Lithuania company registration

DOING BUSINESS IN LITHUANIA IN 2018

Low corporate taxes and incorporation costs combine to make Lithuania company registration an attractive option for entrepreneurs conducting businesses within Europe and internationally. Lithuania is the largest of the Baltic States, and has a stable political and economic environment.

Lithuania company registration summary

SummaryTax resident LLCFree zone LLCPayment institutionLimited liability partnershipBranch office
Also known asUždaroji Akcine BendroveUždaroji Akcine BendroveMokėjimo įstaigosKomanditine Ukine BendrijaFilialas
Best use of company?All products and servicesClose a customer deal nowFinancial servicesProfessional servicesSpecific projects
How soon can you invoice Clients\sign sales contracts?2 weeks3 weeks6 months3 weeks4 weeks
How soon can you hire staff?2 weeks3 weeks3 weeks3 weeks4 weeks
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week
How long to supply corporate bank account numbers?6 weeks6 weeks6 months6 weeks6 weeks
How long to supply company registration \ tax numbers?2 weeks3 weeks3 weeks3 weeks4 weeks
Corporate tax rate on annual net profits?15%0%15%0%15%
Limited liability entity?YesYesYesYesNo
Government grants available?YesYesYesYesYes
Government approval required for foreign owners?NoNoNoNoNo
Resident director/partner/manager/ legal representative required?NoNoNoNoYes
Minimum paid up share capital?€€2,500€2,500€125,000€1€1
Can bid for Government contracts?YesYesYesYesYes
Corporate bank account location?SwedbankLuminorŠiaulių bankasSEBCitadele
Can secure trade finance?YesYesYesYesYes
VAT payable on sales to local customers?21%0%21%21%21%
Average total business set up engagement costs?€10,925Request a proposalRequest a proposalRequest a proposal€11,600
Average total engagement period?2 months3 months7 months3 months4 months


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  • Advantages of Lithuania company registration

    Lithuania business registration services

    1. Lithuanian business registration rules are liberal, requiring only i) one shareholder of any nationality ii) one director of any nationality and iii) a low €2,500 of paid-up share capital;
    2. Lithuania is the perfect logistics gateway between Russia and the EU;
    3. Labor costs and secondary costs such as office space are amongst the lowest in Europe. For example, the average commercial rent per meter square in large cities is around US$16/month, and the average monthly salary for skilled labor is US$668;
    4. Lithuania’s corporate tax rate of 15% is one of the lowest in the EU. Furthermore, a 6-year tax holiday is available to companies established in Lithuanian Free Economic Zones, with a reduced tax rate of 7.5% applying for the subsequent 10 years;
    5. Lithuania has signed double taxation avoidance agreements with 50 countries including Canada, China, Austria and the United Kingdom;
    6. Lithuania joined the European currency union in January 2015 and the national currency is now the Euro. This removes the currency exchange risk when trading with other Eurozone countries, thereby reducing barriers to trade and increasing the attractiveness of registering a company in Lithuania.
  • Disadvantages of Lithuania company registration

    1. The Value Added Tax (VAT) in Lithuania is 21%, reducing the attractiveness of products sold in the country compared to other Eastern European economies;
    2. Only 30% of Lithuanians speak English. Consequently, it is difficult for foreign entrepreneurs to grow their business in Lithuania, as communication is limited;
    3. The total cost of company registration is increased by the requirement that all company documents are translated into Lithuanian before filing with the companies registry;
    4. Lithuania is almost completely land locked, limiting trading by sea.

Company registration

  • Time to incorporate: Three weeks
  • Cost to set up: €10,925
  • Minimum capital: €2,500
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 15%
  • Corporate tax base: Worldwide
  • Shelf companies: Available
  • Main company type: UAB company

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Frequently asked questions

Contact us

For additional information on our company registration services in Lithuania, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
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