HomeBlogHow to Start Business in Lithuania ( Few Tips)

How to Start Business in Lithuania ( Few Tips)

From January 1, 2017, amendments to the law “On the situation of foreign persons” entered into force in Lithuania. They can also be used by foreign companies that want to expand their activities and enter the EU markets. It has become easier for our entrepreneurs to obtain a residence permit to work in Lithuania.

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Business in Lithuania

What opportunities does the law offer to Belarusians?

The amendments to the Law on the Status of Foreign Persons were adopted in accordance with the requirements of the Lithuanian labor market. Reason: high emigration of citizens of the country. Now employers will be able to hire foreign employees more quickly and more easily. The foreign employees can also find businesses for sale in Lithuania easily.

Many qualified specialists left Lithuania and now Lithuanian companies face a shortage of workers – often they simply have no one to hire. First of all, this concerns innovative companies, where not only qualified specialists are needed, but often they are talented and at the same time quite experienced. For example, who become programmers while still in school and start working in IT companies before they have time to finish college.

But the adoption of amendments to the law was good news not only for IT and innovative companies, but also for carriers. Now, drivers of international flights do not need to obtain a work permit from the Lithuanian labor exchange.

Having registered a company in Lithuania and having obtained a license for international cargo transportation, the director, on behalf of the company, has the right to sign an agreement with foreign employees who can apply for a residence permit for work in the Lithuanian Migration Department. The package of documents includes an employment contract (the most important legal basis for obtaining a residence permit for work), a questionnaire, the company’s constituent documents, an intermediary letter from the company, etc.

This became possible because the vacancy is included in the list of specialties whose representatives in Lithuania are not enough. This list also contains:

– Welders – with certificates from Bureau Veritas (VB), Det Norske Veritas (DNV), Lloyd’s Register Group (LRG), Germanischer Lloyd (GL)
– Seamstresses
– Metalworking machine operators
– Metal ship hull assemblers

What does a foreigner need to work in Lithuania

For Lithuanian companies, the indicator for hiring a foreigner now will be only wages – it should be at least 3 average monthly wages according to the Lithuanian Department of Statistics (as of January 19, 2017, this is € 2,380). According to the new rules for applying for a job in Lithuania, one does not need to have a diploma, neither to confirm it, nor to receive permission from the Lithuanian Labor Exchange – the contract and the corresponding salary are enough. How did it work before? Companies had to post a job at the labor exchange for a month and wait for responses to it – primarily from EU citizens. If there were no such volunteers, then only in this case it was possible to hire a foreigner. Now, Lithuanian companies will be able to abandon this principle. This decision of the Lithuanian authorities is consistent with the global trend in attitudes towards higher education documents.

What does the law offer to investors?

For business owners there have been minor changes in case they want to register company in Lithuania. A director (and shareholders) of a company can apply for a residence permit provided:

– The authorized capital of the company is at least € 28,000
– The person owns 1/3 of the shares.
– His investment in the company must be at least € 14,000
– The company must be employed by Lithuanian citizens or permanent full-time residents
– The salary of employees from the item above in the amount must be at least two average monthly salaries in the country – € 1586

Favorable was the amendment that shareholders can immediately apply for a residence permit for a spouse or spouse on the basis of family reunification – now you don’t need to wait for 2 years, as it was before. They will also be able to quickly bring their specialists to the country in order to start a business and train local staff.

Also, the point remains that a residence permit can be obtained on the basis of opening a representative office of a foreign company in Lithuania. If you have been an employee of the company in your country for at least a year, then when you open a representative office of this company in Lithuania, you can apply for a residence permit, which is initially issued for a year and can be renewed for another 2 years.

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