We can handle the full range of your needs, from company registration
to obtaining a license and opening a bank account.
How to Register a Business in Lithuania
A Step-by-Step Guide for Foreigners
Request a Commercial offer
Who Are We?
LFT Advisors specializes in international business planning and structuring. Our team of lawyers, accountants, auditors, and tax consultants provides entrepreneurs with comprehensive support for managing international projects, ensuring a high level of service and expert guidance every step of the way.
What Do We Offer?
We provide all the necessary business services in one place. Operating on a “one-stop-shop” principle, we eliminate the need for multiple contractors and reduce additional costs. From company registration to obtaining licenses and opening bank accounts, we cover all your business needs.
Why Choose Us?
Every decision we make is driven by respect for your finances, reputation, and ambitions. We don’t rely on generic solutions; instead, we craft personalized strategies tailored to your specific business goals and needs.
Collaboration Process
- Initial Consultation:
Discuss your business objectives and needs to identify the required services. - Strategy Development:
Analyze your current situation and create a customized action plan to achieve your goals. - Implementation:
Handle all aspects of the process, including company registration, bank account setup, licensing, and tax registration. - Support and Maintenance:
Continue to assist you after the launch with ongoing support, updates, and consultations. - Results Evaluation:
Regularly assess outcomes and adjust strategies as needed to maximize efficiency and ensure success.
Request a Commercial offer
Kicking off a business in Lithuania is a fantastic way for foreigners to tap into the European market while enjoying perks like a business-friendly tax system, top-notch infrastructure, and an excellent quality of life. To make your journey smoother, we’ve put together a step-by-step guide packed with tips to help you set up your company in Lithuania without overspending or running into typical pitfalls.
Benefits of the Jurisdiction
E-Government Services:
Most administrative services are available online, enabling submission of reports and documents electronically.
Stable Economy:
Ranked 13th in economic freedom and 11th in ease of doing business.
Support for SMEs and Startups:
Favorable conditions for small businesses, including tech startups.
Low Administrative Costs:
Competitive 15% cit, one of the lowest in the EU.
Global Recognition:
Attracts leading global companies like NASDAQ, which have established offices in the country.
Eurozone Member:
Transition to the euro in 2015 simplified financial operations and investments.
R&D Incentives:
Triple deduction for R&D expenses under a special tax regime.
VAT Benefits:
0% VAT on many EU trade operations.
Free Economic Zones:
Six conveniently located zones with special legal and economic conditions for investors.
EU and Schengen Membership:
Access to tax benefits, a unified labor market, and simplified immigration procedures.
Strategic Location:
A gateway to Scandinavian, Western, and Eastern European markets.
Top-Tier Infrastructure:
The best road network in Central and Eastern Europe.
Remote Registration:
Companies can be registered in Lithuania without the need for physical.
Benefits for companies in Lithuania
Popular Types:
- Uždaroji akcinė bendrovė (UAB)
- Pilnoji partnerystė arba komanditinė partnerystė
- Filialas/atstovybė
- Individuali įmonė
- Akcinė bendrovė (AB)
Структура компанії
In Lithuania, the go-to choice for most entrepreneurs is the Uždaroji akcinė bendrovė. This setup is super flexible, allowing non-residents to step in as both shareholders and directors, which makes it a go-to choice for global entrepreneurs.
Capital Requirements: Min share capital is €2,500,00 payable before registration begins.
Shareholder: At least one individual or corporate entity of any residency (excluding sanctioned countries).
Director: Must be an individual. Residency can be from any country except sanctioned ones. This role can be combined with the shareholder position.
Secretary: Optional.
Beneficial Ownership Register: Publicly accessible information about beneficial owners, company name, legal address, capital size, directors, and shareholders.
Substance Requirements: Necessary only for opening a local bank account. Alternatives include Lithuanian payment systems.
Legal Address: Must be located within Lithuania.
How to Get Your Company Registered: Step-by-Step
- Make sure your company name is unique and lock it in through the official registries.
- Gather notarized copies of essential docs, like your registration certificate and articles of association. If doing this remotely, a notarized power of attorney is a must.
- Set up a legit business address in Lithuania, whether it’s physical or virtual—this is where all your official mail will go.
- Provide all the details about your directors and shareholders, along with their ID or passport copies.
- Get your finances in order by opening a corporate bank account at a Lithuanian bank.
- If your business needs specific licenses, apply for them upfront to avoid delays.
- Register with the local tax office to sort out VAT, payroll, and any other tax obligations.
What You’ll Need
- Pick out three potential company names that resonate with your vision.
- Provide a breakdown of what your business will be all about—its main activities and goals.
- Have your foreign passport handy (for shareholders, partners, and directors).
- Grab a utility bill or bank statement (PrivatBank or Monobank work great) translated into English—it proves your address.
- Share your email for official correspondence and your phone number for quick updates.
- Don’t forget to include a CV—shows off the experience you’re bringing to the table.
Taxation System
Податок на прибуток компаній
- Corporate tax is set at 15%—simple and straightforward.
- Small businesses get a sweet deal: if your annual turnover doesn’t exceed €300,000, you’ve got fewer than 10 employees, and you’re not tied to other companies, there’s a perk. In your first year, you’ll pay 0% on profits. Starting from year two, it’s just 5%.
VAT:
Payable at every stage of production or service delivery.
Essential for businesses providing goods or services to end consumers.
Standard rate: 21%.
Reduced rate: 9% (applies to hotel services and certain cultural activities).
Dividend Tax/Withholding Tax:
Levied on payouts to shareholders as dividends.
Standard rate: 15%, with possible reductions for residents of countries with applicable double-taxation treaties.
Capital Gains Tax:
Applies to profits from the sale of assets (e.g., shares, real estate).
Standard rate: 15%, with exemptions possible for certain long-term investments.
Turnover Tax:
Not applicable.
Property and Wealth Taxes:
Levied on ownership of commercial or other properties.
Rates vary from 0.1% to 1% depending on the value and purpose of the property. These taxes contribute to local budgets.
Payroll Taxes/Contributions:
Employers pay contributions for hired employees (pension, health, and social insurance).
Employer: 1.77%,
Employee: 19.5% of their gross salary is directed to social funds.
Local/Regional Taxes:
Additional taxes may be applied by local, regional, or municipal authorities.
Currently, there are no such taxes in Lithuania. However, local authorities may charge separate fees for using infrastructure.
Property and Wealth Taxes:
Levied on ownership of commercial or other properties.
Rates vary from 0.1% to 1% depending on the value and purpose of the property. These taxes contribute to local budgets.
Reporting
Every company, whether local or foreign, has to keep track of its financial moves and file an annual accounting report with the Registration Center. If you’re running a medium or large-scale operation, you’ll need to go all in with a detailed financial report. Small businesses, on the other hand, get to keep it simple with an easier, streamlined version for submitting their numbers.
Additionally, companies meeting at least two of the following criteria are subject to auditing:
Revenue exceeding €3,500,000 annually.
Assets worth over €1,800,000.
A workforce of more than 50 employees.
Thus, small companies below these thresholds are exempt from preparing audited reports.
