Holding company in Lithuania
Lithuania is the largest of the Baltic States and attracts a lot of investors interested in setting up a second base in Europe. Since the economy and structures were built to help companies grow, it is one of the smartest places to start a business.
Speaking about corporations, one of the most successful types of business in this European country is a holding company. Holding companies are basically a large agency that gathers and manages the assets of other companies. Lucky for you, foreign investors and entities coming to the country are allowed to create a holding company. In this article, I’m going to walk you through everything you should know if you plan to form a holding company in Lithuania. The content of this guide is in- depth and I doubt you’d find it anywhere else. If you need a hand or have any issue during your application process, we have a team fully dedicated to helping you out. If you feel that you can do it on your own, then this guide is just the tool you need to make your application process a breeze.
Setup a holding company
Contact us and we will help you to register Holding Company in Lithuania.
Characteristics of holding companies
Since the country is dedicated to helping businesses thrive, starting a completely autonomous corporation here is not a bad idea. A holding company is a parent entity usually an LLC or corporation that does not manufacture any product, buy or sell any goods or services, or conduct any business operations.
Its sole purpose is to hold the controlling stock and membership interests of other corporations. However, you can create a subsidiary that can manufacture products, buy or sell any goods or services, conduct any business operations, flipping real estate, intellectual property, vehicles, valuable objects, or equipment… These types of entities are referred to as operating companies. Holding companies can own 100% of the subsidiary or just enough stock to control the subsidiary. For the company to have control, it must have enough stocks or membership interests. Controlling the majority share ensures that your vote as the owner of the company cannot be vetoed. The majority of stock can be as much as 80% and as low as 30%. If you plan to create subsidiaries, each subsidiary will have its own management that controls day-to-day operations in the country. The holding company’s management doesn’t just oversee the operations of the subsidiaries. They can elect and discharge corporate directors, managers, and can make major policy changes. Most of the people that manage these corporations are not part of the executive board of the operating company.
Procedure and requirements
Setting up a holding company in Lithuania uses is very simple. It uses the same procedure used to incorporate a business. The major difference is the type of company you are setting up. Once you have your articles of association, founding act, and founding agreement, you can head to the Register of Legal Entities to begin your registration. You may be required to have a bank account and physical address before your application will be approved. The state fee for registering a holding company in Lithuania is around €700. The entire registration process takes about 10 working days.
Required Documents
There is a humongous list of documents you need to submit before your application can be approved. But essentially, you’ll need to submit a copy of your certificate of Incorporation and other essential company licenses to the Register of Legal Entities. You can always reach out to use if you want a complete list of documents required to create a holding company in Lithuania.
Registration requirements
- In Lithuania, a holding company can be in form of a private limited liability company (UAB) or a public limited liability company (AB). Our company formation consultants in Lithuania can help you set up a holding company under any business entity. No matter type of structure you prefer for your corporation, you must meet the following requirements upon incorporation:
- A shareholder or more must be appointed upon the registration.
- A minimum share capital of €2,500 is required if you are setting up a private limited liability and €40,000 if you are forming a public limited liability.
- Audit requirements are mandatory for the AB and mandatory for UAB if certain annual income is registered.
- If you are setting up a UAB, the entity must have at least one manager. If it is an AB, it must have at least 3 managers. In both cases, a supervisory
- council is non-compulsory.
One of the best reasons why you should form a holding company in Lithuania is the tax benefits that you can enjoy. Lithuania does not have a holding regime at the moment but the tax authorities provide facilities for shareholders of holding
companies including:
- No capital duties for holding companies buying & selling shares in other companies.
- Participation exemption regime in the case of distribution of dividends.
- 15% corporate income tax rate
- No taxes on transfer or sales of share
We’ve been helping foreign investors set up both private limited liabilities and public limited liabilities for close to a decade. Once you send in all the required documents, we ensure that your application is successful so you can begin operations as soon as possible. We take away the stress of traveling to the country, looking for a good bank, reviewing tax policies, renting and registering an address, and other long strenuous processes. We are able to set all formalities of business migration, company registration, and offer full services for starting a company in the Republic of Lithuania. We basically do all the heavy lifting so that you can focus on building a successful company.
Other types of companies
If you feel like Holding company does not fit your needs, click the button below and you will see other legal forms like Private Limited Liability Company, Public Limited Company, Branch office and more.
Holding company registration
Ready for next step
Accelerate your business growth while we take care of bookkeeping and banking.