Start Your Business in Lithuania: Your Key to the EU Market

Business in Lithuania is becoming increasingly attractive for both aspiring entrepreneurs and experienced businesspeople. This is due to a number of factors that make Lithuania an ideal place for registering and operating a business.

Our company has many years of experience in company registration in Lithuania. We have helped dozens of clients successfully start and grow their businesses in this country, providing a full range of services from consultations to handling all necessary documents. Our professional approach and deep understanding of local legal nuances allow us to deliver impeccable quality and support at every stage of your business journey.

In this article, we will explore the main benefits of starting a company in Lithuania, successful Lithuanian companies and startups, and a step-by-step guide to the business registration process in this country.

Lithuania – at the Top of International Rankings

Lithuania consistently ranks high in various international rankings, highlighting its attractiveness for entrepreneurs. In the World Bank’s Doing Business ranking, Lithuania consistently ranks among the top 20 countries in the world for ease of doing business, reflecting the simplicity of administrative processes such as company registration and obtaining permits.

In the Tax Competitiveness Index, Lithuania ranks among the countries with one of the most competitive tax regimes in Europe, thanks to low corporate taxes and a transparent tax system. In the Economic Freedom Index, Lithuania also ranks highly, indicating a low level of bureaucracy, strong property rights protection, and favorable conditions for private enterprise.

Benefits of Starting a Business in Lithuania

Starting a business in Lithuania has many advantages that make the country attractive to entrepreneurs from around the world.

• Favorable Tax Regime

Lithuania offers one of the lowest tax regimes in Europe. The corporate income tax is only 15%, and for small businesses with revenues up to 300,000 euros and no more than 10 employees, the tax rate is reduced to 5%. This regime encourages rapid business growth and increased profitability.

• Simplicity of Registration

The process of registering a company in Lithuania is relatively simple and quick. Thanks to modern technology and electronic services, a company can be registered within a few days. This makes Lithuania one of the most attractive jurisdictions for entrepreneurs.

• Convenient Geographical Location

Lithuania is located in the center of Europe, making it strategically important for doing business with both eastern and western partners. Developed infrastructure and transport connections provide easy access to major European markets.

• Government Support

The Lithuanian government actively supports small and medium-sized businesses by offering various subsidies, grants, and tax incentives. This helps new companies to adapt and grow in the market more quickly.

• Membership in the European Union

Lithuania is a member of the European Union, which provides access to the single European market and simplifies trade with other EU countries. Entrepreneurs can also take advantage of various European business support programs.

Step-by-Step Guide to Company Registration in Lithuania

If you have decided to start a business in Lithuania, it is important to understand the main steps required for successful company registration.

1. Choose a Type of Company. Several business forms are available in Lithuania, such as a private limited liability company (UAB), a joint-stock company (AB), and a sole proprietorship (II). The most popular form is the UAB (private limited liability company), as it combines ease of management with limited liability.
2. Choose a Company Name. Your company name must be unique and comply with Lithuanian legislation. You can check the availability of the name in the online company register.
3. Open a Bank Account. After choosing a name, you need to open a bank account with one of the Lithuanian banks. The minimum share capital for a UAB is 1,000 euros, which must be deposited into the account.
4. Register the Company with the Register of Legal Entities. The next step is to register the company with the Lithuanian Register of Legal Entities. This requires submitting an application and the company’s founding documents, such as the articles of association and the minutes of the founders’ meeting.

Successful Lithuanian Companies and Startups

Lithuania has become home to many successful companies and startups that have gained international recognition and attracted significant investment. One of the most prominent examples is Paysera, a Lithuanian company offering a wide range of financial services, including international money transfers and online payments. Founded in 2004, Paysera has grown from a small startup into a large international company with offices in several countries, becoming a leader in the fintech market in the Baltics.

Another example is Revolut. Although this company was founded in the UK, its founder Nikolay Storonsky and co-founder Vlad Yatsenko have strong ties to Lithuania. Revolut is actively expanding its business in the country and has chosen Lithuania as the base for obtaining a European banking license. This underscores Lithuania’s importance for the company’s further development.

Vinted — the largest online platform in Europe for selling second-hand clothing and accessories. Founded in Vilnius in 2008, Vinted quickly expanded its operations to dozens of countries, attracting millions of users worldwide. Vinted has become one of the most successful Lithuanian startups, attracting hundreds of millions of euros in investments.

Another noteworthy example is TransferGo, a Lithuanian fintech startup specializing in international money transfers. Founded in 2012, the company offers fast and low-cost money transfers to more than 160 countries worldwide. TransferGo is actively growing and attracting significant investments, becoming a key player in the global money transfer market.

These companies and startups demonstrate the high potential of Lithuanian business and highlight Lithuania’s attractiveness as a place for developing innovative projects. The success of companies like Paysera, Revolut, Vinted, and TransferGo confirms that Lithuania offers excellent conditions for growth and international expansion.

Conclusion

Starting a business in Lithuania is an excellent choice for those looking to establish a company in Europe with minimal costs and maximum growth opportunities. Lithuania offers a favorable tax regime, ease of registration, and broad access to European markets. Successful companies like Paysera, Revolut, Vinted, and TransferGo demonstrate that Lithuania provides excellent conditions for business development and innovation.

If you are ready to take the first step and start a business in Lithuania, follow our step-by-step guide and take advantage of all the benefits this country has to offer.