Start your business

First steps of setting up business in Lithuania made easy
Procedures
Time to complete
Associated costs
1. Check and reserve the name of the company (limited liability company)
<1 day
approx EUR 16
2. Register at the Company Register, including registration with State Tax Inspectorate (the Lithuanian Revenue Authority) for corporate tax, VAT, and State Social Insurance Fund Board (SODRA)
1 day
 approx EUR 57
3. Complete VAT registration
3 days
 Free

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 shareholder
1 owner
2 members
Maximum number of stakeholders
10 members
249 shareholders
Unlimited
1 owner
Unlimited
Minimum amount of capital
None (MB members define contributions)
≥  EUR 2,500
≥ EUR 40,000
None
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

Private limited liability companies (UAB) are considered most common among foreign-based enterprises. The table below provides information on the necessary steps needed to establish a UAB.

Step
Time
Costs
Comments
1. Preparing founding documents
Free (Legal costs, if carried out by a legal advisor)
A Lithuanian address is needed for the company registration documents  (consent is required from the owner of the premises)
2. Opening an accumulative bank account.
< 1 Day
Free
The accumulative bank account is only used for depositing share capital.
3. Transferring share capital to the accumulative account.
< 1 Day
Free
If the share capital is higher than the minimum  requirement of EUR 2500, only  part of it needs to be transferred to the accumulative account (25%, but no less than EUR 2,500)
4. Notarising the founding documents at the notary’s office.
1-3 days
EUR 60 - 290, depending on the amount of share capital.
5. Registering the company in the Register of Legal Entities.
EUR 57
Signing an employment agreement with the company’s general manager.
< 1 Day
Free*
The employment agreement has to be registered within the State Social Insurance Fund Board.

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

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 aquisitions

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

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.

Also see

Economic overview

A brief overview of the economy of Lithuania.

Running your business

A brief overview of the business taxes, tax incentives and overhead costs in Lithuania.

Financial incentives

A brief overview of the range of financial incentive options available to foreign investors.

Coming to Lithuania

A brief overview of the visas available and the process of coming to Lithuania to live and work.

We are here for you!

If you have any questions or would like to arrange a meeting with one of our advisors, we are always ready to help

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