Company Formation in Lithuania
Lithuania has become an attractive option for entrepreneurs looking to start a business, thanks to the ease it offers for business operations, its strategic location, and the advantages of being part of the European Union. The country's robust economic infrastructure, low tax rates, and investment-friendly policies enable entrepreneurs to establish a fast and sustainable business model.
The most preferred type of company in Lithuania Private Limited Liability Company (UAB) it is the preferred model. The advantage of this structure is that the personal assets of the owners are protected from the company's liabilities. For company formation a minimum capital of 2,500 EUR. is required. Once the entire amount of capital is deposited into a bank account, the company formation process can begin. The establishment procedures can be completed digitally, meaning online, and the process usually 3-5 business days is completed within.
Establishing a company in Lithuania, not only to the local market, the European Union provides access to markets across the European Union. Additionally, when you establish your business, from tax advantages you can benefit from tax advantages and, as a business owner, residence permit you can apply for a .This not only simplifies the process of establishing a business but also provides additional opportunities for your personal life.
As CoWorldHub, we provide professional support throughout the entire company setup process, including document preparation, opening bank accounts, registering with the trade registry, and other legal procedures. We guarantee a fast and smooth progress of the process by being by your side at every step to bring your business idea to life.
Advantages of Starting a Business in Lithuania
Lithuania offers entrepreneurs a wide trade network and the ability to move freely, thanks to its membership in the European Union (EU) and its inclusion in the Schengen Area. The country provides access to both the Baltic and Western European markets with its strategic location. Company establishment processes are quite fast and can typically be completed within a few days. Additionally, the minimal bureaucratic barriers allow entrepreneurs to start their operations quickly.
The reasonable level of tax rates is particularly attractive for small and medium-sized enterprises, while the incentives provided for the start-up ecosystem support innovative projects. In Lithuania, special government grants and tax advantages are offered to companies operating in sectors such as information technology, finance, and logistics. This enables entrepreneurs to gain a competitive advantage at low costs.
The presence of a young and educated local workforce is also a significant advantage for investors. Companies operating in Lithuania can benefit from workforce transfer across the EU while also taking advantage of government-supported programs for business development.
As CoWorldHub, we provide comprehensive consulting services to ensure a successful start for your company, covering everything from legal procedures to financial planning. We are here to help you make the most of the business opportunities in Lithuania.
Requirements for Starting a Company in Lithuania
Starting a company in Lithuania offers investors both the opportunity to enter the European market and benefit from tax advantages. Before starting the company establishment process company type should be determined. The most common choice is, UAB (Uzaverta Akcine Bendrove) is a limited liability company. To establish a UAB company, a minimum capital of 500 EUR is sufficient, but this amount can be increased for larger capital projects.
In the first step, your company's name is checked and registered through the Lithuanian Business Register System then, the company’s articles of association and other legal documents are prepared, completing the registration process in the trade register During this process, the identification information and contact addresses of all company partners and managers must also be registered in the system. Additionally, it is mandatory to open a bank account for your operations, and the capital is deposited into this account.
For tax procedures to proceed smoothly, the company must vergilere kayıt olması is required. Especially companies that will trade internationally or exceed a certain income threshold VAT number alması zorunludur. Tüm işlemler dijital ortamda kolayca takip edilebilir, zira Litvanya e-devlet sistemi üzerinden şirket kuruluşu ve belgelerle ilgili süreçleri hızlandırmaktadır.
The setup process generally 1-2 weeks It is completed within. However, to ensure that foreign investors do not encounter issues during bureaucratic processes local consultancy services It is recommended to seek consultancy services. Proper consultancy ensures that all documents are fully prepared and accelerates processes, ensuring compliance with legal requirements.
Litvanya’da şirket kurmak İçin Gerekli Belgeler
Lithuania offers an attractive business environment for entrepreneurs with its investor-friendly structure and strategic position within the European Union. It is important to prepare certain documents to complete the company formation process accurately and quickly. In this article, we detail the necessary documents for establishing a company in Lithuania and key points to consider during the application process.
