Doing Business In Lithuania

  1. Lithuania is ranked 27th out of 185 economies in the Doing Business 2013 report, recording a decline of 1 point compared to last year. This decline reflects declines in 5 out of 10 indicators.
  2. According to the latest Enterprise Surveys (2009), the top 3 obstacles to running a business in Lithuania are Tax Rates, Practices of the Informal Sector, and Access to Finance. 35.2% of firms identify tax rates as the single biggest obstacle, compared to a regional average of 16.3%.
  3. According to the World Bank’s Worldwide Governance Report (2010), Lithuania scores between the 60th and 70th percentiles for the Control of Corruption and Political Stability indicators. For all other indicators, including the Government Effectiveness, Rule of Law, Voice and Accountability, and Regulatory Quality indicators, Lithuania ranks between the 70th and 80th percentiles.
  4. Lithuania’s economic freedom score is 71.5, making its economy the 23rd freest in the 2012 Index. Its overall score is 0.2 point higher than last year, with significant improvements in labor freedom, fiscal freedom, and monetary freedom offset to a large extent by a serious decline in the score for government spending. Lithuania is ranked 11th out of 43 countries in the Europe region, and its overall score is well above the world and regional averages.

Source: World Bank


Visa Information

Business Etiquette

.When conducting business, err on the side of formality and adhere to conservative etiquette and protocol. 
.There are marked differences between young entrepreneurs and older businesspeople. 
.Younger businesspeople generally have a less bureaucratic approach and are eager to do what is required to close a deal. 

Building Relationships & Communication

.Lithuanians prefer face-to-face meetings, as they need to build relationships of mutual understanding. 
.They prefer to turn business relationships into friendships. 
.Accept offers of hospitality and reciprocate, as this is the sign of a true friend. 
.Once a friendship has developed, Lithuanians are willing to discuss business. 
.It is important to make your initial contact with a high-ranking person who is in a position to make a decision. 
.In many ways this is still a hierarchical culture, so showing respect and deference to people of authority is recommended. 
.Although they are industrious and hard working, most Lithuanians are very modest. People who brag are deemed arrogant. 
.At the same time, Lithuanians are impressed by titles of authority and advanced university degrees, so it is a good idea to let them know your status within your company.
.Lithuanians speak softly. 
.They are not particularly emotive speakers. 
.They do not touch others while speaking and can appear standoffish and reserved upon the initial meeting. 
.It is important that you do not display anger, even if frustrated by the excessive bureaucracy.
.They do not interrupt others while they are speaking, and patiently wait for their turn.
.Many Lithuanian companies adhere to a hierarchical structure. In such cases, senior-level businessmen only speak with people of their same rank. 
.More junior members of a team should not address a senior-ranking Lithuanian businessperson directly, as it is seen as a breach of etiquette. 

Business Meetings & Negotiations

.Appointments are necessary and should be scheduled 2 to 3 weeks in advance. 

.Send a list of the people who will be attending and their titles so the Lithuanians can assemble a team of similar level people. 
.Confirm the meeting when you arrive and again the day before the meeting, since meetings are sometimes cancelled on short notice. 
.Arrive on time for meetings. Punctuality is important.
.Meetings are formal. 
.There will be a period of small-talk while your colleagues get to know you and decide if you are the type of person with whom they wish to enter into a business relationship. 
.Wait to be told where to sit. In many cases you will be seated across from someone of a similar level. 
.Presentations should be thorough, clear, and concise and include back-up analysis to support your position. 
.Expect to discuss each point thoroughly before moving on to the next. 
.Business moves slowly due to the bureaucratic nature of society. 
.Be prepared to meet with several lower levels of people before getting to the actual decision maker. 
.Lithuanians often use time as a tactic, especially if they know that you have a deadline. Be cautious about letting your business colleagues know that you are under time pressure or they will delay even more. 
.Lithuanians will not be rushed into making a deal. They must think it is in their best interest before agreeing. 
.Meetings often conclude with a summary of the discussion and a toast to future dealings.

General Business Hours