Starting a successful business requires the analysis of some basic business plans and strategies capable of ensuring business growth and development. One of these is business location analysis, which involves comparing different location characteristics for a business to reach its goals and objectives.
As a result, international entrepreneurs and businesses who desire to expand or start productive businesses begin to find interest in European countries, especially Baltic countries, that are attractive for economic reasons and well being of their businesses.
In this article, you will understand why you should consider Lithuania as the best option and why it stands out among the other closest countries.
Top 5 Reasons to Start a Business in Lithuania
Below are the top 5 reasons why you should consider Lithuania as a suitable location for your start-up business:
Lithuania’s government had a drastic contribution to the development of businesses, the creation of favorable investment opportunities, and provisions of opportunities for foreign enterprises, investors, and entrepreneurs to reside in the country. Therefore, foreign investors or entrepreneurs can contribute to managing an existing legal entity or establishing a new one, which might take a few days of registration.
Moreover, the Lithuanian government has strengthened the energy infrastructure, transport infrastructure, sustainability, and other infrastructural facilities that are capable of enhancing the smooth running and development of businesses in and outside of the country.
Standard International Airports and Other Transport Infrastructures
Transportation is one of the most critical factors that contribute to the development of a business. In that case, Lithuania provides investors with smooth and standard transportation and facilities. It also provides opportunities for foreign investors to use different reliable, fast, and quality transport infrastructure, including roads, railways, airways, and waterways:
Lithuania road transportation is reliable and includes some basic transportation facilities. If you want to transport your products from one place to another by Van, it’s easier and faster. Moreover, you can also partner with car-sharing companies like CityBee, Spark electric vehicle , and others.
Lithuania has 3 standard international airports in Vilnius, Palanga, and Kaunas. As a result, you can reach different European cities within 2-3 hours.
One of the notable ports in Lithuania is the Port of Klaipeda, the second-largest European union port. It connects to Germany, Sweden, Denmark, and other European countries.
Lithuania has developed modern and standard railways that can help you connect to neighboring countries like Russia, Belarus, Poland, Ukraine, Italy, Germany, and others. Without stress, you can transport your goods to these countries by train.
No Double Taxation
Double taxation is the process while by taxes being levied at two different levels on the same source of income. Simply put, it involves a process of an individual or a company paying taxes levied on products or income in two countries.
However, some countries like Lithuania have signed a double taxation treaty to avoid dual taxation from required nations. Therefore, establishing a business in Lithuania will save you from paying dividends with a tax on two countries in agreement with Lithuania.
Moreover, Lithuania operates with low-income tax rates. The corporate tax rate is 15%, but if you operate a small company, you will only have to pay a reduced rate of 5% or even 0% if certain conditions are met.
Business Accounting Companies
Another advantage Lithuania has for start-up businesses is the emergence of business accounting companies. As an entrepreneur, who wants to establish a successful business in Lithuania, you need the help of professional business accounting services to guide and advise you as an expert in basic accounting tips and strategies. These companies can also help you handle your business accounting.
Most significantly, StartBusiness company, whose specialty is to help start-up businesses keep their business accounting in good order. However, one of the advantages of using accounting companies instead of hiring a permanent accountant is the optimization of company expenses. You only pay accounting companies on a job done for each month, not as an accountant; you have to pay a fixed payment every month.
Communication is one of the strongest tools for business development. It helps the brand reflects consistent messages to its target audience and fosters rapport among employers and staff. However, you can communicate with your target audiences in foreign languages like English, Russian, Polish, and others if you don’t understand Lithuania.
The Eurostat data proved that around 95.6% of Lithuania speak one or more foreign languages. As a result, language can’t be the barrier to establishing businesses in Lithuania.
The Best Cities for Start-Up Businesses in Lithuania
Some cities in Lithuania are most suitable for start-up businesses due to their improved infrastructures and some other available facilities; these include:
Vilnius is the capital city of Lithuania, located in the southeastern part of the country. Currently, it’s known to be the largest city in the Baltic States, with a population of 625,349. Vilnius has a well-developed infrastructure and service sector, making commuting easier and faster.
Moreover, according to the Financial Times’ FDi ranking, Vilnius is ranked among the top 30 cities suitable and attracting foreign investment in a tech start-up. Also, regarding work-life balance, Vilnius is ranked among the top six cities according to (OECD). In addition, the cost of living in Vilnius is bearable.
Klaipeda is another major city in Lithuania, located in the western part of the country on the Baltic Sea Coast. It’s also known to be the third longest curt and the major seaport in Lithuania, connecting to Germany, Poland, Sweden, Finland, Russia, and other neighboring countries.
Klaipeda has become one of the influential European cities due to the Port of Klaipeda, a significant transport hub. Most significantly, foreign investors whose products are good on sea transportation can settle at Klaipeda to connect to other Baltic States. Moreover, Klaipeda is currently a strong location for supplying the country with oil and gas, attracting oil and gas industries.
Kaunas is the second largest city in Lithuania after Vilnius. It was a temporary capital of Lithuania between 1920 and 1929 when Vilnius was usurped from Lithuania by Poland. Since time passed, Kaunas has been known as the most important center of industry, trade, and commerce in Lithuania. It’s fast-reached industries like the textile and light industries, chemical industries, food and beverage industries, wood processing and furniture industries, etc.
The city has been getting attention in European, and it serves as a settlement for foreign investors across Europe, including the United States.
Finally, as there are many reasons why Lithuania may be the perfect fit for your start-up business, 5 good reasons are well explained in the article. However, if you’re having challenges in your start-up business or you need some advice on how to set up a successful business in Lithuania, you can consult Start Business company for help.