COMPANY FORMATION IN LITHUANIA

FORMS OF BUSINESS IN LITHUANIA

Foreign investors in Lithuania have four main options for company registration:

• Public society (AB) – Analogous to a Public Company (AB)
• Private company (UAB)
• Partnership (TUB) or Limited Partnership (KUB)
• Branch or representation of a foreign company

All business entities should be registered in one Register of Legal Entities. At the beginning of the business, the organization type is of vital importance. The most common forms of business registration in Lithuania are: a closed joint-stock company UAB, a small company, and an individual enterprise. According to statistics, JSC registration is the most expedient decision. More than 90% of the enterprises of Lithuania are registered as closed joint-stock companies UAB. Founders, shareholders up to 250 can be both natural and legal persons, citizens of any state. Management bodies include the general meeting of shareholders, the supervisory board, and a head, which may also be a physical person, including a nonresident. Instead of one manager, the collegiate body can manage the company. According to the Law of Lithuania, the statutory capital of a closed-type joint-stock company should be at least 2,900 euros. At the time of registration, 25% is paid, and the remaining amount has to be covered within a year. The financing can be made through transfers from any bank, including an international account, and also by cash deposited into the Savings Account of the Company. With UAB, one has a very important benefit: limited liability to creditors, where the shareholders and owners are not personally liable in case of debts of the company. Auditing is obligatory only if the firm employs 50 or more employees and its assets exceed 720,000 Euros or have a sum of 1,400,000 Euros or more on its settlement accounts.

Lithuania is a popular jurisdiction to obtain residence in Europe and move without visas within the Schengen area. The country’s tax climate is very friendly, having some of the lowest rates within the European Union: For instance, when annual income is approximately about EUR 289,620, and it does not have more than 10 employees, the profit is taxed only 5%. Value-Added Tax is 21%. Businessmen can use legal opportunities for tax exemption and avoid double taxation following agreements between different countries. The most usual form of business in Lithuania is a Limited Liability Company-UAB. Uzdaroji akcine bendrove, which means Closed Joint-Stock Company, does give some flexibility about selling or donating shares and/or passing them down through generations. A UAB needs to be registered with at least one owner-natural or legal person-and at least one director who can sign on behalf of the company.

Lithuania opens wide perspectives to all entrepreneurs and business people for starting or expanding their business in Europe due to its innovative economy, attractive tax system, and strategic location, which provides easy access to European Union markets. Taking into consideration the type of business entities available in Lithuania is another important aspect for any entrepreneur. In this respect, here is a detailed overview of the most important forms of doing business in Lithuania:

Individual Entrepreneur (IP)

As the most straightforward and fastest way of initiating a business in Lithuania, an individual entrepreneur needs to register this type of business. Therefore, this business entity is appropriate for single entrepreneurs, and no authorised capital is compulsory for it. Registration of the IP shall be carried out in the Enterprise Registration Centre. An IP is personally fully liable for the obligations of his/her business.

Limited Liability Company (UAB)

The most popular form of business in Lithuania is the Limited Liability Company. It is suitable both for small and large businesses. The minimum authorised capital is 2,500 euros. The founders are liable only to the extent of their contribution to the authorised capital. UAB has an obligation to register with the Business Registration Centre, as well as maintain full accounting records.

Joint Stock Company (AB)

The joint-stock company is proper for big companies with a huge number of investors. The minimum authorized capital for an AB is 40,000 euros. Shareholders have limited liability in the form of correspondence to the part of the share capital. AB must publish financial statements and organize annual general meetings of shareholders.

Limited Liability Company (KŪB)

A limited company is a company that combines elements of personal and limited liability. In KŪB there must be at least one limited partner-investor who bears the limited liability—and one general partner who bears the full personal liability. Such a form is suitable for family businesses or small business. Accordingly, this kind of company is suitable for family businesses or small businesses.

Limited Liability Partnership (TŪB)

A limited liability partnership (TŪB) is analogous to a limited company, but in TŪB, all partners have limited liability in accordance with their contribution to the share capital. Due to its structure and purpose, TŪB is rarely used in Lithuania.

