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Lithuania Company Formation

Lithuania Company Formation: Your Smart Gateway to the European Union Market Main Characteristics and the basic rules of Company registration in Lithuania

BRIS Group provides professional Lithuania company formation services for entrepreneurs, investors, and international businesses seeking a reliable European base. Establishing a Lithuanian UAB (Private Limited Company) offers limited liability protection, access to EU markets, and a favorable business environment. Our team handles the full Lithuania company registration process remotely, including corporate banking support, compliance, and ongoing administration, ensuring your business operates efficiently and in full compliance with Lithuanian regulations.

Start your Lithuanian company with BRIS Group today — trusted experts in global incorporation.

Lithuania Company Formation: Guide for Non-Residents

Lithuania has become one of the most attractive destinations in Europe for entrepreneurs, startups, and international investors seeking to establish a business within the European Union. With its strategic location, digital-friendly infrastructure, low taxes, and investor-oriented policies, Lithuania company formation offers a cost-effective and efficient way to access the EU market.

This guide provides an in-depth overview of forming a company in Lithuania, covering advantages, legal structures, requirements, taxation, and the step-by-step incorporation process.

Why Choose Lithuania for Company Formation?

Lithuania has rapidly evolved into one of Europe’s most innovative and business-friendly economies. The government actively supports foreign investment and has created an ecosystem that promotes growth, particularly in IT, fintech, logistics, manufacturing, and renewable energy sectors.

Key Benefits of Lithuania Company Formation

EU and Schengen Zone Membership: Enjoy full access to the European market and benefit from EU trade regulations.
Attractive Tax Regime: Corporate tax as low as 5% for small companies and 15% standard rate.
Ease of Doing Business: Ranked among the top EU countries for ease of starting and operating a business.
Strategic Location: Ideal logistics hub connecting Western Europe, Scandinavia, and CIS countries.
Highly Skilled Workforce: Strong technical expertise, particularly in IT, fintech, and engineering sectors.
Advanced Digital Infrastructure: One of the fastest internet speeds in Europe and fully digitized business registration.
Government Incentives: Tax credits, startup visas, and grants for innovation-driven businesses.

Types of Companies in Lithuania

Company Type	Description
Private Limited Liability Company (Uždaroji Akcinė Bendrovė – UAB)	The most common and flexible structure for foreign investors. Requires a minimum share capital of €2,500 and allows full foreign ownership.
Public Limited Liability Company (Akcinė Bendrovė – AB)	Suitable for larger companies or those planning to issue shares publicly. Requires a minimum capital of €40,000.
Branch Office	A foreign company can establish a branch in Lithuania without forming a separate legal entity.
Representative Office	Non-trading entity used for marketing, research, or administrative purposes.
Individual Enterprise (Sole Proprietorship)	For individuals conducting small-scale business activities.

Advantages of Lithuania Company Formation for Non-Residents

Advantage	Details
100% Foreign Ownership	Full foreign ownership permitted without restrictions.
No Residency Requirement	Directors and shareholders can be non-residents.
EU Market Access	Seamless access to all 27 EU member states.
Low Setup Costs	Affordable incorporation and maintenance expenses.
Fast Online Registration	Companies can be registered in as little as 3 business days.
Tax Incentives	Reduced tax rates and R&D benefits for small and innovative companies.

Requirements for Company Registration in Lithuania

To establish a company in Lithuania, the following requirements apply:

Company Name – Must be unique and approved by the Lithuanian Centre of Registers.
Registered Office Address – A physical address in Lithuania is mandatory.
Shareholders – Minimum of one shareholder (individual or corporate).
Directors – At least one director is required (can be non-resident).
Share Capital – Minimum €2,500 for a UAB.
Articles of Association – Must outline company structure, purpose, and governance.
Bank Account – Required to deposit share capital and conduct financial operations.
Tax Registration – Obtain a tax identification number (TIN) from the State Tax Inspectorate.
VAT Registration (if applicable) – Mandatory if annual turnover exceeds €45,000.
Licensing (if required) – For specific regulated sectors like finance or energy.

Step-by-Step Procedure for Lithuania Company Formation

Step 1 – Choose the Company Type
Select the most suitable legal entity (UAB, AB, or branch) based on your business needs.

Step 2 – Reserve the Company Name
Submit your preferred name to the Lithuanian Centre of Registers for approval.

Step 3 – Draft the Articles of Association
Prepare and notarize the Articles of Association defining company objectives and ownership structure.

Step 4 – Open a Temporary Bank Account
Deposit the initial share capital in a Lithuanian bank.

Step 5 – Register the Company
File the incorporation documents with the Lithuanian Centre of Registers.

Step 6 – Obtain a Tax Identification Number (TIN)
Register your company with the Lithuanian State Tax Inspectorate.

Step 7 – VAT Registration (if applicable)
Apply for VAT registration if your business meets the threshold or intends to trade within the EU.

Step 8 – Open a Permanent Bank Account
Once the company is registered, convert the temporary bank account into a permanent one.

Step 9 – Begin Operations
Start conducting your business in Lithuania and the EU market.

Timeframe for Company Registration in Lithuania

Stage	Process	Estimated Time
Name Reservation	Approval by the Register Centre	1–2 business days
Document Preparation	Drafting and notarization	1–3 business days
Company Registration	Filing with the Register Centre	1–3 business days
Tax and VAT Registration	Issuance of TIN and VAT number	2–4 business days

Total Estimated Time: 5–10 business days (1–2 weeks)

Lithuania Corporate Tax System

Lithuania’s corporate tax framework is one of the most competitive in the EU, supporting business growth and foreign investment.

