Lithuanian UAB (Uždaroji Akcinė Bendrovė) requires €2,500 minimum capital. Formation takes 1-5 business days online via Register Centre. Corporate tax: 15% standard (5% for small companies <€300,000 revenue). Lithuania offers Vilnius fintech hub (Revolut, TransferWise licensed), laser/photonics industry leadership, skilled IT workforce 50-60% cheaper than Western EU, and Baltic gateway to Nordic/Eastern markets. Strong fintech licensing reputation.
Formation Requirements
UAB (private limited company) minimum 1 shareholder (individual or legal entity). Maximum 250 shareholders (if exceeded becomes AB - public company).
Director (vadovas): Minimum 1 required. No residency requirement for shareholders/directors. Lithuanian address required (virtual office acceptable).
Capital Requirements
Minimum share capital: €2,500 (must be paid in full before registration). No partial payment allowed (unlike Hungary 50% upfront).
Payment: Bank transfer to company account. Bank statement required for Register Centre filing. Cash only for initial capital (in-kind contributions allowed later).
Formation Process
Register online via Register Centre (Registrų Centras) portal. 100% digital process (no physical notary required).
Draft articles of association (įstatai). Standard template available or lawyer-customized. Electronic signature required (e-Residency-style system for foreigners).
Register Centre Processing
Processing: 1-5 business days. Filing fee: €58 online. No fast-track option but standard processing already fast.
Receive company code: Unique identifier. Automatic tax registration with State Tax Inspectorate (VMI). VAT registration: Required if revenue >€45,000/year.
Electronic signature requirement: Foreign founders need Lithuanian-compatible e-signature (Smart-ID, Mobile-ID, eIDAS-compliant). Setup: €20-100 one-time. Easier than notary but adds setup step.
Tax Structure
Corporate income tax: 15% standard rate. Reduced rate: 5% for small companies with <10 employees AND <€300,000 annual revenue (both conditions must be met).
Dividend withholding: 15% on dividends to individuals (combined ~26.25% effective for 15% rate, ~18.25% for 5% rate). No withholding to EU corporate shareholders.
Small Company Benefit
5% tax rate highly competitive (same as Croatia 10%, Poland 9% for small, lower than Estonia 20% on distributions). Requirements strict: Both <10 employees AND <€300,000 revenue.
Strategic for: Micro SaaS, freelance consultancies, small agencies. Lose benefit when hire 10th employee or exceed €300k revenue.
Lithuanian 5% small company tax (€300k revenue limit, <10 employees) creates 10 percentage point advantage vs 15% standard - compelling for lean digital businesses.
Name Requirements
Check availability via Register Centre portal. Name must be unique nationwide.
Mandatory suffix: "Uždaroji Akcinė Bendrovė" (full Lithuanian) or "UAB" (abbreviation - 99% use this).
Restricted Terms
Cannot use "Lietuvos Respublika" (Lithuanian Republic), "Lithuanian" without authorization. Banking/finance terms require Bank of Lithuania license.
"European", "Baltic", "Vilnius" generally acceptable. Register Centre rejects 7% of name applications - lower than EU average (clear digital guidelines).
Annual Compliance
Annual financial statements: Must be filed within 10 days of shareholder approval (maximum 4 months after fiscal year end). Standard fiscal year: January-December.
Annual fee: €0 (no trade register fee). Audit required if 2 of 3 thresholds: Assets >€1.8M, revenue >€3.5M, employees >50 (higher than Latvia/Estonia).
Accountant Costs
Bookkeeping: €1,200-3,000/year (€100-250/month) for small UAB. Lithuanian accounting 50-60% cheaper than Western EU, similar to Latvia/Poland.
Audit (if required): €2,000-5,000/year. English-speaking accountants widely available in Vilnius (€1,500-3,500/year premium services).
Formation Costs
Register Centre filing: €58. E-signature setup: €20-100 one-time. Bank account: €0-50 setup (most free).