Branches and Representative Offices of Foreign Companies

Foreign companies can also open branches or representative offices in Lithuania to pursue an activity. A branch may perform any type of commercial activity; a representative office is entitled only to represent and marketing functions. The latter shall also be registered with the Enterprise Registration Centre.

Selection of the proper business form in Lithuania is a function of many different factors, including the size and type of the business, number of founders, and level of responsibility, among other needs for investment. In-depth understanding of the peculiarities of each company type will contribute to a correct decision and will provide your business in Lithuania with a successful start. Whatever type is chosen, it is strongly advised to coordinate with the lawyers and accountants from Regulated United Europe to fulfill the requirements of Lithuanian law and tax demands.

Table of current tax rates for companies registered in Lithuania for the year 2025: This table will give a concrete idea regarding the tax burden both for the businesses operating in Lithuania and for the persons concerned.

Please note that average salaries are pre-tax and may differ by sector, region and specialisation. Also please note that tax legislation is subject to change, therefore for updated information it is recommended to consult a tax specialist or accountant before making business decisions.

How much is the authorized capital of the company in Lithuania?

The authorized capital of a company means the size of the resources contributed by either the founders or the shareholders for ensuring the operation of a company at its very foundation. In Lithuania, like many countries, the amount of the authorized capital depends on the form of the legal entity of the company. In this article, we will take an in-depth look at authorized capital for different types of companies in Lithuania and help entrepreneurs choose the most suitable form for their business.

Private Limited Liability Company (UAB)

A private limited liability company-UAB is the most popular form of business in Lithuania. It provides flexibility in conducting the business and limited liability for its founders. The minimum amount of the authorized capital for UAB is 2,500 euros. Such amount shall be paid in prior to the registration of the company in the Register of Legal Entities. The authorized capital may be contributed not only in cash but also in kind-property, intellectual property, etc., the valuation of which must be confirmed by an appraiser.

Joint Stock Company (AB)

Large businesses and companies that plan to attract investments by issuing shares fall under the category of Joint Stock Company. The minimum authorized capital of an AB is 40,000 euros. Such capital brings more stability and confidence to investors and creditors but at the same time requires a larger initial investment.

Individual entrepreneur (IP)

On the whole, no authorized capital is required for the registration of an individual entrepreneur (IP) in Lithuania. The existence of such an IP form is an attractive opportunity to save for small businesses or beginning entrepreneurs who want to save on initial business start-up costs.

Limited company (KŪB) and Limited Liability Partnership (TŪB)

In the case of the KŪB and TŪB types, Lithuanian Law does not provide for the minimum amount of the authorized capital. In such types of companies founders can determine independently the amount of contributions; this gives additional freedom in business planning.

Branches and representative offices of foreign companies

Also, branches and representative offices of foreign companies in Lithuania do not have specific requirements regarding the authorized capital and should follow the requirements of the mother company and legislation of the country of origin.

The type of legal entity and the size of the authorized capital are some of the most important questions when setting up an organization in Lithuania. The form chosen will determine financial obligations, obligations for taxation, and extent of liability of the founders.

Does a company in Lithuania have to have a local director?

Under Lithuanian law, general requirements to company directors are established, but a strict rule concerning necessity of permanent residence in Lithuania has not been developed. A director of the Lithuanian company may be either a Lithuanian citizen or a foreign citizen, provided he is authorised to manage the company in accordance with Lithuanian law and international agreements.

Functions and responsibilities of the director

The day-to-day management of the company, namely implementation of the decisions of the meeting of the shareholders or founders, maintenance of the financial records, compliance with the law of Lithuania, and representation of the interests of the company in its relations with third parties, is entrusted to the director or the board of directors. A director is also responsible for compliance with corporate governance requirements and may be held liable in case the law has been violated.

Benefits of a Resident Director

Having a resident director in Lithuania is not mandatory, but there are some considerable benefits to be received:

• Better coordination with local authorities and banks: The local director will be more aware of the local business climate, rules and regulations, which can ease the procedure of bank account opening and getting all relevant licences.
• Language and cultural barriers: A local director may ease the communication with Lithuanian clients, partners and public authorities.
• Representation of interests: When founders are absent in Lithuania, a local director may serve as representative acting on behalf of the company.

