Company Formation in Lithuania
Last updated: 2026-04
Last updated: April 2026.
Lithuania registers new UAB companies in about three business days through the Centre of Registers. Minimum share capital was cut to €1,000 on 1 May 2023 — down from €2,500 — and the headline corporate tax rate stands at 17% for 2026, with 7% for small taxpayers under €300,000 in turnover and a 0% rate for the first two years of qualifying new micro companies. Non-residents can hold 100% of the shares, serve as sole director, and never relocate. Lithuania is a full EU member, in the eurozone, and the Baltic region's fintech licensing hub — more than 260 payment and electronic money institutions hold a Bank of Lithuania licence.
We form UABs end to end: name check, articles of association, Centre of Registers filing, JANGIS beneficial owner declaration, VAT identification, SoDra enrolment, and a corporate bank account introduction. Fixed price, English-speaking manager, all government fees included.
| Quick facts | Value |
|---|---|
| Corporate Income Tax (CIT) — standard | 17% (from 1 Jan 2026) |
| CIT — small taxpayer (turnover ≤ €300,000) | 7% |
| CIT — newly established small entity | 0% for first two tax periods |
| VAT | 21% standard / 12% reduced / 5% super-reduced |
| VAT registration threshold | €45,000 (rolling 12 months) |
| Minimum share capital (UAB) | €1,000 (25% paid before registration) |
| Minimum directors / shareholders | 1 director, 1 shareholder (same person OK, non-residents OK) |
| Residency requirement | None |
| Standard formation time | ~3 business days at the Centre of Registers |
| Government fees | Included in our packages |
| Language of filings | Lithuanian |
| Currency | Euro (€) |
Why Form a Company in Lithuania
Lithuania is the largest Baltic economy and, since its 2015 euro adoption, an increasingly mainstream choice for EU-facing structures. Three reasons cf24 clients pick it.
Low tax at small scale. New UABs that stay under €300,000 in revenue pay 0% CIT for two tax periods — no employee cap since the 2026 reform. After the holiday, the rate is 7%. Compared with Latvia's 20% deferred model or Estonia's 22% on distribution, Lithuania's straight 7% headline for small companies is among the cheapest cash-tax outcomes in the EU for profit-distributing founders.
Fintech infrastructure. The Bank of Lithuania operates a fast-track licensing programme for payment institutions, electronic money institutions, and specialised banks. Revolut holds its EU specialised bank licence from Vilnius. The same regulator issues SEPA access and the central bank's CENTROlink payment rails. For founders building fintech, crypto-asset service providers, or cross-border payment platforms, Lithuania is the EU's default licensing jurisdiction.
EU access at Baltic cost. Lithuania is in the EU, the eurozone, the Single Market, and Schengen. Vilnius hosts regional headquarters for Western European groups at office costs a third of Dublin or Amsterdam. The country runs a simplified electronic incorporation portal through the Centre of Registers, mandatory B2G e-invoicing via SABIS, and one of the EU's fastest registry processing cycles.
The trade-offs: filings are in Lithuanian (we handle the translation and submission), the State Tax Inspectorate (VMI) takes a moderately strict line on substance for holding structures, and Lithuanian banks remain cautious with non-resident-controlled accounts — most cf24 clients pair a Lithuanian bank account with a Baltic fintech EMI.
Company Types Available in Lithuania
Lithuanian corporate law offers six main forms. For almost all cf24 clients the UAB is the right answer.
UAB (Uždaroji akcinė bendrovė)
The Lithuanian private limited company. Limited liability capped at the share capital. Minimum capital is €1,000 since the 1 May 2023 Law on Companies amendment. At least 25% (€250) must be deposited to a Lithuanian bank or notarial escrow before registration; the remainder is payable within 12 months. One shareholder and one director are sufficient — both can be the same person, both can be non-residents, both can be foreign corporate entities. The UAB files annual financial statements with the Centre of Registers and CIT returns with the VMI. Audit is only required above threshold (net turnover above €3.5m, balance sheet above €1.8m, or more than 50 employees — two of three).
AB (Akcinė bendrovė)
The public joint-stock company, comparable to a Polish S.A. or German AG. Minimum share capital €40,000. Mandatory audit. Required for admission to trading on Nasdaq Vilnius and for certain regulated activities (banking, insurance, large collective investments). Outside regulated sectors and listed groups, ABs are rare — the UAB handles most business needs.