Registered office: €600-2,400/year virtual address in Vilnius. Legal/accounting setup: €500-1,500 if using formation service.
Total first-year: €4,000-7,000 including €2,500 capital. Mid-range EU costs but fully digital convenience.
Timeline
E-signature setup: 1-3 days. Open bank account: 1-2 weeks. Draft articles: 1-2 days.
Register Centre processing: 1-5 business days. Tax/VAT registration: Automatic with filing.
Total timeline: 2-3 weeks from start to active company. Among EU's fastest digital-first processes.
Banking for non-residents: Lithuanian banks (Luminor, SEB, Swedbank) require extensive documentation for non-residents. Business plan, contracts, proof of activity essential. Budget 2-4 weeks for account approval.
VPB Trademark
Register trademark with State Patent Bureau (VPB). Cost: €140 for 1 class, €43 per additional class.
Processing: 6-8 months including opposition period. File via VPB e-filing.
EUIPO Preference
EUIPO trademark (€850): Covers 27 EU countries including Lithuania. Lithuanian trademark (€140): Lithuania only, cheaper but limited.
Recommendation: File EUIPO for broader protection unless Lithuania-focused business or tight budget.
Fintech Hub Reputation
Vilnius fintech success: Revolut (licensed in Lithuania, €33B valuation), Wise (formerly TransferWise, Lithuanian license), Paysera (local champion).
EMI licenses: Bank of Lithuania issues Electronic Money Institution licenses. 130+ fintech licenses issued (more per capita than UK post-Brexit).
Why Fintech Chooses Lithuania
Regulatory clarity: Bank of Lithuania fintech-friendly, clear guidelines. English-language licensing process. Fast approvals: 3-6 months EMI license vs 9-12+ months in Western EU.
Cost advantage: Lithuanian operations 50-60% cheaper than London/Amsterdam while maintaining EU passporting rights.
Lithuania issued 130+ fintech licenses post-Brexit - became EU's fintech licensing hub. Revolut, Wise, and 100+ others chose Lithuanian regulatory framework.
Laser & Photonics Industry
Lithuanian laser industry: World leader in laser technology. Ekspla, Optolita, Light Conversion export globally. €200M+ annual laser exports.
Research excellence: Vilnius University laser research center, close industry-academia collaboration. Photonics engineering talent pool.
Deep Tech Ecosystem
Life sciences: Thermo Fisher Scientific (Vilnius), Biotechpharma. Deep tech startups: Nord Security (NordVPN, unicorn), CityBee (car sharing), GetJar (mobile apps legacy).
Government support: €500M+ EU funds 2021-2027 for innovation, R&D. Startup visa program, innovation grants available.
Talent Pool
Developers: Average salary €2,000-4,000/month net (€3,000-6,000 gross). 50-60% cheaper than Nordic countries, 30-40% cheaper than Western EU.
Technical skills: Java, JavaScript, .NET, Python, C++. Strong mathematics/physics education. Fintech expertise (regulatory compliance, payment systems).
Language Skills
English proficiency: 70-80% among young professionals (higher than Poland/Czech). Lithuanian required for government but business operates in English.
Multilingual talent: Many Lithuanians speak Russian (legacy), Polish (minority), English. Useful for CIS/Eastern European market expansion.
Geographic Position
Baltic gateway: Vilnius 3 hours from Warsaw, 4 hours from Riga/Tallinn, 6 hours from Helsinki. Access to Baltic, Nordic, Polish markets.
Port access: Klaipėda port (ice-free year-round). Rail connections to Poland, Belarus, Russia (different gauge - logistics complexity).
Time Zone
EET (GMT+2): 1 hour ahead of Central Europe, same as Estonia/Latvia/Finland/Romania. Overlaps Western EU 08:00-17:00 CET.
Vilnius Airport: Regional hub, 70+ destinations. Direct flights to London, Berlin, Frankfurt, Amsterdam, Warsaw.