Founding Agreement or Act
- A document signed by the founders of the company that declares the official establishment of the company.
- The declaration must include the company's name, type, and purposes.
Articles of Association
- A document that includes the company's areas of activity, management structure, capital information, and shareholders' rights.
- It may require notarization.
Identity documents of the founders.
- Copies of the passports or identity cards of the company founders.
- The identity of the company manager or representative should also be included.
Capital Declaration and Bank Receipt.
- A document showing that the specified minimum capital has been deposited into the bank account.
- You may need to open a bank account in Lithuania and block the capital amount.
Taxpayer Identification Code
- Document proving that the company is registered in the Lithuanian tax system.
- Litvanya vergi dairesinden (VMI) alınmalıdır.
Proof of Address and Rental Agreement
- A rental agreement or title deed documenting the registered address of the company.
- A registered office address is required for the tax office and official correspondence.
Appointment Decision of the Manager or Representative
- Decision indicating the appointment of the manager who will represent the company.
- If a proxy has been appointed, a power of attorney must be submitted.
Company Name Approval Certificate
- A document confirming that the chosen company name is unique and approved by the Lithuanian Trade Register.
- It is recommended to reserve the name in advance.
Tax Office and Social Security Registration
- Social insurance (Sodra) registration for employees and tax declaration registration.
- The registration-related documents obtained from the tax office must be submitted.
Company Registration Form
- The application form completed for the company's registration in the trade registry.
- It must be submitted to the Trade Registry Office.
Important Considerations When Establishing a Company in Lithuania
Establishing a company in Lithuania is an attractive opportunity for investors looking to enter the European market and operate at low costs. However, there are several critical points to consider for a successful process. First, it is essential to prepare a detailed business plan and conduct market research related to your sector in Lithuania. Deciding on the type of business you will establish is important; the most common options include a Private Limited Liability Company (UAB) or a Sole Proprietorship. This choice directly affects the company’s size, capital structure, and related responsibilities.
For the official registration of your company To the Central Business Registration System(Registrų Centras) You need to submit an application. When establishing a company, if you do not reside in Lithuania, you may need to hire a local representative or accounting firm. Additionally, it is crucial to comply with legal regulations such as tax liabilities, social security obligations, and business licenses. It is recommended to seek professional support to open a company bank account, conduct financial transactions transparently, and set up your accounting system.
Depending on your sector, it's essential to verify in advance whether special permits or licenses are required to prevent operational disruptions. Lithuania offers foreign investors low tax rates, startup incentives, and various government supports. To maximize the benefits of these incentives, it would be advantageous to collaborate with the relevant government agencies and closely follow the application processes.
Why Should You Choose Lithuania to Establish a Company?
Lithuania offers a business-friendly environment for entrepreneurs, along with the advantages of being a member of the European Union (EU). The company formation process can be conducted entirely digitally and is typically completed within a few days. The low level of bureaucracy in the country accelerates business processes for investors, while the low operational costs provide significant advantages for new businesses.
Lithuania stands out particularly for the incentives it offers to technology and innovative sectors. Thanks to grant programs for start-ups, low tax rates, and investment supports, entrepreneurs find a favorable environment for growth. Additionally, with a qualified and multilingual workforce, businesses can quickly and efficiently build their teams.
Lithuania's strategic location provides easy access to other EU countries and international markets. It serves as a strong bridge, especially for entrepreneurs looking to trade with the Baltic region and Northern Europe. With its stable economy and secure business environment, establishing a business in Lithuania is an ideal opportunity to make a successful start in both local and global markets.
How Long Does It Take to Establish a Company in Lithuania?
The process of establishing a company in Lithuania varies depending on the stages of application preparation, obtaining the necessary documents, and registration in the commercial register, but generally 3 to 5 business days It is completed within that time frame. However, in some cases, additional documents or missing paperwork can prolong the process. To expedite the procedures, many transactions can be facilitated through the e-residency program. online can be conducted.