MB (Mažoji bendrija — Small Partnership)
A hybrid form introduced in 2012, halfway between a company and a partnership. No minimum share capital. Members have limited liability but are taxed as individuals rather than as corporate shareholders on distributions. Up to 10 members, all natural persons. Popular among freelancers, consultants, and micro-businesses operating locally. Not usable for holding structures or foreign corporate shareholders.
IĮ (Individuali įmonė)
A sole proprietorship with the owner carrying unlimited personal liability. No share capital. Used by individual Lithuanian trades. Foreign founders rarely select this form.
Branch (Filialas) and Representative Office (Atstovybė)
A foreign company's Lithuanian branch is not a separate legal entity — the parent's balance sheet and liability extend to the branch. A representative office is non-trading and serves only market entry or liaison functions. Both require Centre of Registers filings but no separate share capital.
| Form | Min capital | Liability | Tax | Common use |
|---|---|---|---|---|
| UAB | €1,000 | Limited | CIT (17% / 7% small / 0% new) | Default — SMEs, foreign subs, fintech |
| AB | €40,000 | Limited | CIT | Listed companies, regulated sectors |
| MB | None | Limited | PIT on distributions | Freelancers, micro-business, locals |
| IĮ | None | Personal unlimited | PIT | Individual trade, rare for foreigners |
| Branch | n/a | Parent's | CIT on LT-source income | Foreign group presence |
| Rep office | n/a | Parent's | None (non-trading) | Market entry, liaison |
If a fast entry is critical, our sister brand offers ready-made Lithuanian UAB entities that are pre-incorporated and transferable within days rather than weeks.
Step-by-Step Formation Process
A typical UAB formation through the Centre of Registers follows these steps.
- Name reservation. We confirm the proposed name is available on the Centre of Registers database and meets Lithuanian naming rules. The suffix "UAB" is mandatory. Reserved words (bank, insurance, university, state) require prior authorisation. Two or three alternatives is standard practice.
- Articles of association. We draft the įstatai using either the Centre's standard electronic template (fastest route, fixed wording) or a notarised deed before a Lithuanian notary (slower, but allows tailored share classes, transfer restrictions, multiple managers, and non-cash contributions). For most cf24 clients the electronic template suffices; notarised deeds are reserved for VC-backed structures and group holdings.
- KYC and beneficial ownership. Each shareholder, director, and ultimate beneficial owner provides a passport, proof of residential address, and a signed declaration. Foreign corporate shareholders add apostilled certificates of incorporation and registers of directors, plus a UBO chart down to the natural-person controller.
- Capital deposit. At least 25% of the €1,000 minimum must be paid before registration — either to a Lithuanian bank account specifically opened for capital deposit, or to a notary's escrow account. The bank or notary issues the certificate required by the Centre of Registers.
- Electronic filing with the Centre of Registers. The incorporation package is submitted through the Centre's online portal. The signer needs a Lithuanian qualified electronic signature — either an e-identity card, a Smart-ID credential, or a mobile signature. For non-resident directors we either issue an e-signature credential as part of the package or file under notarised apostilled power of attorney.
- Registration and company code. Standard timing is about three business days from a complete filing. The Centre issues the company code (Lithuanian legal entity number) and updates the public register. VAT identification (PVM code) is applied for at the VMI separately, usually one to three further business days.
- Post-incorporation registrations. We file beneficial owners in the JANGIS register, enrol the company with SoDra for social insurance if it will have employees, register for VAT where required, open the operating bank account, and — for clients running fintech or regulated activity — coordinate the relevant Bank of Lithuania licence application.
End-to-end timeline from KYC clearance to an operating company with a bank account is usually 7 to 14 business days. The Centre of Registers entry itself lands on day three or four; the bank is typically the longest step, and a director visit is often required by Lithuanian banks.
Required Documents
For each shareholder, director, and ultimate beneficial owner:
- Passport or EU national ID (notarised and apostilled copy for non-residents signing remotely)
- Proof of residential address dated within three months (utility bill, bank statement, or certified residence registration)
- Signed UBO declaration
- Criminal record certification for directors, where required by the bank
- Lithuanian qualified e-signature credential, or notarised apostilled power of attorney in favour of our Vilnius office
For corporate shareholders:
- Apostilled certificate of incorporation
- Apostilled register of directors or certificate of incumbency
- Apostilled register of members or share register
- UBO chart and declaration
- Sworn Lithuanian translation of all foreign documents (we arrange via a certified translator — required by the Centre of Registers)
You also confirm the registered office address in Lithuania (we provide one in Vilnius if the client has no Lithuanian premises), the share capital split, and the economic activity codes (EVRK) that describe the business.
