Establishment of a sole proprietorship
Opening an Individual Enterprise (Iฤฎ) in Lithuania is a popular option for those looking to legalize their business. Unlike a small partnership or a closed joint-stock company, an Individual Enterprise has a key distinction: the owner is personally liable for the company’s obligations with their own assets. Another significant difference is that the owner and founder of an Individual Enterprise must be a single natural person, meaning that an Iฤฎ cannot have multiple founders or shareholders. This structure is ideal for entrepreneurs who prefer full control over their business but should be aware of the personal liability that comes with it.
Original price was: 168,75 €.135,00 €Current price is: 135,00 €. without VAT
- 4-5 working days.
The price includes all the essential services, so you wonโt need to worry about anything yourself. We ensure to provide you with offers at a good price and present a wide range of all the necessary services from A to Z, so that company registration questions cause you no difficulties.
“MyTax” will take care of everything to ensure that the establishment of your individual enterprise (Iฤฎ) goes smoothly and will always be there to assist whenever needed during the operation of your business.
Establishment of a sole proprietorship
ORDER SERVICES FROM ANYWHERE IN THE WORLD! WE WILL ESTABLISH YOUR COMPANY WITHOUT YOUR DIRECT INVOLVEMENT
Are you interested in establishing an Individual Enterprise (Iฤฎ) in Lithuania? The MyTax team is here to assist you in setting up the type of company you desire and managing its affairs, offering customized accounting services based on your unique business needs!
Setting up an Individual Enterprise (Iฤฎ) is a quick and straightforward process. With our expert support, youโll be able to open your company and start your business without delay. Read on to learn about the specific requirements an Individual Enterprise must meet.
At MyTax, we take care of all the paperwork and provide ongoing support, ensuring you can focus on growing your business with ease.
Establishing a sole proprietorship online
Establishing an Individual Enterprise (Iฤฎ) online is now simple and efficient. At MyTax, our team prepares and submits all the required documents within 4-5 working days, ensuring a fast and seamless process.
No matter where you are located, you can register your Individual Enterprise online from anywhere in the world. Your business location does not affect the registration process.
If you already have a business idea, a company name, and the funds to start your operations, simply contact us, and our specialists will handle everything for you. With years of experience in establishing and accounting for Individual Enterprises, the MyTax team is ready to support your business goals with speed and professionalism.
Advantages of establishing a sole proprietorship
Advantages of Establishing an Individual Enterprise (Iฤฎ) in Lithuania
Opening an Individual Enterprise (Iฤฎ) in Lithuania is a popular and straightforward way to legalize your business. This business structure offers several advantages compared to other types of companies, such as a small partnership or a private limited liability company (UAB).
Key Advantages of an Individual Enterprise (Iฤฎ):
- No Statutory Capital Required: One of the main benefits of an Individual Enterprise (Iฤฎ) is that it does not require statutory capital to start, meaning you can begin your business with only a small investment.
- Simple Profit Withdrawal: As the sole owner of the enterprise, you have the flexibility to withdraw funds or assets from the company at any time for personal use.
- Low Tax Burden: Since the owner can be the only working person in the business, the tax burden is relatively low. Additionally, if family members are employed in the enterprise, employment contracts can be established, providing tax benefits.
- No Need for Additional Employees: You can operate your business alone without needing to hire additional employees, which helps to keep tax obligations low.
- Easy Conversion to a Private Limited Company (UAB): If your business grows or your needs change, an Individual Enterprise can be easily converted into a private limited company (UAB).
- Ideal for Family or Individual Businesses: Iฤฎ is perfect for individuals or families looking to run a business with minimal risk. It is best suited for businesses that are not considered high-risk.
Summary of Iฤฎ Advantages:
- No statutory capital required.
- Simple and flexible profit withdrawal.
- Lower taxes by not needing additional employees.
- Easy conversion to a private limited company (UAB).
If you’re looking for a simple, cost-effective, and flexible way to start a business, establishing an Individual Enterprise (Iฤฎ) in Lithuania could be the right choice for you.
Sole proprietorship taxes
The owner of an individual enterprise (Iฤฎ) is required to pay several different taxes, including corporate income tax (PM), value-added tax (VAT), and others. The real estate tax is paid only if the individual enterprise owns registered property. The specialists at “MyTax” will ensure that all taxes related to the individual enterprise are handled accurately, taking care of tax calculations and declarations to the appropriate authorities.
Sale to foreign citizens
We can sell the company without your presence (advance payment and postal fees are required).
According to the order No. VA-189 of the Director of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania, dated December 15, 2004, a legal entity that has registered a new company must submit the required information within 5 working days after the notification of registration in the tax payer register, specifying the person (or company) responsible for managing the taxpayer’s accounting.
What are the founding documents for a sole proprietorship?
The company’s name has been registered in the Register of Legal Entities. Other documents include: the owner’s decision to establish an individual enterprise, the articles of incorporation of the individual enterprise, the founding agreement, and the consent of the property owner to provide these premises for the company’s establishment (if the company owner and the property owner are the same, ownership documents).
What is the liability of a sole proprietorship owner?
The owner of the company is usually the company’s manager, but if the owner appoints another person to be the manager of the individual enterprise, a civil or employment contract must be made with that person. The manager begins their work from the period specified in the contract itself.
What is the corporate income tax for a sole proprietorship?
The profit tax for an individual enterprise (IE) is 15% of the total company profit. A reduced rate of 5% applies if the average number of employees does not exceed 10, the annual income does not exceed โฌ300,000, and the IE owner does not hold more than 50% of shares or stakes in other companies.
Establishment of a sole proprietorship
Original price was: 168,75 €.135,00 €Current price is: 135,00 €. without VAT
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