Starting a Business in Lithuania as a Foreigner: The Complete 2026 Guide

Last updated: April 2026  ⚠ Tax rates and registration fees updated to reflect January 2026 legislative changes. Review annually.

Lithuania registers over 3,500 new companies every month — and a growing share of those founders are foreign nationals. Starting a business in Lithuania as a foreigner is not only legal and straightforward, it is one of the most strategically sound decisions an international entrepreneur can make in 2026.

Any foreigner — EU citizen or non-EU national — can start a business in Lithuania with no residency requirement. The most popular structure is the UAB (private limited liability company), which requires a minimum share capital of €1,000. The entire registration process can be completed remotely in 5–10 business days via the State Enterprise Centre of Registers.

This guide covers everything you need to know: which legal structure to choose, how to register a company step by step, what taxes apply, how to open a bank account, and what ongoing compliance looks like. Whether you are a digital nomad, startup founder, or international investor, you will find the exact information you need to launch your Lithuanian company with confidence.

Why Foreign Entrepreneurs Choose Lithuania in 2026

Lithuania has spent the past decade building one of Europe's most accessible business environments for international founders. The results speak for themselves.

EU market access from day one. A Lithuanian company gives you full access to the EU single market of over 400 million consumers, seamless intra-EU transactions, and the ability to work with European banks, payment processors, and enterprise clients that require an EU-registered entity.

One of the lowest corporate tax rates in the EU. As of January 2026, the standard corporate income tax rate in Lithuania is 17%. Small companies with fewer than 10 employees and annual revenues under €300,000 qualify for a reduced rate of 7%, or 0% in their first two tax years. 

Speed. Lithuania ranks among the top EU countries for ease of digital company registration. A UAB can be incorporated in as few as 3 business days once documents are in order. No travel required.

Fintech and startup ecosystem. Lithuania is widely recognized as the EU's leading fintech hub, home to more than 200 licensed Electronic Money Institutions and Payment Institutions regulated by the Bank of Lithuania. The startup ecosystem — anchored by unicorns Vinted and Nord Security — is valued at over €16 billion.

No local partner required. Foreign nationals can hold 100% of shares and serve as the sole director. There is no requirement to bring in a Lithuanian co-founder or resident director.

Which Business Structure Should a Foreigner Choose?

Lithuania offers several legal forms. For foreign entrepreneurs, three are relevant.

UAB — Private Limited Liability Company

The UAB is the right choice for the vast majority of foreign founders. It offers:

• Limited liability — shareholders are protected from personal liability beyond their invested capital;

• Full foreign ownership — no residency restrictions on shareholders or directors;

• Minimum share capital of €1,000 — at least 25% must be deposited before registration;

• Up to 249 shareholders — suitable for everything from solo ventures to investor-backed startups;

• Highest credibility with banks, partners, and enterprise clients.

The UAB is governed by the Law on Companies of the Republic of Lithuania and is functionally equivalent to a UK Limited Company, a German GmbH, or a US LLC.

MB — Small Partnership (Mažoji Bendrija)

The MB is a lighter-weight structure ideal for freelancers, solo founders, and small teams:

• No minimum share capital — contributions can start from €1 in cash, services, or know-how;

• Limited liability — same protection as a UAB;

• Simplified administration — fewer mandatory governance requirements;

• Only individuals can be shareholders — not suitable if you plan to bring in a corporate investor.

 The MB is a strong choice if you are a solo consultant, software developer, or small service business.

Branch Office or Representative Office

If you already operate a company abroad and want a Lithuanian presence without incorporating a separate entity, you can register a branch office (which can conduct commercial activity) or a representative office (limited to non-commercial functions like marketing and research). Neither option requires share capital, but the parent company retains full liability.

Who Can Start a Business in Lithuania as a Foreigner?

1. EU/EEA citizens face no restrictions whatsoever. You can register, own, and manage a Lithuanian company with exactly the same rights as a Lithuanian citizen. No visa is required.

2. Non-EU nationals can also register and own a Lithuanian company with no residency requirement. However, there are practical considerations:

• You will need to grant Power of Attorney to a local representative or law firm to handle the notarization and registration process on your behalf — this is standard practice and fully legal. (You can also purchase a ready-made company, making the registration process faster and significantly less complicated.)

• If you want to physically manage the company from Lithuania long-term, you will need a National Visa (D-Type) for business purposes, or apply for a temporary residence permit once your company is operational.

• The company must operate for at least 6 months before you can apply for a residence permit. Company equity must reach at least €28,000, with a minimum personal investment of €14,000. (Source: Invest Lithuania)

Important information: You do not need to be physically present in Lithuania to register your company. The entire process can be done remotely. Travelling to Lithuania is only required if you choose to open certain traditional bank accounts in person.

How to Start a Business in Lithuania as a Foreigner: Step-by-Step

Step 1: Choose Your Legal Structure

Decide between UAB, MB, or branch office based on your business goals, funding plans, and the type of shareholders involved. For most foreign entrepreneurs, the MB is the correct choice.

Step 2: Choose and Reserve Your Company Name

Check name availability at Registry Center. The name must be unique, must not be misleading, and must end with "UAB" or "MB". You can optionally reserve the name by submitting form JAR-5 to the Centre of Registers.

