Guide: Starting a Business in Lithuania for Expats

Published on November 10, 2025 and written by Cyril Jarnias

Relocating to Lithuania to start a business represents a unique opportunity for expatriates looking to explore the dynamic potential of Baltic markets.

With a favorable economic environment, advantageous taxation, and government support for foreign investors, this country offers fertile ground for innovative startups.

In this entrepreneurial guide, we provide a structured path to navigate the legal, cultural, and commercial aspects of starting a business in Lithuania.

From understanding the tax system to simplified administrative procedures, discover how to transform your international aspirations into professional success on Lithuanian soil.

Understanding Legal Structures for Starting a Business in Lithuania

Here’s an overview of the main business legal structures in Lithuania, accompanied by a comparative table, advantages/disadvantages, tax considerations, and specific requirements for residents and non-residents.

Legal Form	Liability	Minimum Capital	Registration	Taxation	Main Remarks
Individual Enterprise (IĮ)	Unlimited	None	Simple	5%-15% PIT	Managed by one person, few formalities
Private Limited Liability Company (UAB)	Limited to contributions	€2,500	Moderate (3-4 weeks)	16% CIT	Most common structure, max. 250 shareholders
Public Limited Liability Company (AB)	Limited to contributions	€40,000	Complex (5-6 weeks)	16% CIT	Freely tradable shares, no shareholder limit
General Partnership (TŪB)	Unlimited for partners	None	Simple	15% PIT	Minimum two partners, joint liability
Limited Partnership (KŪB)	Mixed (general unlimited, limited to contribution)	None	Simple to moderate	15% PIT	At least one general and one limited partner

Advantages and Disadvantages

• Individual Enterprise (IĮ)
  • Advantages: Simplified formalities, flexible management, no capital required.
  • Disadvantages: Unlimited liability on personal assets, less credible for partners.
• Private Limited Liability Company (UAB)
  • Advantages: Liability limited to invested capital, flexibility for shareholders (resident or non-resident), suitable for SMEs.
  • Disadvantages: Minimum capital of €2,500, heavier creation formalities and accounting obligations.
• Public Limited Liability Company (AB)
  • Advantages: Limited liability, possibility to raise funds on markets, no shareholder limit.
  • Disadvantages: High capital (€40,000), strict management and governance, significant creation costs.
• General Partnership (TŪB)
  • Advantages: Simple creation, no capital requirement, collective management.
  • Disadvantages: Unlimited and joint liability of partners.
• Limited Partnership (KŪB)
  • Advantages: Limited liability for some partners, management flexibility.
  • Disadvantages: Unlimited liability for at least one partner, sometimes lower credibility.

Tax Considerations

UAB and AB: Subject to Corporate Income Tax (CIT) at standard rate of 16%. Reduced rates may apply for small businesses under certain conditions.

IĮ, TŪB, KŪB: Subject to Personal Income Tax (PIT), generally around 15%. Social charges apply to the compensation of the business owner or partners.

Legal Requirements for Residents and Non-Residents

UAB and AB: Shareholders can be of any nationality. Non-resident directors generally need to obtain a temporary residence permit if they wish to hold management positions locally.

IĮ, TŪB, KŪB: Non-residents can participate, but daily management may require a local address or resident representatives.

Useful Resources and Support Organizations

• Lithuanian Business Register (Centre of Registers): for company registration.
• Invest Lithuania: National economic development agency, support for foreign investors.
• Lithuanian Chamber of Commerce and Industry: Information and support for entrepreneurs.
• Specialized Firms (e.g., Tetra Consultants, Hawksford, Company in Lithuania): Personalized support, advice on legal form and creation.

Key Takeaways

The UAB is the most widespread structure in Lithuania for local and foreign entrepreneurs, due to its flexibility, limited liability, and accessibility in terms of capital.

Non-residents can hold shares and manage a company, but residence procedures may be necessary for effective management exercise.

