Legal service and legal protection of business in Lithuania - COREDO

Legal service and legal protection of business in Lithuania

The Lithuanian economy is one of the fastest-growing in the European Union, ranking first among the Baltic countries in terms of GDP per capita. Lithuania holds the 11th position in the World Bank’s Ease of Doing Business rank, and it has ranked 16th in the world and 2nd in Eastern Europe in the European StartupBlink 2021 ranking, which evaluates startup ecosystems. Such industries as oil, food, energy, chemicals, services, and agriculture are well-developed here. Foreign investments in the Lithuanian economy are highly encouraged. According to the Bank of Lithuania and State Data Agency of Lithuania, as of June 30, 2022, for the second quarter of 2022, the total foreign direct investment amounted to 28.3 billion euros, increasing by 10.4% compared to the first quarter of 2022, and accounting for 46.9% of GDP. However, foreign businessmen may encounter some difficulties when opening a bank account and submitting reports.


Anyone can open a new company in Lithuania, regardless of residency. There is a program for obtaining a residence permit for investment, which allows businessmen who have registered a legal entity in the country to obtain a residence permit. However, the activities of fictitious companies opened solely to obtain citizenship have been actively monitored and controlled recently. Lithuania has a preferential policy for the administration of foreign investments, as well as reduced tax rates for non-residents.

Lithuania is particularly popular among businessmen working in the fintech field. A few years ago, the Lithuanian government eased the procedure for obtaining licences for the operation of electronic payment systems, which has attracted many new companies here.


In 2019, the Lithuanian tax system underwent significant changes. The entire taxation system was brought to a single legal framework that complies with international law. Currently, legal entities operating in this country must pay income tax (the basic rate is 15%), VAT (the rate is 21% if the company’s turnover exceeds 29,000 euros per year), contributions to the State Social Insurance Fund (both employers and employees must pay them, totalling about 40% of wages before tax). For companies employing no more than 10 people, a preferential income tax of 5% is provided. Entities operating in the agricultural sector can receive an exemption from income tax.


Conducting activities associated with risks to the environment, the health or welfare of people, or related to the security of the state in Lithuania, as well as in other countries, requires a licence. The types of businesses that require licences include restaurants, medical services, tourism, liquor sales, pharmaceutical business, construction, transportation, and more. Additionally, Lithuania is one of the few countries around the world where it is possible to obtain an official state licence to conduct cryptocurrency activities.


Most companies in Lithuania are required to submit annual financial statements. These statements must be submitted to the Registry Center (Registrų centras), which can be done in both paper and electronic formats. The scope of information required depends on various factors such as the company’s revenue, balance sheet, number of employees, and the specifics of its activities. Companies with an annual turnover not exceeding 2.9 million euros are allowed to submit an abbreviated financial report. Financial statements must comply with the requirements of the Accounting Law. Accounting standards in Lithuania are based on the International Financial Reporting Standards, yet they are more detailed here.


The range of services provided by COREDO is extensive. Our experts are well-versed in the peculiarities of Lithuanian legislation and taxation, and they can help you with the following:

  • registering a company, drafting, and certifying the necessary documents;
  • opening an account in a Lithuanian bank;
  • analysing contracts and legal acts;
  • obtaining licences necessary for doing business;
  • preparing and submitting the company’s financial statements;
  • making changes to title documents and the company’s constituent documents;
  • drafting pre-trial and judicial documents, statements, acts, complaints, and much more.

Contacting COREDO lawyers will help save a lot of time and make starting a company and doing business in Lithuania easier and more successful.


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