Why it’s worth starting a business in Lithuania

Starting a business is a tough decision that requires meticulous thought. If you have it in mind to start a business, you’ll likely need the best location with the right factors to help grow your business. If so, Lithuania is the right place for you.

Lithuania is one of the largest entrepreneurship hubs in Europe. With a thriving economy, highly-educated workforce, advantageous tax policies, and conducive business environment, Lithuania has become the location new entrepreneurs go to for their business ventures.

Further into this article, we’ll explore the key reasons why starting a business in Lithuania could be the best decision you’ll make for your career.

Introduction To Lithuania as a Business Haven

Starting a business in a country requires you to comply with the laws of the country. In this case, the Lithuanian government has a vested interest in creating new jobs and boosting their economy. Therefore, they are more than willing to support new businesses. Moreover, Lithuania is situated at the intersection of the East and West, giving you ample connection to the European markets. In effect, you get to use Lithuania to enter the larger EU market to grow your business.

Whatever your niche, be sure that Lithuania has a place for you. From trade, manufacturing, IT, medicine, and financial services to international transportation, Lithuania is ripe for plucking.

In terms of infrastructure, Lithuania has modern transportation networks and state-of-the-art logistics services that enable customers to easily reach customers and suppliers across the continent. The Lithuanian workforce is highly skilled and literate with skills fitting whatever business you plan to start.

In addition to that, the standard and cost of living in Lithuania are affordable for anyone who plans to live there and conduct business. That’s why if you plan to do that you’ll need a business establishment like StartBusiness to put you through the right steps.

Key Benefits of Starting a Business in Lithuania

We’ve discussed why Lithuania is the best destination for starting a business. However, there are more benefits to starting your business in Lithuania. Some of these benefits include:

1.    Government Support

Having the backing of the government when starting your business is crucial. This makes it easier and in Lithuania it’s quite easy. The Lithuanian government has taken significant steps to create the perfect ecosystem for startups and small businesses. Hence, your new business gets a chance to thrive without government incursion.

Part of the government’s help is the Startup Visa Program which is designed to attract international entrepreneurs and innovators to Lithuania. With this visa, individuals get to establish and develop their businesses in the country benefiting from the resources available.

Additionally, the Lithuanian government is forward-thinking as they invest heavily in infrastructure conducive to startups and business development. Right now, Lithuania boasts co-working spaces and innovation centers that provide a networking opportunity for businesses. All this is to ensure the success of these businesses.

2.    Favorable Tax Policies

Closely tied to the government’s backing are the tax cuts and policies Lithuania has. According to Ecovis Lithuania ranks 18^th in Paying Taxes by the World Bank Group. The Lithuanian government has implemented several tax incentives to encourage business growth. A popular initiative for startup companies is the Small Partnership Tax Program. This program is designed for small businesses with less than 10 people to reduce the corporate income tax rate from the fixed 15% rate to 5% of their annual profits. More so, if you meet certain conditions your taxes could be reduced to 0%. Compared to other larger economies like the U.S. and China, Lithuanian tax policies are more favorable for entrepreneurs to fuel their growth.

Lithuanian tax policies also allow for a range of grants, subsidies, financial support programs, and double taxation exemptions for businesses that will assist small businesses in their early stages. With savvy business accountants, these financial support incentives can be leveraged for your business’ benefit.

3.    Access to the EU Markets

Though Lithuania is a small country, it’s no less prestigious. Lithuania has been a member of the EU since 2004 and this gives it all the privileges EU members enjoy. These privileges are optimal for starting a business. These include EU funding programs, financial support for technological research and innovation, and the ability to participate in future EU programs.

On top of that, Lithuania gives you free access and an avenue to trade with other EU member countries. Thereby eliminating trade barriers and facilitating the free movement of goods, services, and capital. This increases the likelihood of your business expanding to larger markets and various sectors.

4.    A Skilled Workforce

A crucial aspect of any business is its employees. One thing you won’t be worried about is getting educated and skilled workers in your business. The Lithuanian workforce is multilingual, being able to speak English, Russian, Polish, and others. They also boast a highly educated population, particularly in STEM (science, technology, engineering, and mathematics) fields. Largely, businesses in areas such as IT, Engineering, Finance, and research can easily get professionals to work for them.

Importantly, Lithuania’s universities and colleges have strong ties to the business community, producing skilled graduates up for grabs in the workforce. In addition to that, Lithuanian immigration policy attracts skilled professionals from other countries expanding their talent pool. In this light, you do not need to worry about scarce human resources.

Establishment Companies In Lithuania

Although Lithuania is certainly a business-friendly center in the Baltic states, it is important to understand the legal requirements and procedures for starting a business there. The process of registering your company can be done in as little as 3-4 days, which can also be done online. Nevertheless, if you aren’t meticulous, you can find yourself in a messy situation. You need to establish your company (Mazoji bendrija (Small partnership) or Uzdaroji akcine bendrove (LLC) the right way, this is something StartBusiness company can lead you through with ease.

Whether it’s your documentation, registration, or notarization, establishment companies can help you with this process without a hitch. You will have a fully functioning company in Lithuania in no time. Effectively, with their help, you won’t be blind to the factors that will help your business grow and succeed in Lithuania.

Business Accounting In Lithuania

 After establishing your business, you’ll need a business accountant to keep your business running effectively in Lithuania. Moreover, Lithuania is unique in the business world as they have business accounting services. Business accountants help small businesses and startups stay on their feet and grow. They give essential advice when it comes to your financial decisions and accounting.

As an entrepreneur wading into the unfamiliar business sea of Lithuania, you will need professional business accountants in Lithuania that can advise and give you crucial financial strategies to make profit in your business.

Business accountants in Lithuania are the best at what they do when it comes to managing the finances and accounting of startup businesses. Hence, when you decide to start a business, be sure to get a business accountant in Lithuania to guide and assist you in important financial approaches to make the best decisions for your situation.

CONCLUSION

Lithuania has proven itself to be a beacon of hope for small businesses and startups seeking a haven to start a business. It has everything and more you will need to create a successful business. To top this off, a business establishment company will help you masterfully leverage each stated benefit to your advantage. Choosing Mazoji Bendrija (Small partnership) and Uzdaroji Akcine Bendrove (LLC) to help you with this process, it will be a smart move once you employ their help.