Although the process varies depending on the type of company, the most commonly established company model is is a Limited Liability Company (UAB)For a UAB company, a capital commitment, notary approval, and opening a bank account are required. Your company will be legally operational once your application is approved in the Lithuanian Commercial Register. It is crucial that the documents are prepared correctly to ensure the swift progress of the company establishment.
Professional consulting services obtaining, the complete preparation of documents, preventing potential issues that may arise during the process, and ensuring that the company becomes operational as soon as possible offers significant advantages.
Types of Companies You Can Establish in Lithuania
Lithuania is an attractive option for entrepreneurs due to its business-friendly environment and strategic location within the European Union. Various types of companies are available for those looking to establish a business. In this article, we explain which types of companies can be founded in Lithuania and which structure would be the most suitable for your business plan.
Private Limited Liability Company (Uždaroji Akcinė Bendrovė – UAB)
This type of company is the most common in Lithuania. UAB is similar to the "limited company" structure in Turkey and is frequently preferred by entrepreneurs.
Features:
- Minimum capital: 2,500 EUR
- Number of partners: 1 or more
- Partners' liability: Limited to the amount of capital they have contributed to the company.
- Tax advantages: Suitable for operating in the EU and offers low tax rates.
Who is it suitable for?
- Small and medium-sized enterprises
- E-commerce, consulting, software, and service sectors
Collective Company (Tikroji Ūkinė Bendrija – TŪB)
In collective companies, partners have unlimited liability for the company's debts. This structure is preferred in businesses that require collaboration and are based on mutual trust.
Features:
- There can be an unlimited number of partners.
- All partners are responsible for the company's debts and obligations.
- The establishment procedures are simpler compared to other types of companies.
Who is it suitable for?
- Owners of small businesses operating in the same sector.
- Entrepreneurs seeking to establish business partnerships
Limited Partnership (Komanditinė Ūkinė Bendrija – KŪB)
In this structure, one or more partners are fully liable for the company’s debts, while other partners are only liable up to the amount of their capital contribution.
Features:
- There is no minimum capital requirement.
- There are both active and passive partners.
- Passive partners are only liable up to the amount of their capital.
Who is it suitable for?
- Those who want to do business with multiple investors
- Those who want to manage the business and divide responsibilities between active managers and passive investors
Joint Stock Company (Akcinė Bendrovė – AB)
AB is a publicly held company structure, similar to joint stock companies in Turkey. It is preferred for large-scale investment projects.
Features:
- Minimum capital: 25,000 EUR
- It can be publicly traded, and its shares can be listed on the stock exchange.
- Partners are liable only up to the amount of capital they have invested.
Who is it suitable for?
- Major Investors
- Companies seeking to go public in the stock market
Branch or Representative Office
A foreign company can operate in Lithuania by establishing a branch or representative office. This option functions as an extension of the parent company.
Features:
- It operates under the parent company.
- All operations in Lithuania are managed by the parent company.
- Taxation is determined based on the structure of the parent company.
Who is it suitable for?
- Companies looking to expand internationally
- Businesses seeking to operate temporarily in the Lithuanian market
Individual Entrepreneurship (Individuali veikla)
Individual entrepreneurship in Lithuania is ideal for freelancers and small business owners.
Features:
- The registration process is quite simple.
- Personal income tax is paid.
- Individuals working independently can conduct business on their own.
Who is it suitable for?
- Freelancers
- Individuals providing consultancy or small-scale services
Establishing a company in Lithuania is an attractive opportunity for many entrepreneurs due to its favorable tax rates and strong connections within the European Union. Choosing the type of company that best suits your business plan provides advantages in both operational success and legal processes.
As CoWorldHub, we guide you in selecting the structure that best suits your business ideas and assist you throughout the company establishment process. For more information and to take advantage of our consulting services contact us.
Cost of Starting a Business in Lithuania
Lithuania has become an attractive option for entrepreneurs by offering a cost-effective business setup environment. Company establishment costs vary depending on the type of business, industry, and scope of services provided. Official fees to be paid initially for small and medium-sized enterprises 300-500 Euro vary between.