Step 3: Prepare Your Incorporation Documents

Required documents: Articles of Association (Įstatai), Act of Establishment or Founding Agreement, passport copies and proof of address for all founders and directors, and a confirmed Lithuanian legal address.

Step 4: Open a Temporary Bank Account and Deposit Share Capital (For UAB only)

Deposit the minimum share capital (€1,000 for a UAB — at least 25% upfront) into a temporary accumulation account with a Lithuanian bank or authorized EMI. The bank provides a deposit certificate required for registration.

Step 5: Submit Registration to the Centre of Registers

Submit all documents to the Register of Legal Entities (Registrų centras) — online, in person, or through your authorized representative. Processing takes up to 3 business days.

Step 6: Register for Tax with VMI and SODRA

Register with the State Tax Inspectorate (VMI) to obtain your taxpayer identification number. Register for VAT if turnover will exceed €45,000. Register with SoDra (State Social Insurance Fund Board) if you plan to hire employees.

Step 7: Open Your Main Corporate Bank Account

Convert the accumulation account to a settlement account, or open a primary account with your chosen bank or fintech provider. Fintech providers (Revolut, Paysera, Wise Business) allow fully remote onboarding. Traditional banks require an in-person meeting.

Total Cost of Starting a Business in Lithuania as a Foreigner

Note: Share capital is not a cost — it remains in your company account and is available for business use.

In most cases, the most efficient option is to purchase a ready-made company - saving you both time and money.

This is exactly how we work with our clients: we register the company under our name and then transfer full ownership to them, ensuring a fast, smooth, and hassle-free process.

Tax Obligations for Foreign-Owned Companies in Lithuania

Corporate Income Tax

As of 1 January 2026 , the standard corporate income tax (CIT) rate in Lithuania is 17%. This applies to taxable profits of most companies. (Source: PwC Tax Summaries Lithuania)

Reduced rates for small companies:

• 0% CIT — applies in the first two tax years for companies with annual revenues under €300,000

• 7% CIT — applies after the first two years for the same qualifying companies

VAT

The standard VAT rate is 21%. VAT registration is mandatory once annual taxable turnover exceeds €45,000. Voluntary registration is possible from day one and is often beneficial for B2B businesses that want to reclaim input VAT. Reduced VAT rates of 12% and 5% apply to specific categories including accommodation, passenger transport, books, and medicines.

Dividend Tax

Dividends paid to individual shareholders are subject to a 15% withholding tax. Dividends paid to EU-registered parent companies may be exempt under EU participation exemption rules where the parent holds at least 10% of shares for at least 12 consecutive months.

Social Security (SODRA)

If you hire employees in Lithuania, you must register with SODRA. Total social security contributions are approximately 23–24% of gross salary — approximately 19.5% deducted from the employee's salary, and 3.6–4.3% paid by the employer.

What Documents Do You Need as a Foreign Founder?

For all founders buying ready-made company:

• Passport or national ID (certified copy)

• Proof of residential address (utility bill or bank statement, dated within 3 months)

• Chosen company name and description of business activities

For all founders registering remotely:

• Passport or national ID (certified copy)

• Notarised and apostilled Power of Attorney authorising your Lithuanian representative

• Notarised copies of identification documents

Legal Address: Do You Need a Physical Office?

Every Lithuanian company must have a registered legal address used for correspondence with state institutions, appearing in the public register, and required for tax registration.

You do not need a physical office. Virtual office services provide a legal address in Vilnius or other Lithuanian cities for approximately €100–€300 per year. These are fully compliant and widely used by non-resident founders.

A virtual address is sufficient for most businesses operating remotely. However, if you are applying for certain licences (e.g. EMI/PI financial licences, gambling licences) or planning to hire local staff, a physical office may be required or strongly recommended by regulators.]

Common Mistakes Foreign Founders Make — and How to Avoid Them

1. Choosing the wrong structure. Many founders default to a UAB without considering whether an MB better fits their needs. If you are a solo consultant or small team doing EU B2B work with no plans to raise investment, the MB may save you time and money.

2. Ignoring VAT planning. Many non-EU founders do not realize that selling digital services to EU consumers may trigger VAT obligations from the very first euro, regardless of the €45,000 domestic threshold. If you sell B2C digital services in the EU, consult a tax adviser before registering.

3. Relying on outdated guides. Lithuania's corporate tax rate changed in January 2026. If you are using older sources, your financial planning may be based on incorrect figures — particularly the 16% rate cited in pre-2026 content.

4. Skipping a qualified legal address. Using a friend's home address or a temporary address creates complications when banks and government institutions attempt correspondence. Use a professional virtual office service from day one.

Conclusion

Starting a business in Lithuania as a foreigner has never been more accessible. The process is fully remote-friendly, legally transparent, and backed by one of the EU's most competitive tax regimes.

The three things every foreign founder should remember:

1. You do not need to travel to Lithuania — the entire process can be completed remotely.

2. Tax planning matters from day one — the 0% and 7% reduced rates for small companies are significant advantages that require active structuring

3. Opening a bank account in Lithuania is relatively straightforward and typically faster than in many other countries