Key Tax Highlights

Corporate Income Tax (CIT):
- 15% standard rate
- 5% reduced rate for small companies (with fewer than 10 employees and annual revenue under €300,000)
Dividend Tax: 15% (can be reduced or exempt under EU Parent-Subsidiary Directive or double taxation treaties)
VAT: 21% standard rate; 9% and 5% reduced rates for certain goods and services
Withholding Tax: 10% on dividends, interest, and royalties (exemptions available)
Social Security Contributions: Employer contribution around 19.5%
Incentives:
- R&D tax deduction of up to 300%
- Free Economic Zones (FEZs) with corporate tax exemptions
- Start-up incentives for technology-based companies

How We Can Help You

Our experienced team of Lithuania company formation specialists provides complete support from incorporation to full business operation.

Our Services Include

Consultation on company type and structure
Company name reservation and registration
Drafting and notarizing Articles of Association
Bank account opening assistance
Tax and VAT registration support
Legal and accounting compliance
Virtual office and registered address services
Immigration and residency permits for investors
Ongoing corporate administration and reporting

Start Your Lithuania Company Formation Today

With its low taxes, EU market access, and digital-friendly environment, Lithuania is one of the most promising destinations for business setup in Europe.

Whether you are expanding internationally or launching a new venture, our experts will guide you through every step of your Lithuania company formation process—ensuring compliance, efficiency, and long-term success.

Contact us today to start your Lithuania company formation and establish your presence in one of Europe’s most competitive and innovation-driven economies.

Ready to Register Your Company in Lithuania?

Questions & Answers

FAQ: Taxes in Lithuania

1. What is the Corporation Tax rate in Lithuania?

The standard Corporation Tax rate in Lithuania is 15%. However, small companies with annual income under €300,000 may qualify for a reduced rate of 5%. It is important to note that certain sectors, such as shipping and specific types of science and technology companies, may have additional tax incentives.

2. How is Dividend Tax applied in Lithuania?

Dividend distributions are subject to a 15% withholding tax in Lithuania. This rate applies to both resident and non-resident shareholders. Shareholders may be eligible for a reduced tax rate or exemption under specific double taxation treaties Lithuania has signed with other countries.

3. What is the Income Tax rate for individuals in Lithuania?

In Lithuania, the personal Income Tax rate is typically 20% on income up to €90,000, and 32% on income exceeding that threshold. However, there are various deductions and exemptions available, such as for dependents, which can reduce taxable income.

4. How does VAT work in Lithuania?

The standard VAT rate in Lithuania is 21%. Certain goods and services may qualify for reduced rates of 9% or 5%. VAT registration is mandatory for businesses with turnover exceeding €45,000. Businesses can reclaim VAT paid on business-related purchases.

5. Are there any other significant taxes in Lithuania?

Yes, Slovenia imposes several other taxes, including Real Estate Tax (up to 3% depending on property value), Excise Duty on certain goods (like alcohol and fuel), and Social Security Contributions (which can range from 20.5% to 25.5% of salary, shared between employer and employee). Understanding these taxes is crucial for compliance and effective financial planning.

Learn more: Visit our Full Frequently Asked Questions – Lithuania page
or contact our tax and company formation team at [email protected]

FAQ: Company registration in Lithuania for Non-Residents

What are the steps to form a company in Lithuania as a non-resident?

Forming a company in Lithuania as a non-resident involves several steps. First, you need to choose the type of company you want to establish, with the most common being a Limited Liability Company (LLC). Next, you will need to prepare the required documents, including a business plan and identification documents. Then, you can register your company online or at the Register of Legal Entities. It is also advisable to open a local bank account and secure a local registered address. Lastly, consult with a legal professional or a business advisory service to ensure compliance with local laws.

Do I need a local partner to start a company in Lithuania?

No, you do not need a local partner to start a company in Lithuania as a non-resident. Lithuania welcomes foreign entrepreneurs and offers a straightforward process for company registration. However, having a local partner can be beneficial for understanding the local market dynamics and regulatory environment. If you choose to operate independently, ensure that you familiarize yourself with local laws, taxation, and business practices.

What is the minimum capital requirement for Lithuanian companies?

The minimum capital requirement for forming a Limited Liability Company (LLC) in Lithuania is €2,500. This amount must be deposited into a bank account in the company’s name before registration. For other types of companies, such as a joint-stock company, the minimum capital requirement is higher. It is essential to consider this capital investment when planning your business strategy in Lithuania.

How long does it take to register a company in Lithuania?

The process of registering a company in Lithuania can be quite efficient, taking approximately 1 to 3 business days if all the documentation is in order. If you are registering online, it can be faster. However, if you encounter any issues or require additional permits, it may take longer. To expedite the process, it is advisable to work with a professional service that specializes in company formation for non-residents.

What taxes do I need to be aware of when setting up a business in Lithuania?

When setting up a business in Lithuania, you need to be aware of several key taxes. The standard corporate income tax rate is 15%, although a reduced rate of 5% applies to smaller companies under certain conditions. Additionally, you may encounter value-added tax (VAT) at a standard rate of 21%, along with potential municipal taxes. It’s crucial to consult with a tax advisor to ensure compliance and to optimize your tax strategy.

Can non-residents operate businesses remotely in Lithuania?

Yes, non-residents can operate businesses remotely in Lithuania. Once your company is registered, you can manage your operations from abroad, utilizing digital tools to communicate with clients, suppliers, and employees. However, ensuring compliance with local laws and regulations remains essential. It may also be beneficial to appoint a local representative or hire local staff for better management and compliance with Lithuanian business practices.