Lithuania is rapidly becoming one of Europe’s most attractive destinations for business incorporation, thanks to its strategic location within the European Union, robust economic growth, and supportive government policies. With a competitive corporate tax rate, efficient company registration process, and access to the EU single market, Lithuania offers significant advantages for entrepreneurs, startups, and established international investors looking to expand their operations.
This comprehensive FAQ on Lithuania company formation provides answers to the most commonly asked questions by those interested in establishing a legal entity in Lithuania. Whether you are planning to set up a Private Limited Liability Company (UAB), branch office, or subsidiary, this guide covers everything you need to know—from legal requirements and documentation to tax implications and ongoing compliance.
Lithuania’s business-friendly environment includes simplified procedures for company registration, low minimum share capital requirements, and a transparent legal framework. Additionally, Lithuania supports digitalization of services, enabling faster online registration and easier business management.
This FAQ also addresses key topics such as director and shareholder roles, registered office requirements, accounting standards, and corporate governance. Lithuania’s growing economy and skilled workforce make it an ideal base for companies engaged in IT, manufacturing, trade, and services.
Whether you’re a local entrepreneur or an international investor, this guide will help you navigate the complexities of Lithuania company formation, ensuring a smooth and compliant start to your business journey. Explore the answers below to learn more about Lithuania’s corporate landscape and how to successfully incorporate your company.
Frequently Asked Questions About Lithuania Company Setup
Lithuania is an increasingly popular destination for business incorporation due to its strategic location in the EU, competitive tax rates, and streamlined company registration process. Our Lithuania company formation FAQ answers common questions about establishing a Private Limited Company (UAB), branch, or subsidiary. Learn about legal requirements, minimum capital, shareholder and director roles, and compliance obligations. Whether you’re a local entrepreneur or an international investor, this guide simplifies Lithuania company formation and helps you navigate the process with confidence. Benefit from Lithuania’s digital infrastructure and business-friendly environment to successfully launch and grow your company.
1. How do I register a company in Lithuania as a foreigner?
Answer: Foreigners can register a company in Lithuania without local residency. The process involves submitting required documents to the Lithuanian Centre of Registers, appointing directors, and providing a registered office address.
2. What are the legal requirements for Lithuania company formation?
Answer: Key requirements include at least one shareholder, a registered office in Lithuania, a minimum share capital of €2,500 for a UAB (private limited company), and appointing at least one director.
3. What is the minimum share capital for a Lithuanian company?
Answer: The minimum share capital for a UAB is €2,500, which must be paid before registration. Higher capital may be required for other company types.
4. What types of companies can I form in Lithuania?
Answer: The most common types are the Private Limited Company (UAB), Public Limited Company (AB), individual enterprise, and branch of a foreign company.
5. How long does it take to register a company in Lithuania?
Answer: The registration process typically takes between 5 and 10 business days if all documents are in order.
6. Can a Lithuania company be 100% foreign-owned?
Answer: Yes, Lithuania allows 100% foreign ownership with no restrictions on foreign shareholders.
7. Do I need a local director to form a company in Lithuania?
Answer: No, there is no requirement for directors to be Lithuanian residents.
8. What are the tax rates for companies in Lithuania?
Answer: Lithuania’s standard corporate income tax rate is 15%, with a reduced rate of 5% available for small companies under certain conditions.
9. How do I open a business bank account in Lithuania?
Answer: To open a corporate bank account, you’ll need company registration documents, proof of identity for directors and shareholders, and a business plan may be requested.
10. What ongoing compliance is required for Lithuanian companies?
Answer: Companies must file annual financial statements, submit corporate tax returns, and maintain accounting records in accordance with Lithuanian law.
11. Is online company registration available in Lithuania?
Answer: Yes, Lithuania supports online company registration through the Centre of Registers’ e-service portal.
12. Can I use a virtual office address for Lithuania company registration?
Answer: Yes, a virtual office can be used as a registered office address if it meets legal requirements and allows official correspondence.
13. What documents are needed to register a company in Lithuania?
Answer: You need Articles of Association, shareholder and director details, proof of registered address, and a bank certificate confirming share capital payment.
14. Can I register a branch office of a foreign company in Lithuania?
Answer: Yes, foreign companies can establish branch offices, which are subject to registration with the Centre of Registers.
15. What are the benefits of forming a company in Lithuania?
Answer: Benefits include access to the EU market, competitive tax rates, skilled workforce, simplified registration, and growing economic stability.
Interested in setting up a company in Lithuania?
Visit our Lithuania Company Formation page for detailed guidance, packages, and expert support tailored to your needs.
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