More possibilities for foreigners to establish a business in Lithuania
Lithuania has started the new year by implementing simpler and clearer procedures for establishing and developing a business, that are directly related to the legal status of foreigners in the country. TRINITI JUREX is presenting the most important changes that entered into force since the beginning of the new year and that opens more possibilities to foreigners to establish businesses in Lithuania.
I. Possibility to establish the most popular types of legal entities not only in Lithuanian but also in English language
This year the Centre of Registers has upgraded their system by implementing the possibility to generate the main establishment documents (Incorporation Agreement, Act of Incorporation, Articles of Association, applications) not only in Lithuanian, but also in English language. This means that when establishing a business, operating under one of the 6 most popular legal forms (Private limited liability company (UAB), Small partnership (MB), Individual enterprise (IĮ), Public Enterprise (VšĮ), Association or Charity and relief foundation), the incorporator will be able to access the menu and other functionalities on the website of the Centre of Registers in English language.
II. Possibility to open a cumulative account not only with banks, but also with credit and e-money institutions
From 1 January 2021, subject to legislative implementation, private limited liability companies, public limited liability companies, partnerships and public Enterprises are allowed to open cumulative accounts not only with banks, as it was done up until now, but also with credit and e-money institutions.
This will allow foreigners to avoid difficulties that might be faced when opening cumulative accounts with banks which is a must when starting a business in Lithuanian. A credit or an e-money institution for opening of a cumulative account can be chosen from a list of institutions, providing such services, that is published by the Bank of Lithuania. The mentioned legislative changes will improve the conditions for the third country companies to establish their businesses in Lithuania as well as allow them to save time and expenses. Moreover, this will increase the competitiveness in the field of financial services.
III. Simplified procedure for submitting data on the participants of legal persons
Another two important amendments made by the Register of Legal Entities are:
- Unified procedure for the registration of shareholders of private limited liability companies;
- Possibility to submit data on the participants of legal persons not only in Lithuanian but also in English language. Register extracts will now be issued in three languages: Lithuanian, English and Russian.
From now on all changes related to the shareholders of private limited liability companies will be registered exclusively in the Information System of Legal Entities Participants (JADIS) and only by electronic means, i. e. by signing to the self-service system of the Centre of Registers.
The documents that are being submitted will have to be signed with a qualified e-signature which makes it even more important for the managers of companies to own a qualified e-signature.
It should be mentioned that currently private limited liability companies, small partnerships, public enterprises, agricultural companies and cooperative partnerships are obliged to submit information on their participants.
IV. Possibility for a foreigner to receive an e-resident status in Lithuania
The e-resident status will enable foreigners to use all e-services, i. e. establish a company, open a bank account or declare taxes in Lithuania remotely. A foreigner who has reached the age of majority may receive an e-resident status in Lithuania by submitting an online application to the Migration Department for granting the e-resident status. If a positive decision on granting the status of an electronic resident is made, the foreigner receives an electronic identification and electronic signature means which allow the foreigner to use online administrative, public, or commercial services in Lithuania.