Registration
of an IT company
in Lithuania

Advantages of doing business in Lithuania

• Developed infrastructure
• Access to the EU global market
• VAT refund possibility
• 3 languages. Three languages are spoken in Lithuania: Lithuanian, English, and Polish.
• Minimum number of tax inspections
• Fast internet and IT development in all areas
• The world’s fastest public Wi-Fi and high-speed broadband connection.

Lithuania ranks first in Europe for online government services thanks to the latter, so 99% of entrepreneurs use this service in their business.

Taxation of business in Lithuania

Lithuanian tax residents are companies registered on the territory of Lithuania, regardless of the location of the governing body and control.

Lithuania has a special tax regime for small businesses — small companies have the opportunity to pay income tax at a rate of 5%.

Companies must meet the following criteria:

• The company has no more than 10 employees, and the annual turnover of the company does not exceed one million Litas (about EUR 290,000);
• On the last day of the tax period, one shareholder owns 100% of shares in one company and/or simultaneously owns no more than 50% of shares in another company, either individually or jointly within the same shareholder group.
• The standard rate of income tax in Lithuania is 15%
• The standard tax rate on dividends is 15%.

However, the taxation of profits and dividends has its own peculiarities of accrual.

The registration of a legal entity in Lithuania requires

• 1 founder and 1 director
• opening of a bank account
• registered office
• VAT number
• Personal visit to Vilnius to submit documents (or with a notarial power of attorney) and to open a bank account

If the company has a VAT number, it must submit monthly reports.

The period for company registration and opening a bank account depends on the bank.

Video guide on taxes and company registration in Lithuania

If you have decided to register a business in Lithuania, we advise you not to delay and start the process today.

The Finevolution team will provide expert assistance on:

• Obtaining temporary residence status for Ukrainians
• Opening an individual entrepreneur in Europe
• Opening a bank account in banks in Europe
• Account opening in the payment systems
• Accounting support for individual entrepreneurs
• Accounting support of legal entities
• Business and legal advices on business immigration and relocation of companies

Our working hours are 9:00-19:00 from Monday to Friday. Send a request through the form below or a message on Telegram/Viber, Whatsapp for consultations.