Options of foreign investors

Foreign investors unable or unwilling to delegate a local director could consider one of the following options:

• The involvement of the management company services is quite convenient because several law and consulting firms in Lithuania are involved in the rendering of professional director services.
• Application for a residence permit or work permit: A foreign citizen can get a residence permit in Lithuania and therefore claim to manage the company appropriately.

On one hand, it should be noted that Lithuanian legislation does not establish a local director as an obligatory requirement for a company in Lithuania. It is thus left quite flexible. On the other hand, having a local director may significantly facilitate the management of the company and communication with all kinds of local structures. Foreign investors need to weigh the pros against the cons and may seek the services of local management companies to ensure smooth running of their business in Lithuania.

What are the State Fees for Company Establishment in Lithuania?

Company formation in Lithuania is an important step for every entrepreneur who intends to develop his business or start a new one in Europe. Due to the excellent economic climate, favorable tax system, and strategic location within the European Union, Lithuania is considered an excellent destination for opening a company. Just like any other jurisdiction, there are some duties and fees imposed by the government for setting up a company in Lithuania.

Limited Liability Company (UAB)

In order to establish one of the most popular legal types of business entities in Lithuania, a limited liability company or UAB, entrepreneurs are to be paid for a specific amount of state fee, which may depend on the chosen method of registration: the standard registration via the Business Registration Centre will cost an approximate value of 30-40 euros, whereas electronic registration boasts a lower cost and can cost approximately €20.

Stock Company (AB)

Establishment of a joint stock company (AB) in Lithuania – intended for large businesses and companies having several investors – also requires the payment of a state fee. The AB registration fee is the same as UAB and is based on the submission of documents method.

Individual entrepreneur (IP)

In Lithuania, there are nominal state fees for registration as an individual entrepreneur (IP). The fee of IP registration is usually lower and amounts to about 10 euros when documents are filed electronically.

Limited company (KŪB) and Limited Liability Partnership (TŪB)

Due to the fact that the registration procedures of UAB, AB, KŪB and TŪB forms require a similar volume of administrative work, the state fees applicable in a case of KŪB and TŪB are the same as those of UAB and AB correspondingly.

Branches and representative offices of foreign companies

Branches and representative offices of foreign companies in Lithuania are subject to registration, and state duty is also charged for their establishment. It may be higher than for local companies due to additional verification of foreign documents. The approximate amount of a fee may be from 40 up to 100 euros.

If one is to plan opening a company in Lithuania, he has to consider not only business plans and tax aspects, but also the amount of state fees, which can differ according to the type of legal entity and a method of filing of the documents. The payment of the state fees is a compulsory part of the registration process and is to be performed well in advance. It is also advisable for entrepreneurs to hire the local services of specialists from Regulated United Europe to ensure a smooth registration process and to observe all the local requirements.

What is the annual cost of maintaining a company in Lithuania?

When considering doing business in Lithuania, one of the most important things for an entrepreneur is the assessment of the annual cost of maintenance of the company. It includes everything, from government fees and taxes to accounting costs and office rent. Now, let’s take a closer look at what the main components of the annual cost of maintenance of a company in Lithuania are.

The annual maintenance cost of a company in Lithuania can differ a lot depending on the kind, size of the business, chosen industry, and level of operational activity. An entrepreneur should consider all possible expenses with the view to properly plan the budget and optimize the level of tax burden. Competent accounting and legal support helps not only cut expenses but also to minimize risks arising in the course of doing business in Lithuania.

What are the main advantages of establishing a company in Lithuania?

Nowadays, Lithuania is included among the countries of Eastern and Western Europe, which increasingly draws the attention of entrepreneurs and investors from all over the world. Accession both to the European Union and NATO, together with the goal of innovation and technological development, turns Lithuania into one of the most desirable places to do business. Let’s consider in greater detail the main advantages of establishing a company in Lithuania.

The favorable geographical position

Lithuania is located in the centre of Europe, thus easily accessible to other markets such as the European Union, Russia, and the Baltic region. Lithuania should be an ideal exporting and importing point and establishing enterprises for developing a business in new markets.

