Lithuania Company Formation

Opening a company in Lithuania

Why open a company in Lithuania? What are the advantages in the country of Lithuania?

Lithuania, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the Euro (EUR), and living in the country is very cheap.

Lithuania is a country with enormous business potential, with a growing economy and a developing technological sector. Its uniqueness lies in the combination of innovation and nature, offering many opportunities in areas such as technology, finance and agriculture. The country is considered a promising technological center in the Baltic states, with a focus on technologies and artificial intelligence. Lithuania is working to become one of the leading European centers in the field of innovation, while striving to promote local high-tech entrepreneurship and attract foreign investment.

In addition, Lithuania benefits from a supportive regulatory system and a stable legal framework, which helps both new and established businesses operate efficiently and securely. It also has strong business ties with the European Union countries and free trade channels with many countries around the world.

Lithuania offers an attractive business environment with access to European markets, lax regulation, and a young and skilled workforce, all of which make it an excellent strategic partner for companies looking to expand and invest.

Lithuania is a perfect place for investment and business expansion. The Lithuanian government is eager to boost the economy by providing incentives to foreign investors.

Investors consider Lithuania one of the most attractive investment destinations in Europe. Tourists are fascinated by Lithuanian hospitality and friendliness, Lithuania's cultural heritage, and the country's natural wealth.

The Lithuanian economy is experiencing significant growth with solid foundations in the country's democratic mechanisms, thanks to which the economic system is considered one of the best economies among all post-socialist (former Soviet Union) countries. All these factors, together with the international security of the country due to Lithuania's membership in NATO and the European Union, make Lithuania a reliable and important business partner for foreign investors.

The process of opening a company in Lithuania
Opening a company in Lithuania begins with the signing of a notarized power of attorney to open a company by a local agent. The document is then urgently sent by courier to Lithuania for processing by a local Lithuanian notary. After several processes in Lithuania, the client is required to sign the application for registration in the Commercial Register, and again send the document to Lithuania. At this stage, the company already exists legally and can start business activities.

In Lithuania, there is no need for a local director or local shareholder.

In Lithuania, you also do not need any European citizenship to open a company. You can open a Lithuanian company even if you are a foreign citizen.

This means that you can open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no No need for a local director.

Opening a bank account in Lithuania – current account for the company
Since it is a European country, more or less starting from 2018, anyone who wants to open a bank account is required to come to the country. However, there is an alternative, which is opening an online bank account. Indeed, similar to our "Zero One" bank, there are online banks in Lithuania itself that will be happy to accept your company in Lithuania as a client.

Lithuania is the country of online banks. Because the country is very strong in the field of fintech (financial technology), Lithuania is the country of the well-known online bank Paysera.

Equity Capital
To open a company, a deposit of equity of at least 2,500 euros is required. A quarter must be deposited at the time of opening the company, and the balance of the equity within 12 months from the date of establishment of the company.

In Lithuania, the above-mentioned equity amount must be actually deposited. Therefore, as part of the process, a bank account is opened for the purpose of depositing the equity.

After opening the bank account and depositing the equity, the company is opened and a company document is issued from the Commercial Register (this is the Lithuanian Certificate of Incorporation).

After opening the company, the bank account opened for the purpose of depositing the equity can be used. In other words, the equity account becomes an active current account for all purposes.

VAT Registration
After opening the company, the new company will also be registered for VAT. The company will receive a VAT number and you can start trading.

EORI number
If you need it, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation for Economic Operators Registration and Identification number.

Maintenance of the company
The company requires annual maintenance of payment of fees, annual filings, a local address (which we will provide for you), as well as filings with the tax authority.
However, all costs in Lithuania are low due to the relatively cheap cost of living.

Tax in Lithuania
Corporate tax in Lithuania, for companies with a turnover of up to 300,000 euros and fewer than 10 employees, is at an exceptionally low rate of only 5%. For all other companies, the tax is at a rate of 15%, which is also quite low compared to the rest of Europe.
For sales to the domestic Lithuanian market, the VAT is 21%.

Questions and Answers
Question: Is it necessary to physically fly to Lithuania to open a company in Lithuania?
Answer: The entire process is carried out remotely and at no stage is there a need to physically arrive in Lithuania. There is no need to fly to Lithuania to open the company, nor the company's bank account. The entire process of opening the company, and in most cases also the company's bank account, is carried out remotely without setting foot on Lithuanian soil.

Question: Who provides the local address for the company in our new Lithuania?
Answer: We will provide the local address.

Question: How can I find a good accountant who can handle the company in our new Lithuania?
Answer: We will connect you with a local accountant.

Question: If I am interested in coming to Lithuania to open a bank account, what should I do?
Answer: We will try to arrange an appointment for you at the branch in advance to sign the account opening forms, so that everything is in order before you arrive, so that you do not have to wander around the city in search of a branch that will accept you and open a bank account for your new company in Lithuania.

Question: What type of company should I open in Lithuania?
Answer: There is only one type of company in Lithuania, so there is no need to hesitate when choosing the type of company.
The type of company is a limited liability company (UAB - "Uždaroji akcinė bendrovė"). It is a "joint stock company", with a director and shareholders.

Question: Do I need a European passport to open a company in Lithuania?
Answer: There is no need for a European passport. We can open a company in Lithuania for any foreign citizen as long as they have a valid passport.

Question: How long does it take to open a company in Lithuania?
Answer: The process of opening a company, including signing the power of attorney and sending it, should take just a few days from the moment the documents arrive in the country. After that, the process of opening an online bank account takes only 1-2 weeks, depending on the banks' willingness to accept the new company as a client. Of course, these times depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Lithuania for a person with American citizenship or a person living in the US?
Answer: Yes. We know how to open a company in Lithuania for a person with American citizenship or a person living in the US.

At first glance, it seems trivial that a person with ties to the US could open a company in Lithuania, but we assure you that this is not the case. Today, all banks in Lithuania, without exception, refuse to open an account for a new Lithuanian company if its owner has any ties to the US. Therefore, we are probably one of the few in Lithuania, who know how to open a company in Lithuania for a person with American citizenship or a person living in the US.

Question: Is it possible to define that any foreign company will be a subsidiary of a company in Lithuania?
Answer: Yes, absolutely, we know how to do such a process without any problems and in a completely smooth manner.

Question: How much does it cost to open a company in Lithuania?
Answer: Click here and contact us and receive an up-to-date, no-obligation quote!