Why Choose Lithuania
for Company Formation
Business-Friendly Legal Framework
Lithuania has modern company laws and a transparent registry. Company registration in Lithuania is carried out through the official online portal of the Register of Legal Entities (Registrų centras), which functions as the central Lithuania business registry. The process is fast: a private limited company (UAB) can be set up remotely in just a few days. Foreign founders do not need to be physically present. There are no nationality restrictions — foreigners can own 100% of shares and serve as directors. Basic business rules are straightforward: a UAB needs at least one director and one shareholder (either an individual or a corporation). Annual compliance (filing accounts, paying duties, maintaining a legal address) is simple and can be handled by service providers on your behalf. Lithuania’s business registry even allows name searches and filings electronically, reducing paperwork for entrepreneurs. Setting up a company in Lithuania is a straightforward process that offers access to the EU market, competitive tax rates, and a digital-friendly infrastructure for entrepreneurs.
Low Taxes and Startup Incentives
Lithuania’s tax system is highly competitive. The standard corporate income tax is just 15% – among the lowest in the EU. Startups and small businesses benefit even more: qualifying micro-enterprises pay 0% tax in the first year and only 6% after 2025. There is no withholding tax on dividends paid to EU parent companies (0% under EU rules) and only 15% (16% from 2025) when paid to other non-EU shareholders. VAT is a flat 21% (with a reduced 9% rate on certain goods/services). Many double-tax treaties (with 40+ countries) prevent double taxation of profits and income, and EU directives exempt intra-group dividends. In short, Lithuania offers a low-tax and investor-friendly regime, making it easy to scale profitably.
Types of Companies in Lithuania
Private Limited Company (UAB)
This is the most popular form, similar to an LLC. It requires a minimum share capital of €2,500, with at least 25% (€625) paid in upon formation. A UAB can have one or more founders (individuals or companies), who may be Lithuanian residents or foreigners. Shares are not offered to the public. UABs offer limited liability and can engage in any lawful business.
Step-by-Step Guide to Company Registration in Lithuania
Choose the right legal form
Most foreign investors pick a UAB for simplicity. Decide if a branch or special form (e.g., small partnership, private entrepreneur) might better fit your situation.
Prepare the company name and documents
Select a unique name and get approval from the Register’s online search tool. Draft the Articles of Association (and Shareholders’ Agreement if needed) in Lithuanian or English, and notarize them. Gather passports/IDs of founders and prepare the founder details.
Set up a registered address and deposit share capital
You must have a local legal address (can be a virtual office) and, for a UAB, deposit capital. Usually, this means opening an “accumulative” bank account and transferring the initial capital there (this account is only for share capital; afterwards, you can open a full corporate account). The minimum capital is €2,500, but you need only pay 25% initially. After the company is registered, the remaining capital can be contributed within 12 months.
Submit the application to the Lithuanian
Company Registry
File the incorporation documents and forms (e.g., the “Registration Document” form) with the Lithuanian company register, officially known as the Register of Legal Entities. This is typically done electronically or via a notary. Pay the state fee (approx. €32). Registration is very fast – up to 3 business days once all documents are in order.
Register for taxes and social security
After getting your Company Certificate, register the company’s tax number and VAT (if applicable) with the Lithuanian Tax Inspectorate. If you will hire employees, register with the Social Security agency (Sodra) and set up payroll.
Open a corporate bank account
After registration, open your main company account. Icon.Partners can help with this step, too. We have a network of banks, payment providers, and fintech partners, and will support “opening a bank account” either in a traditional bank or in a fast digital fintech institution. The choice affects speed and convenience.
Register a company online — How It Works
You can complete Lithuania company formation entirely remotely. Lithuania has offered e-Residency (digital ID) since 2021, but currently, it cannot be used to incorporate companies or open accounts online. Instead, most foreigners grant Power of Attorney to a local agent or law firm to handle paperwork. As one company formation firm explains, a UAB “can be registered remotely” by a representative acting on your behalf.
E-Residency and Power of Attorney
While Lithuania’s e-Residency gives you a government-issued digital ID and full electronic signature (eIDAS-standard), the official system still requires a notarized signature on founding documents. You typically sign Power of Attorney documents at a local notary (possibly abroad and apostilled) and send them to Lithuania. The agent then signs the company deeds and files them with the registry.
Digital Document Processing
Lithuanian notaries and registration services often accept scanned copies and online certification of documents. The e-resident digital signature can be used to sign official forms and contracts online. Many legal and accounting firms offer secure client portals to exchange documents.
Why Work with Icon.Partners
Fast and Fully Remote Setup
Opening a company in Lithuania has never been easier. Icon.Partners specializes in remote company formation and full corporate support in Lithuania. We handle everything from initial registration to ongoing compliance, so you only need to provide the required documents.
Banking and Legal Support
Importantly, Icon.Partners helps open a corporate bank account in your chosen bank or fintech provider. We can recommend reliable banks (traditional or digital) and assist with the application and KYB. This means you can get full banking services for your new company without battling unfamiliar foreign bank procedures. After setup, Icon.Partners also offers accounting, tax planning, and annual filings, ensuring end-to-end compliance.
In short, working with Icon.Partners ensures a fast, fully remote setup: we take care of the legal and banking details so you can focus on your business.
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"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
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