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 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

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

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.