Attractive tax system

Among European countries, Lithuania boasts one of the most competitive tax systems. First of all, it is the standard corporate tax rate, which constitutes only 15% and is lower than in many EU countries. Besides, it offers exemptions for small and medium-sized businesses, as well as for companies operating in specific areas such as information technologies.

Introduction of innovations and support of start-ups

Lithuania actively supports innovative projects and startups with grants, investments, and tax incentives. Technology parks and business incubators are being successfully developed in the country. They provide comfortable conditions for the development of young companies.

Quality and reasonably priced labor

Lithuania is proud of the high level of education of its residents. Many specialists speak English and other foreign languages, which makes it easier to communicate and conduct business with them. At the same time, the costs of labour in Lithuania remain relatively low compared to other EU countries.

Developed infrastructure and digital economy

Lithuania has a well-developed transport and digital infrastructure. One of the leaders in Europe according to the Internet speed and broadband coverage, one of the most developed government e-services portals greatly facilitates business interactions with the state institutions.

European Standards of Business Practice

Enterprises in Lithuania work according to EU norms and standards, which allow having a very high level of trust on the part of partners and customers. It provides easy exporting of goods and services to countries of the European Union.

Foreign investor support

Lithuania actively attracts foreign investment by providing a variety of different support programs, including assistance in obtaining permits and licenses, advisory support in choosing the best location for a business.

Among the positive features of establishing a company in Lithuania, one can name favorable geographical location, attractive tax system, support of innovation and startups, skilful workforce, developed infrastructure, and digital economy, application of strict European business standards. Therefore, Lithuania is nowadays one of the most attractive countries to do business in Europe.

What are the ways to set up a company in Lithuania?

Setting up a business in Lithuania opens up perspectives to the European Union market and gives access to a number of economic and tax advantages. Generally speaking, the procedure for company registration in Lithuania can be done in several ways, each having its own peculiarities, advantages, and requirements. Let us consider the main ways of company incorporation in Lithuania in order to help entrepreneurs to make an appropriate choice in this regard. Another step is to underline that

While choosing the incorporation method in Lithuania, many factors could be taken into consideration: specific features of the business, requirements for the founding documents, notarization, and subjective preferences of the entrepreneur regarding the speed and comfort of the process. Whatever the method, it is necessary to be well-prepared in terms of Lithuanian legislation and, where necessary, to consult a professional assistant for the registration process. Establishment of a company in Lithuania allows every business to enter the dynamically developing economy and opens wide possibilities in the European market.

Is Having a Legal Address in Lithuania Obligatory?

According to the law of Lithuania, every company which is registered in the country should have a legal address in the country. The address is indicated in the official register and it turns to be the official seat of the firm. The legal address is required for the correspondence with state authorities, tax authorities, and to store the official documents.

Functional Value

A legal address serves several important functions:

1. Legal address: It serves as the legally acknowledged address for receiving all notices and documents relating to legal value from public authorities, courts, and third parties.
2. Tax registration: A firm has to provide a registered office to register it with the tax authorities and get it assigned a TIN.
3. Business reputation: Having a legal address can contribute to the credibility of a company.

How to provide a registered office

There are several ways of obtaining a statutory address in Lithuania, among them are the following:

• Renting an office: Apparently, the most obvious way is renting a commercial property and using this place as office and registered office.
• Virtual office: The concept of a virtual office is a more affordable and convenient option for those companies that don’t require office space. A virtual office provides one with a legal address, and often additional services like postal services.
• Use of legal and consulting services: Some law and consulting companies offer the service of providing a legal address for client companies.

Having a legal address in Lithuania is one of the constitutional criteria for the creation and further operation of the business. In such a case, it plays a central role in those aspects such as legal representation of the company, tax registration, and formation of business reputation. The method of securing the legal address is left to the discretion of the business, its particular needs, and financial capabilities. A proper choice of a legal address, accordingly, can significantly simplify the process of the company registration and its further operation in Lithuania. In this respect:

Is it possible to open a branch of a foreign company in Lithuania?

