Holding Companies in Lithuania

Updated on Thursday 06th December 2018

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Holding-companies-in-Lithuania.jpgLithuania is the largest country among the Baltic states, which is why it attract a great number of investors interested in starting companies here. Speaking about companies, one of the most successful type of structures here is the holding company which is a business form which gathers and manages the assets of other companies.

The creation of a holding company in Lithuania is also available for foreign investors and companies coming to this country. Below, our company formation agents in Lithuania present the characteristics of holding companies.

Requirements to open a holding company in Lithuania

The Lithuania holding company can take one of the following forms:

No matter type of structure chosen for the holding company, the following requirements must be met upon incorporation:

  1. at least one shareholder must be appointed upon the registration of any type of business form;
  2. a minimum share capital is required – 2,500 euros in the case of a UAB and 40,000 euros in the case of the AB;
  3. the UAB must have at least one manager, while the AB must have at least 3 managers; in both cases a supervisory council is optional;
  4. audit requirements are mandatory for the AB, while for the UAB these are mandatory only if a certain annual income is registered.

Our company registration consultants in Lithuania can help foreign investors who want to set up holding companies under any of the business entities.

Taxation of holding companies in Lithuania

One of the main reasons for creating holding companies is the tax benefits these structures offer. It should be noted that Lithuania does not have a holding regime, however the tax authorities here provide the following facilities for the shareholders of such entities:

  • - no capital duties for holding companies buying shares in other companies;
  • - a participation exemption regime is available in the case of distribution of dividends;
  • - the transfer of shares is exempt from taxation in the case of holding companies, provided certain requirements are met;
  • - the holding company will be subject to the corporate income tax which has a rate of 15%.

For full information on the advantages of holding companies or assistance in setting up such company, please contact our Lithuanian company advisors.

 

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