Articles
Buy Shelf Company in Lithuania
Updated on Monday 26th September 2022
Rate this article
based on 6 reviews
based on 6 reviews
There are several ways in which foreign enterprisers can open companies in Lithuania. Two of the most popular are the registration of a new company and the purchase of a ready-made company, also known as a shelf company.
There is also the possibility of buying shares in an existing Lithuanian company, however the procedure is more complicated and requires more resources. Below, our company formation agents in Lithuania explain why you should choose a shelf company.
Types of companies in Lithuania
The Commercial Code provides for several types of companies in Lithuania. Our consultants in company formation in Lithuania can provide an extensive presentation on the advantages of each company type, so that you can make an informed decision when selecting a legal entity. These legal entities are:
-
• the sole trader and the partnership which are the simplest business forms available in this country;
-
• the individual enterprise, which refers to a business carried out by a single person;
-
• the private and public limited liability company, the most common ways to open a company in Lithuania;
-
• branch offices, subsidiaries and representative offices which are available for foreign companies seeking to expand their operations in Lithuania.
Among these, the shelf company can take the form of limited liability companies in Lithuania. Those who want to buy a Lithuanian ready-made company should know that this entity provides the following: incorporation documents, VAT number, bank account and a registered address.
This is also the reason why they are called ready-made companies. Our Lithuanian company formation consultants can help you choose the right type of shelf company.
You can rely on our team if you need information on other types of advantages of the shelf company, some of which will be presented in this article.
| Quick Facts | |
|---|---|
| Legal entities available for shelf company |
The most common way to buy a shelf company in Lithuania is to opt for a entity incorporated as a limited liability company. |
|
Time required for purchasing the company |
1 day, if the investor has all the required documentation. |
|
Types of features it includes (corporate bank account, VAT number, etc) |
Those who will buy a shelf company in Lithuania benefit from: legal business address, incorporation documents registered with the local authorities, subscribed capital. |
| The advantages of a shelf company | The company has already been incorporated, the new owners do not have to arrive in Lithuania for the purchase formalities if they address to local specialists, the corporate bank account can be set up remotely, the company does not have debts or other liabilities. |
| Appointing new directors (yes/no) | Yes |
| Capital increase allowed (yes/no) |
Yes |
| Certificate of no commercial activities (yes/no) |
Not stipulated |
| Modify the objects of activity (yes/no) |
Yes, those who buy a shelf company in Lithuania can change its activities. |
|
Participants in the purchase procedure in Lithuania |
The seller and the representatives appointed by the buyer (the buyer is not required to participate). |
| The cost of buying a shelf company | The costs can start from EUR 700. |
| Documents necessary for the purchase | The buyer's personal documents, information on the main changes brought to the company, the power of attorney, information on the appointed director. |
|
Taxes applied to a shelf company |
The shelf company is liable to the same taxes charged to companies in Lithuania. |
| Changing the registered address (yes/no) | Yes |
| Aged shelf company available (yes/no) | Yes |
|
The institution where corporate changes are registered |
The Register of Legal Entities |
Important aspects to know when buying a shelf company in Lithuania
If you have decided not to opt for the process of company formation in Lithuania, regardless of your reason, you can start the procedure of buying the shelf company. Usually, foreign investors will opt for the second option as way to diminish the time spent with the incorporation formalities.
This is also due to the fact that investors want to start their operations in Lithuania as soon as possible, and this is where the shelf company is the ideal vehicle.
There are other advantages when opting to buy a shelf company in Lithuania, and they will be presented later in this article. As far as the process of purchase is concerned, investors should be aware of the following:
- • the standard process for Lithuania company formation lasts between 5 to 10 working days;
- • by selecting a shelf company, this period of time can be greatly reduced to 1-2 days, although in some cases it can increase to maximum 5 days, in the case in which various required documents have not been submitted (however, this rarely happens);
- • the procedure for the actual purchase of the company can be completed in 1 day with the help of our consultants;
- • you should also expect to pay various fees, for instance the notary fee, through which the purchase is completed, will start at EUR 50;
- • you should also expect to pay at least EU 50 in the case in which the procedure is done through the power of attorney, which implies that your presence in the country during the purchase will not be necessary.
When starting this procedure, you should know that the shelf company is simply a company that has already been incorporated and which can start its activities immediately after the purchase is completed.
The advantage of this company type is that the company has never had any commercial activities, as it was registered solely for the purpose of being purchased by investors who want to avoid the process of company incorporation in Lithuania.
In Lithuania, one can purchase two types of shelf companies: the first refers to ready-made companies that have been incorporated in the last year prior to their purchase, and shelf companies that have an age of at least 2 years since the incorporation.
The latter are known as aged shelf companies and they can provide additional advantages for investors.
For instance, in the case in which you want to open a company in Lithuania and you need to apply for a bank loan, the loan can be awarded in most of the cases to investors who can prove commitment to their business and newly founded businesses do not have a high level or reliability, as the first years of business operations are typically the hardest and this is why banks will not take a risk on new companies.
