Lithuanian Subsidiary Entity Set Up

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Lithuanian Entity Set Up

Global expansion into Lithuania generally means that you need to set up an in-country entity. Setting up an entity in a foreign territory can be difficult and comes with many complexities and requirements. However, by partnering with us you create the possibility to bypass this process and utilize our Lithuanian entity. By using our PEO service we take care of the complicated paperwork. 

Setting up an entity in Lithuania involves filing in the right documents, registering at the tax office, obtaining your office address, and many more formalities. Since the rules and regulations are not always easily accessible, we created this guide to give you a head start for your expansion plans.

How to set up a Lithuanian Subsidiary

  1. Decide on the company type that suits the nature of your business, your business goals and matches your own capabilities to meet establishment requirements. Common company types include: The Lithuania Limited Liability Company (UAB), The Lithuania Public Limited Company (AB), a branch office, or a representative office.
  2. Obtain a business address in Lithuania and prepare the documents for registration.
  3. The selection of a general manager. 
  4. Check if your business requires any additional permits or documentation.
  5. Prepare the appropriate registration documents and have them translated to Lithuanian and the national language of the founder(s).
  6. Reserve a temporary company name (optional).
  7. Open an accumulative bank account in Lithuania and deposit the appropriate share capital.
  8. Notarize the registration documents at a notary’s office.
  9. Register your company at the Register of Legal Entities of Lithuania under the Center of Registers.
  10. Register with the State Tax Inspectorate for a Tax Identification Number and a VAT Number no more than 5 days after registration.
  11. Register with SODRA, the State Insurance Fund Board.
  12. Receive a VAT Number, Tax Identification Number, a certificate of registration and a unique registration number. 
  13. Open a bank account/convert accumulative account for normal commercial operation.
  14. Receive the official company seal. 
  15. You will also need to check requirements for permits and residencies for foreign employees.

Fees & Registration Times: The fees for registration are as follows – 

Process Price (EUR) Time 

  • Reservation of Company name: 16 Euro – 1 working day
  • Open a bank account: 30 Euro – 5 working days
  • Notarize documents: 72-290 Euro (depending on share capital) –  1-2 working days
  • Company Registration: 57 Euro – 3 working days

Overall, the company registration process will take about 3 weeks to complete (if there are not any delays). The registration procedures regarding employment will take more time, especially if you are bringing in employees from non-EEA countries.

Application Methods:

Company registration can take place in person or online. In some cases, to apply online you will need proof of a residence permit and/or e-residence signature. E-signatures are also provided by the Center of Registers

Benefits of setting up a Subsidiary in Lithuania

Lithuania is a strong business attraction and destination for establishing a subsidiary and growing your business’ influence. There are also significant benefits to establishing an entity in Lithuania:

  • Subsidiaries in Lithuania are taxed the same as any other resident company. 
  • Subsidiary entities in Lithuania also benefit from double tax treaties, which reduces or removes taxes on dividends, interests or royalties paid to the foreign country.
  • Lithuania boasts the largest ICT industry in the Baltic States with great potential for local and foreign expanding businesses, and is also excelling in the life sciences, textile, furniture, food, and the printing and paper industries.
  • Lithuania benefits from the name of “geographical centre of Europe”, and has established itself as a high-value export competitor. 
  • According to the Fraser Institute (2020), Lithuania is 11th globally for economic freedom. 
  • Lithuania is also the 11th globally for the ease of doing business, according to the World Bank Report (2020).
  • Lithuania is first amongst the EU countries based on the part of the active population with a tertiary education, according to Eurostat (2019).
  • Lithuania’s physical infrastructure gives a range of reliable and high-quality logistics options for investors looking to streamline their operations – markets in Northern Europe, Western Europe and Asia are all easily and affordably accessible.