Lithuania offers several legal business structures that are suitable for foreign entrepreneurs. The choice of structure depends on the business goals, scale, and the owners’ level of responsibility.
Consulting with experts is essential to ensure a smooth registration process, as they are familiar with the nuances of setting up different types of business activities in the country.
UAB allows for one or more founders, with no upper limit. The minimum capital required is 1,000 euros. The liability of shareholders is limited to their share in the company. Before submitting the registration application to the Legal Entities Register, a notary verifies the compliance of the company's charter with the law and confirms its eligibility for registration in Lithuania. The registration fee is 30.83 euros.
This option is suitable for large-scale projects, with a minimum of one shareholder. The required share capital is 25,000 euros. Shareholders are not personally liable for the company’s obligations. The registration fee is 30.83 euros.
This is a sole proprietorship structure, where only one owner is required. No capital is necessary. The owner’s liability is unlimited, extending to their personal assets in case of debts. The registration fee is 21.12 euros.
A minimum of two participants is needed, with no maximum limit. No capital is required, and liability is limited to the company’s assets. The registration fee is 27.51 euros.
The parent company abroad is fully responsible for the activities of the branch. The branch operates within the powers defined by the parent company. At least one manager must reside in Lithuania.
Each business structure has its own advantages. For example, UAB is popular for its low capital requirement and limited liability, while IĮ is more suitable for sole proprietors.
Documents Required for Registration, Based on the Business Type:
No, a physical visit is not required. There are companies in Lithuania that act as intermediaries between the entrepreneur and the government, based on a power of attorney signed by all founders.
The power of attorney can be provided in Lithuanian, Russian, or English. Once the process is completed by the intermediary, the official documents are sent by mail to the applicant.
Both individuals and legal entities, residents or non-residents of Lithuania, can be company founders.
Residence Permit for Shareholders and Business Owners
The primary requirements for a shareholder or business owner to obtain a residence permit in Lithuania for 2 years, with the possibility of extension, are:
During company registration, the information of the beneficiaries must be submitted to the Legal Entities Register:
A company’s beneficiary is considered to be an individual who directly or indirectly owns or controls more than 25% of the company’s capital or shares with voting rights.
To register a company name, an application (JAR-5 form) must be submitted to the Legal Entities Register. Every Lithuanian company must have a legal address in Lithuania.
During registration, the company’s management must confirm the legal address. Any correspondence sent to the company’s legal address is considered received, provided the sender can prove the mailing.
Most Lithuanian companies start their fiscal year on January 1st, but companies can choose any month as their fiscal year start. The fiscal year must last 12 months. At the end of the year, financial reports are compiled, and accounting books are closed.
Within the first four months of the following fiscal year, companies must submit their reports to the relevant authorities. However, different legal structures may have varying deadlines for reporting. Once the reports are approved, they must be submitted to the register within 30 days.
