Start your business

First steps of setting up business in Lithuania made easy

Setting up a business in Lithuania is straightforward and stress-free. Business can be set up electronically in just a few days as long as all your documents are in order. That’s why we’re No.14 in the world for ease of doing business (World Bank Doing Business Report, 2018).

Here’s a step-by-step overview of what you need to do to start your business in Lithuania:

Procedure

Time to complete

Associated costs

More details

1. Prepare articles of association, along with founding act/founding agreement

1 day (after receiving all required information and documents)

Only legal costs, if carried out by legal advisor

You will need:
- a Lithuanian business address (required for the company registration documents);
- to appoint a general manager.

2. Reserve a temporary company name (optional)

1 day

Approx. 16 EUR

Submit an application (form JAR-5) to the Register of Legal Entities. This name will be reserved for 6 months.

3. Open an accumulative bank account

1-2 days (due to bank’s risk management procedures)

Free (or bank fees)

This accumulative bank account is only used for depositing share capital. Later any bank can be chosen for operations. Minimum required share capital – 2500 EUR.

4. Transfer share capital to that accumulative account

1 day

Free (or bank fees)

Please note:
- if the share capital is higher than 2500 EUR, then at least 25% must be transferred to the accumulative account (with the remaining amount paid in 12 months).

5. Notarise the founding documents at a registered notary’s office

1-2 days

Approx. 72 - 290 EUR (depending on the amount of share capital)

If your country has joined the 1961 Hague Convention, your documents need to be certified by an Apostille. List of countries
In countries that are not listed, documents issued by foreign institutions should be legalized.
In Lithuania, legalization or certification by Apostille is not required for documents issued in Russia, Ukraine, Belarus, Moldova, Estonia and Latvia.

6. Register the company in the Register of Legal Entities

Up to 3 business days

Approx. 57 EUR

The documents may be submitted to the register only after they have been notarised. (step 5).

7. Convert the accumulative bank account into a settlement account

2-7 days (depends on the bank)

Depends on the bank

Note: all costs are rounded up to the nearest euro.

Most common types of entities for foreign investors and their features

Small Partnership (MB)

Private limited liability company (UAB)

Public liability company (AB)

Individual enterprise (IĮ)

Agricultural Company (ŽŪB)

Minimum number of stakeholders

1 member

1 shareholder

1 owner

2 members

Maximum number of stakeholders

10 members

Unlimited

1 owner

Unlimited

Minimum amount of capital

None (MB members define contributions)

≥ EUR 2,500

≥ EUR 25,000

None

Liability

Limited civil liability – shareholders are not held personally liable for MB obligations

Limited civil liability – shareholders are not held personally liable for UAB obligations

Limited civil liability – shareholders are not held personally liable for AB obligations

Unlimited civil liability – should business debts exceed the assets of the individual enterprise the owner is held personally liable

Limited civil liability – members are not held personally liable for ŽŪB obligations

Should setting up your own greenfield investment project be too risky, there are always other options available that will allow to make your business happen in Lithuania:

Establishing a branch

By establishing a branch office and appointing a branch manager, a foreign company is able to reduce its costs. As far as Lithuanian law is concerned, the branch manager is the official branch office representative, and it is their responsibility to sign documents and organise the accounting of the branch office. Moreover, every branch office has to be registered with the Lithuanian Registry of Legal Entities, and is responsible for the maintaining of its own accounts.

Mergers and acquisitions

When acquiring an existing business in Lithuania, you can either purchase its shares or its business assets. If the existing business is conducted through a partnership or a branch office, you can only acquire the business assets.

Partnerships

Partnerships can be created directly by establishing a joint venture, a limited liability company, a general partnership or a limited partnership; or indirectly by the appointment of a commercial agent or a distributor or by setting up a network of franchisees.