Lithuania at a glance
Lithuania is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Lithuania
- UAB (private limited liability company) The standard vehicle for SMEs and foreign founders: limited liability, one or more shareholders, shares not publicly traded.
- MB (small partnership) A lighter, no-minimum-capital form for very small businesses; members can be individuals only.
| Corporate tax | 16% standard for 2025, rising to 17% from 1 January 2026. Small companies (turnover under EUR 300,000 and fewer than 10 staff) may qualify for 0% in the first year and a reduced rate after (7% in 2026). |
|---|---|
| VAT rate | Standard VAT is 21%, with reduced rates of 9% and 5%. The VAT registration threshold is around EUR 45,000 of turnover. |
| Dividends & payroll taxes | Dividends to individuals are taxed at around 15%. Personal income tax is 20%, rising to 32% on high income, and payroll contributions sit mostly on the employee side with a small employer add-on. Recent budgets have nudged rates upward, so confirm current figures before a large distribution. |
| Minimum share capital | EUR 1,000 for a UAB (reduced from EUR 2,500 in May 2023), with at least 25% paid before registration. The MB form has no minimum capital. |
| Setup time | About 3 to 5 business days, and as little as 1 to 3 days when founders use a qualified electronic signature. |
| Remote setup | Yes. A UAB can be incorporated remotely with a qualified electronic signature or by power of attorney; 100% foreign ownership is allowed. |
| Director / residency | No residency requirement for directors or shareholders; a foreign national can be sole director and shareholder. |
| Banking options | A strong local fintech ecosystem (Wise, Revolut and Paysera are licensed in Lithuania) makes EMI accounts easy; share capital must be deposited in a corporate account. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
A popular hub for fast, low-cost EU incorporation and a leading EU fintech-licensing centre. Corporate tax was 15% through 2024, 16% in 2025 and 17% from 2026.
How to register a company in Lithuania
Step by step, this is how a Lithuania formation actually runs:
- Reserve the name and prepare documents. Check the name with the Register of Centres and prepare the standard UAB articles; 100% foreign ownership is fine.
- Sign remotely. Sign with a qualified e-signature, or grant a notarised power of attorney and let a local representative handle the notary.
- Deposit the EUR 1,000 capital. Open an accumulation account (a licensed Lithuanian EMI such as Paysera also works) and deposit the minimum capital before registration.
- Register the UAB. The Register of Legal Entities usually completes registration in 3 to 5 business days.
- Register for taxes and start banking. Register with the State Tax Inspectorate, and for VAT once turnover passes EUR 45,000; Wise, Revolut and Paysera cover day-to-day banking.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Lithuania costs
Registry and notary costs are modest, usually well under EUR 300 all in, on top of the EUR 1,000 share capital, which becomes working capital once the company is live. A registered address costs around EUR 100 to 300 a year if you rent one. Accounting for a small UAB typically runs EUR 80 to 200 a month.
Form your Lithuanian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Lithuania, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Lithuania
Founders from outside the EU can own and run a Lithuanian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Lithuania up front, so there are no surprises.
Lithuania fits lean startups and fintech-adjacent businesses: incorporation is fast and cheap, the first-year 0% and then 6% small-company CIT bands (below EUR 300,000 of income) are unusually founder-friendly, and the EMI ecosystem makes banking painless. Less ideal if you need a big local talent pool compared with Poland.
After registration: what Lithuania expects each year
Annual financial statements go to the Register of Legal Entities within a few months of year end after shareholder approval. The corporate income tax return is due by the fifteenth day of the sixth month after year end, and VAT payers file monthly. Small UABs below the size thresholds do not need an audit.
Lithuania and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Lithuanian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Lithuania against other countries, see company formation in Europe.