{"id":206109,"date":"2025-09-07T06:33:49","date_gmt":"2025-09-07T06:33:49","guid":{"rendered":"https:\/\/adamfayed.com\/?p=206109"},"modified":"2025-09-07T06:33:50","modified_gmt":"2025-09-07T06:33:50","slug":"how-to-set-up-a-company-in-lithuania","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/it\/business-strategy\/how-to-set-up-a-company-in-lithuania\/","title":{"rendered":"How to Set Up a Company in Lithuania: Costs, Advantages and Easy Steps"},"content":{"rendered":"<p>Setting up a company in Lithuania is clear-cut: choose a legal structure, prepare minimal share capital, and register online.<\/p>\n\n\n\n<p>The country offers direct access to the EU single market, a digitally advanced infrastructure, and a reputation for fast, streamlined company registration.<\/p>\n\n\n\n<p>Unlike many jurisdictions that involve long waiting times and heavy bureaucracy, Lithuania allows businesses to be registered in just a few days, often entirely online through the use of e-signatures or e-Residency.<\/p>\n\n\n\n<p>This guide provides a detailed overview of Lithuania company formation. It covers the different legal structures available, capital requirements, step-by-step registration procedures, taxation, and the incentives offered through Free Economic Zones.<\/p>\n\n\n\n<p>It also answers key questions about costs and process of starting a business in Lithuania as a foreigner, timelines, and foreign ownership so entrepreneurs can evaluate whether Lithuania is the right location for their venture.<\/p>\n\n\n\n<p>I miei dati di contatto sono <a href=\"mailto:hello@adamfayed.com\" target=\"_blank\" rel=\"noreferrer noopener\">hello@adamfayed.com<\/a> e WhatsApp +44-7393-450-837 se avete domande.<\/p>\n\n\n\n<p>Le informazioni contenute in questo articolo hanno un valore puramente indicativo. Non costituiscono consulenza finanziaria, legale o fiscale e non rappresentano una raccomandazione o una sollecitazione a investire. Alcuni fatti potrebbero essere cambiati dal momento della stesura.<\/p>\n\n\n\n<img decoding=\"async\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/CTA_5_final_-512x288.jpg\" usemap=\"#image-map\" alt=\"Discover How We Can Address Your Financial Pain Points\">\n\n<map name=\"image-map\">\n    <area href=\"https:\/\/adamfayed.com\/subscribe\/\" target=\"_blank\" alt=\"Subscribe Free\" title=\"Abbonati gratuitamente\" coords=\"72,217,198,252\" shape=\"rect\">\n    <area href=\"https:\/\/adamfayed.com\/contact\/\" target=\"_blank\" alt=\"Discover Now\" title=\"Scopri ora\" coords=\"303,217,429,252\" shape=\"rect\">\n<\/map>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Start a Business in Lithuania?<\/strong><\/h2>\n\n\n\n<p>Positioned at the crossroads of Western Europe, the Nordics, and Eastern markets, Lithuania provides a gateway to over 450 million consumers within the EU single market.<\/p>\n\n\n\n<p>The country is well-known for its digital-first approach to government services. Company registration, tax filings, and official reporting can be completed electronically, with e-signatures widely accepted.<\/p>\n\n\n\n<p>For foreigners, Lithuania\u2019s e-Residency program makes it possible to establish and manage a company remotely, providing flexibility for international founders.<\/p>\n\n\n\n<p>Lithuania also offers <a href=\"https:\/\/adamfayed.com\/it\/personal-financial-planning\/expat-tax\/low-tax-countries\/\">competitive tax policies<\/a>. The standard corporate income tax is 16%, but startups and small companies may qualify for reduced rates of 6% or even 0% under certain thresholds.<\/p>\n\n\n\n<p>Businesses operating in designated Free Economic Zones enjoy additional benefits, such as exemptions from corporate tax and property tax for initial years of operation.<\/p>\n\n\n\n<p>Beyond tax advantages, Lithuania has cultivated a thriving innovation and startup ecosystem, with strong support from government-backed agencies such as Invest Lithuania. Entrepreneurs gain access to consulting, networking opportunities, and a skilled workforce in one of the EU\u2019s fastest-growing economies.