Types of Companies in Lithuania
Lithuanian legislation provides foreign investors with a flexible choice of legal forms for conducting business.
For existing foreign companies, it is also possible to register a branch or representative office in Lithuania. A branch is not a separate legal entity but allows commercial activities to be conducted on behalf of the parent company. A representative office is limited to marketing and promotional functions without the right to engage in commercial activities.
Company Registration Procedure
Registration of legal entities in Lithuania is carried out through the Centre of Registers (Registrų centras) — a state authority maintaining the Register of Legal Entities. The process is fully available in electronic format, making it convenient for foreign entrepreneurs.
Company name
The company name is selected and checked for uniqueness: it must not coincide with an already registered legal entity. The check is performed through the Registrų centras online system.
Articles of association and statutes
The articles of association and statutes are prepared in accordance with the requirements of the Lithuanian Civil Code.
Notarisation and translation
The documents are notarised, including their translation into Lithuanian.
Share capital
An accumulation bank account is opened and the share capital is deposited.
Filing with Registrų centras
The documents are submitted to Registrų centras. The state fee for registering a legal entity is fixed and is paid upon submission of documents.
Registration code
The company obtains its registration code.
Tax registration
The company registers with the State Tax Inspectorate (VMI — Valstybinė mokesčių inspekcija).
Lithuania does not impose residency requirements on founders and directors, and remote registration is available through a notarised power of attorney.
Registration Timeline
With a complete set of correctly prepared documents, company registration in Lithuania takes 3 to 5 business days. Upon completion of registration, the company is assigned a unique registration code used in all official documents and interactions with state authorities. VAT registration is carried out separately through VMI and may be completed either simultaneously with company registration or later — upon reaching the turnover threshold. After obtaining all necessary registration codes, the company may immediately commence business operations.
Tax System in Lithuania
Lithuania offers a competitive and transparent tax system, which is one of the key factors making this jurisdiction attractive to foreign investors. As of 1 January 2026, the standard corporate income tax (CIT) rate is 17% — still one of the most competitive rates in the European Union. For small enterprises with annual revenue of up to EUR 300,000, a reduced rate of 7% applies. Newly registered small companies whose shareholders are individuals are exempt from CIT for the first two tax years, provided their annual revenue stays within EUR 300,000. This also requires that for three consecutive tax years, including the first two, the company’s activity is not suspended, the company is not liquidated or reorganised, and its shares are not transferred to new shareholders.
The standard value-added tax (VAT) rate is 21%. Mandatory VAT registration is required when annual turnover exceeds EUR 45,000.
Lithuania has concluded double taxation avoidance agreements with more than 50 countries, creating favourable conditions for international business. Dividends paid by a Lithuanian company to foreign corporate shareholders are subject to withholding tax at a rate of 17%. No tax applies where the foreign company has held at least 10% of the voting shares for at least 12 months without interruption, unless it is registered in a listed target territory. Dividends paid to foreign individual shareholders are taxed at a rate of 15%. Both rates may be reduced under the applicable double taxation avoidance agreement. The tax year coincides with the calendar year, and the annual tax return is filed by 15 June of the following year.
Lithuania also participates in the Common Reporting Standard (CRS) automatic exchange of information system and complies with OECD standards on tax transparency, making the jurisdiction reliable and predictable for international investors.
Our Experts
The COREDO team has been operating since 2016 and possesses deep expertise in company registration across various European jurisdictions.
Frequently Asked Questions
COREDO specialists provide full support throughout the company registration process in Lithuania — from selecting the optimal legal form and preparing documents to obtaining the registration code and tax registration. Our team handles all interactions with Registrų centras, VMI, and notarial authorities, allowing clients to focus on business development. We have been operating since 2016 and assist entrepreneurs from dozens of countries in successfully building business structures in Europe and beyond.
