Starting a Company in Lithuania

Lithuania has become one of the most attractive business hubs in the Baltic region. With its EU membership, Euro currency, advanced digital infrastructure, and investor-friendly policies, Lithuania offers entrepreneurs an excellent opportunity to establish their businesses. The country is recognized for its strong IT and fintech sectors, innovative business environment, and affordable costs compared to Western Europe. For foreign investors, Lithuania provides direct access to the EU single market, financial incentives, and simplified company registration processes. With Marcaworld’s expertise, the entire incorporation journey becomes smooth and reliable.

Why Choose Lithuania?

Strategic Location

Lithuania is located between Northern and Eastern Europe, bordering Poland, Latvia, and Belarus, and has access to the Baltic Sea. This makes it a strong logistics and trade hub.

Digital-Friendly Business Environment

Lithuania is one of the most digitized economies in Europe. The government supports e-Residency programs, online company registration, and digital banking solutions, making business setup easy.

Affordable Costs

Operating costs such as office rents, salaries, and utilities are significantly lower than Western Europe, allowing entrepreneurs to maximize profitability.

EU Membership

Since 2004, Lithuania has been a member of the European Union and adopted the Euro. This ensures stability, access to EU funds, and free trade opportunities.

Types of Companies in Lithuania

UAB – Private Limited Liability Company

The most common business form, requiring a minimum share capital of €2,500. Liability is limited to contributions.

AB – Joint Stock Company

Requires a minimum capital of €40,000. Suitable for large-scale projects and public offerings.

Sole Proprietorship

Quick to set up but comes with unlimited personal liability. Suitable for freelancers and small-scale businesses.

Branch of a Foreign Company

Foreign companies can open branches in Lithuania to operate locally without establishing a separate entity.

Steps to Incorporate a Company in Lithuania

1. Reserve a Company Name

Company names must be checked and reserved in the Lithuanian Business Register.

2. Bank Account and Share Capital

A bank account must be opened, and the required capital deposited before registration.

3. Draft Articles of Association

The company’s objectives, structure, and shareholders are defined in the articles of association, notarized before submission.

4. Registration in the Business Register

Once documents are approved, the company becomes legally established.

5. Tax Registration

The company must register with the Lithuanian Tax Authority and obtain a tax number.

6. Social Security Registration

If employees are hired, the company must also register with the social insurance authorities.

Lithuanian Tax System

Corporate Tax

The standard corporate tax rate is 15%. Small companies may qualify for a reduced 5% rate.

VAT

The standard VAT rate is 21%, with a reduced 9% rate for selected goods and services.

Double Taxation Treaties

Lithuania has double taxation agreements with many countries, including Turkey, preventing double taxation of income.

Marcaworld’s Support in Lithuania

Marcaworld provides full-service consultancy to investors in Lithuania, including:

• Company type selection and legal advisory
• Name reservation and notarization
• Bank account opening and capital deposit
• Business Register and tax authority filings
• Accounting and financial compliance
• Support for e-Residency and digital solutions

Lithuania is a rising star in Europe, with a favorable tax regime, digitalized business environment, and access to the EU market. While the registration process may seem complex, Marcaworld ensures a fast, transparent, and legally compliant setup. Entrepreneurs can confidently start their businesses in Lithuania and expand across Europe with the right partner by their side.