The Importance of Administrative and Tax Procedures in Lithuania

Structure Type	Minimum Share Capital	Registration Time	Specific Procedure
UAB (Private LLC)	€2,500	3 to 7 business days	Most common form, limited shareholder liability, capital to be deposited before registration
MB (Small Partnership)	No minimum	3 to 7 business days	Suitable for small businesses and startups, simplified obligations
IE (Individual Enterprise)	No minimum	2 to 5 business days	Administrative simplicity, unlimited liability
Ready-Made Company	Already formed	1 to 2 business days	Purchase of a pre-registered company for immediate startup

Main Administrative Procedures for Business Creation:

• Choosing the appropriate legal form (UAB, MB, IE, etc.)
• Checking company name availability
• Drafting and translating statutes
• Opening a bank account to deposit share capital if necessary
• Registration with the Lithuanian Business Register (Registrų centras)
• Tax registration and obtaining tax identification number (TIN)
• VAT registration if turnover threshold is met or for intra-community activity

Generally Required Documents:

• Passport or ID
• Proof of address
• Company statutes (translated and notarized)
• Proof of share capital deposit (for UAB)
• Legal address in Lithuania

Typical Timeframes:

• Administrative registration: 3 to 7 business days for UAB or MB, faster for IE or purchasing a ready-made company
• Obtaining TIN: up to 5 business days after document submission
• Bank procedures: generally 1 to 2 business days

Specifics of the Lithuanian Tax System:

• Corporate tax rate: 15% (one of the lowest in the EU)
• Reduced rate of 5% for certain small businesses meeting turnover and employee criteria
• VAT: 21% (registration required from €45,000 turnover)
• Possible tax exemptions:
  • Dividend tax exemption under certain conditions (≥10% participation in subsidiary for ≥12 months)
  • Special economic zones offering tax relief for certain sectors or investments
• Regular obligations:
  • Maintaining accounting compliant with Lithuanian standards
  • Monthly or quarterly VAT declaration
  • Annual tax returns
  • Social contribution payments if hiring employees

Potential Challenges for Expatriates:

• Language barrier (official documents in Lithuanian)
• Need for translation and notarization of statutes and other documents
• Requirement of legal address in Lithuania
• Sometimes complex banking procedures for non-residents
• Possible need for visa or residence permit depending on country of origin

Local Resources and Practical Advice:

• Lithuanian Chambers of Commerce: administrative support, practical advice, local network
• Legal/tax consulting services and specialized firms: help with translation, statute drafting, and tax compliance
• Government portals: online procedures, guides, forms
• Use services of a local agent or French-speaking lawyer to speed up and secure the procedure
• Prefer online registration to save time
• Prepare all documents in advance and anticipate translations and certifications

Expatriate Success Examples:

A French entrepreneur launched a fintech in Vilnius via a UAB company, benefiting from fast registration, advantageous taxation, and the local digital ecosystem; he highlighted the valuable help of a local French-speaking firm for administrative management.

A team of Belgian developers acquired a ready-made company in Lithuania to quickly establish themselves in the EU market, benefiting from personalized support for all tax procedures and bank account opening.

To successfully start a business in Lithuania, it’s highly recommended to surround yourself with competent local partners, prepare documents thoroughly in advance, and leverage available digital tools and support systems.

Cultural Differences and Business Practices in Lithuania

1. Predominant Cultural Values and Attitudes

• Professionalism and reliability are core values in the Lithuanian business environment.
• Society values youth, diversity, and resilience, while remaining attached to tradition and openness to the world.
• Ethics and consistency in behavior are essential for building trust.

2. Common Business Practices

Aspect	Lithuanian Approach
Verbal Style	Direct but polite, values clarity and conciseness
Formality	Formal initially, more informal over time
Non-verbal	Eye contact important, silence = reflection
Written Communication	Professional email, structured and clear

• Negotiations are generally direct, but politeness remains important.
• Meetings start formally (use of titles and last names).
• Decision-making is thoughtful, Lithuanians prefer to avoid rushing.

3. Respect for Hierarchies and Formalities

• Respect for hierarchical structures and procedures is paramount.
• Important decisions are often made by senior management.
• Professional titles are expected until invited to familiarity.

4. Official Holidays and Local Customs

Holiday	Date
New Year’s Day	January 1
Independence Day	February 16
Restoration of Independence Day	March 11
Easter	Variable
All Saints’ Day	November 1
Christmas	December 25-26

• During these periods, business activities may be reduced.
• Exchanging small gifts during holidays or after successful negotiations is common.

5. Perception of Time and Punctuality

• Punctuality is highly valued and expected for professional appointments.
• Delays should always be communicated in advance.

