January 28, 2026

Starting a Business in Lithuania

Starting a business in Lithuania is a smart move for UK founders. It offers EU access, skilled talent, and a modern setup. The Lithuanian market is booming, especially for companies looking for a smooth start.

Lithuania is a hotspot for high-growth sectors. These include IT, finance, and software development. There’s also a big demand in renewable energy and logistics, thanks to Lithuania’s location.

Lithuania is known for being digital-first. It’s the top EU country for starting a business online. Over 3,500 new companies register each month. This means you can quickly turn your idea into a business.

We help with Baltic business expansion from start to finish. This includes setting up your company and keeping it compliant. We also offer banking advice and support for business immigration.

Some activities need special approvals. We can help with these, including gaming and crypto licenses. This ensures your business meets all necessary standards.

Introduction to Starting a Business in Lithuania

UK founders often consider Lithuania for its quick and clear setup. The business environment is stable, rule-based, and welcoming to new businesses. We look at how well a business fits, how long it takes to start, and the support available from the start.

Overview of the Business Environment

Lithuania is strong in manufacturing, IT, biotechnology, finance, and more. This variety helps avoid relying too much on one area. It also supports steady demand for suppliers and partners.

The government focuses on growth areas like fintech and renewable energy. These areas match Lithuania’s focus on digital services and data in business.

Practical market guidance from Invest Lithuania and the Innovation Agency
Business voice and networking through the Lithuanian Business Confederation and the Lithuanian Confederation of Industrialists
International connections via the American Chamber of Commerce in Lithuania

Benefits of Setting Up in Lithuania

Lithuania offers direct EU access, low costs, and a skilled workforce. It also has digital-first public services. This makes online company registration quick, usually in 3–5 business days.

For UK businesses, Lithuania is a good choice. It’s great for exporting to the EU, setting up a regional hub, or for service operations. Starting a business here can be practical and easy to manage while allowing for growth.

Legal Requirements for Establishing a Business

To start a business in Lithuania, we follow key legal steps. Knowing what each authority checks helps founders. It makes the process clearer.

Company Registration Process

Registering a company in Lithuania is straightforward. The main step is filing with the Lithuanian Centre of Registers. This is where the Commercial Register Lithuania is kept.

First, reserve a company name and check it’s allowed.
Then, prepare the formation documents, like the share structure and management details.
Next, submit your application to the Lithuanian Centre of Registers. They’ll review it and add it to the Commercial Register Lithuania.
Finally, register for taxes with the State Tax Authority (VMI). You might also need to register for VAT.

Once your documents are ready, it takes 3–5 business days to incorporate. The cost is usually EUR 100. Extra fees might apply for notarisation, translations, and specialist help.

If you can’t be in Lithuania, you can still register using a Power of Attorney. Or, you could buy a ready-made company. This is good for quick setups or planned deals.

Types of Companies in Lithuania

The most popular choice is the Private Limited Liability Company, or UAB. It’s great for SMEs and startups. It limits liability and allows flexible ownership.

Whatever company type you pick, Registrų centras needs consistent information. We make sure your filing is correct. This helps you smoothly enter the Commercial Register Lithuania during company registration.

Choosing the Right Business Structure

Choosing a business structure in Lithuania depends on risk, size, and growth plans. We consider your shareholder plans, control, and administrative tasks. The right choice affects banking, hiring, and setting up in the UK.

Start with a simple question: do you want personal exposure or legal protection? Your answer leads to sole proprietorship Lithuania, UAB Lithuania, or AB Lithuania. Each has different costs, speeds, and compliance levels.

Sole Proprietorship

A sole proprietorship in Lithuania is good for small businesses, consulting, or family-run ventures. It’s where one person makes all the decisions. In Lithuania, this is often called individuali įmonė (IĮ), similar to a partnership.

But, there’s a catch: unlimited liability. This means your personal assets could be at risk if the business can’t pay its debts. We consider this carefully for contracts, loans, or big client deals.

Limited Liability Company

UAB Lithuania is a popular choice for many founders. It offers limited liability, protecting shareholders’ investments. The minimum share capital is €2,500, and you can have one or several shareholders.

Shareholders can be people or companies, with no limit on foreign ownership. Directors don’t need to live in Lithuania, but a local rep helps with banking and compliance.

