Lithuania, nestled in the Baltic region of Northern Europe, has emerged as an attractive destination for entrepreneurs and businesses seeking to establish a company in Europe. With its strategic location, stable economy, skilled workforce, and favorable business environment, Lithuania offers numerous advantages to both local and foreign investors. This article will delve into the procedures, services, advantages, and priorities associated with company registration in Lithuania, providing a comprehensive guide for those considering expanding their business ventures into this promising nation.

Navigating the registration process in a foreign country can be daunting, especially for those unfamiliar with local laws and regulations. As a result, we do provide professional services and business advisory assistance to streamline the company registration process in Lithuania. These services may include:

  1. Company Formation Services: Our specialized firm can guide you through each step of the registration process, from selecting the appropriate legal structure to preparing the necessary documentation.
  2. Legal and Financial Consultancy: Professional advisors will provide legal and financial advice tailored to your business requirements, ensuring compliance with local laws and maximizing tax efficiency.
  3. Registered Office and Virtual Office Services: For foreign businesses, having a registered office address in Lithuania is essential for legal purposes. Virtual office services offer the use of a physical address, mail forwarding, and other administrative support without the need for a physical presence.
  4. Accounting and Tax Services: Local accounting and tax experts can assist with bookkeeping, tax reporting, and compliance, ensuring that your company meets its financial obligations.

We do provide legal assistance for local or foreign persons willing to register a company in Lithuania. The whole process can be done remotely within a week over the internet. Therefore the client does not need to travel to Lithuania for company incorporation process. After company formation is completed, the client can apply for a business bank account in Lithuania remotely using any of EMI (Electronic Money Institution), which provide remote bank account opening or by visiting any of the regular bank branches personally for the interview. As the world becomes global bank account for Lithuanian companies can be opened in any other country financial institution.

Depending on the needs of the client we do offer few options registering a company in Lithuania:

  1. Registering a fresh company as per client requirements.
  2. Selling already registered company, which may be a few years old company, which may benefit company clients by showing them a few years of previous company existence.
  3. Purchasing already running business. Suitable option for businessmen who are willing to jump into business immediately and start generating revenue by acquiring already running business with employees and clients.

There are two main types of companies that we are dealing with: UAB (Uždaroji Akcinė Bendrovė) and MB (Mažoji Bendrija). Both companies have limited liability, this means that the business owners while doing business are only liable for the assets of the company and their personal assets are not an object covering business liabilities in case if anything goes wrong.

MB – Mažoji Bendrija – Small partnership company

MB company type is a newer form compared to UAB and is more suitable for small businesses as it is less regulated and accounting in Lithuania is simplified for such companies. Therefore, we do always recommend starting with MB company type. This company can have 1-10 owners, who can only be natural persons, no legal entity can be included as a company owner in this case. The smallest contribution is 1,- Eur required to establish such company. Company registration takes around a week and has less complicated management compared to UAB.

UAB – Uždaroji Akcinė Bendrovė – Private joint stock company

UAB is one of the oldest company forms in Lithuania and has quite strict legal regulations on management and operations. The smallest contribution to register a company is 1‘000Eur. It is mandatory to have an accounting company hired to do the bookkeeping and company manager has to be employed in the company and be paid a minimal salary of Lithuania which is 924Eur/month gross (year of 2024). Such company registration takes around a week or two to complete.

Frequently Asked Questions

  • Is a person’s personal presence necessary for company registration?

The whole company registration process will be done remotely, personal presence is not required.

  • What documents do I need to provide for company registration?

Passport copies, living place address of company manager and shareholders, preffered company name, activities of the company to be included in the articles of association.

  • Does the company come with VAT number?

By default all companies comes without a VAT number. After company registration it has to be applied at the tax department for VAT number assignment.

  • Does the company come with a bank account?

No. Each company comes without a corporate bank account as any accounts are closed after the company registration is completed and the new owner of the company has to apply for a bank account separately.

Advantages of Company Registration in Lithuania

Lithuania presents numerous advantages for businesses looking to establish their presence in the country. Some of the key advantages include:

  1. Strategic Location: Situated at the crossroads of Western and Eastern Europe, Lithuania serves as an excellent gateway to the European market.
  2. Ease of Doing Business: Lithuania ranks favorably in global ease-of-doing-business indexes, with streamlined procedures for company registration and low bureaucracy.
  3. EU and Eurozone Membership: Lithuania joined the European Union in 2004 and adopted the euro as its official currency in 2015, providing businesses with access to the vast EU market and economic stability.
  4. Skilled Workforce: Lithuania boasts a well-educated and multilingual workforce, with a strong emphasis on science, technology, engineering, and mathematics (STEM) disciplines.
  5. Competitive Tax System: The country offers a competitive corporate income tax rate of 15%, making it an attractive destination for tax planning.
  6. Growing Start-up Ecosystem: Lithuania has experienced significant growth in its start-up ecosystem, fostering innovation and attracting investment in various sectors.
  7. Infrastructure and Connectivity: The country’s modern infrastructure and well-developed transport connections facilitate smooth business operations and logistics.

Company registration in Lithuania presents a promising opportunity for entrepreneurs and businesses seeking to tap into the European market. With its straightforward registration procedures, favorable business environment, and strategic location, Lithuania offers numerous advantages to investors. By considering the available services, understanding the registration procedures, and being mindful of key priorities, entrepreneurs can establish a successful presence in this vibrant and dynamic nation. Whether it’s expanding an existing venture or starting a new venture, Lithuania holds immense potential for those ready to embark on this exciting business journey.