How to Incorporate an LLC (UAB) in Lithuania - A Practical, Professional Overview for Global Investors
In Lithuania the common Limited Liability Company – equivalent is the UŽDAROJI AKCINĖ BENDROVĖ (UAB). It’s a flexible, EU-friendly vehicle with modest capital needs and efficient online registration. Below blog gives an overview why Lithuania is attractive, the tax basics, a step-by-step incorporation roadmap, ongoing compliance, and typical costs/timelines.
Why Lithuania? - Business Snapshot and Benefits
Lithuania is an EU member with a business-friendly environment, strong digital infrastructure and a growing tech/fintech cluster (especially in Vilnius). For investors and founders, the main advantages are:
- EU market access (single market, free movement of goods and services).
- Modern digital public services — online company registry and tax portals make many formalities faster.
- Attractive tax regime for many SMEs and startups, with a competitive corporate rate (see tax section).
- Skilled, multilingual workforce and low operating costs compared with Western Europe; a notable fintech ecosystem and supportive public strategy for innovation.
- Straightforward legal forms: the UAB is the normal choice for small/medium businesses — limited liability, can be founded by non-residents, single-shareholder structures are permitted.
UAB (Private Limited Liability Company) - Key Facts
- Entity type: UŽDAROJI AKCINĖ BENDROVĖ (UAB) — Lithuania’s private limited company (closest to an LLC).
- Minimum initial contribution: cash initial contributions must be at least €1,000 in aggregate; each shareholder must pay at least 1/4 of the aggregate nominal value of subscribed shares and share premium on formation (i.e., a partial payment is permitted). The registry explains the standard founding mechanics and required notarisation.
- Shareholders & directors: one or more shareholders (individuals or companies). At least one director (natural person) is required; directors do not need to be Lithuanian residents in law. In practice, many foreign founders appoint a local representative or use a service provider because banks and tax authorities sometimes expect a local point of contact.
- Registered office: a legal (registered) address in Lithuania is required. Virtual/serviced offices are commonly used.
Taxes
- Corporate income tax (CIT): Lithuania raised its standard CIT to 16% (for 2025 tax period) (recent reforms have increased it from prior levels); reduced preferential rates apply to qualifying small companies and R&D income (special reduced rates available under conditions). Note: further adjustments have been discussed for 2026 in some legislative updates — always confirm the rate for the year you operate.
- VAT: the standard VAT rate is 21% (with reduced rates applied to certain goods/services). Domestic VAT registration is generally required once annual taxable turnover exceeds the national threshold (currently €45,000 for resident businesses proposals to raise this threshold are in play for future years). Non-EU businesses face different rules and often must register earlier or appoint a fiscal representative.
- Payroll / social security: payroll costs include employer social contributions; the rates and bases change over time plan to work with a local payroll provider or accountant.
- Other taxes / incentives: Lithuania offers R&D support and some preferential treatments for eligible small/new enterprises; check for current incentives if you’re R&D-heavy or a qualifying startup.
Step-by-Step Incorporation Roadmap
Below is the typical path to form a UAB. Times are indicative many steps can be completed online or in parallel.
- Choose company name.
- Prepare incorporation documents — articles of association (or act of establishment for single-founder), founders’ details, and powers of attorney if founders sign abroad. Documents notarised where required (notary verification is part of registration).
- Open an accumulation (share capital) bank account and deposit the initial contribution. As noted above, initial paid-in amount rules apply (the registry sets the minimum contribution rules). Banks may require founders/directors to appear in person (varies by bank), and foreign founders often use a local service provider to smooth this.
- File registration application with the Centre of Registers (State Enterprise Centre of Registers). A civil law notary usually verifies the application before submission. Current state registration fee is small (example: €30.83 at the registry page). Once approved the company is entered in the Register and obtains a company code.
- Tax & VAT registration with the State Tax Inspectorate (VMI) — register for CIT and payroll, and VAT where applicable. Non-EU entities may need a fiscal representative for VAT.
- Set up accounting & payroll (local GAAP / reporting). Prepare for annual financial reporting obligations.
Costs & Timeline
- Registry fee: approximately €30–60 depending on the procedure (the Centre of Registers lists current fees). Notary, bank, translation and service-provider fees will add to this.
- Share capital: minimum €1,000 paid-in rules as above; banks and service providers often recommend preparing €2,500 in practice depending on the bank and business plan.
- Professional fees: remote incorporation packages (legal + registered address + basic accounting) commonly start at a few hundred to a couple thousand euros depending on scope.
- Timeline: with documents ready and no complications, registration can take a few business days to a few weeks. Opening a bank account can be the main time variable.
Ongoing Compliance & Reporting
- Annual financial statements must be prepared and filed; an audit is required when statutory criteria are exceeded (audit thresholds depend on turnover, assets and employees for example, audits apply when at least two of these thresholds are exceeded such as net revenue and balance-sheet size per Lithuanian rules). Check current thresholds with your auditor.
- CIT returns, VAT returns and payroll filings have regular deadlines; use a local accountant or payroll provider to meet deadlines and withholdings.
- Maintain a registered office and up-to-date register entries for directors, shareholders and beneficial owners.
Conclusion
Lithuania offers a compelling and future-ready environment for entrepreneurs and international investors seeking to establish a limited liability company in the European Union. With its stable legal framework, efficient digital governance, competitive tax regime, and access to the EU single market, incorporating a UAB (the Lithuanian equivalent of an LLC) is both practical and strategic. The country’s growing reputation as a hub for technology, fintech, and innovation combined with comparatively low operational costs and a skilled workforce further strengthens its appeal.
The UAB structure provides limited liability protection, flexibility in ownership and management, and a clear regulatory pathway for both resident and non-resident founders. When supported by proper planning, local compliance guidance, and professional assistance for banking, taxation, and ongoing reporting, Lithuania can serve as an excellent base for regional expansion and long-term business growth within Europe.
How We May Assist
We provide comprehensive, end-to-end support for incorporating and managing a UAB (LLC-equivalent) in Lithuania, ensuring a smooth, compliant, and efficient setup for both resident and non-resident founders. Our services are designed to minimise administrative burden while allowing to focus on the core business.
Our assistance typically includes:
- Pre-incorporation advisory
- Jurisdiction suitability assessment based on your business model
- Guidance on shareholding, directorship, and capital structuring
- Name availability checks and reservation support
- Company incorporation services
- Drafting and coordination of incorporation documents (Articles of Association, founding resolutions, powers of attorney)
- Liaison with notaries and the Centre of Registers
- Support with share capital deposit formalities
- Provision of a registered office address, where required
- Banking and tax registrations
- Assistance with corporate bank account opening
- Corporate tax, VAT, and payroll registrations with the Lithuanian tax authorities
- Guidance on VAT thresholds, compliance obligations, and fiscal representation (if applicable)
- Post-incorporation and compliance support
- Accounting and bookkeeping coordination
- Payroll and social security compliance support
- Annual filings, financial statements, and audit coordination
- Ongoing corporate secretarial services, including changes in directors, shareholders, or registered office
- Ongoing advisory and expansion support
- Cross-border structuring and EU market entry guidance
- Regulatory and compliance updates
- Assistance with business scaling, restructuring, or exit planning
By partnering with us, businesses gain a reliable point of contact for all legal, regulatory, and administrative aspects of doing business in Lithuania ensuring clarity, compliance, and continuity throughout the lifecycle of the company.
For more information or queries, please email us at
enquiries@chandrawatpartners.com
Key Contact
Surendra Singh Chandrawat
Global Managing Partner