Joint Stock Company

AB Lithuania, or Akcinė bendrovė, is for bigger, public companies. It’s best for raising lots of capital or attracting many shareholders.

The minimum share capital is €40,000, and there are strict rules. This includes mandatory supervisory boards and detailed reports. It adds formality and oversight, which some investors want.

We consider these practical points when helping you choose:

Business size and expected turnover
Shareholder count now and later
Risk profile and need for limited liability Lithuania
Expansion plans, including investment and group structures
Regulatory compliance, reporting, and banking requirements

Necessary Documentation for Business Registration

When you register a company in Lithuania, the quality of your paperwork is as important as how quickly you do it. We make sure your company documents are clear and on time. This helps avoid unnecessary questions and keeps your project moving smoothly.

First, we focus on who owns the company, who makes decisions, and where the business will operate. The Centre of Registers checks your application. They issue the registration certificate when everything is correct and complete.

Business Plan Essentials

A simple business plan shows you’re ready and serious. It’s especially important if your business involves regulated activities or special permissions. We help you plan for Lithuania’s booming sectors like IT, fintech, and more.

We also look at how your business will run day-to-day. This includes where you’ll work, how you’ll serve customers, and what rules you’ll follow. This clarity helps us draft your Articles of Association Lithuania correctly.

Required Identification Documents

The basic documents needed are simple but must match everywhere. You’ll need a passport or ID card, proof of your business address, and details about your company’s structure. This includes who owns it and who runs it.

Articles of Association Lithuania, covering business purpose, share capital, management, and internal rules
Founder, shareholder, and director details: full names, home addresses, dates of birth, and nationality, supported by valid ID
Corporate shareholder papers where relevant, including company incorporation documents Lithuania for the parent entity
proof of registered office Lithuania, whether rented premises, serviced space, or a compliant virtual office arrangement
bank certificate share capital Lithuania confirming the deposit, often €2,500 for a UAB or €40,000 for an AB
Notarised and translated documents for non-residents when required by document origin or review practice

Once your bank certificate and other documents are ready, filing becomes easier. We ensure all details match, so the Centre of Registers can process your application without delay.

Taxation Framework

Tax rules affect how you price your products, manage cash flow, and report your income. We guide UK founders through the basics early. This keeps things simple and ensures your plan meets Lithuania’s tax rules from the start.

Corporate Tax Rates

Lithuania’s corporate income tax, or CIT Lithuania, has different rates based on the source and type of income. A common rate is 20%, but smaller companies might pay 6% or 0% in certain cases. There’s also a plan to increase the rate by 1% in 2026.

Another approach sets the standard rate at 15% for all companies. Smaller firms with turnover under €300,000 and up to 10 employees might pay 5%. We use these rates to plan your profit and dividend forecasts.

Being a tax resident in Lithuania can depend on where you’re incorporated or where your management team is based. The tax year is usually the calendar year, but you can choose a different one. Returns are due by 15 June, with filings through VMI Lithuania.

VAT in Lithuania

VAT can be a big challenge for growing businesses. The standard rate is 21%, with lower rates of 5% and 9%. There’s also a 0% rate for specific cases.

Resident businesses need to register for VAT when their sales hit the VAT Lithuania threshold of 45000 in the current or last year. There’s also a rule for EU goods bought and brought into Lithuania, excluding VAT.

Control rules are important when one person controls two or more companies. Turnover and EU acquisitions may be combined when checking thresholds. VAT registration is also needed for reverse charge situations and certain cross-border services.

Non-residents might need to register for VAT in Lithuania for certain sales, including distance sales and EU acquisitions over €14,000. Getting this right helps avoid rework and supports Lithuania tax compliance as you grow.

Other Relevant Taxes

There are other taxes that can affect your margins and operations. We review these early to ensure your budgeting reflects real costs. This keeps your reporting in line with VMI Lithuania’s expectations.

Excise tax for products like alcohol, tobacco, energy products, and electricity.
Energy tax on electricity and certain fuels.
Real estate tax on commercial property owned by individuals, often within a 0.5%–3% range.
Land tax, which may apply depending on ownership and use.
Compulsory road usage fees, with no separate national road tax noted.
Environmental pollution tax, which can cover items like fuel and packaging.

