Lithuania is a fantastic place to start and grow your business. It's ranked 11th in the world for how easy it is to do business here. You'll find a friendly and supportive environment that’s designed to help you succeed and reach your goals. Starting a company in Lithuania is incredibly easy. It only takes about 3 days, and you can handle everything with an e-signature, so it’s quick and hassle-free. Once you’re set up, Lithuania’s top-rated e-government services help you avoid bureaucratic delays and focus on growing your business. 

Before establishing a company, it's crucial to assess and select the legal structure that best aligns with your business goals. 

In Lithuania, you have two great options for starting a business:

• Start a Company: This is a more traditional route where you set up a formal business entity
• Get an Individual Activity License: This is a simpler option if you’re running a one-person business

Individual Activity

• An individual activity certificate (known as individualios veiklos pažyma) is a document that shows you have registered your activity with the tax inspectorate and are allowed to perform the activity specified in the certificate. To obtain the certificate, the application must be submitted no later than before starting the activity.
• A business license (known as verslo liudijimas) is a document that confirms you have paid a fixed income tax (regardless of your actual income) and are permitted to carry out certain activities. The amount of tax is determined by the municipality. Find out how much the license will cost and what activities you can perform.

The main difference between these two options is that with a business license, you must pay the fixed income tax in advance. However, if you work under an individual activity certificate, you will pay taxes after the period ends, based on your actual income and expenses.

You can obtain an individual activity certificate and a business license from the State Tax Inspectorate (known as Valstybinė mokesčių inspekcija - VMI). The application can be submitted directly at a VMI office or electronically in the section: Services -> Individual Activity Certificate / Business Licenses -> Ordering, modifying, and managing representative details for Individual Activity Certificate / Ordering a Business License.

Common Types of Companies in Lithuania

• Individual Enterprise (known as individuali įmonė): Suitable for solo entrepreneurs looking to operate independently
• Private Limited Liability Company (known as UAB): Ideal for small to medium-sized businesses, offering limited liability protection
• Small Partnership (known as mažoji bendrija): A cooperative option for partnerships with a limited number of participants

Each type of company has its advantages, depending on your business needs and goals. 

How to set up a business in Lithuania? 

Step 1: Get Your Documents Ready  Prepare your business documents and get a Lithuanian address. You'll also need to appoint a general manager.  Time Required: 1 day  Cost: Only legal fees if you use a legal advisor 

Step 2: Reserve a Company Name (Optional)  If you want, you can reserve a temporary company name for 6 months by submitting a form (JAR-5).  Time Required: 1 day  Cost: About €16

Step 3: Open a Bank Account  Open a bank account to deposit your share capital. This account is only for the initial deposit; you can choose another bank for everyday transactions later.  Minimum Required: €2,500 Time Required: Varies  Cost: Free or bank fees 

Step 4: Deposit Your Share Capital  Transfer your share capital into the bank account. If it’s more than 2,500 EUR, you need to deposit at least 25% now, with the rest due within a year.  Time Required: 1 day  Cost: Free or bank fees 

Step 5: Notarize the Founding Documents  Get your documents notarized. If your country is part of the Hague Convention, you’ll need an Apostille. For countries not listed, your documents need legalization. In Lithuania, documents from Russia, Ukraine, Moldova, Estonia, and Latvia don’t need Apostille certification.  Time Required: 1-2 days  Cost: About €85-338, depending on the capital 

Step 6: Register the company in the Register of Legal Entities Submit your notarized documents to the Register of Legal Entities.  Time Required: Up to 3 business days  Cost: About €32

Step 7: Change to a Settlement Account  Convert your accumulative account into a settlement account for your day-to-day business transactions.