Lithuania’s membership in the European Union provides access to a single market of over 450 million consumers, simplifying the export of goods and services. Favorable tax conditions, including a reduced 5% corporate income tax rate for small enterprises, create an advantageous financial environment for rapid business growth. Lithuania also attracts entrepreneurs with its simplicity of company registration due to minimal bureaucracy. A stable economy with consistent growth makes the country an ideal location for developing both local and international business projects.
Choosing the right business form in Lithuania
Selecting the correct legal form of business is a crucial step when starting a business in Lithuania. The most popular option for small and medium-sized enterprises is the UAB (Private Limited Liability Company). This form offers limited liability for founders and facilitates investment opportunities, making it a great choice for those looking to expand.
For small teams or startups, the MB (Small Partnership) is a suitable option. It is a simplified form of business organization with minimal capital and accounting requirements.
If you plan to operate as an individual, consider the Sole Proprietorship (IĮ), which offers greater flexibility for private entrepreneurs.
Finally, if you represent a foreign company, you can register a branch or representative office, which will allow you to conduct business in Lithuania.
What documents are required to register a company in Lithuania
- Application for company registration to the Registrų centras – information about the founders, company structure, the legal address, and the authorized capital. The incorporation name must be checked for availability in the Lithuanian registry and comply with national laws.
- Articles of Association (UAB, MB)
- Founding Agreement or Act of Incorporation
- Documents confirming the payment of authorized capital. For UAB, the minimum authorized capital is €2,500. A bank certificate confirming the deposit of funds into the account is required.
- Lease agreement or confirmation of the right to use the legal address. The company must provide proof of an official registered address (rented office, home address, or even a virtual office).
- Information about the company’s manager: passport details, confirmation of the right to work in Lithuania (for foreign nationals), and contact information.
- Identification codes of founders and beneficiaries: for individuals – copies of passports; for legal entities – registration documents of the company.
This list may vary depending on requests from state authorities.
