Lithuania is a rapidly growing Baltic economy and a strategic gateway between Western Europe and the emerging markets of Eastern Europe and the CIS region. Known for its competitive cost base, modern infrastructure, and pro-business regulatory environment, Lithuania attracts startups, IT companies, manufacturing firms, and logistics operators. As a member of the European Union and the Eurozone, Lithuania offers seamless access to the EU single market with full regulatory harmonization.
Types of Companies in Lithuania
- Uždaroji Akcinė Bendrovė (UAB) – Private Limited Liability Company
The most common company form, suitable for small and medium-sized enterprises. Shareholders’ liability is limited to their capital contributions. The minimum share capital requirement is €2,500. - Akcinė Bendrovė (AB) – Public Limited Company
Designed for larger businesses and those planning to raise capital publicly. Requires a minimum share capital of €40,000 and more stringent governance and disclosure standards. - Individual Enterprises and Partnerships
Available for sole proprietors and small businesses but do not provide limited liability protection. - Branches of Foreign Companies
Foreign entities can register branches without incorporation of a separate legal entity.
Key Features of Lithuanian Companies
- Incorporation Process
Typically completed within 5 to 10 business days through an online or in-person process with the Centre of Registers. Requires notarized documents, Articles of Association, and a registered office address in Lithuania. - Minimum Capital Requirements
The minimum capital for a UAB is €2,500, fully subscribed and paid upon incorporation. AB companies require a minimum of €40,000, with at least 25% paid before registration. - Corporate Taxation
Lithuania’s corporate income tax rate is 15%, one of the lowest in the EU. Small companies with revenue under €300,000 may qualify for a reduced rate of 5%. Lithuania has an extensive network of double taxation treaties. - Business Environment
Lithuania offers a stable and transparent legal system, business-friendly policies, and a multilingual, educated workforce. The country boasts modern ICT infrastructure and efficient public services supporting innovation and entrepreneurship. - Compliance and Reporting
Companies must keep accounting records according to Lithuanian GAAP or IFRS, submit annual financial statements to the State Tax Inspectorate, and convene annual general meetings. Corporate governance regulations are generally flexible for private companies.
Common Uses of Lithuanian Companies
- Regional headquarters and holding companies benefiting from EU access.
- IT and technology startups supported by government incentives.
- Export and logistics companies leveraging Lithuania’s strategic location.
- Manufacturing and service providers targeting EU markets.
Why Choose Lithuania?
Lithuania combines competitive taxation, fast and cost-effective company registration, and strategic EU market access. Its supportive business ecosystem, coupled with low operational costs and skilled labor, makes it attractive for startups, SMEs, and international investors looking to establish or expand within the European Union.