<\/p>\n\n\n\n<p>In short, Lithuania combines the advantages of an EU jurisdiction with low setup barriers, efficient digital services, and a favorable tax environment, making it a strong option for both local and foreign entrepreneurs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Setting Up a Business in Lithuania<\/strong><\/h2>\n\n\n\n<p>The first step in <a href=\"https:\/\/www.govilnius.lt\/do-business-and-invest\/setting-up-a-businesss\" target=\"_blank\" rel=\"noopener\">setting up a company in Lithuania<\/a> is selecting the right legal structure. The country offers several options, each suited to different business sizes, investment levels, and liability preferences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Private Limited Company (U\u017edaroji akcin\u0117 bendrov\u0117 \u2013 UAB)<\/h3>\n\n\n\n<p>The UAB is the most common business form in Lithuania. It requires a minimum share capital of about \u20ac2,500\u2013\u20ac2,900 and offers limited liability protection, meaning shareholders are only liable up to the amount of their contribution. <\/p>\n\n\n\n<p>It is well-suited for small and medium-sized enterprises and is often the structure of choice for foreign entrepreneurs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public Limited Company (Akcin\u0117 bendrov\u0117 \u2013 AB)<\/h3>\n\n\n\n<p>The AB is intended for larger enterprises and companies planning to raise capital from the public. It has a higher capital requirement, around \u20ac44,000, and stricter governance rules. <\/p>\n\n\n\n<p>While less common among small businesses, it is essential for ventures aiming for significant growth or stock exchange listings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Small Partnership (Ma\u017eoji bendrija \u2013 MB)<\/h3>\n\n\n\n<p>The MB is a flexible, low-cost option created for small businesses or partnerships. It has no formal share capital requirement, and its rules are less restrictive than those for UABs. <\/p>\n\n\n\n<p>This makes it attractive for small teams or startups testing business ideas before committing larger resources.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sole Proprietorship (Individuali \u012fmon\u0117 \u2013 I\u012e)<\/h3>\n\n\n\n<p>This is the simplest structure, owned and managed by a single individual. While it is easy to set up and inexpensive to run, the owner is personally liable for all debts and obligations, which may be risky for ventures planning larger operations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Partnerships (T\u016aB \/ K\u016aB)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>General Partnership (Tikroji \u016bkin\u0117 bendrija \u2013 T\u016aB): All partners share full liability for obligations.<\/li>\n\n\n\n<li>Limited Partnership (Komanditin\u0117 \u016bkin\u0117 bendrija \u2013 K\u016aB): At least one partner has unlimited liability, while others are liable only up to their contribution.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Branches and Representative Offices<\/strong><\/h3>\n\n\n\n<p>Foreign companies that do not want to establish a new legal entity can instead register a branch or representative office. These allow foreign businesses to operate or promote their services in Lithuania without forming a local company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Register a Business in Lithuania: Step-by-step<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Prepare the documents.<br>Draft the Articles of Association, prepare the act of establishment (if there is a single founder), and secure a registered office address in Lithuania. If the office belongs to a third party, written consent from the owner must be provided. Entrepreneurs can also reserve a company name before submitting the application.<\/li>\n\n\n\n<li>Open a temporary bank account.<br>Using the Articles of Association, open a temporary accumulation account at a Lithuanian bank or electronic money institution. Deposit the required share capital of at least \u20ac2,500 for a UAB. Proof of payment will be required for registration.<\/li>\n\n\n\n<li>Notarise and sign.<br>Hold the constituent meeting if there are multiple founders, approve the statutes, and appoint the company\u2019s governing bodies. The incorporation documents must be notarised by a civil law notary before submission.<\/li>\n\n\n\n<li>Register with the authorities.<br>File the application with the Register of Legal Entities at the Centre of Registers. The required forms include JAR-1, JAR-VO-V, and JAR-T. Pay the \u20ac30.83 registration fee. If the documents are in order, the company is usually registered within three business days.<\/li>\n\n\n\n<li>Activate the <a href=\"https:\/\/adamfayed.com\/it\/offshore-investment\/offshore-banking\/offshore-business-bank-account\/\">company bank account<\/a>.<br>After the company is formally registered, the temporary accumulation account is converted into a permanent corporate bank account for day-to-day operations.<\/li>\n\n\n\n<li>Register beneficial owners.