How to register company in Lithuania: A step-by-step guide

Thinking about starting a business or extending your existing operations into the European market? Well, you may want to consider doing so in Lithuania. Which brings us to our topic for today: How to register company in Lithuania.

The largest of the three Baltics, Lithuania is fast becoming one of the most exciting go-to destinations for ambitious entrepreneurs looking to grow and scale their business in an innovative environment that makes it easy to get the work-life balance just right.

Here, we explore the process of registering a company in Lithuania, including the key advantages, required documents and the step-by-step Lithuania business registration process.

Let’s explore why and how to start a company in Lithuania.

Why register company in Lithuania? 

Lithuania is progressive and offers an attractive business-friendly environment for businesses looking to expand into the European market.

With its supportive policies, digital infrastructure and access to the EU market, it provides a favourable environment for companies looking to thrive.

Benefits for entrepreneurs and businesses 

Ease of doing business: Setting up a business in Lithuania is seamless thanks to the country’s simple registration process and business-friendly regulations. 

Favourable taxation: Lithuania has low taxes compared to other EU nations, which attracts investors and businesses from around the globe. Newly established small businesses are also eligible for tax exemptions or reduced tax rates.

Skilled workforce: The skilled and educated workforce of Lithuania—particularly in the areas of engineering, IT and finance—makes it a popular destination for business structures around the world.

Key advantages of the Lithuanian market 

Proximity to major markets: As Lithuania is located in the centre of Europe, it gives businesses proximity to both EU markets and eastern European economies.

Competitive business environment: Lithuania offers a competitive entrepreneurial culture with emerging sectors such as fintech, IT and green energy.

Advanced infrastructure: Lithuania’s advanced transport, energy and digital infrastructure give businesses the resources and support they need to grow. 

Choosing the right business structure 

When starting a company in Lithuania, you’ll first need to choose a suitable business structure. Doing so will determine your tax obligations, operational flexibility and other management options. In Lithuania, there are various common business structures:

Private limited company (UAB)

• Suitable for small and medium-sized business structures
• Offers ownership flexibility
• Requires low minimum capital
• Suitable for most business activities
• No restrictions on nationality

Sole trader

• Simple to set up with an easy documentation process
• Must be incorporated by no more than one founder 
• The owner is responsible for all liabilities
• No legal distinction between the investor and the business
• Suitable for any business sector

Partnership 

• Can be set up as general (TUB) or limited (KUB)
• A minimum of two partners required 
• General partnerships have unlimited liability
• Limited partnerships have limited liability

Public limited company (AB)

• This is the most common business structure for medium or large companies in Lithuania
• Minimum registered capital of EUR 40,000 required
• One or more persons can be the founder and/or shareholder(s), who have limited liability
• Founders may be residents or non-residents of the Republic of Lithuania
• A minimum of three board or supervisory council directors required

Legal requirements for company registration 

To successfully complete the business set-up in Lithuania process, you’ll need to submit the correct documents and meet the minimum capital requirements. 

Documents needed

The documents required to register company in Lithuania include:

• Articles of Association
• Certificate of company’s name reservation
• Proof of the company’s registered office address
• Evidence of minimum share capital (if applicable)
• Details of founders including identification documents

Minimum capital requirements 

According to Lithuanian law, there is a minimum share capital for public and private limited companies.

• For UAB: €2,500
• For AB: €40,000

Step-by-step registration process 

For Lithuanian business registration, follow this step-by-step registration process:

Name your company and choose your structure

First of all, choose an appropriate and unique name for your company that complies with Lithuanian regulations. Then, select a suitable business structure to determine your company’s legal, financial and operational framework.

Submit required documents 

Once you’ve finalised the company name and selected your business structure, you’ll need to submit the required documents listed above to the Centre of Registers. This can be done online using Lithuania’s eGovernment platform or in-person at a local Centre of Registers office.

