Lithuania is a small but dynamic country in the Baltic region of Europe, with a population of about 2.8 million people and a GDP of $54.4 billion in 2020. Despite challenges Lithuania has shown resilience and innovation, ranking 11th in the world and 3rd in the EU for ease of doing business, according to the World Bank’s Doing Business 2020 report.
Lithuania offers many advantages for entrepreneurs and investors who want to start or expand their businesses in this market. Some of these include a low corporate income tax rate of 15%, a highly skilled and educated workforce, a strategic location between Western and Eastern Europe, a modern infrastructure and digital connectivity, and a supportive ecosystem for start-ups and innovation.
If you are looking for profitable business ideas in Lithuania, you will find plenty of opportunities across various sectors and industries. Whether you want to offer services, sell products, or create solutions, there is something for everyone in this diverse and vibrant economy.
In this article, we will explore some of the best business ideas to start in Lithuania in 2023, based on market trends, customer demand, and competitive advantages.
How to start a business in Lithuania?
To start a business in Lithuania, you need to follow some steps and procedures. Based on my web search, some of the steps to start a business in Lithuania are:
1. Prepare articles of association:
This is a document that contains the main information and rules of your business, such as the name, purpose, structure, shareholders, management, etc. You need to prepare this document according to the legal requirements and the type of business entity you choose.
2. Reserve a temporary company name:
This is an optional step that allows you to secure your preferred business name for 6 months before registering it officially. You need to submit an application to the Register of Legal Entities and pay a fee of EUR 161
3. Open an accumulative bank account:
This is a bank account that you use to deposit your share capital, which is the minimum amount of money you need to invest in your business. The minimum share capital for a limited liability company in Lithuania is EUR 2,500. You need to transfer at least 25% of the share capital to the accumulative account before registering your business.
4. Notarize the founding documents:
This is a step that verifies the authenticity and validity of your founding documents, such as the articles of association, the founding act or agreement, the proof of share capital deposit, etc. You need to visit a registered notary’s office in Lithuania and pay a fee that depends on the amount of share capital.
5. Register the company with the Register of Legal Entities:
This is the final step that officially establishes your business as a legal entity in Lithuania. You need to submit your notarized founding documents, along with an application form and a registration fee of EUR 57.44. You can do this online or in person at the State Enterprise Centre of Registers.
What are the most profitable businesses in Lithuania?
Some of the most profitable businesses in Lithuania are:
1. Tech business:
This is a broad category that covers various types of businesses that use technology to create innovative products or services, such as software development, web design, e-commerce, fintech, biotech, etc. Lithuania has a strong tech sector that attracts talent, investment, and customers from around the world. Some of the successful tech businesses in Lithuania include Vinted, TransferGo, Trafi, TeleSoftas, etc.
2. Link building service:
This is a type of SEO business that helps other websites improve their visibility and ranking on search engines by creating relevant and high-quality links to their pages. You can charge a fee per link or per project, depending on the client’s needs and budget. Link building is a profitable business because it can generate recurring revenue and has low overhead costs. Some of the successful link building businesses in Lithuania include GetFound XL, Linkody, Linkody Pro, etc.
3. Chatbot development business:
This is a type of software development business that creates conversational AI chatbots for various purposes, such as customer service, sales, education, entertainment, etc. You can use platforms like Dialogflow, Rasa, or Botpress to create custom chatbots for your clients or offer chatbot templates for different industries and niches.
Chatbot development is a profitable business because it can provide value to your clients by increasing customer engagement, satisfaction, and retention. Some of the successful chatbot development businesses in Lithuania include Botsify, Chatfuel, Landbot.io, etc.
4. Logistics business:
This is a type of transportation and delivery business that facilitates the movement of goods and people from one place to another. You can offer services like courier, freight forwarding, warehousing, distribution, etc. You can also use technology like GPS tracking, online booking, etc. to enhance your efficiency and customer satisfaction.
Logistics is a profitable business because it can cater to the growing demand for fast and reliable delivery services in various sectors, such as e-commerce, manufacturing, tourism, etc. Some of the successful logistics businesses in Lithuania include Girteka Logistics, DPD Lietuva, DHL Express Lithuania, etc.
5. Consulting business:
This is a type of professional service business that offers expert advice and guidance to clients on various topics and issues, such as business strategy, management, finance, marketing, legal, etc. You can leverage your skills, experience, and network to provide valuable insights and solutions to your clients. You can charge an hourly rate or a fixed fee for your consulting services.
Consulting is a profitable business because it can help your clients achieve their goals and overcome their challenges. Some of the successful consulting businesses in Lithuania include Civitta International Ltd., EY Lithuania (Ernst & Young), PwC Lithuania (PricewaterhouseCoopers), etc.
Are there any government grants or loans available for startups in Lithuania?
Yes, there are some government grants or loans available for startups in Lithuania. Some of the government grants or loans for startups in Lithuania are:
1. EU Entrepreneurship Promotion Fund:
This fund offers loans to SMEs looking to launch or expand their business in Lithuania at favorable rates. The INVEGA money and the Ministry of Economy and Innovation are responsible for managing the money. With an interest rate of 3% per year and a maximum repayment period of 7 years, the fund makes loans up to EUR 25,000. The beneficiaries of the fund are also given training and mentoring services.
2. Venture Capital Fund II:
With a high potential for growth and a need for funding to expand their operations in Lithuania or abroad, SMEs can access loans from this fund at favorable rates. The European Investment Fund and the INVEGA Fund jointly manage the fund. The fund provides loans up to EUR 600,000 with a 6% yearly rate of interest and a maximum repayment period of 10 years. Additionally, the beneficiaries of the fund receive equity investments and assistance with business development.
3. Public funding:
This is a category that covers various types of grants, subsidies, tax incentives, and other forms of financial support that the government provides to SMEs and startups in Lithuania. Some of the public funding sources include the Innovation Voucher Scheme, the Smart FDI Scheme, the R&D Tax Incentive Scheme, the Startup Employee Visa Scheme, etc.
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What are the benefits of doing business in Lithuania?:
This is a question that people ask when they want to know the advantages and incentives of starting or expanding a business in Lithuania. Some of the benefits include low corporate tax rate, skilled and multilingual workforce, strategic location and access to EU markets, high-quality infrastructure and technology, supportive government policies and programs, etc.
I hope this article was helpful. If you have any other questions or comments, please let us know in the comments section below.