Opening a European office as a Central Asian company: entity, staff and banking explained

A European office gives a Central Asian company an EU address, a local bank account, a legal entity that buyers can contract with, and a base for staff. It also brings new obligations: company law, tax, employment rules and banking checks. This guide explains the main decisions in order, using Lithuania as a worked example because it is where Mavericks is based.

Do you need a European entity yet?

Not every company needs one at the start. Many begin by selling through a European distributor, who acts as the importer and handles the local work. An entity starts to make sense when:

• you have regular sales and want to keep more of the margin
• buyers want to contract with a European company
• you want to act as your own importer, with your own EORI number
• you need staff on the ground
• you need an EU-based party to take responsibility for product compliance

If none of these applies yet, an entity may only add cost. A clear plan for the first two to three years helps you decide.

Choosing the type of presence

There are three common options. The exact names and rules vary by country.

• A subsidiary. A separate company owned by your parent company. It has its own legal personality, its own accounts and limited liability. This is the most common choice for a long-term presence.
• A branch. Part of your parent company, registered in the EU country. It is simpler in some ways, but the parent remains directly liable for its activities.
• A representative office, where the country allows it. Usually limited to promotion and liaison, not selling.

In Lithuania, Invest Lithuania describes the private limited liability company (UAB) as the most common form for small and medium-sized businesses. Get tax advice in both countries before deciding, because the choice affects where profits are taxed.

Registering a company: the Lithuanian example

Invest Lithuania sets out seven steps for starting a business:

1. Choose the type of entity.
2. Register the company name.
3. Prepare the founding documents.
4. Open a bank account and deposit the minimum share capital (€1,000 for a UAB).
5. Obtain any licence your activity needs.
6. Register for taxes, including VAT once your turnover passes the national threshold.
7. Start operating.

Invest Lithuania says registration is often completed in a matter of days. For a foreign parent company, allow more time: corporate documents from Kazakhstan or Uzbekistan usually need certified translation and legalisation or an apostille, and banks and notaries will want to see who ultimately owns the company.

If you will import goods, the new company will also need an EORI number for EU customs, from the customs authority of the country where it is established.

Staff: hiring locally and moving people

Hiring locally. Hiring people who already have the right to work in Lithuania is usually the quickest option. Local hiring means following Lithuanian employment law, payroll and social security rules from day one.

Moving your own people. Staff from Central Asia need a legal basis to live and work in Lithuania. Invest Lithuania’s Work in Lithuania guide explains that the employer starts the process by submitting a mediation letter through the Migration Department’s online system, MIGRIS. A work-based temporary residence permit is tied to the employer and the job. Lithuania also sets annual quotas for some third-country workers, while highly qualified workers above certain salary levels may be exempt.

For senior specialists, the EU Blue Card may fit. The EU Immigration Portal lists the conditions for Lithuania, including a highly qualified job, a contract of at least six months, and a salary of at least 1.5 times the average gross wage (1.2 times for shortage occupations). The threshold changes with official wage data, so check the current figure.

Founders. If you are building a new, innovative product, Lithuania’s Startup Visa is a separate route for non-EU founders, run by Startup Lithuania. It is not a route for moving an existing company’s staff.

These routes are general information. The right route depends on each person, and decisions are made by the Migration Department alone.

Opening a bank account

For many Central Asian companies, banking is the slowest step. European banks must check who they are dealing with, and they apply extra care to companies with links to higher-risk regions or complex ownership.

The UK government’s sanctions guidance for Kazakh businesses is frank about this: banks and suppliers may refuse to work with a company if they cannot satisfy themselves that it has no links to sanctioned persons and that goods will not end up in Russia. Some may even decline because of a minority shareholder.

To make account opening smoother:

• Prepare a clear ownership chart showing every owner down to the individuals at the top.
• Have your parent company’s registration, financial statements and a description of your business ready in English.
• Explain where your money comes from and where payments will go.
• Show a sanctions compliance policy, even a short one.

Expect questions, and expect to answer some of them more than once. That is normal.

Compliance from day one

Your European company must follow EU sanctions law as an EU entity. The European Commission publishes guidance on due diligence for business partners, transactions and goods, with lists of red flags for circumvention. In practice this means screening customers and suppliers against the EU, UK and UN sanctions lists, checking ownership, and keeping records.

You will also need a local accountant for bookkeeping and tax filings, and a registered address. A company that is set up properly from the beginning is far easier to bank, insure and grow.

How Mavericks helps

Mavericks Go supports Central Asian companies opening in Europe, from the entry plan and route choice to support after you land. Mavericks Settle helps founders and staff with residence, banking and settling in. Legal work is handled by our regulated partner law firms in the UK, the EU and Kazakhstan, and every Go deal is screened against EU sanctions.