Costs and Timeline
Lithuanian formation costs depend on whether you use the Centre of Registers electronic template or a notarised deed, whether a Lithuanian director or UBO must travel for bank onboarding, and whether you add ongoing accounting. Every Lithuanian company must file an annual financial statement and monthly VAT returns if registered — dormant companies still file annual accounts.
Our packages cover full incorporation through the Centre of Registers, all government fees, registered office for year one, a Lithuanian e-signature for the non-resident director, certified translation of foreign corporate documents, JANGIS filing, VAT registration, SoDra enrolment where needed, bank account introduction, and the first month of accounting setup. Contact us for a fixed-price quote — no hourly bills and no surprise invoices.
Typical timeline from KYC clearance:
| Day | Milestone |
|---|---|
| 0 | Engagement and KYC submitted |
| 1–2 | KYC cleared, articles drafted, e-signatures issued, foreign documents translated |
| 3 | Capital deposit confirmed, Centre of Registers filing submitted |
| 4–6 | Company code issued, register entry completed |
| 6–8 | VAT identification at the VMI, JANGIS beneficial owner filing |
| 8–14 | Business bank account opened (variable per bank, director visit usually required) |
Tax Overview for Lithuanian Companies
Lithuanian corporate tax has two tiers — the headline rate and the small-company rate — plus a generous two-year holiday for new micro entities.
Standard CIT: 17% on taxable profits from 1 January 2026. The rate was raised from 16% as part of the 2026 tax reform to fund defence and social spending. It applies to any company above the small-taxpayer thresholds and to regulated entities (credit institutions, insurance companies) regardless of size.
Small taxpayer CIT: 7% for companies whose revenue is below €300,000 and whose employee count is below 10. The rate was raised from 6% on 1 January 2026. This captures the vast majority of new Lithuanian companies. Shareholders of small taxpayers cannot hold more than 50% in another qualifying small company (anti-fragmentation rule).
Two-year 0% holiday. Newly registered small entities pay 0% CIT for the first and second tax periods, provided annual revenue stays under €300,000. The 2026 reform removed the previous ten-employee cap, opening the holiday to a wider set of businesses. From year three, the 7% small-taxpayer rate takes over (or 17% if the revenue threshold is crossed).
VAT stands at 21% standard, 12% reduced (accommodation, passenger transport, cultural institution entry, non-alcoholic catering — new rate from 1 January 2026 replacing the former 9%), and 5% super-reduced (printed and electronic books, medicine, periodicals). The domestic registration threshold is €45,000 in rolling 12-month turnover. Non-resident sellers have no threshold and register from the first Lithuanian taxable supply unless covered by an EU simplification regime.
Withholding tax. Dividends paid to non-resident recipients are subject to 15% WHT, reduced to 0% under the EU Parent-Subsidiary Directive for qualifying EU parents (at least 10% holding for 12 months) and to treaty rates under Lithuania's 58 double-tax treaties. Interest paid to EEA recipients or to DTT-country recipients is 0% WHT; otherwise 10% applies, subject to DAS-1 certification. Royalties paid to qualifying related EU parties are 0% under the Interest and Royalties Directive; the standard rate otherwise is 10%.
Capital gains. Company gains are included in CIT at 17% (or 7% for small taxpayers). A participation exemption applies where the seller held at least 10% of the target for at least two years and the target is resident in the EEA or a DTT country — the gain is then exempt.
E-invoicing. Lithuania requires electronic invoicing for B2G transactions through the SABIS platform since September 2024 (SABIS replaced the previous eSąskaita system). B2B e-invoicing is currently voluntary but is tracked towards the EU VAT in the Digital Age (ViDA) 2030 cross-border mandate. SAF-T reporting (i.SAF-T) is mandatory for companies above €45 million in annual turnover.
Banking for Lithuanian Companies
Lithuanian business banking splits between three traditional Baltic banks and an unusually deep fintech bench, reflecting the country's status as the EU fintech licensing hub.
Swedbank is the largest bank in Lithuania by market share and is the default corporate choice for established domestic businesses. Strong English-language corporate desk, extensive branch network, and SEPA and SWIFT services. Swedbank charges an administration fee for non-EU-resident account holders, and a director branch visit is normally required.
