Skilled workforce

Trained, motivated and committed employees.

Business environment

Lithuania has a business-friendly environment. The level of bureaucracy is low and things run smoothly.

Cost level

From competitive staff costs to lower rental and overhead costs, Lithuania offers excellent conditions to run your business.

Infrastructure

Lithuania is at the crossroads of Western Europe, Northern Europe and the CIS, and, thanks to its strong logistics infrastructure, Lithuania is in an excellent position to enter the EU market. The country’s infrastructure is also highly developed.

Setting up of a company in Lithuania

Lithuania offers many investment opportunities. Companies are attracted to Lithuania through tax breaks, a competitive business environment, low cost levels and a skilled workforce. Lithuanian corporate taxation is one of the lowest in Europe at 15%. There are seven special economic zones in Lithuania. In these areas, under certain conditions, companies may be entitled to 0% corporate taxation for ten years of operation. Lithuania is also considered to be the second most popular European country for investors.

Registration of the company in the Lithuanian State Register is mandatory to start a business. Only after the registration of the company is can it be considered to be a legal entity. Registration is relatively fast in Lithuania- the process usually takes 3-5 days after the documents are handed over. In Lithuania, the most popular form of company is a joint stock company (UAB).

Requirements for setting up a Lithuanian limited liability company (UAB)

• The company must have at least 1 owner

• The company must have at least 1 director

• The director and owner may be the same person or company and there are no restrictions on the person’s country of residence

• The company must have a registration address in Lithuania

• The company’s minimum share capital is €2500 and at least 25% of the share capital must be paid before registration

• Each company must submit financial statements

Process of setting up a company in Lithuania

• Choice of company name (Lithuanian Trade Register) or information on pre-established companies

• Payment of share capital to a temporary bank account

• Preparation of the company’s founding documents and appointment of an appointment with a notary

• The establishment of the company remotely and related services for EU citizens. Preparation and sending of proxies to the founders of the company, if necessary

• Preparation of agreements between the Articles of Association and other necessary owners

• Set up of a company by a notary

• Submission of the company’s incorporation documents and the certificate of paid-up share capital to the Lithuanian Patent and Registration Office

• Delivery of the company’s founding documents

• Through us, you can set up a company in Lithuania either remotely or on site together with our consultants. We also offer the company’s registration and postal address services in Lithuania

Taxation

Income tax
Lithuanian corporate income tax is 15%. In addition, small companies with up to 10 employees and an annual income of up to € 300,000 are entitled to a special corporate income tax of 5%.

Taxation of dividends
The tax rate is 15% or 0% if the recipient of the dividend is another company that has owned more than 10% of the shares of the company paying the dividend for more than a year.

VAT
The general VAT rate is 21%. A reduced rate of 9% applies to magazines, books and public transport, for example, and a reduced rate of 5% applies to medicines, technical aids and their repair services.

Employer contributions
Social security contributions total around 34%, of which the employer’s share: 30.98 -31.70%.

Accounting

We provide professional and reliable accounting services in Lithuania. Our services include monthly accounting either electronically or “on paper”. The accounting service includes accounting in accordance with Lithuanian law, government declarations, monthly reports to the company’s management, as well as financial statements and tax returns. The entrepreneur always has real-time financial monitoring available. We will report the situation of your company to you after each tax period clearly and taking into account your specific needs.

UAB must have an auditor if two of the following requirements are met

• The annual turnover exceeds €8,700,000

• The company has assets of more than €5,300,000

• The company has 75 or more employees

Business services

• Registration in Lithuania from €770

• Registration address + postal service €350/12 month

• Virtual office service €150/12 months

• VAT registration €380

• Accounting package from €75/month

• Financial Management €70/h

• Assistance in opening a bank account or payment platform from €100

Other business services

• Commercial register changes

• Assistance

• Preparation and submission of the required documents and, if necessary, notarization

• Consulting and advice on setting up a Lithuanian company

• Agreements

• Marketing and business plans

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Through us, you get all the help you need in Lithuania both in setting up a company and in financial administration services. We recommend a consultation before registering the company.