With its strategic location in Europe, an attractive tax system, and business-friendly environment, Lithuania has traditionally been one of the countries able to attract international companies willing to enlarge their presence in the European market. Establishment of a branch office is one of the ways in which a foreign company can start operation in Lithuania. Let us consider main issues connected with establishment of a branch office of a foreign company in Lithuania.

Understanding the branch

A branch of a foreign company in Lithuania is not considered to be an independent subject of law, but a part of a foreign company. In other words, a foreign company is fully responsible for the activity of its branch in Lithuania.

Advantages of opening a branch

• Access to the European market: A branch will allow entering the Lithuanian and, consequently, the European market relatively fast.
• Reputation: Having a branch office in Lithuania can increase the credibility of the company among local clients and partners.
• Tax incentives: Lithuania offers a number of tax incentives for foreign investors which may be available for branches as well.

Steps to open a branch

Taxation of the branch

A branch of a foreign company will be subject to taxation of the obtained profit in Lithuania at the standard rate. Of course, the tax treaties between the home country of the foreign company and Lithuania should be taken into consideration in order to avoid double taxation.

Opening a branch office in Lithuania may be one of the most efficient ways for a foreign company to start its operation in the Lithuanian market while being able to take advantage of the wide range of opportunities in the European market. It is relevant to prepare carefully for the registration process and clearly follow the Lithuanian legislation, and in necessary cases seek professional advice from advisors for successful opening and operation of a branch office in Lithuania.

Can a foreigner open a company in Lithuania?

In accordance with its ambitions to become one of the focal points of the European economy, the Lithuanian government actively attracts foreign investors and businessmen. Keeping in mind the relatively good economic situation, one can say enticing taxation conditions, and simplifications in establishing and doing business, many foreigners address the following question: is it possible for foreign citizens to register a company in Lithuania? The answer is positive, and in this article we touch upon the most important aspects and steps needed for this process.

Legal aspects

Foreigners can establish a company in Lithuania on equal footing with locals. Lithuanian legislation does not differentiate between Lithuanian and foreign businessmen when it comes to registration and the conduct of business. This means that the foreigner might become the sole founder (owner) of the company or one of several founders.

Choice of company form

The most common types of companies established by foreign investors in Lithuania are:

• Limited Liability Company (UAB): For small and medium business enterprises; the minimum authorized capital is 2,500 euros.
• Joint Stock Company (AB): For large businesses with a large number of shareholders, minimum authorized capital 40,000 euros.

Registration of company

The list of steps Foreigners must undertake in order to register a company is as follows:

1. Choice of the company name: The chosen name has to be checked to ensure no other registered company in Lithuania uses it.
2. Drafting incorporation documents: Including articles of association and memorandum of association of the company.
3. Opening of the bank account: To deposit the authorized capital.
4. Registration at the Centre for Registration of Enterprises: Filing the documents required and paying the fee.
5. Obtaining a TIN and registration with the tax service:

Documents required

To register a company in Lithuania, a foreign citizen will need the following documents:

• Passport or other identity document.
• Documents confirming the place of residence.
• Company documents translated into Lithuanian and notarised.

Features for foreigners

Foreign entrepreneurs must take into consideration several specifics:

• Visa requirements: Depending on the country of origin, a visa or residence permit may be required to operate a company in Lithuania.
• Accounting and taxation: It is important to familiarise yourself in advance with Lithuanian accounting and taxation rules.

It is not complicated to open a company in Lithuania for foreigners, but it nevertheless requires some preparation and quite particular knowledge of the Lithuanian law. A lot of foreign entrepreneurs like the good business climate and Lithuania seems to be a very promising platform for business expansion. It would be significant to plan your actions and seek assistance if necessary from professional legal and accounting advisors at Regulated United Europe.

Is it possible to receive a residence permit opening a company in Lithuania?

Lithuania as a member of European Union offers unique opportunities for foreign businessmen conducting business and obtaining a residence permit simultaneously. Opening an enterprise in Lithuania may be not only a path to successful business but also a way to earn the right of legal staying within the country and all the advantages given by European residence. In the following article, we will look at the main aspects of obtaining a residence permit in Lithuania by establishing a company.

