2013 to provide Belarusian investors with new investment opportunities in Lithuania

The Business Investment Forum, held in Druskininkai on 24 January  2013, brought together some fifty business people, lawyers, real estate specialists and consultants, both local and from Belarus, to share insights about investment and business development opportunities in Lithuania The Forum acknowledged that an excellent geographical location, favourable legislative framework, educated labour force, and real estate offering a high potential return are major factors for attracting investments and for business immigration. It is expected that the latter will be enhanced by means of adopting measures to achieve higher efficiency at Lithuania-Belarus border, discussed at the meeting of Lithuanian industrialists and carriers earlier this month.

According to Maksimas Saveljevas, Managing Associate at the law offices Raidla Lejins & Norcous, Lithuania is attractive for investors from the neighbouring Belarus as the nearest gateway to the European Economic Area, uniting 30 countries, the unified market, and the customs union. Registered in Lithuania and established with investments from Belarus, a company has all opportunities to effectively take advantage of free movement of capital, products and services in other countries of the European Economic Area, regardless of the origin of the capital invested in the company. “Many international bilateral contracts between Lithuania and Belarus enable Belarusian entrepreneurs to do business in Lithuania in a flexible manner,”- stated Mr Saveljevas. Cooperation between Lithuania and Belarus is regulated by the Agreement on the promotion and protection of investments, the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, agreements on social security, on legal assistance and legal relations in civil, family and criminal matters, and other agreements.

Cooperation with Lithuania also provides Belarusian entrepreneurs  with other opportunities to manage and increase their capital: in addition to formation of companies, they also acquire Lithuanian companies and invest in funds and financial instruments. According to Alius Jakubėlis, Director of Orion Securities, Belarusian investors are facing many restrictions within their country, which impede the movement of capital; therefore, it is becoming particularly difficult to achieve a positive return on investment. “We offer investment opportunities for Belarusians not only in Lithuania, but also worldwide by providing them with free access to markets and financial instruments all over the world,” commented Alius Jakubėlis.

The Forum also discussed the recovering Lithuanian real estate market, which offered attractive investment opportunities in 2012. According to Audrius Šešplaukis, Head of Valuation Department at Inreal, the most promising regions of the country are the capital city Vilnius and the resorts, where 96 per cent of Lithuania’s new real estate projects were launched last year. “The number of purchasers in those cities is increasing. In 2012 the number of apartments sold in Vilnius was 21 per cent higher, and in the sea resorts – even twice as high as in 2011. The average sales prices have remained stable so far; consequently, today customers can easily generate net cash flows of 5-6 per cent from rent, and in a long term perspective to profit on price increase,”- said Mr. Šešplaukis.

“Convenient, fast and simple company formation procedures, an attractive tax system, state-of-the-art information and communication technologies, educated, honest and diligent people mastering a few foreign languages, world-class cultural life, and unique, beautiful nature – these are the factors, inviting to use Lithuania as a stepping stone for expanding business into EU Member States and also promoting business immigration,” stated Ramona Laurinkienė, in-house lawyer at Amicorp Baltic. 

The Forum repeatedly emphasized the benefits of Lithuania’s excellent geographical location, economic and political stability, and investment-friendly environment.

ABOUT THE COMPANIES

Raidla Lejins & Norcous firms in Lithuania, Latvia, Estonia and Belarus are leading providers of legal services in the Baltic region with a total team of over 130 lawyers. The firms render comprehensive services to local, regional and international entities, including multinational enterprises, international banks and financial institutions. In 2011, Raidla Lejins & Norcous was awarded the title of Legal Adviser of the Year in the Baltics by The Financial Times and mergermarket.

Orion Securities is the largest non-banking financial group in Lithuania providing intermediation services in selling securities as well as corporate finance, private banking, and financial management services to both private individuals and legal entities. Orion Securities has been operating in the Lithuanian market since 1993 (as financial brokerage UAB FMĮ Baltijos Vertybiniai Popieriai [Baltic Securities]). Orion Securities is a member of Vilnius, Riga, Tallinn and Warsaw stock exchanges. Orion Securities is a licensed brokerage firm, supervised by the central bank of the Republic of Lithuania.

Inreal Group, consisting of JSC Inreal Valdymas (Inreal Management), JSC Inreal, JSC Inreal Pastatų Priežiūra (Inreal Building Maintenance) (related to companies administering apartment houses) and JSC Inreal GEO, provides the widest spectrum of services in Lithuania, related to real estate and building maintenance services. Inreal group companies belong to SC Invalda. Inreal group currently has more than 300 employees. The value of assets managed by the group is about LTL 400 million; the group has mediated in the lease or sale of 550 000 sq. m of commercial premises and 1150 apartments;  the value of assets evaluated by Inreal Group per year is LTL 2 billion, and the area administered by its companies operating in the building maintenance sector is 1 million sq. m. The company operates offices or representative offices in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Mažeikiai, Alytus, Plungė, Šilalė, and Utena.

Amicorp Baltic UAB is  a company belonging to the international Amicorp Group with offices in 29 countries worldwide providing incorporation, management and business process outsourcing services (bookkeeping, accounting and salary administration) in Lithuania, and mediating in providing services of other company offices in Eastern Europe and Scandinavian countries.

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