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Foreign direct investment (FDI) in Lithuania


The largest FDI flows by economic activities were to the manufacturing - 28.5 %, trade - 22.3 %, communications - 17.6 %, financial intermediation - 16.6 % of the total FDI. The main countries-investors: Sweden - USD 417.03 million (17.5 %), Denmark - USD 415.6 million (17.4 %), USA - USD 242.3 million (10.2 %), Germany - USD 173.9 million (7.3 %), United Kingdom - US. 

Forms of business organization

Legal norms regulating foundation, legal status, management bodies and their competence, liquidation and reorganisation of different type companies in Lithuania are contained in the Civil Code of theRepublic of Lithuania. According to the Civil Code, all companies operating in Lithuania have a status of a legal person. A legal person shall be defined as a company, institution or organization, which may acquire and exercise rights and obligations at its own name; to be plaintiff or defendant in a court. Legal persons are divided into public, aiming to meet public interests and private, aiming to meet private interests. The state and municipalities are also considered as legal persons.

The Law on Enterprises of the Republic of Lithuania (No I-196) provides for the following types of companies, having status of a legal person, which are permitted to operate in the Republic ofLithuania:

1)Individual (personal) enterprise (sole proprietorship);

2)General partnership (TUB);

3)Limited partnership (KUB);

4)Public limited liability company (AB);

5)Private limited liability company (UAB);

6)Investment company;

7)State enterprise;

8)Municipal enterprise;

9)Agricultural company;

10)Co-operative enterprise.

A legal person shall be considered having been established from the date of its registration with the Register of Legal Persons of the Republic of Lithuania. The unregistered business activities shall be prohibited.

Both Lithuanian and foreign companies may establish their branches and representative offices. They shall function under the authorisation/regulations of the incorporator and they have no status of a legal person. For the tax purposes a foreign company may set-up a permanent establishment in Lithuania.

The legal persons are allowed to merge into concerns, consortiums, associations and other formations if it is not in contradiction to competition laws (see Anti-trust legislation, below).

The most common way to invest in the Republic of Lithuania is a way of an establishment or acquisition of a private or public limited liability company.




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