Whether you’re an entrepreneur looking to start a new business or an established company seeking to expand your business operations, it’s right to need a conducive business location for your business to thrive. If you aren’t sure of where to set up your business, there’s no need to keep looking. The good news is that in recent years, Lithuania has become the center of business and entrepreneurship in Europe.
The country has vibrant industries in various sectors which makes it the ideal location for businesses in various fields. Lithuania offers a wealth of opportunities and business-friendly policies that you won’t want to miss out on.
Without further ado, we’ll look into the top six reasons why Lithuania is a perfect location for your startup business and entrepreneurial endeavors.
Lithuania sits in a strategic location, serving as a gateway between Western and Eastern Europe, facilitating seamless trade and access to a vast consumer market. However, apart from the geographic importance of the country, several other reasons can be of benefit to you and your business. Such as
#1 RAPID MARKET GROWTH
Currently, Lithuania is known as the largest economy among the Baltic states due to its business-oriented government. Also, they’ve been having exceptionally high market growth rates since they joined the European Union (EU). This has earned Lithuania the reputation of being one of the fastest-growing economies in the EU.
Moreover, Lithuania ranks 11th in the “Doing Business” ranking by the World Bank indicating favorable business conditions in the country. With such an attractive incentive, Lithuania over the years has gotten a lot of foreign investments. Now, they are one of the leaders in the index of investment attractiveness in Europe. Hence, Lithuania’s 500% rapid boost in the economy since it gained its independence is understandable. With such optimistic statistics, your business will be planted in fertile ground and your risks will be minimal.
#2 TAX HAVEN
Lithuania is widely known as a tax-lenient country for startup businesses. This has been a major factor in drawing the interest and attention of foreign investors and entrepreneurs trying to avoid hefty corporate tax rates. Importantly, the Lithuanian government concluded agreements with several countries due to taxes.
This agreement includes avoiding double taxation which increases the possibility of paying dividends without tax. Lithuania also has a corporate tax of 15% below the Organisation for Economic Co-operation and Development (OECD) average of 23.6%. Additionally, for small or micro companies with fewer than 10 members, they may be entitled to a reduced tax rate of 5%
#3 SKILLED AND MULTILINGUAL POPULATION
The workforce in Lithuania is young and highly educated with skills in areas such as STEM, IT, Computer Science, and more. This means getting qualified employees for your business will be easy and meet your requirements. Moreover, according to Eurostat, 96% of the Lithuanian population speak two or more foreign languages.
Therefore, you are likely to be understood in Lithuanian, Russian, English and Polish. This means there will be no language barrier between you and your employees, and they can effectively carry out your instructions.
#4 CONNECTIVITY AND DIGITIZATION
Lithuania is at the forefront of technologically advanced business operations, digitalizing many tedious processes, making it easier for everyone. This led to the rise of e-services in Lithuania which has become essential for fostering business development, collaboration, and communication.
According to DNA of the Future Economy, 95% of Lithuania’s public sector services have been digitized and over 80% of Lithuanians use e-government services. This percentage jumps to 97% for businesses in Lithuania. As a result, it’s easy for companies to perform most of their activities online, pay taxes, recruit workers, and engage in online services.
#5 STARTING BUSINESS AND MARKETING FOR COMPANIES
Another amazing reason to choose Lithuania is due to the ease of starting a business there as the Lithuanian government over the years has relaxed the rules for new business startups. If you’re an entrepreneur from other countries, the Start-up Visa initiative in Lithuania will help ease the process for you. This initiative enables you to no longer meet certain employment and capital requirements to obtain a residence permit in the country. There are other programs in the country geared at helping young businesses in Lithuania.
However, after setting up your business, you’ve got to focus on your marketing to make it profitable. Since you’ll be new to the country and unfamiliar with how things are done, business accounting companies in Lithuania will be of help to you.
StartBusiness company is unique in Europe and around the world as it helps start-ups with valuable advice on how to reduce costs, control risks, earn big, and grow your business while keeping the accounts of your business detailed.
Interestingly, they can also help you in social media marketing, especially TikTok marketing to increase your followers. Thereby helping you convert your followers into customers in the global market. With the amazing logistics companies in Lithuania, you get to ship and sell your products and services efficiently.
#6 COST AND QUALITY OF LIVING
After setting up a business in Lithuania, if you wish to relocate or get a physical location for your company, it is affordable compared to other countries in Europe. For your necessities and more, the government has set in place policies and regulations that keep the average price of goods and services affordable, including housing.
In addition, Lithuania’s capital, Vilnius, is considered the crown jewel of the country in terms of commerce and infrastructure. You can enjoy the scenic view of the country while you work in peaceful conditions. Besides, if you wish to travel out of the country, three international airports are available for you to choose from.
Lithuania time after time has proven itself as a business-friendly country with helpful initiatives, programs, and incentives for startup businesses to facilitate business growth. Choosing Lithuania as the destination for your business will give you access to all the great benefits businesses in Lithuania enjoy and open doors for future ones for you. Nonetheless, in no time your business will thrive in Lithuania with the help of business accounting services in Lithuania and their Tiktok marketing to increase your followers and, hence, your customers.
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