Lithuania Company Registration

Lithuania is a thriving, business-friendly nation in the Baltics, known for its innovation-driven economy and strategic position within the European Union. Its tech-savvy population, robust infrastructure, and supportive government policies make it an excellent choice for foreign investors and entrepreneurs. The most common legal structure—Uždaroji Akcinė Bendrovė (UAB), or private limited company—requires a minimum share capital of €2,500 and offers shareholders limited liability. Small businesses may opt for a Mažoji Bendrija (MB), which requires no statutory capital and provides flexible management rules.

Types of Companies

1. Uždaroji Akcinė Bendrovė (UAB)
   
   • Ideal for small and medium enterprises
   • Minimum share capital of €2,500
   • Limited liability for shareholders
2. Mažoji Bendrija (MB)
   
   • Suited for micro or small businesses and startups
   • No statutory capital requirement
   • Flexible management and lower compliance costs
3. Akcinė Bendrovė (AB)
   
   • Public limited company structure
   • Higher share capital requirement (€25,000)
   • Suitable for ventures seeking to list shares publicly
     
     

Key Tax Considerations

• Corporate Income Tax (CIT): Standard rate of 15%
• Reduced CIT Rate: As low as 0–5% for qualifying small businesses under certain conditions (e.g., limited number of employees, low revenue thresholds)
• Value Added Tax (VAT): Standard rate of 21%; mandatory registration if annual revenue exceeds the threshold (currently €45,000, subject to change)
• No Withholding on Reinvested Earnings: Encouraging companies to expand and reinvest locally
  
  

Registration Process and Requirements

1. Name Reservation: Verify and reserve your company’s name through the Lithuanian Centre of Registers (Registrų Centras).
2. Draft Founding Documents: Prepare Articles of Association (and Founders’ Agreement if applicable).
3. Deposit Share Capital: For a UAB, deposit the minimum €2,500 into a dedicated bank account (MBs have no minimum capital).
4. File Incorporation Documents: Submit all relevant paperwork to the Centre of Registers (can be done online with digital signatures).
5. Obtain Company Code: Once approved, your company will receive an official business code.
6. VAT and Other Registrations: Register for VAT if you meet or exceed the annual turnover threshold, and handle any sector-specific licenses.
7. Local Address: Secure a Lithuanian registered address for official correspondence (virtual office solutions are acceptable under certain conditions).
   
   

Why Lithuania?

• Strategic EU Location: Seamless access to the European Single Market and ease of cross-border trade
• Pro-Business Environment: Transparent regulations, government incentives for startups, and a thriving fintech/IT sector
• Skilled Workforce: Highly educated population with strong English proficiency and advanced technical skills
• Modern Infrastructure: Extensive digital services and robust connectivity for e-government and e-banking
• Attractive Tax Incentives: Reduced corporate tax rates and other incentives to fuel business growth
  
  

Ongoing Compliance

• Annual Financial Statements: Must be submitted to the Centre of Registers; audits required for larger entities
• Corporate Tax Returns: Typically filed by June 15 for the previous financial year (or October 1 if audited)
• VAT Declarations: Monthly or quarterly filings, depending on turnover
• Employment and Social Security: Register employees, handle payroll taxes, and contribute to social insurance funds
• Shareholder and Board Meetings: Keep accurate minutes and updated statutory records
  
  

Why Work With Us?
Our team offers comprehensive support throughout the incorporation journey, from selecting the optimal company structure to handling all mandatory filings with Lithuanian authorities. With expertise in legal compliance, tax strategies, and corporate governance, we help streamline the process, ensuring your Lithuanian venture is up and running smoothly so you can focus on growth and innovation.