<br>Within ten days of incorporation, the company must submit information on its ultimate beneficial owners (UBOs) to the JANGIS register.<\/li>\n\n\n\n<li>Register for tax and social contributions.<br>New companies must register with the State Tax Inspectorate (VMI) using the online Mano VMI portal. VAT registration becomes mandatory once turnover exceeds \u20ac45,000. If hiring employees, employers must also notify the social insurance authority (Sodra) by filing the 1-SD form no later than one day before employment begins.<\/li>\n\n\n\n<li>Remote option with e-Residency.<br>Foreign founders who cannot be physically present can incorporate remotely using Lithuania\u2019s e-resident card, which enables signing documents electronically and managing the company online.<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<p>This process is designed to be fast and efficient. With the proper documents prepared, a company can be established and fully operational in less than a week.<\/p>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\">How much does it cost to start a business in Lithuania?<\/h3>\n\n\n\n<p>The cost of starting a business in Lithuania varies by company type and required services.<\/p>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image alignright size-medium\"><img fetchpriority=\"high\" decoding=\"async\" width=\"200\" height=\"300\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/08\/pexels-julia-volk-5273316-200x300.jpg\" alt=\"company in Lithuania\" class=\"wp-image-206114\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/08\/pexels-julia-volk-5273316-200x300.jpg 200w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/08\/pexels-julia-volk-5273316-341x512.jpg 341w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/08\/pexels-julia-volk-5273316-scaled.jpg 550w\" sizes=\"(max-width: 200px) 100vw, 200px\" \/><\/figure>\n<\/div>\n\n\n\n<p><a href=\"https:\/\/companyformationlithuania.com\/set-up-a-uab-lithuania\/\" target=\"_blank\" rel=\"noopener\">For a private limited company (UAB)<\/a>, the minimum share capital is \u20ac1,000. This must be deposited into a temporary accumulation account before registration, and each shareholder is required to contribute at least 25% of their share.<\/p>\n\n\n\n<p>For a public limited company (AB), the threshold is significantly higher at \u20ac40,000, reflecting its suitability for large enterprises. A Small Partnership (MB) does not require any share capital, making it one of the lowest-barrier options.<\/p>\n\n\n\n<p>Beyond capital, there are other mandatory costs. A state registration fee of \u20ac30.83 is payable to the Register of Legal Entities, and incorporation documents must be verified by a civil law notary.<\/p>\n\n\n\n<p>Entrepreneurs may also choose to reserve a company name in advance for a small fee. If incorporation is done remotely, Lithuania\u2019s e-resident card is necessary, which costs \u20ac90 plus an additional \u20ac18 service fee.<\/p>\n\n\n\n<p>Ongoing costs begin immediately after registration. Businesses must budget for accounting services, the cost of a registered office if using a third-party provider, and sector-specific licenses if applicable.<\/p>\n\n\n\n<p>Companies are not required to register for VAT until their annual turnover exceeds \u20ac45,000, though voluntary registration is possible.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Doing Business in Lithuania: Taxation and obligations<\/strong><\/h2>\n\n\n\n<p>Once a company is registered, it must comply with Lithuania\u2019s tax and reporting framework. The <a href=\"https:\/\/armenian-lawyer.com\/business-immigration\/lithuanias-tax-system-for-business-owners-and-residents-optimizing-your-corporate-structure\/#:~:text=Explore%20Lithuania%20Business%20Residency%20Program,2025%20(increased%20from%2015%25).\" target=\"_blank\" rel=\"noopener\">corporate income tax rate is 16%<\/a> (increased from 15% starting January 2025), but small businesses that meet specific conditions may qualify for a reduced 6% rate, and certain startups may enjoy 0% tax in their first year.<\/p>\n\n\n\n<p>Companies operating in Free Economic Zones may also receive exemptions from corporate tax for an initial period, provided they meet investment thresholds.<\/p>\n\n\n\n<p>As of 2025, the value-added tax (VAT) rate is 21%. Registration becomes mandatory once a company\u2019s annual turnover exceeds \u20ac45,000, though voluntary registration is allowed. For businesses trading across borders, EU VAT rules apply, including the use of the One-Stop Shop system.