Company formation in Lithuania is simple as our legal team prepares and takes care of all the documentation for you to start business in Lithuania quickly. Our Vilnius office provides a wide range of corporate services tailored to fit your needs. We can provide you with a turnkey solution with all necessary business services.
Company Formation in Lithuania
Company Formation in Lithuania
How we can support you in starting business in Lithuania:
Setting up a new limited liability company, including new shelf companies ready for business
Virtual currency (crypto) license applications, EMI/PsP licensing, ICO and STO
Accounting&payroll, registered office address, local representative services, banking support
The most time and cost efficient approach to register a company is to purchase a new shelf company, which can be done fully remotely with no travel to Lithuania needed. The alternative founding process by oneself is a challenge to non-residents due to various requirements (e.g. share capital payment). Hence in most cases, non-residents of Lithuania opt for a new or aged shelf company to avoid bureaucracy as we have already taken care of all the preparations and requirements. However, we do assist with new incorporations on request. We will help you to choose the best approach according to your objectives. Lithuanian company formation pricing starts from 980 EUR, for more information contact us for a free case evaluation and a detailed price quote »
Company in Lithuania
We'll get you started in Lithuania!
We have helped hundreds of businesses to set up in Lithuania. We offer time and cost efficient remote setup packages with no travel needed. Our pricing for company formation in Lithuania starts from 980 euros.
Priced from 980 euros
Remote setup in 5 to 10 days
New shelf companies available
Crypto licenses available
ICO, STO, EMI, PsP legal support
Limited Liability Company in Lithuania
The Lithuanian limited liability company (Uzdaroji Akcine Bendrove or UAB in Lithuanian) is the most common formof business as its shareholders have no personal proprietary liability for the company’s obligations. Our new limited liability Lithuanian shelf companies are registered in the Commercial Registry with an active registration number and no previous activity – in some cases we also create the new company as tailor-made according to your order. All Lithuanian shelf companies come with our 100% clean balance sheet guarantee and the full share capital payment of 2500 EUR pre-registered, hence there is no need to put up the share capital.
All of our new shelf companies have a previously opened startup bank account at a local bank. There are no restrictions on the number or the nationality of the shareholder(s) and board member(s). Our lawyers in the Vilnius office can also support with applying for the virtual currency service provider license, or provide a full range of services for Electronic Money Institution (EMI) and payment service provider (PsP) licensing.
The Lithuanian company setup can be carried out remotely with a Power Of Attorney (PoA) issued to us or by scheduling a notary appointment in Vilnius. The PoA has to be notarized and carry an apostille certificate, or alternatively be legalized depending on your location. We prepare the full package of legal documentation and submit all applications on your behalf – we only require the basic information from your side to fill and submit the documents. After the Lithuanian Commercial Registry has processed all changes we forward the full legal documentation to you. It usually takes 5 business days for the registry to update their database to show the new shareholder(s), board member(s) and company information.
What are the steps?
Step 1: Get in touch for consultation
Let us know of your target objectives and we propose the best solution for your consideration. Preliminary consultation and detailed price quotes are free of charge.
Step 2: We take care of everything
We collect and prepare all legal documentation and forward for your confirmation and signatures. As an option we offer full remote service, no travel is needed for the company formation in Lithuania.
Step 3: Start business in Lithuania
We take care of all applications and set up any corporate services needed. We notify you when the process is finalized and when your company in Lithuania is ready for business.
Corporate services in Lithuania
We provide a full range of corporate services in Lithuania including company formations, VAT and tax registrations, legal and tax advisory, virtual registered office, accounting&payroll, licensing (e.g. ICO, EMI, PsP) and bank account opening support. Corporate secretarial services on request.
Our virtual office service is a flexible solution for companies who do not need a physical office in Lithuania. Our legal address in Vilnius will be used for registering with the Commercial Registry and as the administrative address for the company to receive postage. The postage sent to your company will be forwarded to you by e-mail (scanned copy) or by regular mail on request. We can also set up individual local telephone and fax numbers as well as a local domain name with web hosting for your company.
Our accounting department can take care of all of your Lithuanian company bookkeeping, as well as consult about financial and tax questions. The monthly cost of bookkeeping depends on the company profile, for example on the number of transactions and payroll calculations. Financial statements have to be submitted annually while VAT returns and social tax declarations have to be submitted monthly.
We work with several banks (e.g. Šiaulių Bankas and Luminor Bank) to ensure the most time efficient opening of a business bank account for your company in Lithuania. To set up the account, a board member has to be present for a face to face meeting during the first application stage. The payment card and online banking security token are received in the second stage. Our compliance team will consult on choosing the best bank for your business and provide support through the account opening process.
