Company incorporation

Part of the European Union and Schengen Treaty, Lithuania is a great destination to form a company that intends to scale in the EU. The country has a seashore, is strongly dedicated to digitally transforming its main economic activities and governance and is continuously attracting more and more foreign investment. Lithuania is among the European fintech leaders. The country’s currency is the euro, and the language is Lithuanian, with wide application of official documents in English.

 

• Advantages

Flexible immigration requirements. Lithuania has favourable regulatory requirements for persons relocating to the country for work or to start or join a business.

Simple and fast establishment. Lithuania boasts one of the fastest business establishment procedures in the EU, with online registration of a company taking less than a week.

 Other benefits of establishing in Lithuania. Lithuania has a favourable tax system as well as a great reputation for companies in the market, meaning that your business in Lithuania can grow in the EU without any obstacles, using the benefits of the EU VAT regime. Moreover, the Lithuanian residence permit allows using the Schengen zone for free movement.

 

• Legal forms

The main types of companies in Lithuania are:

1. 1. Open Limited Company (AB) is similar to a joint-stock company (JSC).
   2. A Closed Limited Liability Company (UAB) is similar to a Limited Liability Company (LTD).
   3. Full Partnership (TUB) or Limited Partnership (UB).
   4. Branch or representation.

 

• Tax system

Lithuania’s tax rates are among the lowest in the European Union.

Profit tax: 5% if the annual income is below 300,000 euros and less than 10 people are employed.

VAT rate: standard rate is 21%.

 

Tax exemption: available, with favourable opportunities to avoid double taxation in international trade

Estonia is the most successful of the Baltic countries in terms of digitalisation and start-up ecosystems. Estonia, a member of the EU and part of the Schengen Treaty, offers great opportunities to manage businesses remotely. Its strategic position close to the Nordics allows for accessing great scaling prospects in the region.

 

• Advantages

Favorable taxation. This includes zero company income tax, no progressive taxes, no requirement to pay salary for a company director, and no need to contribute to the authorized capital. Double international taxation is avoided with the help of the international convention.

Remote-friendly. The country allows fully remote company management via e-Residency. The foreign board members can also apply for residence permits that enable them to travel freely in the EU and acquire real estate via the company tax-free.

 

• Legal forms

The main types of legal entities in Estonia are:

1. 1. Limited Liability Partnershipor Private Limited Company (OÜ)
   2. Public Limited Company(AS)
   3. General Partnership(TÜ)
   4. Limited Partnership(UÜ)
   5. Commercial Association(Tulundusühistu)

 

• Tax system

The tax system in Estonia is exceptionally business friendly. 

Retained earnings tax: 0%

VAT: 20%

Tax on dividends: 25%

The Czech Republic is favourably positioned in the centre of Europe and boasts not only a great infrastructure but also high levels of skilled employees. Foreign investors are very warmly welcomed to the country. With the country being part of the EU and the Schengen Treaty, foreign individuals can utilize country’s residence permit for traveling and scaling their business freely.

 

• Advantages

Business-friendly environment. The country receives top amounts of foreign direct investment and has favourable regulations for new businesses. It also has a great strategic location and a highly skilled workforce.

 

• Legal forms

The main types of legal entities in Czechia are:

1. 1. Limited Liability Company
   2. Joint Stock Company
   3. Branch (Subsidiary)

 

• Tax system

Corporate income tax: 19% (special rates apply)

VAT: the standard rate is 21% (reduced rates apply)

It is widespread knowledge that the UAE is very supportive of businesses and offers an environment for breakthroughs. UAE is best known for its free zones and favourable conditions for starting an offshore company fully remote. It’s a continuously growing market with less-than-average bureaucratic and taxation requirements.

 

• Advantages

Among the main benefits of starting a company in the UAE are great infrastructure, availability of labour and materials, and favourable taxation. There are over 20 economic free zones in the country, allowing for starting a business and having minimal taxation expenses.

 

• Legal forms

The main types of legal entities in the UAE are:

1. 1. LLC
   2. Sole proprietorship
   3. Branch

 

• Tax system

The UAE has one of the most business-friendly taxation systems in the world.

Income tax: 0%

Corporate income tax: imposed only on gas and oil companies and foreign banks

VAT: no VAT