There’s no wealth tax, property tax, or regional income tax in Lithuania. Yet, the mix of taxes can be complex. We keep your processes clear, documented, and in line with Lithuania’s corporate income tax reporting standards and broader tax compliance.

Financial Considerations

Good finances are key for a smooth start in Lithuania. We guide you through the initial costs, paperwork, and ongoing expenses. It’s also important to understand how the share capital rules affect your business and banking needs.

Capital Requirements

Before you start, you need to meet the share capital rules. For a private company, UAB, you need at least 2500. Public companies, AB, need 40000. So, your funding plan must be detailed.

You’ll need a bank certificate to prove your deposit. This certificate is part of your registration and shows the money is real. It also helps protect you from personal risks, as your liability is capped by the capital.

Confirm the chosen structure and its minimum share capital.
Deposit the capital and obtain a bank certificate.
Keep records clear for compliance and audit trails.

Opening a Bank Account

Getting a business bank account in Lithuania is crucial. It’s where you’ll put your share capital and pay bills. Preparing your ownership details and a brief summary of your activities helps speed things up. If you’re not based in Lithuania, having a local representative can make things easier.

Digital teams might prefer Wise for cheap international payments. Revolut Business Lithuania is great for managing money across borders. Paysera is good for payments in Lithuania and the SEPA area. Online sellers might use Stripe and Payoneer for card payments and payouts.

Choose the account type that fits your transaction pattern and currencies.
Align signatories and governance with company documents.
Set payment rails early to avoid delays once trading starts.

Navigating Employment Regulations

When you expand into Lithuania, things move quickly. We help you with right-to-work checks, contract terms, and the numbers behind them. This way, hiring employees in Lithuania is smoother and less surprising.

Hiring Employees in Lithuania

EU, EEA, and Swiss citizens usually don’t need extra checks to work in Lithuania. But, non-EU nationals might need work permits or a residence route before starting work.

For founders moving staff or building a team across borders, timing is crucial. We work with Immigration advisers to check eligibility and plan a start date that fits your project.

After figuring out the right-to-work rules, setting up payroll in Lithuania is next. You’ll also need to plan for social security from the start. It affects both employer costs and what employees take home.

Employment Contracts

Lithuanian employment contracts must be ready before the first day of work. The contract type should fit the role, work pattern, and your growth plans.

Permanent and fixed-term roles
Temporary and part-time arrangements
Apprenticeship and seasonal work
Remote work models, including cross-border reporting lines

Payroll in Lithuania also needs to follow tax rules. Income tax bands are 20% up to €126,533, then 32% above. Your pay structure should reflect this from the start.

Reporting dates are key for staying compliant. Employers must file the annual PIT declaration for employees by 15 February after the year. Individuals file their PIT return by 1 May.

For social security in Lithuania, employer contributions are 1.77% plus 0.16% to the Guarantee Fund. Employee contributions are 19.5% (including health insurance). If you use contractors, self-employed social security is about 12.52% pension plus 6.98% health insurance on 90% of taxable income, with minimum thresholds that can still apply.

Licensing and Permits

Licensing is key to starting a business in Lithuania. The right plan helps with setting up your company, taxes, and operations. This way, you avoid delays later on. We help founders understand the necessary Lithuania business licences and guide them through the process.

Industry-Specific Licences

Some industries need extra checks due to regulations in Lithuania. This includes financial services, e-commerce, and any activity handling client funds or data. We check your activities and point out the likely regulators early on.

International founders often ask about fintech licensing in Lithuania. It affects banking access, compliance, and launch timing. We help with specialist input and connections for Gaming Licences and FX & Crypto Licensing Companies, ensuring the formation process aligns with licensing requirements.

Payments and e-money models may need fintech licensing in Lithuania and stricter AML controls.
Platforms with chance-based products require a gaming licence, with strict rules.
Token and exchange projects often involve crypto licensing and detailed risk policies.

General Permits Required

Not all businesses need a sector licence, but most will need permits. These are linked to their activity, premises, or public services. These questions often come up when registering with VMI and setting up operations, like invoicing and staffing.

Check if your activity needs Lithuania business licences or standard registrations.
See if documents must be notarised and translated for non-resident directors or shareholders.
Align internal policies with any rules tied to regulated industries in Lithuania, even before launch.

