How To Start A Company In Lithuania In 2027

Last updated: November 14, 2026

To start a company in Lithuania in 2027, most founders register a private limited company (UAB) with at least €1,000 of share capital, sign the founding documents with a notary or online, and register with the Register of Legal Entities. Corporate tax is 17% from 2026, with lower rates for small companies, and standard VAT is 21%.

This guide covers each step, the main taxes, and who can help.

Choose The Right Legal Form

Most foreign founders choose a UAB, a private limited liability company. Shareholders are not personally liable for company debts.

A small partnership (MB) is an option for small local businesses, but it is less common for foreign owners.

Register Your UAB Step By Step

Registration follows a set sequence. With documents ready it can be done in days.

1. Reserve A Name

Check and reserve the company name with the Register of Legal Entities.

2. Open A Capital Account

Pay at least €250 of the €1,000 minimum share capital before registration; the rest is due within 12 months.

3. Sign Founding Documents

Articles of association are signed with a notary or through the online registration system.

4. Register The Company

The notary or online system sends the filing to the Register of Legal Entities.

5. Register For Tax

Register for VAT if you pass the threshold or need it for EU trade, and set up payroll registrations.

Understand Lithuanian Taxes In 2027

Lithuania raised its standard corporate tax rate to 17% from 2026. Small companies can pay 7%, and qualifying new small companies can pay 0% in their first two tax periods.

Standard VAT is 21%. Personal income tax is progressive at 20%, 25% and 32%.

Open A Bank Account And Hire

Lithuanian banks run detailed AML checks on foreign-owned companies, so prepare ownership documents and a business plan. Many startups also use licensed EMIs.

When you hire, register employees with Sodra and follow Lithuanian labour law on contracts and notice periods.

Who Can Help

A local accountant and a business lawyer save time on registration and compliance.

See the top accounting firms in Vilnius and the top business law firms in Lithuania.

Frequently Asked Questions

How much does it cost to start a company in Lithuania?

The main costs are the €1,000 share capital, notary and registry fees, and accounting set-up.

Can foreigners own a Lithuanian company?

Yes. Foreigners can own 100% of a UAB.

How long does registration take?

With documents ready, registration can take a few working days.

What is the corporate tax rate in Lithuania?

The standard rate is 17% from 2026, with 7% for qualifying small companies.

Conclusion

Lithuania is a fast, low-cost EU base with clear rules for new companies. If you are in payments, read how to get an EMI licence in Lithuania, and explore the Lithuania hub.