of Lithuania. They collect low taxes and do not apply fees on dividends and profits.
The company is not limited in transactions with non-residents. This makes it easy to optimize taxation.
However, if the company is not located in a Lithuanian offshore, then you will have to register it for tax purposes and receive funds as income tax. Tax registration must be carried out within 5 days after registration.
Taxes are collected on a quarterly basis, and the tax agent independently notifies about the audit or the next deadline for filing a declaration and payments.
Other nuances
In Lithuania there is a term “business on hold”. Seeing how difficult it is for foreign citizens to conduct their business on the territory of Lithuania, the authorities allow companies to stop their activities for up to 5 years. During this time, if the company really ceases to function, taxes are not collected from it.
Tips for Lithuanian Business Immigrants
Based on the reviews about building a business in Lithuania, a number of fundamental nuances can be identified that will help build a successful career and your own business in the territory of the Baltic Republic:
- All laws and regulations governing doing business in the country must be followed;
- It is important to put the company on tax records on time;
- Study in advance information on the existence of Lithuanian offshore companies and, possibly, open your own company there;
- Test the waters in advance and find out how relevant the business project is in Lithuanian realities;
- Check competitors and their position in the market;
- Study the legislation on registration;
- Study the requirements for obtaining a residence permit in the event of a successful business start.
Alexei Ivanov, a business emigrant from Russia, made an unsuccessful attempt to do business in Lithuania. He opened a cafe with Russian cuisine in a small town. At first, the establishment was in demand, but high prices, a small list of dishes and coverage soon led to the closure of the business.
It is important to respect the requirements of the legislation, as well as to show business acumen in matters of building a business project. And in this case, everything can work out.
