In short
Most foreign founders use a UAB (private limited company), with €1,000 minimum capital since May 2023. The Centre of Registers enters the company within 3 working days; founders without a Lithuanian e-signature found through a notary — often by power of attorney — or get Lithuanian e-residency (€90). There is no residence requirement for the director. Corporate tax is 17% in 2026 (16% in 2025); small companies with revenue up to €300,000 pay 7%, and new ones can pay 0% for their first 2 tax periods. VAT is 21% with registration above €45,000 a year. Dividends to individuals are taxed at 15%. A business residence permit needs much more than a company: €28,000 of equity, 6 months of activity and staff.
Lithuanian company: key facts
Last verified 28 September 2026| Usual company type | UAB (private limited company): €1,000 minimum capital since May 2023; MB small partnership with no minimum capital# Source: Ecovis: Lithuanian Law on Companies — €1,000 minimum capital · Law on Small Partnerships (e-TAR) |
|---|---|
| Registration | Centre of Registers entry within 3 working days; foreign founders without a Lithuanian e-signature go through a notary (often by power of attorney) or get Lithuanian e-residency (€90)# Source: International House Vilnius: start a business · Migration Department: e-resident fee |
| Corporate tax | 17% from 2026 (16% in 2025, 15% before); small companies 7% (revenue up to €300,000), and 0% for the first 2 tax periods of a new small company# Source: KPMG Lithuania: Tax Card 2026 · KPMG: Lithuania corporate income tax changes from 1 January 2026 |
| VAT | 21%; reduced 12% and 5% from 2026 (the 9% rate was abolished); registration above €45,000 a year# Source: PwC Lithuania: 2025 tax reform adopted · Invest Lithuania: starting a business in 7 steps |
| Dividend withholding | 15% for individuals; 5% under the US treaty for a US company holding 10% or more# Source: State Tax Inspectorate (VMI): how dividends are taxed |
| R&D deduction | Qualifying R&D costs deducted 3 times (300%)# Source: KPMG Lithuania: Tax Card 2026 |
| Beneficial owners | Filed in JANGIS (Centre of Registers) and updated within 10 days of changes# Source: Grant Thornton Lithuania: beneficial-owner registration (JANGIS) |
| Annual filings | Accounts approved within 4 months of year-end and filed within 30 days (about 31 May); audit above 2 of €3.5M revenue, €1.8M assets, 50 staff# Source: Commenda: Lithuania annual compliance |
| Social insurance (Sodra) | Employees 19.5% (incl. 6.98% health); employers 1.77%# Source: KPMG Lithuania: Tax Card 2026 |
| Business residence permit | Company equity of €28,000 (€14,000 from you); you own a third or are the director; 6 months of operation; staff paid at least 2 average wages in total. 2 years — 3 years with €260,000 invested and 5 employees# Source: Deloitte Lithuania: residence permits for business and work · Law on the Legal Status of Aliens (consolidated text) |
| US tax treaty | Signed 1998, in effect since 2000; US citizens still file US returns# Source: IRS: technical explanation of the US–Lithuania tax convention |
| Social Security agreement | None between the US and Lithuania — self-employed Americans may owe both US and Lithuanian contributions# Source: SSA: US international Social Security agreements (Lithuania not listed) |
| US anti-deferral tax | GILTI renamed NCTI from 2026; Lithuania's 17% (and 7% or 0% small-company rates) is below the 18.9% high-tax threshold# Source: RSM US: international tax reform under the One Big Beautiful Bill Act |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Lithuanian company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register a Lithuanian company exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Lithuania | A company does not give you residence. Non-EU founders need a business residence permit (with equity, activity and staff tests) or the Startup Visa. |
|---|---|
| Tax treaty | The US–Lithuania treaty reduces withholding on dividends to a US company holding 10% or more to 5%. Other countries' treaties set their own rates. |
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Lithuanian Company Formation in Numbers
Why Lithuania
Why Americans Register Companies in Lithuania
Lithuania combines low minimum capital, fast digital registration and generous small-company rates with an EU base and a large fintech and startup sector — about 248 fintech companies and five unicorns. Directors can live anywhere.
The trade-offs: the standard corporate tax rate has risen from 15% to 17% in two years, founders without a Lithuanian e-signature need a notary or e-residency, banks check foreign owners closely, and the business residence permit needs real activity and staff.
Business Structures
Which Entity Type Is Right for You?
Private Limited Company
UAB — Uždaroji akcinė bendrovė
The usual choice for founders and foreign investors. One shareholder is enough, and the manager can live abroad.
- Min. capital
- €1,000
- Management
- Manager (any residence)
- Liability
- Limited to capital
Small Partnership
MB — Mažoji bendrija
No minimum capital and limited liability; up to 10 members, who must be individuals.
- Min. capital
- None
- Members
- Individuals only
Public Limited Company
AB — Akcinė bendrovė
For larger businesses and companies offering shares to the public.
- Min. capital
- €25,000
Individual Activity
Individuali veikla · business licence
Freelancers register with the tax office (VMI). You need a residence permit that allows self-employment.
- Tax
- Effective 5–20% up to €42,500
Branch or Representative Office
Filialas · Atstovybė
A US company can register a branch in the Register of Legal Entities; it is not a separate legal person.
