Many entrepreneurs seeking to enter new markets often think about starting a business in the EU. Due to its favourable geographical position, relatively low taxation, availability of qualified personnel and rapid technological and economic development, Lithuania is an attractive jurisdiction for conducting business within the territory of the EU.
It is possible to start a business by registering a company in Lithuania. However, this method is time-consuming. Therefore, you can simply buy an already registered Lithuanian company and start activity in Lithuania quickly and easily, within one working day. Although it may seem that acquisition of a registered company is risky, in fact, a ready for sale company is usually in excellent condition, it does not have any debts or other obligations.
What companies do customers usually purchase?
As a rule, a ready-made company is a private limited company. Simplicity in management and accounting, as well as a limited civil liability cause the choice of customers in favour of a private limited company. Often it is a company with a minimum share capital and a bank account that has not conducted any activity and was registered a few months ago. The company has a universal name, so it can carry out activity in any field.
However, not all clients wishing to start a business in Lithuania choose the new company. Some of them purchase a company in Lithuania which was registered several years ago and has its own history and business experience. Of course, such a company does not have any debts, but it has many years of experience. Its annual turnover and accounting are in good condition. The advantage of this acquisition is that the owner of such a company would enjoy much greater confidence on the part of his partners, financial institutions or other organizations. Such companies usually do not have employees. Thus, a customer buys a good reputation and prestige. You can also select an operating company with a license for certain activity – transportation, construction, etc. However, when choosing a company with a history, it is necessary to make a thorough audit to avoid hidden risks and ensure profitability of this decision. Since there are not many companies with a good history and reputation, they are more expensive and more valuable than newly established ones.
Who buys Lithuanian registered company?
Registered Lithuanian companies are often chosen by the clients who want to save time and do not want to wait until the new business will be created. After having bought the company in Lithuania you are able to manage it on the same day because all the documents and the seal are ready, the bank account is available from anywhere in the world.
Why buying a ready-made company is often more profitable than opening of a new company?
- When buying a ready-made company, you avoid a lot of formalities and queues in various institutions, and you can start working immediately.
- A ready-made company (if it has already led activities) has passed the most dangerous initial stage. So you become the owner of a successful company with a good reputation and are able to gain profit from day one.
The procedure of purchase of a registered company in Lithuania
The procedure of purchase of a company (private company) often begins with selection of a particular company from the list provided. When purchasing a ready-made company in Lithuania, a contract on sale of shares is prepared stipulating the nominal and selling price of shares, the number of shares, and the payment terms. As from 1 January 2015, the documents on sale of shares of the private limited company must be approved by a notary (if at least 25 per cent of the shares of the private limited company is sold or if the price of shares exceeds 14 500 euros). Further, data changes are recorded in the Register of Legal Entities and electronic JADIS system.
Although this method of starting a business is faster, it is more expensive. However, the client may need to take some reorganization measures in the acquired company. So, you may need to change the name of the company or to increase the share capital, or to perform other transformations. All these procedures are not difficult and can be carried out by specialists in a relatively short time, but they need some investments. So, if you seek for professional help, you will be offered a business in accordance with your preferences and plans in a very short time.