<\/p>\n\n\n\n<p>It is important to note that current legislation may raise the current VAT threshold in the next few years.<\/p>\n\n\n\n<p>Employers have additional responsibilities. Personal income tax must be withheld from employees\u2019 salaries, and both the employer and employees contribute to social security.<\/p>\n\n\n\n<p>The main contributions include health insurance and pension funding. Before the first working day, employers are required to notify the social insurance authority (Sodra) by submitting the 1-SD form electronically.<\/p>\n\n\n\n<p>All Lithuanian companies must maintain proper accounts and submit annual financial statements. These are filed with the Centre of Registers, and electronic submission is standard practice.<\/p>\n\n\n\n<p>Failure to comply with reporting or tax obligations may result in penalties, making professional accounting support essential from the start.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Incentives and Free Economic Zones Lithuania<\/h3>\n\n\n\n<p>Lithuania actively encourages <a href=\"https:\/\/adamfayed.com\/it\/offshore-investment\/\">investimenti esteri<\/a> through a system of incentives and Free Economic Zones (FEZs). The Kaunas and Panev\u0117\u017eys FEZs are the most established, offering substantial tax relief for businesses that meet minimum investment levels.<\/p>\n\n\n\n<p>Companies based in these zones can enjoy 0% corporate income tax for the first 10 years and a reduced rate thereafter, as well as exemptions from real estate tax and dividend tax.<\/p>\n\n\n\n<p>In addition to FEZ benefits, Lithuania promotes startups through reduced corporate tax rates and easier incorporation rules for small partnerships. The government also provides access to grants and EU funding programs aimed at innovation, technology, and sustainability projects.<\/p>\n\n\n\n<p>Lithuania\u2019s combination of competitive taxation, EU market access, and targeted incentives in FEZs creates a favorable landscape for both small ventures and larger investors looking for a European base.<\/p>\n\n\n\n<p><strong>Siete afflitti dall'indecisione finanziaria? <\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"512\" height=\"288\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-512x288.jpg\" alt=\"\" class=\"wp-image-117505\" style=\"width:683px;height:auto\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-512x288.jpg 512w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-300x169.jpg 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-768x432.jpg 768w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-scaled.jpg 825w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/it\/become-adams-client\/\">Diventa mio cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/it\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fare il quiz sull'idoneit\u00e0 del cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/it\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Contatto<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam \u00e8 un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Setting up a company in Lithuania is clear-cut: choose a legal structure, prepare minimal share capital, and register online. The country offers direct access to the EU single market, a digitally advanced infrastructure, and a reputation for fast, streamlined company registration. Unlike many jurisdictions that involve long waiting times and heavy bureaucracy, Lithuania allows businesses [&hellip;]<\/p>","protected":false},"author":16,"featured_media":206113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"no","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[{"account":"facebook_10166176115445471_100883565069113","service":"facebook","timestamp":1757226863,"status":"error"}],"rop_publish_now_status":"done","footnotes":""},"categories":[11539],"tags":[],"class_list":["post-206109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-strategy"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/206109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/comments?post=206109"}],"version-history":[{"count":3,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/206109\/revisions"}],"predecessor-version":[{"id":209113,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/206109\/revisions\/209113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media\/206113"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media?parent=206109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/categories?post=206109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/tags?post=206109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}