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Company Incorporation in the Baltic states
Company Incorporation in the Baltic States
The Baltic States consist out of Lithuania, Estonia, and Latvia. Find more information about these 3 jurisdictions below.
Lithuania
Officially the Republic of Lithuania is the biggest country in the Baltic region of Europe. Investors are encouraged by a stable economy, low inflations, low labor costs and liberal business environment. Lithuania is a business friendly country not only for young entrepreneurs and skilled professionals but is also trusted by such high caliber companies in every industry. This country, full of young people, ambition, energy, skill, and talent, equipped with Europe’s fastest internet connection and rapidly growing startup ecosystem. The government understands the benefits of investment and is more than ready to provide you with the support you need, and its modern dynamic business sector is fully EU compatible. What’s more, with tax treaties with 50 major markets including China, USA and many others.
What are the main features of a public limited company?
• The most common business vehicle for medium/large companies
• Minimum share capital is approx. €44,000, at least 25% to be paid up
• Auditors required to prepare annual financial statement
• You must appoint a supervisory council or “board of management”
Lithuania company benefits
• Accessible EU market that automatically eliminates issues about customs regulations, tariffs and fees in the EU.
• Eligible fixed tax rates on individuals’ income and entities
• Legitimate ways to reduce tax payments
• The benefit to enable you to choose the country, where you will pay VAT.
Want to learn more about Lithuania and the company formation procedure? Get in touch with one of our experts.
Estonia
In order to open a company in Estonia, you will need to become an E-resident which includes a set of benefits. However, registering a company in Estonia is ideal for setting up your online business that is not tied to a particular jurisdiction. Its competitive corporate tax, in this lucrative Baltic Country is highly valued by entrepreneurs. In Estonia, the corporate income tax on profits kept in the company is 0%. In Estonia, profits earned by a company are not immediately subject to corporate income tax. Instead, corporate income tax is only due when you take the profits out of business.
What are the requirements to establish a Private Limited Liability- OÜ?
• The minimum share capital for an OÜ is €2,500.
• if Member of the Management Board is not resident of Estonia or EU, official representative is needed. This representative must be resident of Estonia, it can be legal or natural person
• a local serviced office is required
• an auditor’s report must be appended to the annual report of an organization subject to accounting requirements.
Estonia company benefits
• Ability to control your company from any part of the world because of E-resident card, enables you to electronically sign any document remotely.
• The tax on distributed profits is 20%. zero tax on undistributed profit, which benefits you to have more funds to invest into the company development.
• 0% company income tax on retained earnings.
• Founders and board members may be non-residents of Estonia.
• There are no salary requirements to the company’s director.
• Ability to apply for a residence permit for up to 5 years if you’re conducting business.
• Estonia has entered into the convention for the avoidance of double taxation with 59 countries.
• Estonia has a transparent and clear tax system without progressive taxes.
Want to learn more about Estonia and the company formation procedure? Get in touch with one of our experts.
Latvia
Due to Latvia’s strategic location between the EU and the large markets to the East, it makes Latvia a desirable destination for transport and logistics industry among many others.
What are the main features of an SIA private limited liability company?
• The most common business vehicle in Latvia
• Minimum share capital is €2.800, at least half to be paid up
• Minimum number of directors is one
• No restrictions on foreign shareholders
• Accounts to be maintained in line with statutory requirements
• At least one employee in the company is obligatory from 2017
Latvia company benefits
• Highly skilled, bilingual and cost-effective industry professionals
• Highly advanced internet developments ranking in top 10 of countries with fasted internet connection speed.
• E-services is being heavily promoted by the National government for the multiple uses regarding important documents.
• Start-up friendly environment such as favorable tax if the start-up meets the requisite criteria
• Any nationality can set up a company in Latvia, which can be done completely remotely
Want to learn more about Latvia and the company formation procedure? Get in touch with one of our experts.
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