1. Decide on the Legal Form of Your Business

The first step is choosing the appropriate legal structure for your company. The most common types are:

• Private Limited Liability Company (UAB): Most popular, requires minimum share capital of €1,000.

• Public Limited Liability Company (AB): For larger businesses, requires at least €40,000 in share capital.

• Sole Proprietorship (Individuali veikla or Mažoji Bendrija/MB): Suitable for small businesses or freelancers.

• Branch or Representative Office: For foreign companies expanding into Lithuania.

Most foreign investors and SMEs choose to establish a UAB due to its flexibility and limited liability.

2. Reserve Your Company Name

Your company name must be unique and comply with Lithuanian naming regulations. You can check name availability and reserve your preferred company name online via the Lithuanian Register Centre (Registrų Centras) portal. Reservation typically lasts for six months.

3. Prepare Incorporation Documents

To register your company, you will need to prepare and notarize the following documents:

• Articles of Association (Statutes)

• Founding Act or Founders’ Agreement

• Consent for Registered Office Address

• Identification documents of founders and directors

If you are a foreign founder, you may need certified translations of personal documents.

4. Open a Temporary Bank Account and Deposit Share Capital

Before registration, a temporary bank account must be opened in the company’s name at a Lithuanian bank. The required share capital (for UAB, at least €1,000) is deposited into this account. The bank will issue a certificate confirming the deposit.

5. Register the Company with the Lithuanian Register Centre

Submit the incorporation documents and proof of share capital to the Register Centre. This can be done in person, through an authorized representative, or online with an electronic signature. Registration typically takes 3–5 business days.

Upon approval, the company receives a unique company code and is officially listed in the Register of Legal Entities.

6. Obtain a Registered Office Address

All Lithuanian companies must have a legal registered address. This can be a physical office or a virtual office provided by service companies like pathways.lt. The address must be valid and confirmed in writing by the property owner.

7. Register for Taxes and Social Security

Once registered, your company must notify the State Tax Inspectorate (VMI) and the State Social Insurance Fund Board (Sodra). If your company’s annual turnover will exceed €45,000, you must also register for VAT (Value Added Tax).

8. Open a Permanent Bank Account

After registration, you can convert your temporary account into a permanent business account. You’ll need your certificate of incorporation and company documents for this step. Lithuanian banks may require in-person visits, but some offer remote onboarding for international clients.

9. Register Employees (if any)

If you plan to hire staff, all employees must be registered with Sodra. Employment contracts must comply with Lithuanian Labour Code. Payroll and taxes must be administered in accordance with local regulations.

10. Obtain Special Permits or Licenses (if required)

Certain business activities require additional licenses or permits (e.g., finance, transport, food industry). Check with relevant authorities to ensure full compliance before starting operations.

11. Launch Your Business

Once all legal requirements are fulfilled, you are ready to start operations. Ensure your accounting and reporting systems are set up correctly to stay compliant with Lithuanian regulations.