Open a business bank account

You’ll also need to open a business bank account to manage your transactions and deposit the share capital. When opening a business bank account, you can choose to use traditional banks like Swedbank or favour innovative digital platforms like the TransferGo Business Account, which is free to set up and saves you time and money.

Register with the State Enterprise Centre of Registers 

The State Enterprise Centre of Registers handles the entire registration process. Once you’ve submitted all the documents, the registration process takes around 3-5 business days to complete. After that, you’ll get an official registration code for your company.

Tax and VAT registration 

For successful tax and VAT registration, you need to comply with all legal requirements. These include:

Registering your company with tax authorities 

Taxation matters are handled by the State Tax Inspectorate (STI) in Lithuania. Your company needs to register with this institute to get a taxpayer Identification Number or TIN for taxation purposes.

Make sure to register according to the taxes applicable for your company; this includes Value Added Tax (VAT) if your annual taxable turnover exceeds €45,000 and employer registration (if you’re hiring employees) for payroll taxes and social security contributions.

VAT requirements and compliance 

All companies must register for VAT if their turnover is more than €45,000 annually. If this is the case, companies have to pay VAT at 21% (Lithuania rates). This is the general rate but reduced rates are available for some goods and services. If your company’s annual turnover is less than this value, you do not need to register for VAT. 

For VAT compliance, you’ll need to make sure you file the company’s annual reports with the Centre of Registres, as well as an annual VAT return. All companies should exercise accurate financial record-keeping and stay compliant with employment and labour laws.

Opening a business bank account 

As stated above, once you’ve registered your company name, you’ll need to open a business bank account to manage your transactions and deposit share capital.

Recommended banks for entrepreneurs 

Lithuania’s well-developed banking system offers a range of traditional and digital bank services for businesses looking to streamline their operations and maximise their value. These include:

• Traditional banks including Swedbank, SEB and Luminor 
• Innovative digital banking platforms such as TransferGo, Wise and Revolut 

Documents needed to open an account 

After you’ve completed the register company in Lithuania process, you’ll need to submit the following documents to open a business bank account in Lithuania:

• Proof of company registration
• Deposit receipts of share capital (if applicable)
• Identification documents of all company owners and directors

Common challenges and tips for success 

Avoiding delays in registration 

One common issue that entrepreneurs generally face is a delay in the registration process. The most likely reason for this is incorrect or incomplete documentation. To avoid delays, make sure to collect and thoroughly check all above-mentioned documents and complete all applications correctly.

Ensuring compliance with Lithuanian laws 

Staying compliant with Lithuanian laws is extremely important for smooth business operations. You must regularly report your business details, maintain updated tax files and follow all employment regulations religiously. If you find the process challenging, consider hiring a legal expert to help you.

Conclusion: Getting your business started in Lithuania

For those looking to expand their business in the EU market, Lithuania provides a thriving business hub with excellent opportunities for growth—particularly in industries such as technology, manufacturing and renewable energy. Lithuania also provides a high quality of life thanks to its quality healthcare, affordable living, beautiful scenery, rich cultural heritage and shorter commutes.

If you’re considering setting up a business in Lithuania or elsewhere, consider the TransferGo Business Account. This single, simple-to-use, multi-currency business account is perfect for businesses of all shapes and sizes, helping you streamline your cash flow and save valuable time and money. 

There are zero fees or subscription costs involved and when it comes to making international business payments, there are no fees on major routes with transfer margins as low as 0.35% and a 97%+ faster-than-promised delivery rate. You can also hold balances in GBP, EUR, RON, PLN and more and lock in industry-leading rates to maximise your value. 

What’s more, the TransferGo Customer Support team is there to help when you need it, addressing 80% of enquiries within just 2 hours.

Ready to get started? Sign up for TransferGo today!

Now that you know how to register company in Lithuania, are you curious about some of the business visas? Read our Lithuania Startup Visa guide and the Lithuania business visa: Process and prices 2025 guide for everything you need to know.