Out of many things to consider when starting a business is a suitable location that will enhance the expansion, globalization, comfort, and guarantee the business’s well-being and its employees. However, research has proven that recently, most foreign investors, entrepreneurs, and start-ups are more interested in Europe as a business environment. Still, the general question is, what exact county is suitable?
With no alteration, there are several suitable countries to start a business in Europe, but out of many, Lithuania is outstanding. In this article, you will understand why Lithuania stands out.
Top Reasons To Start A Business In Lithuania
There are several reasons Lithuania is a suitable country for your start-up business, as mentioned above. However, these are some of the top reasons:
Perfect Cost Of Living And Quality
Of many things that make Lithuania a suitable place for a start-up business is its cost of living. You don’t necessarily need to spend a lot to establish your business, get a suitable apartment, and have other facilities in Lithuania. The average price for food, restaurant, transportation, utilities, and housing is very affordable.
Moreover, according to the Organization for Economy Cooperation and Development (OECD), Vilnius is ranked among the top six cities regarding work-life balance, with its well-developed infrastructure and service sector. In general, most facilities in Lithuania are of high quality with affordable prices, including health services, entertainment, apartments, etc.
Transportation is one of the essential elements of a successful business. It aids the distribution and connection between manufacturers, suppliers, and customers. Therefore, a suitable site for a business should have good transportation.
In that case, the Lithuanian government ensures a strong and reliable transport system to support the growth of infant companies and start-ups and attract foreign investors. In addition, you don’t necessarily need to own a car to be mobile in Lithuania. There is the emergence of car-sharing companies, including, CityBee, Spark electric vehicle, and others, which are affordable and enough to secure your mobile safety.
Moreover, you can easily connect with other European countries through air transportation in Lithuania, as there are more than three international airports in Lithuania.
Fast Internet And E-Services
Fast and reliable internet and e-services are essential to foster business development, communication, and collaboration. Most significantly, if you want to interact with your employees, colleagues, or clients, a good internet guarantee and secure daily workflow and communication.
Moreover, according to “DNA of the future Economy,” 90% of public sector services in Lithuania have been digitalized, while 97% of the country’s businesses use e-service. As a result, it’s easier for companies to perform most of their activities online, including the administration of taxes, recruiting of workers, the performance of business services, and other online services.
Availability Of Business Accounting Companies
Another essential element that makes Lithuania suitable for business is the availability of several business accounting companies. Typically, to build a strong and smooth-running business, there is a need for professional accounting services with an understanding of essential accounting tips. That’s why Lithuania serves as the best option for most start-up businesses that need help and advice on how to reduce costs, improve their top line, and mitigate risks.
However, one of the notable business accounting companies perfect for start-up businesses in Lithuania is StartBusiness.
Most Lithuanians are not only fluent in speaking Lithuanian but also in foreign languages like English and Russian. According to the Eurostat data, 95.6% of Lithuanians speak one or more foreign languages. Therefore, foreign investors and entrepreneurs find it easier to communicate with the locals, which promotes the development of their businesses in the country.
Low-Income Tax Rate
One of the major forces drawing the interest and attention of lost foreign investors, entrepreneurs, and start-ups in establishing businesses in Lithuania is its corporate tax rate. According to “Doing Business” in 2020, Lithuania was ranked 3rd lowest profit taxer country. Its corporate tax rate is 15%, well below the OECD average of 23.6%.
In addition, Micro companies may be entitled to a reduced rate of 5℅ for subsequent tax periods.
Stable Economy Market
Another reason why Lithuania is a suitable country to start a business is its stable economic market. It moved from a centrally planned economy to a market economy in the early 1990s, and currently, it’s known to be the largest economy among the three Baltic states.
Moreover, Lithuania has been enjoying high growth rates after joining the European Union, and its economy has grown more than 500 percent since it gained independence. Generally, Lithuania is known to be one of the fastest-growing economies in the EU.
The phrase ” all work and no play makes Jack a dull boy” is not applicable in Lithuania. You can easily find a nice relaxation spot in Lithuania, especially in Vilnius. You can go for a weekend to the branches of the Baltic Sea and some other places in the capital.
Frequently Asked Questions
Is Lithuania Suitable For Start-Ups?
Absolutely yes, Lithuania is a perfect country for start-ups who wants to foster the development of their businesses. It has strong a d reliable facilities, including some start-up support-oriented companies like StartBusiness and others.
Is it easy to start businesses in Lithuania?
Starting a business in Lithuania is stress-free. You can start the registration of your business online as far as you have the required documents. Moreover, you don’t have a problem with language barriers as there are foreign speakers and opportunities in Lithuania. Some of the notable languages include English, Russian and Polish.
Can foreigners start a business in Lithuania?
Yes, Lithuania is an open place for foreign investors, start-ups, and entrepreneurs who want to develop their companies’ reach and influence. Through the e-resident status, you can use all e-services, open a bank account, and do other things as you start your business.
Lithuania is a perfect country for both local and foreign investors, entrepreneurs, and start-ups to flourish and develop drastically as a result of government aid, infrastructural facilities, reasonable cost of living, low taxes, and some other reasons.