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Company registration in Lithuania

Gateway Lithuania

Ease of Doing Business rank

#11 out of 190 countries around the globe

Index of economic freedom

#15out of 186 countries the globe

International Tax Competitiveness Index rank

#2out of 36 countries the globe

Why Lithuania

Lithuania occupies one of the leading positions in the ranking of the world´s freest economies on the ease of starting a business, as well as one of the leaders in Europe according to the index of investment attractiveness. Opening business in Lithuania is popular due to the low costs of accounting and administration, low taxes, and good geographical position.

Item

Rate

Value Added Tax (VAT)

21%

VAT reduced rate

0-9%

Corporate income tax

5-15%

Capital Duty

Land Tax

0.01-4%

Tax on dividends for individuals (approx.)

15%

Tax on dividends for legal person (parent company)

20%

Individual income tax (tax on salary)

20-32%

Payroll tax (paid by employer)

0-20%

Social Security Contribution (paid by employer)

19.5%

Minimum salary per hour (brut)

3.93 EUR

Minimum salary per month (brut)

642 EUR

Average rental price for class A office spaces/ per 1 sq. meter

15 EUR

Share capital requirement for LLC

2,500 EUR

Share capital requirements

The most popular legal form in Lithuania is Private Limited Liability Company (UAB) with minimal share capital 2 500 EUR and minimum 1 shareholder. As well as Individual Enterprise (II) with no requirements for minimal capital and limit to 1 owner only and Public Limited Liability Company (AB) with minimum share capital 40 000 EUR and minimum 1 shareholder are also in demand.

Timeline to set up a company

Depending on the method is used to set up a company, the time required for the process may vary. If a private person establishing a company is a non-resident, the formation process might be done using a power of attorney or by physical presence:

By the PoA: up to 5 business days after we get all the documents
By physical presence: up to 5 business days

Business climate

Lithuania presents opportunities for businesses exporting abroad. Sectors include information technology, client support centers, and renewable energy as well as transportation, logistics and bio-plastics production.

Located between the Northern and Eastern Europe, Lithuania is the largest of the 3 Baltic States.

Lithuania has benefited from the EU assistance and development funds, amounting to 180 million EUR per annum, since joining the EU. This has helped modernize the economy. Lithuania is a member of the Schengen Area as well.

English as business language in this country, strategic location, support for business and political and economic stability make this country perfect to run a business.

Customs duties

As Lithuania is a member of EU, all aspects of custom duties are decided by TARIC - the common customs tariff in European Union. Custom Duty rates are based on value of the goods and dependent on its type and the country of origin. Imports from EFTA countries, Switzerland and EU candidates are generally free of duty. Usually, duty rates stay between 0% and 10%.

2Free Trade Zones

3Labor force

4Business migration opportunities

Lithuania is distinguished for having clear economic advantages for business: taxation, huge talent potential, government support and liberal policies, business-friendly regulations, active venture capital industry, vibrant tech culture and much more. Setting up or acquiring your business in Lithuania cannot be easier and faster when you choose our company’s specialist to provide such a great opportunity. Our team can help you to establish and maintain business in Lithuania. We would be glad to become a one stop shop for your needs and assist with the entire company formation process including bank account opening and many other related services.

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What is included in the company formation service package

Company formation

Full turn-key assistance with setting up a company in EU by Power of Attorney (remotely) or by physical presence including such steps as verification of the company name; preparation of individual AoA, coordination of all necessary legal formalities and handling of the company entry into the commercial register.

Bank Account

The issue of opening a corporate account in the Bank for the company where non-EU residents are acting as directors and shareholders is still urgent. Our services for opening an account include an analysis of your business model, risk assessment and selection of the optimal Bank in the EU, collection and preparation documents package (in accordance with the requirements of the chosen Bank), representation of your interests in negotiations (if necessary).

Registered and Virtual Office

In order to set up a company in EU jurisdiction, the address of registration and virtual box services are required. In the frames of our solution, we provide an address in EU and assist with mail forwarding and other incoming physical correspondence from governmental authorities, Banks and third parties. Upon request, we could assist with EU phone number and receptionist answering on the calls.

Legal Templates

As soon as the company registration procedure is fully completed, the question of starting operating activities becomes relevant. In order to accelerate the process and save money on local advisors, we will provide all the necessary legal document templates drafted in accordance with EU law (NDA, employment agreement, service agreement, policies etc.)

Tax number obtainment

Registration of your entity within EU tax authorities and acquisition of VAT number and internal tax number (if applicable)

Dedicated consultant

Our aim is to make the moment of launching your business maximum simple, so it would be possible to concentrate on important matters and operate efficiently. Therefore, you will be provided with an individual consultant who will lead you through the entire process of the company formation and further will be assisting with other business-related issues and unique needs

Auxiliary services

Accounting and Taxation

Legal entity registered in EU obliged to conduct bookkeeping records and submit reports to the state authorities (Income tax and social security contribution report on employees, VAT reports on a monthly basis and annual reports). Jointly with our partners, we will be happy to assist your company on this matter and develop an optimal taxation model individually under your business.

Trademark registration

Registration of trademark within European Union Intellectual Property Office (EUIPO). Word mark, figurative mark, figurative mark containing word elements, shape mark, shape mark containing word elements, position mark, pattern mark, single color mark, sound mark, motion mark, multimedia mark, hologram mark.

Local Director

The need for local hired director often in demand across our Clients since it resolves issues with Bank compliance (if any arise) and makes it possible to conduct remotely operating activities more efficiently. We will carefully analyze your needs and weigh all the risks in order to conduct a search for a suitable candidate for the position.

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Lithuania occupies one of the leading positions in the ranking of the world´s freest economies on the ease of starting a business, as well as one of the leaders in Europe according to the index of investment attractiveness
Opening business in Lithuania is popular due to the low costs of accounting and administration, low taxes, and good geographical position

Lithuania