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Residence permit in Lithuania

Many entrepreneurs are looking for a comprehensive and inexpensive solution that will allow them to both create a company and stay in the country to live. One of the ideal options for such purposes is Lithuania. Since Lithuania offers simple and convenient conditions for creating a business, and registering a company is inexpensive, this allows you to immediately “kill two birds with one stone”: create a business and obtain a residence permit in Lithuania.

Residence permit in Lithuania

Posted 14 June 2024

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Advantages of Lithuania for Business Immigration

  1. Registering a company in Lithuania is very simple. A minimal set of documents and a solid business plan are required. The stages of company formation can be summarized as follows:
    • Checking the availability of the company name in the Company Register;
    • Preparing all necessary forms and declarations;
    • Submitting documents and forms for registration;
    • Opening a bank account to deposit the minimum share capital of EUR 2,500;
    • Registering the company and preparing the document package;
    • Creating a company seal and preparing the final set of documents;
    • Notarizing documents, apostille (if needed);
    • Sending original documents and the seal to the required address.
      The registration process takes no more than 5 days from the moment all documents are submitted to the registration authority.
  2. There are no residency requirements for the founders, directors, and shareholders of the company. This means the company can be registered with 100% foreign participation.
  3. The standard corporate income tax rate in Lithuania is only 15% (in certain cases even less).
  4. Low registration costs and affordable living expenses. Since the company must show minimum values that allow its founder to support their stay in the country, the cost of living is important. Lithuania has a low cost of living, making it feasible to meet the requirements for extending a residence permit.
  5. Doing business with Lithuanian partners is a pleasure. Many of our clients note that the comfort and ease of communication with Lithuanian business partners is one of the biggest advantages of establishing a company in Lithuania.

How to Obtain a Residence Permit in Lithuania?

Lithuania offers one of the most accessible and convenient ways to immigrate to the country and obtain a residence permit through company registration. Once the company is registered, you can immediately apply for a residence permit.

Interesting:
You can apply for a residence permit through a special electronic portal, the Lithuanian Migration Information System (MIGRIS).

The first step after registering a company is to prepare a set of documents.

Among the required documents are:

  1. Articles of incorporation for the company in Lithuania (or for the parent organization if a branch or subsidiary is being established in Lithuania);
  2. Business plan. The business plan should clearly outline the type of business activity and the company’s development plan;
  3. Identification documents for the founder/general director of the company in Lithuania (IDs, proof of residence, etc.);
  4. Bank statement of the founder and general director. The account balance should be sufficient to support business development and living expenses in Lithuania;
  5. Health insurance;
  6. Document confirming the creation of at least one job for local citizens by the applicant.
Note:

Creating one job is the minimum requirement. However, it is advisable to provide 3-5 jobs to minimize the risk of being denied a residence permit.

After all the documents have been submitted to the Lithuanian migration service, an interview will be scheduled with the applicant for the residence permit. Upon successful completion of the interview, a good business plan, the provision of jobs in the Lithuanian company, a share capital of EUR 28.000, and proof of sufficient funds for living in the country, a decision will be made on the issuance of the Lithuanian residence permit.

However, obtaining a residence permit is not as crucial as maintaining, renewing it, and eventually applying for permanent residence and citizenship.

Want to get further insights?

Schedule your free consultation with our expert!

Diane

Diane, partner of GFLO Consultancy

Requirements for Extending a Residence Permit in Lithuania

When a company is just being established, strict requirements are not imposed on it. Therefore, a well-composed business plan and a decent balance in the bank account are sufficient to obtain a residence permit. However, as the company matures, the requirements for the applicant become stricter, and these requirements must be carefully adhered to for the residence permit to be renewed.

  • Firstly, it is necessary to demonstrate that the company is profitable. A successful project that generates enough income to cover all company expenses, such as employee salaries, office rent, and living expenses in the country, minimizes the risk of refusal to extend the residence permit. If the company shows good potential and increasing profits, there will be no objections to such a company, and the business owner will easily extend the residence permit. However, if the company operates at a loss from the second year of existence, an extension may be denied.
Interesting:

Every situation is unique and is considered individually by the migration authorities. For example, if a company shows slight losses or breaks even in the first year but has good prospects for development, it may not affect the issuance of a residence permit. This is acceptable for start-up enterprises; however, after the first year, progress is expected from the company.

  • Secondly, it’s necessary to increase the number of jobs for residents of Lithuania. The state is interested in reducing unemployment and increasing employment opportunities, so a growing number of vacancies in your company can be an excellent advantage for extending the residence permit.
  • Thirdly, you need to provide evidence that the holder of the residence permit has sufficient financial resources to live in Lithuania.

In addition to the above criteria, other factors may also be assessed, such as the project’s usefulness for the Lithuanian economy, the company’s potential for developing sectors that are underdeveloped in Lithuania, the innovativeness of the proposed products, and others.

Conclusion

All questions related to the immigration process are always unique and therefore require individual examination. If you already have a plan to immigrate to Lithuania, contact us so that we can find the most advantageous strategy and the best option for obtaining a residence permit in Lithuania.

GFLO Consultancy experts are pleased to assist and help you with any inquiries, just get in touch or leave a request through the form right below.

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