6. Professional Dress Code Norms

• A professional and conservative outfit is generally required for business meetings.
• Subdued suits and formal wear are appropriate, especially during initial contacts.

7. Lithuanian Market Specifics

• Companies must respect language rules: company name, official documents and external communication in Lithuanian.
• The market is dynamic, with strong focus on technological innovation and work-life balance.
• Cost of living and real estate remain affordable in major cities like Vilnius.
• Youthful urban population fosters an atmosphere conducive to entrepreneurship.

8. Practical Tips for Adaptation and Success

• Show respect for local customs, language and formalities.
• Take time to build trust: patience and consistency in relationships.
• Participate in social events and business meals to strengthen connections.
• Adapt communication: be direct but never abrupt, respect negotiation pace.
• Inform yourself about holidays and anticipate periods of reduced activity.
• Dress professionally and observe customs before adopting more casual attire.
• Consider the importance of the Lithuanian language in all official documentation and external communication.
• Leverage the technological ecosystem and openness to innovation to develop activities.

To succeed in Lithuania, it’s essential to combine respect for traditions, professionalism, and openness to youth and innovation.

Access to Funding and Resources for Expatriate Entrepreneurs in Lithuania

Funding Options for Expatriate Entrepreneurs in Lithuania

Funding Type	Description	Specific Conditions or Requirements
Government Grants	Support programs for innovation, export assistance, European grants via EU.	Often reserved for innovative projects, job creation or priority sectors.
Bank Loans	Access to loans for business creation or development from local or international banks.	Need for solid business plan, guarantees and sometimes personal contribution.
Private Investors	Business angels, venture capital funds, local or foreign institutional investors.	Professional project presentation, growth potential, compliance with local standards.
Crowdfunding	Specialized platforms for startups, SMEs, real estate, green projects.	Transparency, effective communication strategy, regulatory compliance.

Specific Programs and Resources for Expatriates

• Residence Permit for Investment: Foreigners can obtain a temporary residence permit by investing at least €28,000 in a Lithuanian SME and actively participating in its management. Job creation is often required.
• Fintech Licenses: The Lithuanian Central Bank facilitates access to Electronic Money Institution (EMI) and Payment Institution (PI) licenses, opening the door to the European market for fintech entrepreneurs.
• Incubators and Accelerators: Numerous incubators (Vilnius Tech Park, Startup Lithuania) offer support, mentoring, and connections with investors.
• Business Networks and Events: Networking events are regularly organized to foster experience exchange and contacts between expatriates and local entrepreneurs.
• Consulting Services: Specialized firms (FideCo, AdamSmith.lt) provide legal, tax and administrative support, essential for understanding Lithuanian specifics.

Testimonials and Concrete Examples

• TransferGo: Fintech startup founded by expatriates, raised significant funds and benefited from Lithuania’s favorable environment for digital finance.
• Paysera, Revolut, Vinted: Companies that used Lithuania as a springboard for European expansion thanks to access to funding and ease of obtaining licenses.

Main Legal and Administrative Requirements

• Minimum Share Capital: €2,500 for UAB (equivalent to LLC).
• Registration: Simplified procedure, often achievable online.
• Job Creation Obligation: For certain schemes (e.g., investment permit), creating local positions is mandatory.
• Compliance with European Standards: Strict conformity with Lithuanian and European regulations, particularly in finance and investment.

Practical Tips to Maximize Funding Chances

• Prepare a Detailed Business Plan:
  • Clear presentation of team, target market, funding needs and financial projections.
  • Highlight innovation, growth potential and international development strategy.
• Polish Investor Presentations:
  • Adapt pitch to local and international expectations.
  • Prepare documents translated into English or Lithuanian if necessary.
• Leverage Local Networks:
  • Participate in networking events.
  • Join incubators or entrepreneur clubs to multiply opportunities to meet financial partners.
• Use Professional Support:
  • Engage specialized firms for document preparation, legal structuring and negotiation with funders.

Additional Resources

• Crowdfunding platforms in Lithuania: adapted for SMEs, real estate projects, tech startups.
• Practical expatriation and business creation guides: available from chambers of commerce, economic development agencies and specialized firms.
• Virtual office services: to limit structural costs during setup.

A solid business plan, good preparation for local requirements, and anchoring in the Lithuanian ecosystem are keys to obtaining funding and successfully establishing yourself as an expatriate entrepreneur.