Business enviroment in Lithuania

Business enviroment in Lithuania.

Tax incentives and subsidies for investors is based on the logic state benefits: more investment - more jobs - in general the higher contributions to the budget.

Although to weigh the contribution of agencies in the direct foreign investments is difficult, but without such agencies as the Lithuanian Development Agency (LDA), an indispensible in many countries around the world. LDA has many similarities with Slovenia, Slovakia, Hungary operating agencies. Meanwhile, Latvia is the only among the Baltic countries has an agency that has acquired the "one-stop-shop" status. Estonian Investment Agency, part of "Estonian Enterprise“, is being reorganized to make better use of EU structural funds. More focus on the activities of the agencies encourages and the neighboring country Poland. Polish Ministry of Economy, in order to encourage foreign investment, whose growth rates have recently decreased, also intends to reorganize the Foreign Investment Agency, the consolidation of the functions currently performed by various state institutions and agencies. The strongest in the CEE region agency is considered to be the Czech Republic, CzechInvest agency, who also has a "one-stop-shop" status.

Investments in Lithuania can be: the establishment of a company (there are no restrictions for foreigners); the acquisition of the operating company's shares (there are no restrictions for foreigners); the acquisition of movable and immovable property; borrowing and so on.

In order to promote domestic and foreign investment in the economy, it is written the Law on Investment, related Support of the Unemployed Act and the Concessions Law.

Investment Law provides that not less than 560 000 Eur throughout the territory of Lithuania, but in areas where the unemployment rate is higher than the national average for at least 145 000 Eur investments, the Government of Lithuania Republic or an institution authorized by the Government concludes contracts with investors, establishing a specific investment and business conditions.

In Concession Law formulated criteria for the success of the concession project realization, for investors and funders ensured legal certainty and stability, enshrined investors and states or local authorities right to regulate by contract the complex of relations, associated with private investment in the infrastructure object - the obligations of the parties under the project, financial settlements, obligations ensuring, relations with creditors.

Lithuanian industrial policy is in line with the EU's industrial policy principles. After adoption of EU compliant legislation commercial activity has been significantly simplified: implemented a simpler corporate bankruptcy procedures, allowing bankrupt companies to more easily pay employees and creditors, simplified corporate restructuring procedures. After adoption of the medium-term industrial policy strategy has been clearly defined priority directions of development of the Lithuanian economy, defined the state measures and steps how to promote industrial development. According to that, manufacturers and investors can better choose how to create and develop their business. State aid law unified competitive position of the producers, create a more transparent business environment, complying with the requirements of the Single Market.

  • Business & Entrepreneurship Essays
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  • 2016 m.
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  • 7 pages (2628 words)
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  • Monika
  • Business enviroment in Lithuania
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Business enviroment in Lithuania. (December 12, 2016). Reviewed on 08:34, October 17 2021