Doing business in Lithuania is generally considered a straightforward and efficient process, as the country is known for its business-friendly environment and advanced digital infrastructure.
The process typically involves selecting a legal structure and following a clear set of registration steps.
Here is a comprehensive guide on how to do business in Lithuania:
1. Understand the Business Environment
Lithuania is a member of the EU and Eurozone, offering a stable and welcoming environment for foreign investment.
- Key Advantages:
- High ranking for ease of doing business.
- The ability to register a company quickly (sometimes in a few days) and often entirely online with an e-signature.
- A well-educated, multilingual workforce.
- Tax incentives, including reduced corporate tax for small businesses and in Free Economic Zones (FEZs).
- Key Sectors for Investment:
- Information and Communications Technology (ICT)
- Biotech
- Fintech
- Metal Processing, Machinery, and Electrical Equipment
- Business Services
2. Choose Your Legal Business Form
The most common legal form for foreign investors and entrepreneurs is the Private Limited Liability Company.
| Business Form | Lithuanian Name | Key Characteristics |
| Private Limited Liability Company | UAB (Uždaroji akcinė bendrovė) | The most popular option. Shareholders have limited liability. Minimum share capital is typically €1,000 (though some sources mention €2,500), with at least 25% to be paid initially. |
| Small Partnership | MB (Mažoji bendrija) | A simpler, more flexible limited liability form for up to 10 natural persons. No minimum share capital is required. Often favored by startups. |
| Public Limited Company | AB (Akcinė bendrovė) | Suitable for larger businesses that plan to raise capital publicly by issuing shares. Requires a higher minimum share capital, typically €40,000. |
| Individual Activity / Sole Proprietorship | Individualios veiklos pažyma / Verslo liudijimas | Simplest for a one-person business. The owner has unlimited liability (liable with all personal property). This often involves getting a license from the State Tax Inspectorate (VMI). |
| Branch or Representative Office | Divisions of a foreign company. A Branch can conduct commercial activity; a Representative Office is limited to non-commercial activities like marketing. |
3. Step-by-Step Company Registration Process (for a UAB)
The registration process is managed by the Centre of Registers (Registrų centras) and can often be completed remotely with a power of attorney or electronic signature.
| Step | Description | Notes |
| 1. Prepare Documents & Appoint Manager | Prepare founding documents (Articles of Association) and appoint a General Manager. You must secure a legal address in Lithuania (a virtual office is permitted). | The General Manager and shareholders do not have a residence requirement, but a non-EEA branch must have at least one person residing in Lithuania. |
| 2. Reserve Company Name (Optional) | Reserve your desired company name with the Centre of Registers (form JAR-5). | This is optional but recommended and typically reserves the name for 6 months. (Approx. €16 fee). |
| 3. Open Accumulative Bank Account | Open a temporary bank account to deposit the minimum required share capital. | For a UAB, the minimum capital is generally €1,000 (or higher for some activities). At least 25% of the share capital must be deposited initially. |
| 4. Notarize Founding Documents | Notarize the founding documents at a registered notary’s office. Foreign documents may require an Apostille or legalization, depending on your country. | Costs vary (approx. €85-€338). Documents from certain countries (e.g., Ukraine, Moldova, Estonia, Latvia) may not require an Apostille. |
| 5. Register the Company | Submit the notarized documents to the Register of Legal Entities (Centre of Registers). | This step formally registers your company and provides a registration number and tax ID. (Approx. €32 – €57 fee). |
| 6. Convert Bank Account | Convert the temporary accumulative bank account into a permanent settlement account for day-to-day business operations. | |
| 7. Register with Tax Authorities | Register with the State Tax Inspectorate (VMI) for corporate tax, and apply for a VAT number if necessary (mandatory once annual revenue reaches €45,000). Also register for Social Security (SODRA). | Tax registration is usually free of charge. |
| 8. Obtain Licenses/Permits | Obtain any specific business licenses or permits required for your type of activity. |
4. Key Considerations for Foreigners
- Residency and Visas:
- EU/EEA Citizens: Can live, work, and start a business without restrictions.
- Non-EU/EEA Citizens: May need a Schengen Visa (C) for short stays (up to 90 days). For a long-term stay, options include:
- Temporary Residence Permit: Based on business ownership (company must be active for at least 6 months, have equity of at least €28,000, with the foreign investor investing a minimum of €14,000).
- EU Blue Card: For highly-skilled non-EU citizens.
- Startup Visa: A fast-track program for startup founders.
- Remote Setup: Non-residents can typically register a company by granting a Power of Attorney to a local legal advisor or by obtaining a Lithuanian electronic signature.
- Virtual Office: Using a virtual office for the legal address is a common and convenient solution for non-resident entrepreneurs.