When buying a shelf company in Lithuania, especially an aged shelf company, you will be able to obtain a bank loan following a much simpler procedure, as the bank will know that the company has several years since its incorporation and this can become an important advantage for those who need a larger capital in the beginning phases of their business activities in Lithuania.
Please mind that in the first part of the article we mentioned that the shelf company can provide a VAT number or a bank account, along with other basic characteristics that are typically present once a company gained legal personality.
However, not all shelf companies are incorporated with a corporate bank account or a VAT number, these being steps that can be completed by the investors after the purchase is made. In case you need legal services in another country, for example in Hungary, we recommend our partners - LawyersHungary.com.
Our team of consultants in company formation in Lithuania can offer more details regarding the procedure to register for VAT in this country. The tax registration, including the one for VAT, is done through the State Tax Inspectorate operating under the Ministry of Finance of the Republic of Lithuania.
In principle, all commercial companies that develop business activities in Lithuania are liable for the payment of VAT, but the obligation can arise after a certain income is achieved.
Our consultants in company registration in Lithuania can offer in-depth tax assistance regarding this matter and can help you register for taxes here.
What are the services that can be offered by our specialists in Lithuania?
Our team of consultants in company formation in Lithuania can provide many services to local and foreign businessmen. In connection to buying a shelf company in Lithuania, our team has a set of services investors will find useful.
For instance, investors can rely on us for finding a suitable office for the company. This can be done by selecting one of the following 2 options: 1) renting an office space suitable to the business activity carried out through the purchased company or 2) selecting the services of a virtual office.
The decision should be based on: 1) the budget the investor has or 2) the business activity the company will carry out.
Regardless of the choice, it must be noted that any business must have an official business address, and this is compulsory regardless if an investor will start the process of company formation in Lithuania or if he or she will choose to purchase a shelf company.
Our team will also take care of preparing the sale-purchase documents, as well as any other documents that are necessary once the change of ownership is registered.
Considering that some of the procedures have to be done through the services of a notary public, you must know that we can intermediate this, and put you in contact with a notary public who has an extensive experience in dealing with corporate documents.
Additionally, our consultants can help clients in the process of setting up a corporate bank account – here, specific documents have to be submitted, which can slightly vary based on the commercial bank selected by the client.
Investors can also obtain VAT registration services from our team; these are the basic services that can be offered by our team in connection to the purchase of a ready-made company.
However, you can rely on us for other matters – such as obtaining business permits and licenses. Depending on the nationality of the foreign businessmen, immigration procedures may apply.
By this, we refer to the process of applying for visas that allow foreigners to develop a business activity here, as well as the issuance of residence permits and other matters associated to relocation to a foreign country.
You can easily rely on our team for any of the matters presented here.
Please mind that you can also purchase a ready-made company in Lithuania that has a VAT number, however, this feature will be reflected in the overall sale price and this is due to the fact that the issuance of a VAT number is a complex legal procedure.
What information should the owner provide?
Persons who are interested to purchase a ready-made company must provide a set of documents and details. First of all, it is important to know the type of business activity that will be carried out through the shelf company.
Then, the beneficial owner must present details about the following: 1) his or her name, 2) the phone number, 3) the e-mail address, 4) the current address, 5) a recent photo (passport size).
It is also necessary to appoint a director, and in this case, the same details as the ones mentioned above are necessary.
Foreigners must know that the legislation in Lithuania is oriented towards foreign investors – currently, there aren’t any restrictions with regards to the nationality of a foreigner who wants to buy a shelf company or to set up a business.
The same applies to the appointed directors of a company owned by a foreigner (or to the board of directors). However, residency requirements can be imposed.
If you need further information concerning residency matters, our team of consultants in company formation in Lithuania is ready to assist you. Our team can also help you with advice on how to relocate here with your family members.
How to buy a shelf company in Lithuania
The company due diligence is the first step when deciding to buy a shelf company in Lithuania. Once the process is completed, the sale-purchase agreement can be signed and the transfer of ownership can be registered with the Trade Registrar in Lithuania.
The new owner of the company has the right to bring several changes to the shelf company, among which we mention: the name of the shareholders, the appointment of new directors and managers and the registered address.
With respect to the registered address of a shelf company, we offer advantageous virtual office packages in Lithuania.
These changes must be announced with the Trade Register. If you are interested in buying a shelf company and need assistance, do not hesitate to contact our company registration specialists in Lithuania. We can also help you register a new company in Lithuania.
Meet us in Vilnius
Marijus Šaras is our experienced corporate lawyer who can help clients open companies in Lithuania.
Call us now at +37061578743 to set up an appointment with our lawyers in Vilnius, Lithuania. Alternatively you can incorporate your company without traveling to Lithuania.
As our client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Lithuania.
Contact usFor Website Owners
Are you a website owner? We are open to different partnerships and collaborations.
Become our Partner!
We recommend ClientPedia
This website is marketed by ClientPedia