With proper planning, permits become a clear checklist. This reduces delays, especially for applications related to gaming or crypto licensing.

Digital and Online Business Setup

Lithuania is perfect for digital trade, with easy public registers and online filings. Starting an online business here can be less stressful. Many tasks, like taxation and VAT registration, are handled digitally.

E-commerce Opportunities

The local market is tech-savvy, with growing e-commerce in retail, subscriptions, and digital services. Digital company registration in Lithuania is quick, often taking 3-5 days. This helps you start trading sooner.

For selling across borders, payment tools are key. Many use Wise, Revolut, or Paysera for accounts and transfers. Stripe or Payoneer handle card payments and international transactions.

Multi-currency pricing and smoother checkout for EU customers
Clear transaction records for bookkeeping and VAT evidence
Faster supplier payments when scaling fulfilment

Importance of a Strong Online Presence

Having a strong online presence is crucial from the start. It’s important for startups, fintech, holding companies, and R&D teams. Your website, domain email, and public profiles show your credibility.

Aligning your online presence with formal records is also key. This is especially true for VAT, invoicing, and company details. Digital company registration in Lithuania makes it easier to keep everything consistent as you grow.

Business Support and Incentives

When we help UK founders expand into Lithuania, we focus on practical support. This support cuts risk and speeds up launch. Invest Lithuania support and Innovation Agency Lithuania are key in this ecosystem, especially for high-growth sectors.

It’s important to map incentives early. This is before you sign leases or lock in hiring plans. Lithuania business grants and Lithuania incentives fintech can shape your budget and timelines.

Government Grants and Subsidies

Lithuania actively promotes investment in IT, fintech, renewable energy, logistics, and manufacturing. Invest Lithuania support can guide you to the right channel. It helps you present your project clearly to local stakeholders.

Innovation Agency Lithuania is another key route for founders. They need structured programmes, innovation funding, or export-ready planning. For many teams, Lithuania business grants are most effective when tied to job creation, R&D activity, or measurable productivity gains.

We also encourage founders to protect their brand early. This can be a quiet cost saver. Trademarks can be registered with the State Patent Bureau of Lithuania. The SME Fund 2025 may reimburse up to 75% of trademark application fees.

Beyond public agencies, trade bodies can add credibility and context. The Lithuanian Business Confederation and the Lithuanian Confederation of Industrialists often sit close to policy conversations and sector priorities.

Sector fit checks for Lithuania incentives fintech and other priority industries
Grant readiness: budgets, milestones, and evidence needed for Lithuania business grants
Brand protection planning through the State Patent Bureau of Lithuania and the SME Fund 2025 route

Business Incubators and Accelerators

If you want faster local traction, business incubators Lithuania can offer space, mentors, and sharper investor access. We look for programmes that match your stage, whether you are validating product-market fit or scaling across the EU.

Matchmaking also matters, especially when you need partners in banking, compliance, or supply chains. Invest Lithuania support can help point you to clusters. The American Chamber of Commerce in Lithuania can open doors for introductions and peer learning.

For founders in regulated sectors, a structured accelerator can reduce delays. It tightens your documentation and governance early. Innovation Agency Lithuania programmes can complement that, particularly when your roadmap includes product innovation and export growth.

Define your acceleration goal: pilots, investment, or regulated market entry
Shortlist business incubators Lithuania by sector focus and mentor network
Use matchmaking channels to validate partners and speed up local onboarding

Challenges of Starting a Business in Lithuania

When we help UK founders expand, we often see the same challenges doing business in Lithuania. The paperwork is clear, yet small gaps can slow progress and raise Lithuania compliance risks. A steady plan, plus careful checks, keeps momentum and protects timelines.

Common Pitfalls to Avoid

Many hold-ups start with company formation basics. If Articles of Association are incomplete, or shareholder and director details do not match supporting documents, Centre of Registers review can take longer and lead to incorporation delays Lithuania.

Registered office proof also matters. An incorrect address, missing consent, or weak evidence of the premises can trigger extra questions and add to incorporation delays Lithuania, especially when documents arrive in mixed formats.

Share capital not paid in as required, or no bank certificate confirming the deposit.
Notarisation and sworn translations not planned for non-resident founders.
Accounting processes not set up early, which makes ongoing filings harder; SimplBooks can help teams stay up to date.

