Company Registration in Lithuania

Practical tip: If you are just starting out, testing a market, or operating as a solo consultant, an MB is often the smarter first step. If you plan to raise investment, hire staff, or operate at scale, form a UAB from day one.

How to Register a Company in Lithuania: Step-by-Step 

Registering a UAB (Private Limited Company)

Step 1 — Reserve Your Company Name Submit a JAR-5 form to the Register of Legal Entities (registrucentras.lt) to reserve your chosen name for up to 6 months. The name must be original, must not conflict with existing trademarks, and must comply with Lithuanian language norms.

Step 2 — Prepare Constituent Documents Draft a constituent agreement (two or more founders) or a constituent act (single founder). This document specifies the founders, company name and registered address, persons authorised to represent the company, and the size of the share capital.

Step 3 — Deposit the Share Capital Open a temporary bank account in the company's name and deposit the minimum share capital of €1,000. If the authorised capital is minimal (exactly €1,000), the full amount must be deposited in cash. For higher capital amounts, at least 25% must be in cash (minimum €1,000), with the remainder payable within 12 months.

Step 4 — Draft and Sign the Charter The company charter is the foundational governing document. It must specify the company name and legal form, share capital, shareholder meeting rules, decision-making procedures, and the term of activity (if limited). All founders or their authorised representatives must sign it.

Step 5 — Notarise the Documents Submit all prepared documents to a Lithuanian notary. The notary verifies that documents comply with applicable law and confirms the charter. The notary also requires a bank certificate confirming the capital deposit and consent from the address owner.

Step 6 — Register with the Centre of Registers The notary transfers the verified documents to the Register of Legal Entities (Registrų Centras). Registration is typically completed within 3 working days. The company receives a registration certificate and a certified copy of the charter.

If you'd like to register your company in Lithuania faster and with less hassle, contact us directly — we'll take care of everything!

Registering an MB (Small Partnership)

The MB process follows a similar path but is simpler:

1. Reserve company name via JAR-5 form
2. Prepare a constituent agreement (2+ founders) or constituent act (1 founder)
3. Draft and sign the charter
4. Define the governing body structure (Members' Meeting only, or Members' Meeting + Head)
5. Submit all documents to a notary
6. Register with the Register of Legal Entities — completed in approximately 3 days

Can You Register a Company in Lithuania Remotely? 

Yes — and this is one of Lithuania's most attractive features for international entrepreneurs. Company formation in Lithuania can be completed entirely remotely via a notarised power of attorney. You do not need to travel to Lithuania or be present at a notary in person.

Alternatively, you can:

• Visit Lithuania to sign documents at the notary yourself (most straightforward)
• Purchase a ready-made company — a pre-registered UAB or MB with fully paid share capital. You can take ownership and begin operating within days, avoiding the full registration process entirely. This is the fastest route.

Non-residents: Foreign nationals can fully own and manage a Lithuanian company without holding a Lithuanian residence permit. There are no citizenship or residency restrictions on founders or shareholders.

If you'd like to register your company in Lithuania faster and with less hassle, contact us directly — we'll take care of everything!

What Taxes Will You Pay After Opening a Company in Lithuania?

Lithuania's tax system is one of the most competitive in the EU — particularly for small and newly established businesses. Here is a clear breakdown of the main obligations you need to plan for.

Corporate Income Tax (CIT) is the tax applied to your company's profits. The standard rate is 17%, but small companies with annual revenue below €300,000 can qualify for a significantly reduced rate — 0% for the first two years, followed by 7% thereafter. Crucially, corporate income tax applies only to profit, not total turnover. Business expenses are deducted first, and you are taxed only on what remains.

VAT stands at a standard rate of 21% and becomes mandatory once your annual turnover exceeds €45,000. Reduced rates of 9% and 5% apply to specific categories such as books, periodicals, housing, passenger transport, pharmaceuticals, and medical equipment for people with disabilities. You can register for VAT voluntarily before hitting the threshold — often a smart move if you are trading B2B within the EU, as it allows you to reclaim input VAT and appear in the EU VIES database immediately.

Dividend tax is set at 15% when profits are distributed between resident companies. However, if the receiving company holds at least 10% of the paying company for a minimum of 12 months, dividends are fully exempt. Dividends received from EEA-registered companies whose profits have already been subject to corporate tax are also exempt.