To establish a Limited Liability Company (UAB), one of the most common types of companies 2.500 Euro a minimum capital requirement is in place. However, there is no obligation to deposit the entire capital at once; you can pay part initially and complete the remaining amount over time. Services such as opening a bank account, notarization, and preparation of required legal documents for company registration may also incur additional costs.
You may need to obtain accounting services to maintain your business's financial records, and the monthly cost for this 50-150 Euro It varies between. As CoWorldHub, we manage the company formation process in Lithuania on your behalf, providing complete support at every step, including bank account opening, legal procedures, and accounting services. We guide entrepreneurs who seek a smooth and swift start with our professional consultancy services.
Legal Processes When Establishing a Company in Lithuania
Establishing a company in Lithuania is a quick and administratively manageable process for foreign investors. First, a decision must be made regarding the type of company to be established. The most common options UAB (Private Limited Company – Limited Şirket) and is in the form of a PLC (Public Limited Company – Joint Stock Company). The initial capital and management structure are determined according to the selected company type. The company name should be checked for availability and registered with the Lithuanian Trade Register.
The necessary documents for the application include the Articles of Association, a document appointing the company director, and a statement of the official address. These documents should be prepared either electronically or in a notarized format and submitted to the Trade Register. One of the essential steps in establishing the company is to open a company bank account through a local bank in Lithuania. The required capital amount is deposited into this account, and proof of deposit is presented to the Trade Register.
During the establishment process, due to the company's tax liability, an application for a VAT number is submitted to the State Tax Inspectorate in Lithuania. Additionally, additional licenses may be required for businesses operating in specific sectors.
In Lithuania, due to its digitized infrastructure, company registration procedures are typically completed within 3-5 business days. However, obtaining legal consultancy is essential to make the process faster and smoother. Proper guidance helps prevent potential errors in documentation, ensuring that your business operates legally without issues.
Establishing a Franchise Company in Lithuania
Lithuania, with its advantageous business environment within the European Union and a growing economy, is an attractive option for investors looking to establish a franchise company. Low operating costs, a straightforward tax system, and its strategic location make it easier for international brands to expand into Lithuania.
In establishing a franchise, the first step is to sign a licensing agreement with the brand; this agreement outlines the usage rights, operating conditions, and brand standards. Company registration in Lithuania proceeds quickly; once the required documents are submitted, registration with the commercial registry can be completed within 3 to 5 business days.
Franchise entrepreneurs are provided with benefits such as tax incentives and SME support programs, while the Bank of Lithuania and local authorities also offer guidance services to support foreign investors.
As CoWorldHub, we stand by your side throughout all processes, providing expert consultancy services in brand licensing agreements, commercial registration, and local market analysis. You can contact us to establish a profitable franchise business in Lithuania.
Local Business Partners and Networking Opportunities in Lithuania
Establishing local business partnerships when setting up a company in Lithuania is crucial for both quick market entry and sustainable success. As the country serves as a bridge to the Baltic and European markets, the right business connections can provide access to a broad network of customers and suppliers. Local partnerships also offer significant advantages in adapting to cultural and legal processes.
The Lithuanian Chamber of Commerce and Industry, sectoral associations, entrepreneurship events, and trade fairs provide ideal networking opportunities for new entrepreneurs to connect with the business world. Through these organizations, you can meet key figures in the industry and explore collaboration opportunities. Additionally, government-supported incubation centers and accelerator programs offer entrepreneurs both business guidance and easier access to necessary resources.
The business environment in Lithuania is open-minded and collaboration-oriented. The country offers an encouraging atmosphere for foreign investors and entrepreneurs, making it easier to quickly adapt to the market through local partnerships. Such collaborations enable the exploration of new markets and the potential for long-term growth opportunities.
Is it Possible to Obtain a Residence Permit by Establishing a Company in Lithuania?
It is possible to obtain a residence permit by establishing a company in Lithuania, and this method is particularly preferred by investors and entrepreneurs. As a member of the European Union, Lithuania offers easy access to the European internal market, while making it attractive to start a business with economic and legal advantages. The requirements for setting up a company in the country include providing initial capital, officially registering the company, and preparing a business plan related to the area of activity.
