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FOREIGN DIRECT INVESTMENTS

We understand that foreign companies, when they make decisions on investments, take account of the supply of qualified employees, proximity of export markets, potential costs and business environment. Therefore when our clients think of direct investments in Lithuania, we always advise them on considering the following questions:

  • Do you intend to acquire the set up business or do you plan to establish a completely new company?
  • Will you invest on your own or will you have partners? New or time-tested?
  • Which business structure will be used: to establish a company or open a branch or representative office?
  • Will you need employees? If so, newly hired local or posted non-residents?
  • Is the investment made for a specific or indefinite period of time?
  • Do you need premises in Lithuania or not?
  • Will you need to move employees or property to Lithuania?

These are only some aspects which must be taken into account prior to considering specific opportunities for investing in Lithuania. Various alternatives and options lead to different opportunities and choices. Clients may have many and various expectations, but the plan or alternatives they consider may not be suitable to achieve them. For this reason, Juridicon's experts in corporate and contract law are mobilising so that their cooperation with the clients and mutual discussions help them to find the solution which is the most needed and appropriate one.

In several recent years a number of service centres established in Lithuania by foreign investors has significantly increased. The economic recession forced Western companies to review their business models and optimise their activity. Lithuania and neighbouring countries of Central and Eastern Europe are especially attractive for establishing such centres, because they can offer highly qualified specialists, good infrastructure and lower costs. In Lithuania as well as in neighbouring countries the service sector comprises more than two thirds of investments.

Foreign direct investments (FDI) are generally understood as investments of foreign capital when establishing new or acquiring operating local companies, where a foreign investor is granted the right to at least 10 per cent of the authorised capital of the company. The FDI accounting includes acquisition of real estate, loans received from foreign companies or granted to a foreign company, payments of dividends or earned profit which is not necessarily re-invested.

See foreign and local investors.

Contact 
Attorney at Law, Tax Lawyer, Legal Project Manager
Telephone 
+370 5 2691101
Fax 
+370 5 2691010
Mobile 
+370 612 11222
Email 
laimonas.marcinkevicius@juridicon.lt