No double taxation is another practical advantage. Lithuania has concluded double taxation avoidance agreements with a wide range of countries, meaning income already taxed in one jurisdiction will not be taxed again in Lithuania.

One final point worth noting: there are no exchange controls in Lithuania, so moving funds in and out of the country is straightforward and unrestricted.

Tax rates and thresholds are subject to legislative change. Always verify current figures with the Lithuanian Tax Inspectorate at vmi.lt.

Why Open a Company in Lithuania? Key Advantages

Lithuania consistently attracts international founders for several concrete reasons:

Access to the EU Single Market. A Lithuanian company gives you full access to trade across all 27 EU member states without customs barriers. You can also open branches in any EU country.

Low and competitive tax rates. A 0–7% effective corporate tax rate for small businesses is genuinely difficult to beat in Europe. Combined with no exchange controls and robust double taxation treaties, the jurisdiction is highly efficient for international structures.

Fast and digital registration. The entire registration process takes no more than 5 working days from document submission. Remote registration via power of attorney is well-established and legally recognised.

Schengen area and residence permits. Company owners and employees may qualify for a Temporary Residence Permit (TRP) in Lithuania, granting freedom of movement across the entire Schengen area. However, TRP requirements are strict: the company must be actively operating for at least 6 months, with equity typically of at least €28,000 and at least €14,000 in paid-in share capital.

Qualified workforce. Lithuania's labour market includes approximately 1.5 million professionals, with strong tech, finance, and legal talent available at competitive salary levels compared to Western Europe.

Strategic location. Lithuania sits at the crossroads between the EU and Eastern markets, making it a natural hub for businesses trading between regions.

How Long Does It Take to Register a Company in Lithuania?

The honest answer is - faster than most people expect. Once notarised documents are submitted to the Register of Legal Entities, the official registration is completed within 3 working days. The total time from start to finish, however, depends on which route you choose.

Purchasing a ready-made company is the fastest option available. Since the company is already registered and the share capital is fully paid, the process is essentially a change of ownership in the Register Centre. You can be fully operational within 2 to 5 days.

Registering in person — where you travel to Lithuania and sign documents directly at a notary in Vilnius — typically takes 5 to 10 days in total, factoring in travel, notary scheduling, and the registration period itself. It is the most straightforward route if you prefer to handle things face-to-face.

Registering remotely via power of attorney is the most popular choice for foreign founders who cannot or prefer not to travel. You sign and notarise a power of attorney in your home country, which is then used by a local representative to complete the process on your behalf. From document preparation to final registration, expect 7 to 14 days in total.

Setting up a branch or subsidiary of a foreign company involves additional documentation and verification steps, making it the most time-intensive option — typically 14 to 21 days.

The main variables that affect your timeline are document preparation, notary appointment availability, and bank account opening — the latter sometimes taking longer than the registration itself, depending on the banking route you choose.

What Happens After Registration?

Registering the company is step one. To operate legally and efficiently, you will also need to address:

Bank Account. A business bank account is required for operations. Lithuania offers both traditional banking and fintech/digital banking options. The choice depends on your business model and country of residence.

Accounting. Lithuanian companies must maintain accurate financial records, submit VAT declarations (if registered), and file annual financial reports. Failure to comply results in penalties. Monthly accounting for small companies typically starts from around €100/month.

VAT Registration. If you are conducting cross-border EU trade, importing goods, or providing B2B services within the EU, voluntary VAT registration from day one is often advantageous even before the €45,000 threshold is reached.

Beneficial Owner Registration. Lithuanian law requires all beneficial owners to be registered in the JANGIS system (the information system of legal entity participants). This must be completed promptly after company registration.

How Much Does Company Formation in Lithuania Cost?

The cost of registering a company in Lithuania depends on the legal structure you choose, the route you take, and whether you use a professional formation service — which most foreign founders do.

For an MB (Small Partnership), the state fees alone are modest. Name registration costs €16.22, notary fees run to approximately €120, and registration with the Register of Legal Entities adds €51.61 — bringing the total state cost to roughly €190. If you engage a formation service to handle the process on your behalf, legal service fees are charged separately on top of this.