Tax planning can create pressure too. VAT registration pitfalls Lithuania often appear when founders miss key thresholds, such as €45,000 for taxable supplies and €14,000 for intra-EU acquisitions, or overlook reverse-charge triggers. If trading spans several companies, control rules can increase Lithuania compliance risks and complicate reporting.

Cultural Considerations

Beyond legal steps, relationship-building shapes day-to-day progress. We find that clear agendas, prompt follow-ups, and consistent documentation help when expectations are detail-led and schedules are tight, which can reduce the practical challenges doing business in Lithuania.

Local support can make decisions easier. Teams often use Invest Lithuania, the Innovation Agency, and business associations to learn market norms and meet reliable partners, which helps manage Lithuania compliance risks and avoid VAT registration pitfalls Lithuania during early growth.

Networking and Local Connections

When we help UK founders grow abroad, we start with local connections. Building strong networks in Lithuania can make starting up easier. It helps with everyday tasks like banking and legal questions.

It also helps you make better decisions. You learn about setting salaries, choosing accountants, and evaluating partners before investing time and money.

Importance of Local Networks

Good connections make solving problems faster. If a bank asks for extra financial details or you need a clear contract, a local contact can guide you.

We also suggest using business matchmaking services. They can help you find buyers, distributors, and partners quickly. Invest Lithuania contacts are great for getting introductions and insights.

For plans focused on exports, we suggest attending trade shows and international events. The U.S. Commercial Service Market Research Library is also useful. It offers guides and reports to check demand.

Key Business Associations

Joining the right groups helps build relationships and stay updated on market changes. Many Lithuanian business associations offer briefings, referrals, and events. These make entering new markets easier.

American Chamber of Commerce in Lithuania for networking, events, and support
Invest Lithuania for investment advice and contacts
Innovation Agency for innovation support and growth programs
Lithuanian Business Confederation for employer insights and updates
Lithuanian Confederation of Industrialists for manufacturing and industry connections

By using these channels, networking in Lithuania becomes consistent. You get a clearer view of partners, hiring, and procurement through Lithuanian business associations.

Resources for Entrepreneurs

Starting a business in Lithuania is easier with the right help. We use official advice and trusted tools to speed up the process. This way, you can start trading sooner and grow your business smoothly.

Government and Private Resources

For setting up your company, Registrų centras is essential. It helps with the basics and keeps records up to date. This is crucial for banks, partners, and audits.

VMI Lithuania guides you through tax setup and VAT. We follow its advice to meet deadlines and manage finances well. This is key for hiring staff or selling across borders.

State Patent Bureau Lithuania protects your brand with trade mark registration. This avoids costly rebranding and helps with EU expansion.

Invest Lithuania and the Innovation Agency for market-entry support and investment guidance
American Chamber of Commerce in Lithuania for peer learning, events, and practical introductions
Wise, Revolut Business, and Paysera for business accounts and everyday spend control
Stripe and Payoneer for online payments and cross-border collections

Useful Websites and Hotlines

For international sales, anti-corruption rules are crucial. We guide teams to U.S. Department of Justice FCPA resources. These explain laws against bribing foreign officials to win business.

The DOJ also offers an opinion procedure for quick views. We keep practical resources like Registrų centras, VMI Lithuania, and State Patent Bureau Lithuania handy. This ensures company formation in Lithuania is smooth.

Conclusion and Call to Action

Starting a business in Lithuania is easier when you plan each step carefully. We make the process clear, so you know what to do first and what comes next. If you need help from Start Company Formations Lithuania, we’re here to guide you.

Our advice is simple: pick the right structure, like a UAB, and decide on share capital. You’ll need to prepare the Articles of Association and identification. We’ll help secure a registered office, open a bank account, and file with the Centre of Registers and VMI. This way, we avoid delays and extra work.

Taking the Next Steps

With the right documents and digital filing, you can register in 3–5 business days. We suggest planning early for activities like financial services and e-commerce. For these sectors, we can help with specialist licensing.

Contact Start Company Formations at 0204 504 1544

If you’re moving or hiring across borders, we can help. We work with Immigration advisers to discuss your needs. Call Start Company Formations on 0204 504 1544 for expert advice. We’ll help you choose the right structure, prepare documents, and file efficiently from the start.