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.
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
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.
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.