Tax Environment
Lithuania's Corporate Tax — 17%, 7% and 0%
The standard corporate tax rate is 17% from 2026 (16% in 2025, 15% before). Small companies with revenue up to €300,000 that meet ownership and other conditions pay 7%, and a newly registered small company can pay 0% for its first two tax periods. Qualifying R&D costs can be deducted three times.
The income tax treaty signed in 1998 has applied since 2000. Its saving clause keeps US citizens fully taxable in the US. There is no US–Lithuania Social Security agreement, so a US owner working in the company may owe contributions in both countries.
US citizens and Green Card holders are taxed on worldwide income. Owning a Lithuanian company usually means Form 5471, and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI is renamed net CFC tested income (NCTI). Lithuania's 17% — and certainly the 7% and 0% rates — is below the 18.9% high-tax threshold, so profits of a company owned by US individuals can be taxed in the US each year even if not paid out. Get US international tax advice before you incorporate.
Step-by-Step Process
How to Register a Company in Lithuania
Registration runs through the Centre of Registers (Registrų centras). With a Lithuanian e-signature you can register online with model articles; otherwise a notary prepares the documents.
Choose the name and reserve it (optional) Name
Check the name is free and reserve it if you want certainty.
Decide how to sign Signature
Get Lithuanian e-residency (€90, card with e-signature), sign at a notary in Lithuania, or give a lawyer a power of attorney apostilled in the US.
Pay in the capital Capital
Open a temporary capital account and pay in the share capital (€1,000 minimum for a UAB).
File with the Centre of Registers Up to 3 days
The register entry takes up to 3 working days after a complete application; allow 1–2 weeks end to end.
Register beneficial owners and taxes After registration
File beneficial owners in JANGIS, register for VAT when needed, and register employees with Sodra before they start work.
Open a business account Banking
Lithuanian banks and licensed e-money institutions both serve companies; expect detailed checks on non-resident owners.
Want to run the company from Lithuania? A company does not give you residence — see the business permit on our Lithuania page or the Startup Visa.
Costs & Fees
What Does It Cost to Register a Company in Lithuania?
| Cost item | Notes | Amount |
|---|---|---|
| Centre of Registers fee | UAB registration (provider guides; check the current fee). | about €57 |
| Notary | If you do not register online; depends on capital. | about €72–290 |
| E-residency (optional) | Lithuanian e-resident card with e-signature. | €90 |
| Share capital | UAB minimum — stays in the company, not a fee. | €1,000 |
| Registered address | If you have no office (market estimate). | about €100–300/yr |
| Accounting | Outsourced bookkeeping for a small UAB (market estimate). | from about €90/month |
Fees from provider guides and the Migration Department; service prices are market estimates. Source: Multiplier: registration 2026 · Migration Department: e-resident fee · 1Office: accounting
Ongoing Obligations
Post-Registration Requirements
Annual accounts
Approved by shareholders within 4 months of year-end and filed with the Centre of Registers within 30 days — about 31 May for calendar-year companies.
Corporate tax return
Filed with the tax office (VMI); small companies check each year that they still qualify for 7% or 0%.
Sodra
Companies are registered with Sodra automatically; register each employee before they start work. Employers pay 1.77%, employees 19.5%.
Beneficial owners
Keep JANGIS up to date — changes within 10 days.
Audit
Needed above 2 of 3 thresholds — €3.5 million revenue, €1.8 million assets, 50 employees.
Expert Notes
What Americans Should Know Before Registering in Lithuania
The low rates and US tax
Lithuania's 7% and 0% small-company rates are far below the 18.9% US high-tax threshold, so US owners can pay US tax on the profits each year under NCTI. Some owners elect pass-through treatment — get US advice.
A company is not a residence permit
The business residence permit needs €28,000 of equity (€14,000 from you), 6 months of operation and staff paid at least 2 average wages in total. There is no golden visa.
E-residency saves trips
For €90, Lithuanian e-residency gives you an e-signature to register and run the company online.
Fintech licensing has tightened
The Bank of Lithuania has increased supervision since 2023, and the number of fintech companies fell from 282 to 248 in 2025. Plan for a thorough licensing process.
No Social Security agreement
If you draw a salary from your UAB, both Lithuanian and US social-security rules may apply. Plan your pay with advisers in both countries.
Registering a Lithuanian company is right for you if…
- You want a low-cost EU company with fast registration.
- You can use the 7% or 0% small-company rate.
- You have US tax advice on NCTI and Form 5471.
- You have a separate plan for residence if you will live in Lithuania.
We work with Lithuanian lawyers and accountants who form companies for non-EU founders. Directories like LocalVouch can help you find more.
FAQ
Frequently asked questions
What is the corporate tax rate in Lithuania?
17% from 2026. Small companies with revenue up to €300,000 pay 7%, and new small companies can pay 0% for their first two tax periods.
What company type do Americans usually use?
A UAB (private limited company) with at least €1,000 of capital. The manager can live outside Lithuania.
Do I need to travel to Lithuania to register?
Not necessarily. You can use Lithuanian e-residency (€90) to sign online, or give a lawyer an apostilled power of attorney to sign at a notary for you.
How long does it take to register a company in Lithuania?
The Centre of Registers enters the company within 3 working days of a complete application; allow 1–2 weeks including the capital account and signatures.
When do I need to register for VAT in Lithuania?
When taxable supplies in Lithuania exceed €45,000 over 12 months, or earlier by choice. The standard rate is 21%.
Lithuania
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