Business entities in Lithuania in 2023

Healy Consultants will assist our Clients to set up the optimal corporate structure in Lithuania. There are several ways of doing business in Lithuania, the most common being to set up a limited liability company. Foreign entrepreneurs may also opt to set up a public limited company, a branch office or a representative office.

The Lithuania limited liability company (Uždaroji akcinė bendrovė – UAB)

• The Lithuania limited liability company (LLC, known in Lithuania as a UAB) is the most common type of company in Lithuania and the most popular among foreign investors conducting business in the country. It is ideal for entrepreneurs willing to set up a small business, with a simple management structure that is easy to manage from abroad;
• This company type requires only 1 director, who must be a natural person, and 1 shareholder. The minimum share capital required is €2,500. After company setup in Lithuania, private limited liability companies are required to appoint an auditor in order to submit annual audited financial statements.

The Lithuania public limited company (Akcinė bendrovė – AB)

• The second of the two main company types in Lithuania, a public limited company (PLC, known as an AB in Lithuania) requires a minimum paid-up share capital of €40,000 and must appoint at least 1 director and 1 shareholder of any nationality to complete the incorporation process. This business entity is usually recommended for our Clients planning to have important operations and multinational corporations setting up a Lithuanian subsidiary;
• Unlike those of a Lithuanian UAB, the shares of a Lithuanian AB company can be i) easily transferred and ii) listed on Nasdaq Baltic stocok exchange. However, a Lithuanian business entity must appoint a registered auditor and submit audited financial statements annually.

The Lithuania branch office (Filialas)

The Lithuanian branch office must have a registered office in Lithuania. It can engage in commercial activities, enter into transactions and assume obligations as stated in its statutory documents. The Lithuanian branch can be set up with only one shareholder and a minimum paid-up capital of €1. However, a corporate agent who is resident in Lithuania must be appointed in order to represent the branch in relations with any third parties. An auditor must also be appointed to submit audited financial statements annually.

The Lithuania representative office (Atstovybė)

The main functions of a representative office in Lithuania include i) investigating opportunities for investment ii) marketing the parent company and iii) performing representative and other functions. Representative offices are not regarded as legal entities and may not carry out income earning business activities in Lithuania.

Lithuania fast business solution

• For Clients interested to quickly become operational in Lithuania, Healy Consultants offers our expert complete shelf company solution. Our will receive within a day a detailed corporate overview of his preferred readymade company. Consequently, our Client can immediately begin entering into contractual agreements with his Clients and suppliers;
• This type of solution offers minimal turnaround time for director and shareholder transfer. Furthermore, the companies have already available VAT registration numbers, significantly cutting down timelines for new VAT application;
• Lastly, this structure is ideal for foreign investors, interested to obtain an invitation letter to come and explore the Lithuanian market in person.

Table of comparison between different Lithuania business entities