Company Formation in Lithuania

Company formation in Lithuania, the largest country in the Baltic States, is simple as our legal team takes care of all documentation for the full setup. We offer a wide range of corporate services tailored to fit your needs, including but not limited to company formation, legal and tax advisory, fintech licensing support, bank account opening, virtual office and accounting. There is also availability for Lithuanian shelf companies with previous activity and active VAT registrations. We can provide a turnkey solution with all the support services.

The most time efficient approach to register a company in Lithuania is to purchase a new shelf company, because the founding process can be a challenge to non-residents due to various hidden requirements (e.g. share capital payment). In most cases, non-residents opt for a tailor-made shelf company to avoid bureaucracy as we have already taken care of all 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 setup pricing starts from 980 EUR, for more information contact us for consultation and a detailed price quote »

Company In Lithuania

Company Formation in Lithuania
Priced from 980 euros
Remote setup in 5 days
ICO and STO legal services available
VAT active companies available

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 bank account at a local bank. There are no restrictions on the number or the nationality of the shareholder(s) and board member(s).

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. 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.

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 the necessary information from you, prepare all documentation and forward for your confirmation. We offer full remote service.

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 if 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 legal and tax advisory, virtual office, accounting and bank account opening support. Secretary and nominee 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.

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. We can also provide the VAT registration form and assistance with its completion. 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 team member can be appointed to receive these on your behalf and they will then be forwarded to you. Our compliance team will consult on choosing the best bank for your business and provide support through the account opening process.

It is also possible to open a fully functioning business bank account with an individual IBAN and with a VISA payment card for your company in Lithuania, remotely over the Internet. We have covered this option in our Knowledge Center: Online bank account with IBAN and payment card

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

Lithuania has a corporate income tax at the rate of 15% and a withholding tax at a rate of 15%. Small companies can apply for a reduced CIT rate of 0% or 5% if certain conditions are met. The general VAT rate is 21%.

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 555 EUR/month as of 2019.

Questions? Let us know!

Questions regarding company formation in Lithuania will be promptly answered by contacting us through the form below. Our legal team will respond shortly with more information to address your case.

Interested in starting a business in Lithuania? Our legal team will guide you through the process!

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.