Business abroad

Establishment of companies, branches

• establishment of companies, branches, subsidiaries in Germany, Poland, Denmark, Sweden, UK, Belarus, Ukraine, Russia
• establishment of foreign companies’ branches in Lithuania
• we help clients to decide which legal form would be most suitable for their operation. Establishment of a branch, representative office or individual company
• consultation on the legal status of branches and representative offices, accounting, taxation procedure
• consultation on the limits of the branch’s liability and the possibility to enter into legal proceedings and to file claims not only for the branch but also for the company that established it

Agents, distributors

Developing a business through representatives abroad can be a useful form of business, as it helps to establish new markets more easily, removes certain barriers and restrictions that apply to foreigners, can reduce the capital needed for investment.

• preparation of commercial representation agreements
• consultation on business dealings with distributors, agents
• examination of disputes arising from improper performance of agreements, disclosure of trade secrets, overstepping of the powers of the distributor or agent under the agreement

Avoidance of double taxation

Consultation on the prevention of double taxation:

• tax payment matters after registration of the company’s permanent head office
• accounting of working time
• recruitment of employees, conclusion of employment agreements on behalf of the companies established abroad
• taxation of daily allowances

Posting

Consultation on posting of employees to other countries:

• what business model to choose: a contract relationship or a temporary employment?
• where, what taxes to pay and for how long?
• how much, in what form to pay the employee abroad, and for how long?
• when does the obligation to move operation / taxes to a foreign country arise?
• posting and mobile work
• working time and time spent during posting
• application of the minimum wage to posted employees

Temporary employment

Temporary employment may be a favorable form of employment for Lithuanian and foreign legal persons, because

• temporary agency assumes all the functions of the employer, so the user no longer has to take care of the selection of employees, the payment of wages, the mode of work and rest time, other relevant personnel management issues
• the user of temporary work can receive additional labour force when orders increase, and when the volume of work decreases, the user does not need to take care of employees’ dismissal
• temporary employees work legally and receive all social guarantees

Our services related to temporary employment:

• preparation of temporary employment agreements
• on the specifics of temporary employment
• examination of disputes arising between the temporary employee, the employment company and the user of the work.

Licences

Certain operation licenses are often required for operation abroad. Germany is not an exception, where companies, whether they have their headquarters or branches abroad and use a form of temporary employment, are required to hold an AÜG license.

Our services in these areas include:

• consultation on licensing of various activities in different countries
• application for AÜG license in Germany and for licenses in other countries
• consultation on the application of the minimum wage
• maintenance of contact with AÜG and other institutions
• examination of decisions of foreign authorities on refusal of license, preparation of complaints

Accreditation systems

One of the most pressing problems for carriers is illegal immigrants trying to get from Europe to the UK. To avoid fines of between 2000 and 3000 pounds per illegal immigrant, all carriers travelling to the UK should use an effective system and be included in the list of accredited companies. Special procedures must be implemented to be included in the list of accredited companies and to obtain an accreditation certificate.

Our services in this area include:

• preparation of documents for obtaining accreditation certificate
• preparation of written instructions for drivers
• development of a code of practice on the risk of illegal entry into vehicles
• vehicle safety checklist
• legal advice (on penalty appeals)

Managers‘ responsibility

The nature of the legal status of the manager of the company is dualistic, since the manager of the company is both the sole governing body of the company and the employee of the company, so the manager can be subject to both material and civil law. A fiduciary relationship exists between the manager of the company and the managed company, so from the moment of becoming the head of the company, the head must act diligently, carefully and prudently, act exclusively in the interests of the legal person, and failure to perform these duties or improper performance thereof imposes responsibility on the manager as described in the Civil Code.

Our services related to responsibility of the company’s manager include:

• consultations on company’s management
• risk management during Covid-19
• risk management in case the company is unable to meet creditors’ claims
• personal responsibility of the manager for the conclusion of loss-making shareholders’ transactions
• evaluation of the manager’s decisions on the company’s operation
• preparation of employment contracts with managers
• preparation of confidentiality and non-competition agreements with managers
• representation in negotiations