Tentmaker Reports

Lithuania Report

Entrepreneurial Missions Index

45.78

General Information

Population

3,320,656 (128th most populous country in the world)

RELIGIONS
Roman Catholic79.0%
Russian Orthodox4.1%
Protestant1.9%
Other or Unspecified5.5%
None9.5%
LANGUAGES
Lithuanian82.0%
Russian8.0%
Polish5.6%
Other or Unspecified4.4%

Industries

Petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining

Unless otherwise noted, all information included here was obtained from the World Factbook project 4, conducted by the Central Intelligence Agency (CIA). For more detailed information about Lithuania, visit https://www.cia.gov/library/publications/the-world-factbook/geos/lt.html.

Business Information

The World Bank ranks Lithuania as 25 out of 183 economies in terms of ease of doing business. The country ranks as 0 (of 183) in terms of ease of starting a business.

It requires 0 procedures, takes 0 days, and costs N/A% of income per capita to start a business in Lithuania.

In order to start a business in Lithuania, one must follow these procedures:

  1. Open bank account with minimum capital and get a bank certificate proving the availability of the funds; pay the registration fee and obtain the document evidencing the payment
  2. Notarize the agreement / memorandum of incorporation and bylaws; notarize the application for the registration of the private limited liability company
  3. Register at the Company Register, including registration with State Tax Inspectorate (the Lithuanian Revenue Authority) for corporate tax, VAT, and State Social Insurance Fund Board (SODRA)
  4. Complete VAT registration
  5. Inform the State Labor Inspectorate of the startup of the company by letter or phone
  6. Open a settlement bank account (to handle normal commercial transactions
  7. Obtain the official seal of the company

Unless otherwise noted, all information included here was obtained from the Doing Business project 3, conducted by the World Bank. For more detailed information about starting a business in Lithuania, visit http://www.doingbusiness.org/.

 

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Lithuania Economic Freedom

The World Economic Forum (WEF) was founded in 1971 by Klaus Martin Schwab at the University of Geneva in Switzerland.  It is a non-profit foundation best known for its annual meeting in Davos, Switzerland, which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss both economic and social issues facing the world.  The WEF also serves as a think tank, and publishes a wide range of reports focusing on issues of concern and importance to Forum communities. In particular, Strategic Insight Teams focus on producing reports of relevance in the fields of competitiveness, global risks and scenario thinking.  The Global Competitiveness Report measures competitiveness of countries and economic competitiveness among a wide range of factors such as corruption, tax rates, work ethic, and many others.
1A General government consumption spending as a percentage of total consumption 5.8
Area 1-A Data 20.4
1B Transfers and subsidies as a percentage of GDP 6.6
Area 1-B Data 13
1C Government enterprises and investment 10
Area 1-C Data 5.6
1Di Top marginal income tax rate 8
Area 1-Di Data 27
1Dii Top marginal income and payroll tax rates 3
Area 1-Dii Data 46
1D Top marginal tax rate 5.5
1 Size of Government: Expenditures, Taxes, and Enterprises 7
2A Judicial independence (GCR) 4.7
2B Impartial courts (GCR) 4.2
2C Protection of property rights (GCR) 6.9
2D Military interference in rule of law and the political process (CRG) 8.3
2E Integrity of the legal system (CRG) 6.7
2F Legal enforcement of contracts (DB) 7.4
2G Regulatory restrictions on the sale of real property (DB) 9.8
2 Legal Structure and Security of Property Rights 6.9
3A Money growth 7.8
Area 3-A Data 10.9
3B Standard deviation of inflation 8.5
Area 3-B Data 3.71
3C Inflation: Most recent year 8.9
Area 3-C Data 5.72
3D Freedom to own foreign currency bank accounts 10
3 Access to Sound Money 8.8
4Ai Revenues from trade taxes (% of trade sector) 9.8
Area 4-A(i) Data 0.2
4Aii Mean tariff rate 9
Area 4-A(ii) Data 5.2
4Aiii Standard deviation of tariff rates 6
Area 4-A(iii) Data 10
4A Taxes on international trade 8.3
4Bi Non-tariff trade barriers (GCR) 6.4
4Bii Compliance cost of importing and exporting (DB) 8.5
4B Regulatory Trade Barriers 7.5
4C Size of the trade sector relative to expected 5.3
4D Black-market exchange rates 10
4Ei Foreign ownership/investment restrictions (GCR) 6.3
4Eii Capital Controls 6.2
4E International Capital Market Controls 6.2
4 Freedom to Trade Internationally 7.5
5Ai Ownership of banks 10
5Aii Foreign bank competition 10
5Aiii Private sector credit 9.4
5Aiv Interest rate controls/negative real interest rates 9
5A Credit Market Regulations 9.6
5Bi Minimum wage (DB) 6.9
5Bii Hiring and firing regulations (GCR) 4
5Biii Centralized collective bargaining (GCR) 8.2
5Biv Mandated cost of hiring (DB) 0.6
5Bv Mandated cost of worker dismissal (DB) 7.2
5Bvi Conscription 3
5B Labor Market Regulations 5
5Ci Price controls 2
5Cii Administrative requirements (GCR) 4.1
5Ciii Bureaucracy costs (GCR) 3.8
5Civ Starting a business (DB) 9
5Cv Extra payments/bribes (GCR) 5.6
5Cvi Licensing restrictions (DB) 8.1
5Cvii Cost of tax compliance (DB) 8.1
5C Business Regulations 5.8
5 Regulation of Credit, Labor, and Business 6.8
SUMMARY INDEX 7.38
Rank c 35
 

Lithuania Summary

 

1 World Economic Forum

2 Free the World
Gwartney, James and Robert Lawson with Herbert Grubel, Jakob de Haan, Jan-Egbert Sturm, and Eelco Zandberg (2009). Economic Freedom of the World: 2009 Annual Report. Vancouver, BC: The Fraser Institute. Data retrieved from www.freetheworld.com.

3 World Bank Data

4 World Factbook Project

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