An audit is required in case on the last day of the financial year at least two their indicators exceed the following rates:
- Annual net sales of 3 500 000 euros and more
- Assets value indicated in the balance sheet of 1 800 000 euros and more
- Average listed number of staff during the financial reporting year is 50
Taxation basics in Lithuania
We have listed the main corporate taxation key points in Lithuania. For more specific tax related questions contact us for consultation with our country specific tax specialist.
The standard corporate income tax rate in Lithuania is 15%; however, small companies with fewer than ten employees and less than 300 000 EUR in gross annual revenues can benefit from reduced corporate tax rate of 0-5%. Generally, the CIT is applied on taxable income received by a Lithuanian tax resident from its local and worldwide activities. Taxable income is calculated by reducing general income of a certain tax period with deductible expenses and non-taxable income.
Distributed dividends from a resident company to another resident company are subject to the 15% corporate tax unless it is a parent company holds at least 10% of the shares of the subsidiary for at least 12 months, at which points these dividends are tax exempt. Dividends received by a foreign entity registered in the an EEA member state whose profits are already subject to corporate income tax or an equivalent are also tax exempt.
Lithuania has a standard VAT rate of 21% with a reduced rate of 9% and 5%. The 9% VAT applies to books, informational publications, periodicals, accommodation, and passenger transportation on regular routes while the 5% reduced rate applies to technical aids for disabled persons, pharmaceuticals and medical aids to persons eligible for reimbursement listed under the Law on Health Insurance. A VAT registration is necessary when the aggregate amount of goods and/or services supplied by routine business activities exceeds 45 000 EUR in a 12 month period.
Employers registered in Lithuania (including permanent establishments of the foreign entities) must pay social tax on all payments made to employees. The rate of social tax is 30.49%. Minimum wage in Lithuania is 607 EUR/month as of 2020.
Frequently Asked Questions
Below we have included the frequently asked questions for company formation and corporate services in Lithuania and the appropriate answers.
What documentation is needed?
In order to register and process your order we ask for you your passport scan, residential address (w. utility bill) and contact details.
How long does it take?
It usually takes 5-10 business days for the Commercial Registry to process the company setup.
Do I have to come to Lithuania?
The company setup procedures can be processed fully remotely with travel to Lithuania not required.
Why prefer the shelf company?
The most cost and time efficient alternative to forming a new company from scratch is to acquire a shelf company, which is very common in Lithuania. The advantage of the shelf company is that the business can start functioning at once and that the company already has a registration number. Further, we have already pre-registered the share capital payment, hence no separate transfers are needed at the setup phase.
What if I am not from the EU?
The Lithuanian commercial code does no set forward any restrictions to non-EU participants.
How much does it cost?
Our pricing for both new company formation and new shelf companies in Lithuania starts from 980 EUR. The final cost of your project will depend on further services required such as local registered office address, registered agent service or similar. Also the annual costs will depend on the list of required services. We would be glad to provide a detailed quote specific to your project.
Do I need registered office address?
Having a local registered office address is mandatory for every Lithuanian company. The legal address will be shown in the commercial registry and the official letters addressed to the company will be sent to this address. We provide a virtual registered office address as a service and forward the postage received as scanned copies to your e-mail.
Can I choose the company name?
Yes, you can choose the company business name. It is subject to registry availability. Additional registry fees apply for changing the name.
How do I open the bank account?
There is no shortage of international and local banks in Lithuania and banking systems are highly advanced, however opening a bank account can be challenging and take time. It is not possible to open the bank account by proxy or by Power of Attorney, a face to face meeting is required at the bank. However, as a solution for a quick start it is also possible to open with a fintech bank in the European Union which can be done online with no visit needed and then proceed to opening with a local traditional bank in Lithuania in later steps.
What about reporting requirements?
Irrespective of size, the Lithuanian limited company has to file annual accounts with the commercial registry once a year. Small companies are exempted from the requirement of appointing an auditor. VAT returns and social tax declarations have to be submitted monthly. Our accounting department can take care of all reporting requirements on your behalf.
How to register for VAT?
We support in preparation and submission for VAT registration and all other necessary tax registries on your behalf.
How do I get started?
In the first step please let us know of your objectives for setting up a company in Lithuania. In the second step we propose the best solution with a step-by-step overview and a detailed price quote for company formation in Lithuania. In the third step we take care of all legal documentation and applications.
Questions? Interested in starting business in Lithuania?
Questions regarding company formation in Lithuania will be answered promptly by contacting us through the contact form below. If you would like to receive an overview of procedures and pricing break-down for your project we kindly ask to include preliminary information, for example how many participants will be in the company structure and which country residency they hold. Our country manager will respond shortly with more information to address your case including detailed procedures, timing and pricing break-down.
Our office in Lithuania is located in central Vilnius. Please schedule an appointment beforehand to be connected with our country manager.
Call our head office at +318.104.22.168
E-mail us at email@example.com
Vilnius office address:
Lvovo g. 25, 09320 Vilnius, Lithuania