I
Lithuania

Lithuania

Company Formation in Lithuania

Lithuania

Formation Time
1–3 business days
Min. Capital
€2,500 (UAB, can be paid online)
Corporate Tax
15% standard (5% for micro-companies)
Foreign Ownership
100%

Overview

Lithuania has emerged as continental Europe's undisputed fintech powerhouse and digital innovation capital, hosting more licensed Electronic Money Institutions (EMIs) and payment institutions than any other EU country. Centred in Vilnius, Lithuania offers a progressive 5% corporate tax rate for small businesses (entities with fewer than 10 employees and gross annual turnover under €300,000) alongside a standard 15% rate. The standard entity is the UAB (Uždaroji Akcinė Bendrovė), which can be established entirely online in 1 to 3 days using a qualified electronic signature or e-Residency. Supported by the Bank of Lithuania's regulatory sandbox, CENTROlink payment infrastructure (granting direct access to SEPA for fintechs), and an ultra-modern IT infrastructure, Lithuania is the premier EU gateway for fintech, e-commerce, software development, and crypto-asset service providers (CASPs).

#1 EU fintech & EMI hub
5% tax for small businesses
1-3 day digital setup
CENTROlink SEPA access

Why Choose Lithuania

1

5% reduced corporate tax rate for small businesses (<€300K turnover and <10 staff)

2

#1 fintech and EMI licensing hub in continental Europe

3

Direct access to SEPA payments via Bank of Lithuania's CENTROlink

4

100% remote digital incorporation in 1–3 business days

5

Member of the European Union, Eurozone, and NATO

6

Highly educated, multilingual engineering and financial workforce

7

Startup Visa programme providing residency for innovative tech founders

8

57 comprehensive double tax treaties

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
UAB (Uždaroji Akcinė Bendrovė)100%1 (Director/General Manager)€2,5005% for small companies; 15% standardFintech, software, e-commerce, consulting, holding
MB (Mažoji Bendrija / Small Partnership)100%1 leaderNo minimum (€1)5% small business rate or pass-throughSolo founders, consultants, small software teams

Step-by-Step Formation Process

1

Name Reservation & Document Preparation

1 day

Reserve company name on the Register of Legal Entities (Registrų Centras).

2

Share Capital Deposit

1 day

Deposit €2,500 capital into bank or accumulator account.

3

Registration Filing

1–2 days

File digitally via electronic signature or through notary.

4

Tax & Banking Setup

1–2 weeks

Register for VAT and open corporate bank or EMI accounts.

Costs & Fees

Government / License FeeEUR 150+
Our Service FeeUSD 2,000 – 3,500
Annual RenewalUSD 1,500+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

As Europe's fintech capital, Lithuanian companies enjoy top-tier access to local commercial banks (Swedbank, SEB, Šiaulių Bankas) and modern European EMIs.

Account Opening Time
1–2 weeks
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

Swedbank LithuaniaSEB BankasRevolut BusinessPayseraWise Business

Tax Overview

Corporate Tax
15% standard; 5% for micro-companies (turnover <€300K, employees <10)
Personal Income Tax
20% (up to 60 average wages; 32% above)
VAT / Sales Tax
21% (standard rate; 0% EU intra-community)
Capital Gains Tax
15% (participation exemption available for qualifying holdings)
Withholding Tax
15% on dividends (0% for EU parent companies holding >10% for 12 months)
Double Tax Treaties
57 countries

R&D expenditures benefit from a triple deduction (300%) incentive against taxable income.

Visa & Residency

Startup Visa Lithuania

1 year, renewable for 1 year

For non-EU founders establishing innovative tech businesses

Temporary Residence Permit (TRP) via Business

2 years, renewable

For company directors meeting capital and turnover thresholds

EU Blue Card

Up to 3 years

For highly qualified professionals employed by Lithuanian firms

Family visa: AvailableProcessing: 1–2 months

Frequently Asked Questions

How does the 5% small business corporate tax rate in Lithuania apply?
Lithuanian companies with an average headcount of fewer than 10 employees and gross annual turnover not exceeding €300,000 qualify for a preferential reduced corporate tax rate of just 5% (instead of the standard 15% CIT). In their very first year of operation, qualifying new businesses can even benefit from a 0% corporate tax rate.
Why is Lithuania considered continental Europe's leading fintech capital?
Lithuania is home to over 250 licensed fintechs—the highest concentration of Electronic Money Institutions (EMIs) and Payment Institutions (PIs) in the EU. The Bank of Lithuania offers a dedicated regulatory sandbox, streamlined licensing, and direct access to CENTROlink, enabling fintechs to initiate SEPA payments directly without commercial intermediary banks.
Can a Lithuanian UAB be established 100% digitally?
Yes. Founders holding a qualified electronic signature (such as a Lithuanian e-Residency digital ID, Estonian e-Residency, or Smart-ID) can register a UAB entirely online through the State Enterprise Centre of Registers (Registrų Centras) in 1 to 3 business days. Foreign founders without an e-signature can incorporate remotely via Power of Attorney.
What are the share capital requirements for a Lithuanian UAB?
The minimum share capital for a private limited liability company (UAB) is €2,500. This capital can be deposited electronically into a temporary capital accumulator account with an authorized European bank or licensed EMI prior to incorporation.
What research and development (R&D) tax incentives does Lithuania offer?
Lithuania provides an R&D triple-deduction incentive: companies investing in qualifying scientific research and experimental development can deduct 300% of their R&D expenses from their taxable income. Additionally, qualifying commercialized patented IP is eligible for a reduced 5% corporate tax rate ('Patent Box').
Can foreign entrepreneurs obtain an EU Startup Visa or residency in Lithuania?
Yes. Lithuania offers the Startup Visa Lithuania program, designed for non-EU founders establishing innovative, scalable tech businesses. Qualifying founders and their immediate families receive a streamlined temporary residence permit (TRP) valid for up to one year, renewable for an additional year, leading to permanent European residency pathways.