Want to start a business in Lithuania? Register company in Lithuania today and explore business possibilities in the Baltics. Company in Lithuania also enables the owner to apply for EU residency and business visas. The corporate tax rate in Lithuania is only 15% and many companies are exempt from corporate tax payment for the first year, if certain conditions are satisfied.

Want to start a business in Lithuania?

Register company in Lithuania today and explore business possibilities in the Baltics. Company in Lithuania also enables the owner to apply for EU residency and business visas. The corporate tax rate in Lithuania is only 15% and many companies are exempt from corporate tax payment for the first year, if certain conditions are satisfied.

Currently, because of attraction of foreign direct investment and possibilities to establish FinTechs, Lithuania is one of the most economically powerful countries of the Baltic area.

Lithuania not only offers stable economy, low inflation, cheap labour costs, and a business environment that is open to foreign investment, but also provides one of the lowest corporate tax rates in all the EU.

Lithuania has created a flexible and attractive legislative framework for doing business, giving both local residents and international enterprises equal opportunities to operate in the country. To start doing business in Lithuania, a foreign businessman does not require a local partner - a local legal company can be owned entirely by a foreigner.

Tax environment in Lithuania

The corporate tax rate in Lithuania is only 15% and many companies are exempt from corporate tax payment for the first year, if certain conditions are satisfied. Lithuania’s regulatory authorities have ensured the favourable tax environment both for local and foreign residents.

Currently, Lithuania is one of the best jurisdictions in EU tax wise to plan your tax residency and manage your company. To read more about tax in Lithuania for each of the entities, we invite you to read our Ultimate Guide to Tax in Lithuania.

Business entities in Lithuania

Lithuanian private limited company (UAB). For investors and entrepreneurs, this is the most popular type of entity in Lithuania.

Due to the excellent prospects and low responsibility, this kind of business is most widely employed by investors and enterprises in Lithuania. In Lithuania, a private limited liability corporation must have a minimum capital of EUR 2,500 to be formed. Before registration, the capital must be put in a bank account, with at least 25% paid up. The capital is split into shares that are neither tradeable or sellable to the general public (for this purpose Public company shall be established).

To incorporate Lithuanian UAB minimum share capital of 2,500 EUR is required.
At least 25% of the capital must be paid up.
Maximum number of shareholders in Lithuania private limited company is 250.
Shareholders and the company have limited liability.
Annual audits are required if company’s turnover exceeds EUR 1.4m.

Document list for Lithuania Private Limited Company (UAB):

Passport copy of the founder;
Utility bill not older than three months;
Bank account in Lithuania (may be opened through EU LAW FIRM).

Public limited company (AB). Most popular type of entity for medium and big businesses. To register public limited company in Lithuania, you must appoint a supervisory council or management board.

In Lithuania, this is the most common business entity for medium and large firms. A public limited liability corporation must have a minimum registered capital of EUR 45,000 to be formed. At least 25% of the minimum registered capital must be paid up and put in a bank account. The capital is split into shares, which may be bought and sold on the open market.

Minimum share capital for Lithuanian AB is EUR 45,000 and at least 25% paid up by one or more shareholders.
Auditors are required to prepare annual financial statements for the company.
The company and its shareholders have limited liability.

Document list for Lithuania Public Limited Company (AB):

Passport copy of shareholders and directors of the company;
The business's articles of organization;
Confirmation of a Lithuanian bank account (required to have bank account);
Report on the company, as well as the opinion of an auditor branch or representative office in Lithuania.

Foreign firms and organizations can open representative offices and branches in Lithuania. Although the branch or representative office is part of a legal entity (foreign business), it is not a separate legal entity. For tax purposes, a foreign company may establish a permanent establishment (PE) in Lithuania. The representative office or branch has no formal auditing obligations.

Minimum one manager must be based in Lithuania;
A branch in Lithuania is a structural unit of a legal entity that has its own registered office and performs all or some of the responsibilities of the legal entity;
The branch office can do business within the limits established by the foreign company.

A branch in Lithuania is a structural unit of a legal entity that has its own registered office and performs all or some of the responsibilities of the legal entity. The branch office can do business within the limits established by the foreign company.

The representative office in Lithuania is a division of a legal entity that has a registered office and has the authority to carry out the tasks assigned to it, such as representing and safeguarding the legal entity's interests. The representative office has the ability to advertise but not to trade. The representative office or branch's major characteristic is that the foreign company is liable for all responsibilities.

A foreign firm may establish a permanent establishment (PE) in Lithuania for tax reasons. There is no official audit of the representative office or branch.

How to start business in Lithuania: step-by-step process?

Choose the name of the company, to check whether the name can be used.
Prepare the necessary documents for submission to Lithuanian authorities.
Your company is ready and registered in Lithuania company register.

Documents required to register company in Lithuania:

For individuals.

Notarized and apostilled passport copy of all shareholders;
Notarized and apostilled passport copy of all directors;
Copy of a recent utility bill not older than three (3) months.

For legal person.

Notarized and apostilled Certificate of Incorporation or other similar document evidencing the entity’s existence;
Notarized and apostilled certificate of the Register of Directors;
Notarized and apostilled Register of Shareholders.

Documents required to open a bank account in Lithuania:

Passport copy of all directors and shareholders.
Utility bill not older than 3 months.
CV of the company management.
Business plan.
Banks may request additional documentation from case to case.

Note: All documents in a foreign language must be translated into English and certified by a qualified translator. Translation costs is a separate service and are not included in the price of company registration.

To save your time to prepare the list of documents, let our lawyers take care of that process. We prepare all the documents for you and also provide registered address for your company in Lithuania. By choosing EU LAW FIRM you will get ready-made company in Lithuania to start your business in the Baltics.

What can we do for you in Lithuania?

EU LAW FIRM offers registration of companies in Lithuania and registered office for your company in Lithuania. Save the paperwork and ensure that your company is ready in 3-7 business days. Our lawyers in Lithuania will ensure that the company is registered as soon as possible, and you can start business in Lithuania immediately.

Apart from company registration services, EU LAW FIRM offers fiscal representation & VAT registration services in all three Baltic countries – Lithuania, Latvia and Estonia. We also can apply for VAT registration for your company in Lithuania, in case the turnover will exceed the threshold.

EU LAW FIRM offers company formation in Lithuania completely remotely, so there is no need for personal presence to form a company. You can also purchase company in Lithuania through our EU LAW FIRM store.

Contact EU LAW FIRM lawyers in Lithuania.

E-mail: info@eulawfirm.eu

Telephone: +371 26742086 (Available on WhatsApp/Telegram/Viber/IMO)

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