Basic terms and conditions

Lithuanian legislation allows foreigners who establish a company or invest in an already existing business to obtain a residence permit. For the receipt of a residence permit, an entrepreneur is required to meet the following conditions:

The process of applying for a residence permit

Company registration: The first step is to establish or acquire a company in Lithuania and fulfil all the requirements for starting a business.

Preparation of documents: The next step is to prepare and submit a package of documents proving that you meet all the requirements for obtaining a residence permit.

Submission of the application: The application for a residence permit shall be submitted to the Lithuanian Migration Service in person or through a representative.

Application processing: The time it takes to process an application can vary, but usually ranges from a few weeks to a few months.

Benefits of residence permit in Lithuania

A residence permit in Lithuania gives many opportunities to foreign entrepreneurs:

• Freedom of movement within the Schengen area: The holder of a residence permit is entitled to free movement and stay in the Schengen area.
• Access to education and health care: The residence permit holder will enjoy equal rights with Lithuanian citizens to educational and medical services.
• Opportunity for family reunification: An entrepreneur may bring his/her family to Lithuania by applying for a residence permit for family members.

Opening a company in Lithuania and subsequently a residence permit is the most advantageous solution for those foreign investors who would like to expand their business, providing a stable future in Europe. It is important to be well-prepared for such procedure, to carefully get acquainted with all requirements, and in case of need to apply for professional help from regulated united Europe specialists of migration law and business consulting for successful receipt of a residence permit in Lithuania.

What does the statute of a company registered in Lithuania provide?

The Articles of Association is a main document defining the legal status, structure, management and basic principles of a legal entity. In Lithuania, as well as in many other countries, from the very moment of its establishment, the Statute is of great importance for a company. In the following paper, we will closely look at what is usually prescribed in the statutory documents of a company registered in Lithuania and why each of these points is of importance.

Name and legal address of the company

The Articles of Association must spell out in full name of the company in the Lithuanian language and its registered office in Lithuania. Legal address of the company shall be required for receiving official correspondence, and also to be specified as a place of incorporation of the Company.

Purposes and subject of activity

The articles of association would contain the basic goals of the company, together with the kind of economic activities it is allowed to perform. This would define the right path of the company and give a legal platform for its business operability.

Amount and formation of authorized capital

The amount of the authorised capital and the procedure and terms for its formation shall be indicated in the company’s Articles of Association. In Lithuania, depending on the type of legal entity, the minimum amount of the authorised capital may vary.

Information about the shareholders or founders

The articles of association will indicate details of who the persons are that have founded the company, their participation in the share capital, and what rights those shares entitle them to.

Company management structure

A very important part of the articles of association-that explains the management structure of the company-also defines the management bodies, for example the shareholders’ meeting, the board of directors, their powers, and the procedures of taking decisions and conducting meetings.

Procedure for amending the charter

The articles of association must state the process of amendment, and there is a requirement to facilitate the change in structure of the company as the business conditions fluctuate.

Reorganisation and liquidation of the company

Terms and procedures concerning the reorganisation or liquidation of the company must be handled, along with how its assets would be distributed when it goes into liquidation.

Company responsibility

The nature of the company’s liability towards its shareholders, creditors and other stakeholders must be mentioned in the articles of incorporation.

Other terms and conditions

Other terms and conditions about the finer details of the business of the company can also be included in the articles of incorporation, such as those in regard to the distribution of profits, bookkeeping and reporting.

In general, the Articles of Association represent a principal document for any company registered in Lithuania, designating not only the legal bases of the company’s activity but also serving as one of the grounds for its internal organization and management. In this respect, the preparation of the articles of association requires a careful approach and consideration of all aspects of the company’s future activities.

How long does it take to set up a company in Lithuania?

Company formation in Lithuania is rather tempting for a lot of foreign investors and entrepreneurs with its business-friendly atmosphere, strategic location, and impressive tax system. However, one of the main issues when planning to start a business is the time needed for registration. We will try to give some insight into the time considered necessary to establish a company in Lithuania within the lines of the article below.

Overall, the registration of companies in Lithuania could take from one up to several weeks, depending on a lot of factors: how complicated the preparation of documents is, what form of filing – electronic or paper was chosen, and how soon additional procedures would be done – the opening of a bank account and registration with the tax authorities. Thanks to the simplification and acceleration of the procedure of business registration by the government of the Republic of Lithuania, Lithuania is a very appealing jurisdiction for foreign investors who plan on starting or expanding their business in Europe.

