You don`t have to register your business activities in Lithuania, unless your business activities create a permanent establishment.

Foreign company is treated to have a permanent establishment (PE) in Lithuania when:

  • It permanently carries out commercial activities in Lithuania in whole or in part
  • It carries out its activities through a dependent representative (agent)
  • It uses a building site or construction, assembly, or equipment objects
  • It uses equipment, including drilling installations and ships, for exploration or extraction of natural resources

PE must be registered as a taxpayer with the local tax authority and its profits are subject to tax on Corporate Income at the rate of 15%

Subsidiary company, branch office vs. PE?

  • Registration of  a PE (itself) requires less formalities and financial investments
  • Yet in practice, ambiguities related to calculation of profit and losses may prove to be costly
  • Specific requirements and restrictions related to a PE expenses exist

Before concluding a contract, the seller has to provide the consumer with the following information:

  • Main features of the goods/services
  • Information about the seller:
  1. Name of the company,
  2. Legal form,
  3. Address of the company or address of economic activities to which the consumer could send complaints (if different),
  4. Email,
  5. Telephone,
  6. Fax.
  • Price, incl. all applicable taxes OR method of price calculation
  • Rates applicable for communication means, when they are calculated differently from a standard
  • The order of payment, delivery, execution of the contract, applicable terms for delivery of goods/services and the order of dispute resolution
  • Consumer’s right to refuse from the contract and the order of implementing such right
  • Information on consumer’s duty to pay expenses related to return of the goods (if applicable)
  • Reminder on guarantee of the goods
  • Client service after conclusion of the contract and quality’s guarantee and its conditions (if applicable)
  •  Code of Conduct applied by the seller  (if applicable)
  • Validity term of the contract and, if unlimited, the order of termination of the contract (if applicable)
  • Minimal validation of the agreement (if applicable)
  • Information on collateral and guarantees provided by the user and related to the order (if applicable)
  • Possibility to provide a complaint and demand for damages out of court (if applicable)
  • Details on digital content

The seller has to ensure that pre-contractual & contractual clauses would be in Lithuanian, clear and understandable

What else to consider?

  • IP protection – Trademark
  • Multiple-class applications are possible in Lithuania
  • Trademark in Lithuania is valid for 10 years from the date of filing of the application
  • Trademark registration basic fees:
  1. Filing fee for an individual trade mark – 180 EUR (vs. EU trademark for one class 850 EUR)
  2. Fee for 2nd and each subsequent class of goods/services for an individual trade mark – 40 EUR (vs. the fee for the second class of  goods/services 50 EUR; the fee for three or more classes – 150 EUR for each class)

 

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