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Lithuania is a Baltic state that borders with Poland, Latvia, Belarus and Kaliningrad. It’s capital, Vilnius, has more than half a million inhabitants. The country jointed the European Union in 2004, has an advanced economy and ranks very high in Human Development Index.
Lithuania is one of just a few countries in the CEE region that adopted euro. The common currency replaced Lithuanian litas in 2015. The state is known for robust IT sector and the fastest broadband internet in the continent. According to Forbes magazine, it is one of the top 5 entrepreneurial hubs in Europe.Lithuanian company law provides for several types of legal structures. The most commonly used ones are public and private limited company (AB/UAB), general and limited partnership, individual enterprise and micro company. Business entities need to register in Register of Legal Persons of the Republic of Lithuania administered by the State Enterprise Centre of Registers.
In case of private limited liability companies, the initial capital may be no less than 2,500 EUR. Shareholders may be natural or legal persons. The Memorandum of Incorporation shall be drawn up when a company is incorporated by two or more shareholders. If the company is incorporated by one person only, a Deed of Incorporation shall be drawn up.
The Law on Financial Reporting of Entities states that UAB companies are under obligation to prepare annual financial statements and an annual report. They need to be drawn up in Lithuanian. If certain conditions are met, the statements need to be audited. In Lithuania, the general corporate tax rate is 15%, which makes the country one of the most investor-friendly places in Europe. Additionally, entities whose income in a fiscal year does not exceed 300,000 EUR and the number of employees is no greater than 10 are enjoy a reduced 5% rate.
Fiscal law provides incentives for research and development activities. Withholding tax on dividends is 15% (EU entities are exempt). Capital gains are treated as general income. Loss carry-forwards are permitted as long as they do not exceed 70% of taxable income. Consolidated tax returns are not permitted. Lithuania is a member of WTO and OECD. Important sectors of the country’s economy are services, agriculture, petroleum industry and food processing. The ice-free port of Klaipeda with a container terminal and a natural gas terminal is of strategic importance to the state. The location between Russian and Wester Europe make Lithuania an important transit hub.
Lithuania is a parliamentary republic whose laws are governed by the Constitution of 1992. The state’s parliament (Seimas) is unicameral and consists of 141 members. The head of state is the President who appoints the Prime Minister and the Council of Ministers consisting of 13 ministers (chosen by the head of the government). In Lithuania there are seven commercial banks and a similar number of foreign bank branches in operation. The biggest ones in terms of assets are SEB, Swedbank and Šiaulių bankas. The supervision authority for the entire financial sector is Bank of Lithuania, the state central bank. Last year, the central bank granted a banking licence to Revolut.
All companies are equal before the law.
A good formation agent is what makes a difference.
Lithuania is a member of the European Union and a strategic destination for company formation and ready-made shelf company acquisition. With a population of 2.8 million and ranking as Baltic fintech hub, EU member, Lithuania offers a compelling business environment for both local and international entrepreneurs.
Key advantages of establishing a business in Lithuania include: 15% corporate tax (5% for SMEs), EU fintech hub, Revolut EU HQ in Vilnius, fast digital company registration.
| Feature | Details |
|---|---|
| Capital | Vilnius |
| Currency | EUR (Euro) |
| Corporate Tax Rate | 15% (5% for small companies) |
| VAT Rate | 21% |
| Company Types | UAB (LLC), AB (JSC), MB (small partnership), IĮ (Individual Enterprise) |
| Minimum Capital | 2,500 EUR for UAB |
| Formation Time | 3-5 business days |
| Major Banks | SEB, Swedbank, Luminor, Šiaulių bankas, Revolut (EU HQ) |
ShelfCompanies24 provides comprehensive company formation and corporate services in Lithuania. Whether you need a ready-made shelf company for immediate business operations, a newly formed entity tailored to your specific requirements, or assistance with opening corporate bank accounts — our team of experienced specialists is here to help.
Lithuania stands out among business jurisdictions for several important reasons. The corporate tax rate of 15% (5% for small companies) is competitive within the region, and the available company types (UAB (LLC), AB (JSC), MB (small partnership), IĮ (Individual Enterprise)) provide flexibility for various business structures and investment strategies.
Company formation in Lithuania typically takes 3-5 business days, with minimum capital requirements of 2,500 EUR for UAB. The country’s banking sector includes major institutions such as SEB, Swedbank, Luminor, Šiaulių bankas, Revolut (EU HQ), ensuring reliable access to financial services for your business operations.
Explore company formation and shelf company services in related jurisdictions:
In Lithuania you can form the following company types: UAB (LLC), AB (JSC), MB (small partnership), IĮ (Individual Enterprise). The most popular structure for foreign investors is the limited liability company equivalent.
The corporate tax rate in Lithuania is 15% (5% for small companies). The standard VAT rate is 21%.
Company formation in Lithuania typically takes 3-5 business days, including registration with all relevant authorities.
The minimum share capital required in Lithuania is 2,500 EUR for UAB.
Looking for an off-the-shelf company in Lithuania? Our ready-made shelf companies — also known as off-the-shelf companies — are pre-registered entities available for immediate transfer. An off the shelf company provides instant credibility, a clean corporate history, and the ability to start trading immediately without waiting for the incorporation process to complete. ShelfCompanies24 offers off-the-shelf companies in Lithuania with optional corporate bank accounts, registered addresses, and full post-acquisition compliance support.