What type of activity is it possible to conduct through a company in Lithuania?

The Lithuanian Republic has a well-developed economy with a very favorable business climate. Accession to the European Union opened new horizons for Lithuania and turned it into an attractive location for the launch and development of a wide range of business projects. In the present article, we shall briefly consider what types of activities can be engaged in by a company in Lithuania, underlining flexibility and diversity of options provided by Lithuanian legislation and economy.

Information technologies and startups

Lithuania is actively developing its IT sector and turns into one of the leading startup culture centres in Europe. The government offers broad support programs, tax incentives, and simplified registration procedures for IT companies and startups. Hence, Lithuania is an ideal place for software development, projects in the field of Fintech, cryptocompanies, game development, and other products with high innovation potential.

Manufacturing and Industry

Mechanical engineering, chemical, electronics, food production comprise the main industries in Lithuania. Thanks to skilled labour and developed infrastructure, foreign companies can efficiently organize production both for the domestic market and exports in EU countries and beyond.

Trade and exports

Due to its geographical location, the Lithuanian Republic is a significant transport and logistics hub in the Baltic Sea region. This creates perfect conditions for trading companies specialising in importing and exporting goods. Besides agricultural products, there are textiles, furniture, and construction materials exported through Lithuania successfully.

Service sector

The range of business opportunities covers the sphere of services such as tourism, education, healthcare, financial and consulting services. It is very prospective, especially the tourism sector, as it is based on rich cultural heritage, picturesque landscapes, and developed tourism infrastructure.

Agriculture

Agriculture is one of the traditional strong points of Lithuania that, along with traditional development of farms, allows for various agro-technological projects. Organic farming, cereal cultivation, dairy production, and livestock breeding are priority investment areas.

Starting business in Lithuania, foreign investors and entrepreneurs can operate in practically all spheres of national economy. Flexible legislation, state support, strategic location, and access to the European Union markets make Lithuania one of the most attractive countries where one can establish and develop a company. What is most important is to carefully explore the market and choose that area of business which would best correspond to your abilities, interests, and objectives.

Does a company have to employ people in Lithuania?

In general, Lithuanian law does not establish a strict criterion with regard to the minimum quantity of employees that should be present in the firm for it to be treated as operating. Quite similarly, this would mean that, in theory, a company can operate without hired employees, relying on the services of its founders, director, or third-party contractors; however, at least one employee of the company must be registered with SODRA and pay social taxes on a monthly basis.

Exceptions and special requirements

There are, however, cases and activities where the presence of employees becomes a prerequisite:

1. Licensed activities: For some activities that are subject to a special licence (e.g. financial services, medical services, construction), the licensing provisions can contain specifications about staff qualifications and number of staff.
2. State-supported projects: If a firm is involved in state-supported projects or attracts investment incentives, the company typically is obliged to provide new jobs and employ a specified number of employees.
3. Labour law regulations: In the case of employees, it has to be taken into account that working conditions, minimum wages and social insurance, as foreseen by Lithuanian labour law, should be observed by an employing company.

Advantages of having employees

Though there are no specific limitations regarding headcount, employing people offers a range of benefits for a company, such as:

• Business empowerment: Enlightened workers can influence the development of a company by proposing some ideas or increasing the quality of products or services offered to the clients of the business entity.
• Flexibility in resource management: Recruitment enables the enterprise to use resources in a more flexible way, responding to variations in the level of demand or workload.
• More trust from customers and partners: Companies where all workers are employed full time are usually perceived as very reliable and stable.

A company registered in Lithuania might operate without employees, as such structure does not contradict the peculiarities of the business activity and does not violate the legal requirements. At the same time, beginning to develop the company’s structure and resources, it is worth considering not only legislative aspects but also strategic goals of business. Sometimes, employing qualified personnel serves as a guarantee for successful and long-lasting development of a company in the Lithuanian market.

How to choose a name for a company in Lithuania?

