Business entities in Lithuania in 2021
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
|LLC||PLC||Branch Office||Representative office|
|Also known as||UAB||AB||Filialas||Atstovybė|
|How long to set the company up?||3 weeks||4 weeks||5 weeks||6 weeks|
|How long to open company bank account?||2 weeks||3 weeks||4 weeks||4 weeks|
|Wholly foreign owned?||Yes||Yes||Yes||Yes|
|Minimum paid - up share capital?||€2,500||€40,000||€1||€1|
|File annual tax return?||Yes||Yes||Yes||No|
|Tax registration certificate required?||Yes||Yes||Yes||No|
|Recommended corporate bank account?||SEB Bankas||DnB Nord Bank||Swedbank||Citadele|
|Does our Client need to travel?||No||No||No||No|
|Resident director required?||No||No||No||No|
|Resident shareholder required?||No||No||No||No|
|Minimum directors allowed?||1||1||0||0|
|Tax identification code needed?||Yes||Yes||Yes||No|
|Lithuania resident representative required?||Yes||Yes||Yes||No|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed?||No||No||No||No|
|Statutory audit required?||Yes||Yes||Yes||No|
|Lithuania corporate tax rate?||15%||15%||15%||N/A|
|Annual financial statements required?||Yes||Yes||Yes||No|
|Regulated by?||Centre of Registers||Centre of Registers||Centre of Registers||Centre of Registers|
|Allowed to issue sales invoices?||Yes||Yes||Yes||No|
|Allowed to sign contracts?||Yes||Yes||Yes||No|
|Allowed to import and export goods?||Yes||Yes||Yes||No|
|Can rent an office space in Lithuania?||Yes||Yes||Yes||Yes|
|Can buy Lithuania property?||Yes||Yes||Yes||No|
|Total Lithuania business setup costs in yr. 1?||€10,925||€11,950||€11,600||€11,100|
|Subsequent annual costs (incl. accounting and tax fee)?||€3,400||€6,050||€3,400||€3,100|
|Sample engagement invoice?||View invoice PDF||View invoice PDF||View invoice PDF||View invoice PDF|
Frequently asked questions
Do I need a local director to set up a business in Lithuania?No, there is no requirement for a local director in Lithuania. However, all companies set up in Lithuania must appoint a Lithuanian resident representative.
Where can I find more information about how to set up a company in Lithuania?Kindly refer to Healy Consultants’ page on how to set up a Lithuanian company.