If a company has suffered losses, it can deduct them indefinitely from future income. Expenses include not only depreciation and other standard costs, but also amounts transferred to mortgages and credits, insurance premiums, as well as amounts spent on the purchase of shares and some others.
In order to avoid an increase in the taxable base, a firm must pay at least a quarter of the accrued amount four times a year.
All companies in Lithuania are required to keep books and records in the company’s office. Companies are required to submit annual reports on profits and losses. Accounting statements are not public and can be prepared according to international standards. Standard auditing should be performed by firms with stock activities traded in stock markets or companies that are required to prepare consolidated accounting statements.
The cost of opening a company is influenced by the list of documents, many of which require notarization, which implies additional costs. Registration a company in Lithuania implies the submission of certified copies of your internal and foreign passport. You may also need a recommendation from your bank. Additional documents are the charter of the company, bank statement on the authorized capital, information about the founders, lease agreement of premises for the office, as well as any other papers that may be required depending on your chosen activity.
The necessary documents are submitted to the Central Register of the Commercial Court in Lithuania. They are submitted personally by the founder or his representative, who will act on the basis of a notarized power of attorney. When submitting documents will be required to pay state fees, then apply for the production of seals. The head of the company may have any residence, but the main requirement is to have a work permit in Lithuania. Conveniently, it is not necessary to hire a secretary for business, and the power of attorney for the representation can be issued remotely. Thus, the businessman does not face bureaucratic difficulties, there is a complete freedom of action, but with good knowledge of local legislation and a competent approach to the choice of the form of business.
The confirmation is documented – a certificate is issued, which confirms that the company’s registration in Lithuania was successful and it has the status of a resident. This document allows 100% to exclude double taxation, issued for a certain country with an indication of the year of issue. Local organizations – residents by default. To register a company in Lithuania and get a certificate, certain requirements have been introduced. They also concern local legal entities. The organization’s office must be located on the island. If the interests of the company are protected by proxy, it should be special, that is, limited certain powers. Timely submission of reports is mandatory.
Non-resident companies can be registered in Lithuania. Foreign firms pay tax depending on the income received in the territory of the State. However, non-resident organizations are poorly perceived by banks and cannot take advantage of treaties that avoid double taxation. Therefore, opening a company in Lithuania as a resident is the most promising option. If you are interested in registration of a company in Lithuania, the price of organization of a business should consist not only of organizational measures. Depending on the canton in which you decide to do business, the tax may vary. Its average is about 16%. The minimum corporate tax is 4%, but the benefit applies only to holding activities. If your company plans to work only with EU countries, there will be no value added tax. Firms do not have to pay stamp duty and capital gains tax. Currency control is also absent in the country.