Naming a company represents an issue not only of branding but also a very important legal aspect that has much influence on the success and legality of your business in Lithuania. Lithuanian legislation puts some requirements and restrictions when choosing a company name with a view to avoiding confusion and ensuring clarity in the business environment. In this article, we give the most important recommendations of how to name your company in Lithuania so that it would be recognizable and wouldn’t conflict with any statutory requirements.

Check for Uniqueness

The first and foremost thing is to make sure that the name is unique. It is not possible to register a company in Lithuania with a name already in use by another company or similar to the existing names. Access to the Lithuanian Central Register of Legal Entities will give you an opportunity to verify whether the chosen name has already been registered.

Relevance of the company’s activities

A good name reflects the scope of the company and, without much struggle, can depict its offer to potential customers. However, it’s best to avoid very general or unclear terms that may confuse the consumers about precisely what your company is doing.

Linguistic aspects to be considered

Whenever one chooses a name, it is relevant to consider linguistic and cultural peculiarities of Lithuania. The name should be easy to pronounce, memorable for the Lithuanian population in case the main sales market is directed to Lithuania. However, for internationally oriented companies, it is worth advising them to choose such a name that will be easily understood in other languages, too.

Avoid restricted and banned words

There are also some words and phrases which can only be used by obtaining special permission for using them on a company name. These words normally include those that may present the impression of some government activity or control, for example, the words “national”, “state” and other words under license for undertaking particular activities, such as “bank”.

Verify Domain Name Availability

Putting up a website has become an integral part of doing business in today’s world. It is, therefore, recommended that you check the availability of the appropriate domain name for your business name on the internet to ensure your brand remains consistent across both online and offline spaces.

Seeking advice from experts

Whenever naming a company in Lithuania, it is worth referring to legal advisers or branding specialists who could assist not only in complying with all legal requirements but also in creating an attractive, memorable name for the business.

Being very attentive is needed at the choice of a company name in Lithuania, from its uniqueness and pronunciation up to the legal requirements and the real possibility to register the domain name. The right name simplifies not only the process of company registration but will also play an important role in creating the positive image and recognisability of the company in the market.

Business Register in Lithuania

The Lithuanian Business Register represents the appropriate legal infrastructure in Lithuania that provides adequate information on all registered companies. This register not only allows transparency and ease of access to information concerning business entities for state authorities, investors, and ordinary citizens but also forms a legal basis for conducting business activities in Lithuania. In this article, we will have a closer look at the functions, the registration procedure and the importance of the Business Register for business activities in Lithuania.

Functions of the Business Register

The Business Register in Lithuania performs quite a few important functions:

• Company registration is a formal procedure which gives companies a legal base to start activities.
• Information storage: The register includes records concerning legal persons, namely the name, registered office, information about directors and founders, information about their financial status, history of changes.
• Ensuring access to information: Because information in the Business Register is publicly available, it promotes business transparency and enables checks to be carried out before concluding transactions or starting co-operation.

Registration process

According to the laws of the Republic of Lithuania, it is possible to register a company within the following stages:

1. Preparation of documents: The constitutive documents of the company shall be drawn up in compliance with the norms of Lithuanian law.
2. Filing the application: Documents are submitted to the Lithuanian Legal Entities Registration Centre online or at the registration office in person.
3. State duty payment: the size of the fee is different depending on the form of the legal entity and the method of documents submission.
4. Getting the certificate of registration: After checking the documents provided, the company gets officially registered and obtains the certificate of registration.

Business value

The Business Register makes an important contribution into the economic environment of Lithuania:

• Legal transparency: It gives visibility of legal structures and their activities, enabling fair competition and preventing fraud.
• Investor confidence: Having information on the companies grows the confidence of investors and partners since they can easily check the financial status and legal cleanliness of their possible partners.
• Administrative procedure simplification: Digitalization of the Business Register, the possibility to register online, shortened and accelerated the process of opening and running business in Lithuania considerably.

In fact, the Business Register is an influential means of creating a healthy business environment in Lithuania. It makes the procedure of company registration simpler, and access to crucial legal information likewise easier, and it encourages the creation of a business atmosphere that is open and transparent. Understanding how it works and what kind of possibilities exist is one of the keys to successful business in Lithuania.