EU Integration
EU member since 2004: Full single market access. Schengen member since 2007: Border-free travel with Poland, Latvia. Eurozone since 2015: Euro currency (replaced litas).
Euro adoption: Eliminated currency risk with Western EU. Simplified accounting, reduced hedging costs vs Latvia (not yet euro) or Poland (PLN).
NATO Member
Security consideration: Lithuania borders Belarus, Russia (Kaliningrad exclave). NATO member since 2004. Geopolitical tensions affect perception.
Business impact: Generally stable but heightened security awareness post-2022. EU/NATO membership provides security framework.
Common Mistakes
Not setting up e-signature early: Foreign founders need eIDAS-compliant signature. Setup takes 1-3 days - start immediately to avoid delays.
Assuming 5% tax applies broadly: Only for <10 employees AND <€300k revenue (both required). Many small companies exceed one threshold, pay 15%.
Underestimating banking requirements: Lithuanian banks cautious post-money laundering scandals. Prepare extensive business documentation, expect 2-4 weeks approval.
When Lithuanian UAB Makes Sense
Choose Lithuanian UAB if: Fintech/payments business (strong licensing reputation), small company 5% tax eligible (<€300k, <10 employees), targeting Baltic/Nordic markets, laser/photonics/deep tech industry, need EU passporting rights at lower costs than UK/Ireland.
Best for: Fintech startups, payment processors, lean SaaS (<€300k), consultancies (<10 people), laser/photonics tech, businesses serving Baltic/CIS markets.
Consider alternatives if: Larger team (Estonia/Latvia no employee limit for benefits), absolute lowest costs (Bulgaria/Romania), avoiding banking complexity (simpler jurisdictions), need Western EU brand (Ireland/Netherlands).
Fintech Licensing Details
EMI license: Electronic Money Institution. Allows issuing e-money, payment services across EU. Cost: €3,500 application fee. Timeline: 3-6 months approval.
Requirements: €350,000 initial capital, compliance officer, AML procedures, physical office in Lithuania. Bank of Lithuania supervises.
Payment Institution License
PI license: Payment services without e-money issuance. Lower capital requirement (€20,000-125,000 depending on services). Faster approval: 2-4 months.
Post-Brexit advantage: UK fintech lost EU passporting. Lithuanian license grants EU-wide operations. Revolut, Wise both obtained Lithuanian licenses 2017-2018.
Money laundering legacy: Lithuanian banks faced scandals 2018-2019 (Danske Bank Estonia branch routed via Lithuania). Increased regulatory scrutiny, stricter KYC. Affects non-resident account opening difficulty.
Language Barrier
Lithuanian language: Baltic language family (related to Latvian only). Complex grammar, challenging for foreigners. One of EU's oldest living languages.
Business workaround: English widely used in Vilnius tech/business sectors. Government services available in Lithuanian/English. Accountants/lawyers offer English services.
Cultural Considerations
Work culture: Reserved, direct communication style. Less hierarchical than Western EU. Punctuality valued.
Soviet legacy: Independence 1990. Rapid modernization, EU integration. Younger generation (under 35) Western-oriented, English-fluent.
Startup Ecosystem Support
Startup Lithuania: Government initiative offering office space, mentorship, visa support for foreign founders. €50,000 grants available for early-stage startups.
Startup visa: Non-EU founders can obtain residence permit. Requirements: €50,000 funding or approval from Startup Committee. 1-year permit (renewable).
Innovation Vouchers
Government innovation support: €5,000-50,000 vouchers for R&D projects. Access to university research facilities. Lower bureaucracy than Western EU grant programs.
EU funds: €6.4B structural funds 2021-2027. Focus on digitalization, innovation, green transition. SME opportunities in EU-funded projects.
Trademark Lens verifies Lithuanian company name availability before €4,000-7,000 formation costs including €2,500 capital.