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Lithuania at a glance
Lithuania is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet.
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.
Company formation in Lithuania: key facts (last reviewed July 2026)
- Corporate tax
- The standard corporate income tax rate is 17% for the 2026 tax period, following 16% in 2025. Eligible small entities with tax-period revenue not exceeding EUR 300,000 may use 7%, subject to the related-entity restrictions. The former ten-employee condition does not apply from 2026. Eligible newly established entities may use 0% for their first two tax periods, subject to the statutory ownership, revenue and continuity conditions; this is not an automatic exemption for every startup.
- VAT rate
- Standard VAT is 21%. From 1 January 2026, the reduced rates are 12% and 5% for the supplies specified by law. Check the category and any transitional rule before applying a reduced rate. 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
- Compare providers by their contracting entity and licence. Revolut Bank UAB is a Lithuanian-licensed bank; Paysera LT UAB is a Lithuanian electronic money institution; Wise Europe SA is a payment institution authorised in Belgium. These categories do not provide identical account protections or services. Check UAB, owner, residence and activity eligibility, and confirm the capital-payment account and evidence with the registry or adviser. Incorporation does not guarantee account approval.
- 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. Arrange an accumulation account that supports the UAB formation and capital-payment requirements. Confirm the provider’s eligibility, documentation and acceptance of the capital evidence before paying.
- 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 assess VAT obligations. Compare bank and payment-account providers that accept the UAB, owners, residence and business activity. Account approval and the available services depend on the contracting provider.
We can help coordinate documents, address requirements and filings with licensed local counsel. The steps and timing depend on your company and circumstances.
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.
Plan your Lithuanian company formation
Tell us where you live and what you are building. Our formation service fee is from around €100 to €200 (estimated). We help you compare structures and prepare a quote with the scope, costs and expected timing. Government charges, capital and ongoing services are separate unless included in that quote.
Get your free planWho can form a company in Lithuania
Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Lithuania. The director and residency information above identifies the main formation conditions to review.
Lithuania can fit lean startups and businesses with a practical Baltic base. In 2026, qualifying small entities may use a 7% corporate tax rate, and eligible new entities may use 0% for their first two tax periods. Confirm all eligibility and related-entity conditions. Compare account eligibility, capital-payment arrangements and ongoing accounting costs before incorporating.
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.
Plan beyond the registration fee
Use these guides alongside the national rules for your company. The cost and filing examples cover Estonia, Ireland and Portugal.
Lithuania and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Lithuania is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe.
Sources and review scope
Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position.
Topics checked
These dates apply to the named topics. Other figures and indicative service prices have separate review needs.
- Small-entity corporate tax rate and eligibility changes Checked . Source 1
- New-entity zero-rate periods and conditions Checked . Source 1
- Reduced VAT rates from January 2026 Checked . Source 1
- Bank, electronic money and payment-institution distinctions Checked . Source 1; Source 2; Source 3
Reference links
- taxsummaries.pwc.com/lithuania/corporate/taxes-on-corporate-income
- 1office.co/blog/company-formation-in-lithuania-guide
- vmi.lt/evmi/7proc-tarifas
- vmi.lt/evmi/5724
- vmi.lt/evmi/mokesciu-naujienos/-/asset_publisher/Ayr4qj31Q5pu/content/informacinis-prane-c5-a1imas-d-c4-97l-e2-80-9eprid-c4-97tin-c4-97s-vert-c4-97s-mokes-c4-8dio-c4-afstatymo-19-straipsnio-pakeitimo-c4-afstatymo-
- lb.lt/en/sfi-financial-market-participants/revolut-bank-uab
- lb.lt/en/sfi-financial-market-participants/paysera-lt-uab
- nbb.be/fr/node/4077
- wise.com/help/articles/2932693/how-is-wise-regulated-in-each-country-and-region
Frequently asked questions
Can a foreigner open a company in Lithuania?
No residency requirement for directors or shareholders; a foreign national can be sole director and shareholder.
How long does company formation in Lithuania take?
About 3 to 5 business days, and as little as 1 to 3 days when founders use a qualified electronic signature.
What corporate tax does a company in Lithuania pay?
The headline summary is 17% (2026), with standard VAT of 21%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case.
Can I form a company in Lithuania remotely?
Yes. A UAB can be incorporated remotely with a qualified electronic signature or by power of attorney; 100% foreign ownership is allowed.
What does it cost to form a company in Lithuania?
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. Our formation service fee is from around €100 to €200 (estimated). Government charges, capital and ongoing services must be budgeted separately unless the written quote includes them.