For a UAB (Private Limited Company), the costs are higher, primarily because of the mandatory share capital requirement. If you register in person by visiting Lithuania, total costs start from around €1,700, which includes state fees, notary charges, and the minimum €1,000 share capital deposit. It is worth remembering that the share capital is not a fee — it belongs to the company and is available for business use immediately after registration.

If you cannot travel, remote registration via power of attorney is available from approximately €2,000, reflecting the additional notarisation and representation work involved.

Purchasing a ready-made company starts from around €1,500 and is often the most cost-effective route for those who need to begin operating immediately, as the company already exists with fully paid share capital.

For businesses needing a branch or subsidiary registered in Lithuania, costs start from approximately €2,900, given the additional legal complexity involved.

Beyond the initial registration, you should also budget for ongoing obligations. Monthly accounting services for small companies start from around €100 per month, covering VAT declarations, bookkeeping, and annual reporting. VAT registration, if required, is an additional service charged separately by most providers.

In short, forming a company in Lithuania is among the most affordable options in the EU — and for most small businesses and solo founders, the total out-of-pocket cost to get fully set up and compliant sits well under €2,500.

Conclusion

Company registration in Lithuania offers a genuinely attractive combination: low taxes, fast setup, full EU market access, and a legal framework that welcomes non-resident founders without bureaucratic barriers.

The three most important takeaways are:

1. Choose the right structure upfront. An MB is ideal for small, lean operations; a UAB is better for scalable, investment-ready businesses. Both can be formed remotely.
2. The tax advantage is real but conditional. The 0–7% CIT rate for small companies applies under specific criteria — ensure your business meets them, and get proper accounting support from day one.
3. Registration is fast; compliance is ongoing. Company formation in Lithuania takes days, but accounting, VAT obligations, and beneficial owner registration must be managed continuously.

If you are ready to open a company in Lithuania, the next step is straightforward: prepare your documents, choose your structure, or work with a local formation specialist to handle the notary and registration process on your behalf.

Frequently Asked Questions

Do I need to be a resident of Lithuania to register a company?

No. Foreign nationals can fully own and manage a Lithuanian company without holding a Lithuanian residence permit. There are no citizenship or residency restrictions on founders, shareholders, or directors. Company formation can be completed entirely remotely via a notarised power of attorney.

What is the difference between a UAB and an MB in Lithuania?

A UAB is a private limited liability company requiring a minimum of €1,000 in share capital and a designated director. It suits growth-focused businesses and can have up to 250 shareholders (natural or legal persons). An MB is a simpler structure with no minimum share capital, limited to 10 individual founders. It is ideal for freelancers and small operators. An MB can later be converted into a UAB.

How long does company registration in Lithuania take?

Once notarised documents are submitted to the Register of Legal Entities, registration is completed within 3 working days. The total timeline from start to finish is typically 5–14 days depending on the route (in-person vs remote) and document preparation time. Purchasing a ready-made company is the fastest option, often taking just 2–5 days.

What corporate tax rate applies to my Lithuanian company?

Small companies with annual revenue below €300,000 and fewer than 10 employees may qualify for a 0% rate for the first two years, followed by 7%. Businesses exceeding those thresholds pay the standard 17% corporate income tax rate. Tax applies to profit only, not total turnover. Always verify current thresholds with the Lithuanian Tax Inspectorate (vmi.lt).

Is VAT registration mandatory in Lithuania?

VAT registration becomes mandatory when annual turnover exceeds €45,000. Below this threshold, registration is voluntary. For businesses providing cross-border services within the EU or engaged in import/export, voluntary early registration is often advantageous. The standard VAT rate is 21%. Once registered, the company appears in the EU VIES database.

Can I get a residence permit through a Lithuanian company?

Potentially yes. Company owners and employees may qualify for a Temporary Residence Permit (TRP), which grants freedom of movement across the Schengen area. However, requirements are strict: the company must be actively operating for at least 6 months, demonstrate genuine business activity, and typically hold at least €28,000 in equity with €14,000 in paid-in share capital. Each case is assessed individually.

What ongoing obligations does a Lithuanian company have?

After company registration in Lithuania, you must maintain proper accounting records, file periodic VAT declarations (if VAT-registered), submit annual financial reports to the Register of Legal Entities, and ensure beneficial owners are registered in the JANGIS system. Failure to meet these obligations can result in fines. Professional accounting services for small companies start from approximately €100/month.