Company Registration Guide for Lithuania — Practical 2025 Update

This guide outlines the practical steps, policy highlights and operational precautions for registering a company in Lithuania in 2025. It summarizes current registration routes, administrative procedures, tax and compliance points, and offers practical tips for foreign entrepreneurs and local founders. Where legislation is still evolving, readers are advised to confirm details with official Lithuanian registers or legal advisers.

Key policy trends and regulatory highlights (2025)

• Greater digitization: The Register of Legal Entities continues to expand e-services, allowing many filings with electronic signatures and remote submission of documents.
• Anti‑money laundering (AML) focus: Lithuania maintains stringent beneficial ownership (BO) disclosure and KYC obligations for company founders and service providers in line with EU AML directives.
• Start‑up support and R&D incentives: National and EU instruments remain available for innovative firms; eligible expenditures may qualify for tax relief or grants—check the latest calls.
• Cross‑border coordination: Lithuania aligns corporate rules with EU standards, simplifying intra‑EU trade and movement but also increasing reporting obligations for cross‑border structures.

Common company types and basic requirements

• Private limited company (UAB): Most common vehicle for SMEs. Requires articles of association, shareholders, and paid‑in share capital (historic minimum was EUR 2,500 — verify current minimum before incorporation).
• Public limited company (AB): Suitable for larger enterprises; higher capital and disclosure requirements.
• Branch or representative office: For foreign companies wishing to operate without forming a separate legal entity.
• Sole trader / individual enterprise: Simplified regime for single entrepreneurs.

Step‑by‑step registration process (practical operation steps)

1. Choose company type and name: Conduct a name availability check at the Register of Legal Entities.
2. Prepare documents: Draft articles of association, shareholder resolutions, director appointment, and a registered office address. For foreign founders, prepare certified and translated passports and a notarized power of attorney if using a local representative.
3. Determine share capital and deposit (if required): Deposit share capital into a temporary bank account or provide capital confirmation depending on the company type and the register's rules.
4. Register online or in person: Submit formation documents through the Register of Legal Entities’ e‑service using an e‑signature or via authorized service providers. Pay registration fee.
5. Obtain company code and extract: After registration you will receive a company identification number and an official extract confirming registration.
6. Register for taxes and social security: Enrol the company with the State Tax Inspectorate, obtain VAT registration if turnover or taxable activities require it, and register employees for social insurance.
7. Open a corporate bank account: Most banks require KYC, proof of activity, director/beneficial owner IDs and possibly an initial capital deposit.
8. Declare beneficial owners: File BO information in the appropriate register; maintain up‑to‑date records and notify changes promptly.

Required documents (typical)

Important taxes and reporting obligations

• Corporate income tax: Standard CIT rate applies; small enterprise regimes and tax incentives for certain activities may be available—confirm eligibility.
• VAT registration: Mandatory if taxable turnover exceeds the national threshold; voluntary registration possible for cross‑border trade.
• Payroll taxes and social contributions: Employers must register and report employees to social security authorities.
• Annual accounts and statutory filings: Companies must keep books and submit annual financial statements and tax returns by statutory deadlines.

Practical tips and Notes (precautions)

• Verify up‑to‑date thresholds and fees: VAT limits, minimum share capital and registration fees can change—always check the Register of Legal Entities and State Tax Inspectorate websites before proceeding.
• Prepare certified translations: Non‑Lithuanian documents often need notarized translation; lack of proper certification delays registration.
• Be transparent about beneficial owners: Incomplete BO disclosures can trigger enforcement actions and fines.
• Due diligence for banking: Opening a bank account may require a business plan, proof of transactions and face‑to‑face meetings; plan for KYC timelines.
• Sector permits: Regulated sectors (finance, healthcare, transport, gambling) require licences before operations commence.
• Use local advisors for nuance: Law and administrative practice evolve; a Lithuanian lawyer or corporate service provider can save time and prevent common pitfalls.

Comparative case examples

• Case A — Remote startup formation: A software start‑up founded by two EU residents used e‑signature registration and obtained its UAB in one week by submitting correct electronic documents and proof of address.
• Case B — Non‑EU founder with local representative: A non‑EU entrepreneur appointed a Lithuanian attorney via notarized power of attorney, prepared certified translated documents, and completed bank KYC after a short in‑person visit to the bank.
• Case C — Regulated activity: A payments company required an additional licence and enhanced AML controls which extended set‑up timelines by months—plan for licensing lead times.

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Where to confirm official information

Always cross‑check with: the Register of Legal Entities (Center of Registers), the State Tax Inspectorate, and relevant regulator websites for sector licences. When in doubt, consult a Lithuanian legal or tax advisor.

Final note: Lithuania remains an attractive base for doing business in the Baltics due to its digital infrastructure and EU membership. However, compliance with AML, tax registration and reporting remains essential—good planning and local advice will accelerate successful incorporation in 2025.