After the company registration procedures are completed, entrepreneurs can apply for a residence permit. During the application process, documents proving that the company is actively operating, evidence related to the employment created, financial viability reports, and a business plan demonstrating the company's contribution to the economy are required. The sustainability of the company and its potential to create economic value are significant evaluation criteria during the acceptance process.
If the application is approved, a residence permit can be obtained for the investor and their family members. This permit not only grants the right to reside in Lithuania but also provides the right to free movement within the Schengen area. At CoWorldHub, we provide comprehensive support to our clients in the processes of company establishment and residence permit acquisition; we offer professional consultancy services for the preparation of the correct documents, the thorough execution of application procedures, and the acceleration of the process.
Opening a Bank Account and Financial Transactions in Lithuania
If you are planning to establish a company in Lithuania, opening a bank account and managing financial transactions should be among your priorities. To open a business account, you will initially be required to provide official company documents, identification details, and proof of address.
Most banks offer English support to facilitate foreign investors and enable online account opening. Additionally, internet banking services are provided for business accounts, allowing for practical management of daily financial transactions such as payment handling and invoice processing.
Lithuania facilitates commercial transactions in Europe by using the Euro currency and offers low transaction costs. Bank accounts play a significant role in ensuring tax compliance, tracking revenues, and maintaining regular financial reporting.
As CoWorldHub, we provide professional consulting services for the processes of company formation and opening bank accounts, assisting you in completing all your transactions quickly and smoothly.
Establishing an E-commerce Company in Lithuania
Lithuania is an ideal country for those looking to venture into e-commerce, thanks to its membership in the European Union, favorable tax rates, technological infrastructure, and business-friendly laws. Entrepreneurs wishing to establish an e-commerce company typically prefer the limited liability company (UAB) model. This model offers low capital requirements and advantages in terms of quick setup.
The setup process begins with an application for registration in the commercial register. Once the company name is determined and approved, a local bank account must be opened. It is mandatory to deposit the company capital, and an application for a digital tax number (VAT) must be submitted to complete the procedures. Since a large part of the process can be managed through online platforms, the setup can be completed quickly and conveniently.
Lithuania's strategic geographical location provides easy access to other markets in Europe. The country's developed logistics network and low operating costs enable e-commerce companies to reach customers quickly and cost-effectively. Additionally, local and international consulting services assist companies in professionally managing all their processes from the establishment stage. Taking the right steps ensures not only the smooth completion of legal processes but also the achievement of a competitive advantage in the market.
Lithuania's Corporate Taxation System
Understanding the tax rates and obligations applicable to businesses is crucial when establishing a company in Lithuania. In the country, companies, is subject to a corporate tax rate of 15%. However, newly established small businesses, provided they meet certain criteria, a reduced rate of 5% may be applied .
The VAT (Value Added Tax) rate. %21 and for some products and services %9 and %5 discounted rates are also applied. From the employees' salaries 20% income tax and additionally, social security contributions are deducted.
Lithuania, double taxation agreements facilitates trade by reducing the tax burden on international companies. Companies are legally required to submit regular declarations and make tax payments on time.
With low tax rates and attractive incentives, Lithuania offers an appealing business environment for both local and foreign entrepreneurs.
CoWorldHub Company Formation Consultancy in Lithuania
Establishing a company in Lithuania presents an attractive opportunity for entrepreneurs looking to gain access to the European market while benefiting from low tax rates and operational costs.
As CoWorldHub, we offer you professional consulting services for all the steps you need in the company establishment process in Lithuania. We manage complex procedures on your behalf, such as selecting the type of company, preparing the necessary documents, applying for commercial licenses, and handling tax registrations, eliminating language barriers.
To ensure a successful start in Lithuania's business-friendly environment, we promise a fast and seamless setup process with our team that is proficient in local procedures. To obtain more information and benefit from our consulting services Contact us for detailed information.
