Lithuania company formation for non-residents

Why founders choose Lithuania

Lithuania built a reputation as an EU base for fintech. The Bank of Lithuania licenses electronic money and payment institutions that can passport services across the EU, and many founders form a UAB before applying.

Public services are largely digital. Registration, tax filings and most dealings with the State Tax Inspectorate (VMI) happen online, which suits founders who live abroad.

The 2026 tax reform also gives new small companies owned by individuals two years at 0%. Larger companies pay the standard 17% rate.

Corporate tax after the 2026 reform, VAT and the euro

From tax periods starting in 2026, the standard corporate tax rate is 17%, up from 16%. VMI applies the new rate to all Lithuanian companies and permanent establishments, whatever their tax year.

Small companies get lower rates. A company with revenue up to €300,000 in the tax period that meets the other conditions can pay 0% in its first and second tax periods, then 7%.

The conditions matter. For the 0% rate, VMI requires that shareholders are only natural persons, and that over three consecutive periods the company is not suspended, liquidated or reorganized and its shares are not transferred to new owners. A company owned by a holding company does not get 0%.

The standard VAT rate is 21%. Registration becomes mandatory above a turnover threshold, and earlier for some cross-border EU transactions. VMI handles VAT registration, usually online.

Lithuania uses the euro, so a UAB can invoice EU clients, hold its bank account and file accounts in one currency.

• Standard rate: 17% (tax periods starting 2026)
• Qualifying small companies: 0% for the first two tax periods
• Other small companies with revenue up to €300,000: 7%
• VAT: 21% standard

How formation works

First we reserve the company name with Registrų centras, the state enterprise that keeps the Register of Legal Entities. We then prepare the articles of association and the founding decision.

The share capital is paid into a temporary account opened in the company's name before registration. The Law on Companies sets the UAB minimum at €1,000, down from €2,500 since May 2023 (confirm with your specialist).

Founders with a supported qualified electronic signature can register online. Others sign before a notary, in Lithuania or abroad with an apostille, or appoint an attorney. We quote 1–2 weeks after KYC approval, and you receive the registration documents in your client portal.

Your registration extract, articles and the company code appear in the client portal once Registrų centras enters the UAB.

Manager, shareholders and beneficial owners

A UAB needs one manager (the director), who can be of any nationality. Larger companies may add a board or supervisory council, but a small UAB does not need one.

Shareholders can be individuals or companies. Keep in mind that corporate shareholders take the company out of the 0% small-company rate.

Beneficial owners are recorded in JANGIS, the information system on legal entity participants kept by Registrų centras. Following the EU Court of Justice ruling of November 2022, access for the general public is limited; authorities and AML-obliged firms can see the data.

Accounts, audit and banking

Every UAB keeps accounts and files annual financial statements with Registrų centras. The corporate tax return goes to VMI. An audit applies only once the company passes size thresholds for assets, revenue and employees.

Lithuanian banks review non-resident owners carefully and may ask for a local connection or a clear business plan. Several EMIs licensed in Lithuania also serve small businesses. We introduce suitable institutions and prepare the application; the bank decides.

If you plan an EMI or payment institution licence, the company is only the first step. The Bank of Lithuania expects local management, capital and AML systems, so we coordinate with your licensing advisers.

Tax residence, substance and fit

A UAB registered in Lithuania is Lithuanian tax resident. If its manager lives abroad and every decision is taken there, the other country may also claim the company as resident and tax its profit at home.

The 0% and 7% rates only help if Lithuania keeps the right to tax. Founders who live in Lithuania, or who appoint a local manager and run the business from there, are in the strongest position. Remote owners should plan where decisions, contracts and staff sit (confirm with your specialist).

Banks and licensing bodies look at the same facts. A local address alone rarely satisfies them; a manager, a lease and real invoices usually do.

Lithuania fits founders who own the company personally, expect modest revenue in the first two years and want an EU company with euro banking. It also fits fintech teams preparing a licence application.

It fits less well for holding structures, because corporate shareholders lose the 0% rate, and for owners who need a bank account in days. Your specialist can compare it with Poland's 9% small-taxpayer rate or Bulgaria's 10% flat rate before you pay.

If you plan to raise investment, tell us early. New shareholders joining within the first three periods can affect the 0% rate, and your specialist can plan the timing (confirm with your specialist).

What it costs and what is included

Year 1 costs US$1,999 all-in with OCC, with government fees included. Your quote lists each item before you pay, including the name reservation, registration filing, registered office and JANGIS filing.

From year 2 the renewal is US$800. Bookkeeping, VAT returns, payroll and annual financial statements depend on your volumes, so a Lithuanian accountant quotes them separately.

Notary and apostille costs abroad, the share capital itself and bank fees sit outside the package. We list them for you before you sign.