SEB Bank is the other Nordic-owned giant — a Swedish group with a strong Lithuanian franchise. SEB runs sector teams for manufacturing, logistics, and energy, and handles hybrid resident/non-resident structures with a higher monthly fee for non-resident-controlled companies. Often the most straightforward traditional bank for cf24 clients with one Lithuanian-resident signatory.
Luminor is the third-largest bank in the Baltic region, built from the Lithuanian, Latvian, and Estonian operations of Nordea and DNB. Multi-country account setup is a Luminor specialty, which matters for groups running parallel Baltic subsidiaries.
Citadele (Latvian-owned, with a full Lithuanian branch) and Šiaulių Bankas (domestic SME-focused) round out the traditional pool. Both are typically more flexible than the Nordic top-three on non-resident KYC but offer thinner corporate product shelves.
Revolut Business, Paysera, and Wise Business dominate the EMI layer. Revolut holds a Bank of Lithuania specialised bank licence from Vilnius; Paysera is a Lithuanian-origin EMI with SEPA and card issuance; Wise operates under its Belgian licence and offers the broadest multi-currency balance set. For non-resident-controlled UABs, the standard pattern is a Lithuanian-bank capital account for registration plus an EMI for daily operations.
Frequently Asked Questions
Can a foreigner open a UAB in Lithuania?
Yes. Lithuanian company law imposes no citizenship, residency, or work-permit requirement on the shareholders or the director of a UAB. A non-resident foreigner can be the sole shareholder and sole director from day one. Online filing requires a Lithuanian qualified electronic signature, which we issue as part of our standard package, or the filing is made under a notarised apostilled power of attorney to our Vilnius office.
How long does it take to register a UAB in Lithuania?
The Centre of Registers processes a clean electronic filing in approximately three business days. Including KYC, articles drafting, e-signature issuance, and certified translation of foreign corporate documents, our typical end-to-end timeline is 7 to 14 business days from first contact to a fully operational UAB with a bank account opened.
What is the minimum share capital for a UAB?
The statutory minimum is €1,000, reduced from €2,500 by the Law on Companies amendment effective 1 May 2023. At least 25% (€250) must be deposited to a Lithuanian bank or notary escrow before registration, and the remaining balance is payable within 12 months of incorporation.
What is the corporate tax rate in Lithuania in 2026?
The standard CIT rate is 17%, raised from 16% on 1 January 2026. Small taxpayers with revenue below €300,000 pay 7% (up from 6%). Newly established small entities enjoy a 0% rate for the first two tax periods, after which the 7% rate applies as long as the revenue threshold holds.
Do I need a Lithuanian director for my UAB?
No. Lithuania imposes no residency requirement on directors or shareholders. In practice, a local manager or resident director simplifies bank onboarding and tax-authority communications — many cf24 clients use one local manager alongside a foreign owner-director. We can arrange a local management solution where required.
What is JANGIS and when do I file it?
JANGIS is Lithuania's beneficial ownership register, maintained by the Centre of Registers. Every Lithuanian company must declare its ultimate beneficial owners — natural persons holding more than 25% of shares or voting rights, or otherwise exercising control. The first declaration is due at incorporation. Updates are due within 10 days of any change. Non-filing triggers administrative fines under the Law on Prevention of Money Laundering.
Can my UAB apply for a Bank of Lithuania EMI or payment licence?
Yes. The Bank of Lithuania runs a dedicated fast-track programme for payment institutions, electronic money institutions, and specialised banks. Processing is typically 6 to 12 months from a complete application, faster than most EU alternatives. Minimum capital requirements start at €125,000 for an EMI and rise to €5 million for a specialised bank. We coordinate the licence track alongside UAB incorporation for fintech clients.
Get Started — Form Your Lithuanian Company
A fixed-price quote in 60 seconds. Registry entry in three business days via the Centre of Registers. EU VAT identification, JANGIS filing, and a bank account introduction included. Fintech licensing tracks coordinated where needed.
Call +48 2222 5 2222 or email [email protected] to start. Most Lithuanian formations are operating with a bank account within 14 business days.
Content prepared by Piotr Walter, In-house Counsel. Approved by Tomasz Bielski, Managing Director.
Looking for a faster route? Our sister brand offers ready-made Lithuanian UAB — pre-incorporated and transferable in days.