Q&A: Company Law in Lithuania

What types of companies can be formed in Lithuania?

The most common types of business entities in Lithuania are:

• UAB (Uždaroji akcinė bendrovė) – Private Limited Liability Company

• AB (Akcinė bendrovė) – Public Limited Liability Company

• MB (Mažoji bendrija) – Small Partnership

• IĮ (Individuali įmonė) – Sole Proprietorship

• TŪB / KŪB – General and Limited Partnerships

• Branch or Representative Office – For foreign companies

The UAB is the most popular form for SMEs due to flexibility and limited liability.

What is the minimum share capital for each company?

• UAB: Minimum share capital is €1,000

• AB: Minimum share capital is €25,000

• MB and IĮ: No mandatory share capital, only member contributions required (can be non-monetary)

Share capital must be deposited before registration for UABs and ABs.

Are there any requirements for company management in Lithuania?

Yes. Each company must appoint a CEO (vadovas). In a UAB:

• The CEO can be a resident or non-resident, Lithuanian or foreign national;

• A supervisory board is optional unless required by the Articles of Association;

• For ABs, a management board and supervisory board are usually required.

What documents are required for company formation in Lithuania?

The following documents are typically required to register a company (e.g., UAB):

• Founders’ personal/company identification documents;

• Articles of Association;

• Incorporation act or agreement;

• Bank certificate of share capital deposit (unless deferral is used for small UABs);

• Consent of the company’s registered address holder;

• Application form to the Register of Legal Entities.

Documents must be submitted via the Centre of Registers (Registrų centras) or online via eRegistravimas.

What is the company registration process in Lithuania?

1. Choose company name and reserve it (optional);

2. Open a bank account to deposit share capital (for UAB/AB);

3. Prepare and sign founding documents;

4. Submit documents to the Register of Legal Entities;

5. Receive the certificate of incorporation;

6. Register for taxes (VAT, corporate income tax) if applicable.

The process typically takes 2–5 business days if all documents are in order.

Can a foreign individual or company own shares in a Lithuanian company?

Yes. 100% foreign ownership is allowed for both individuals and legal entities.
There are no restrictions for EU/EEA citizens. For certain regulated sectors, licensing may be required (e.g., finance, defense, real estate near border zones).

Are the details of the company ownership public in Lithuania

Yes, company ownership details in Lithuania are public and accessible through the official Register of Legal Entities (Juridinių asmenų registras), maintained by the State Enterprise Centre of Registers (Registrų centras).

For most companies, especially UAB (private limited companies), the following data is publicly available:

• Company name and code

• Registered office address

• Company director (CEO)

• Shareholders (including:

  • Names of individual or legal entity shareholders

  • Shareholding percentages)

• Authorised capital amount

• Articles of Association

• Financial statements

• Company status (active/in liquidation/etc.)

What is the corporate tax rate in Lithuania?

As of 2025, Lithuania applies:

• 16% – Standard corporate income tax (CIT) rate, applicable to most companies.

• 6% – Reduced rate for micro companies that meet all of the following conditions:

• Annual income does not exceed €300,000;

• The company has up to 10 employees;

• The company is not part of a group;

• Shareholders are natural persons only;

• Income is not earned from licensed or regulated activities (e.g., finance, gambling).

What are the rules for issuing dividends from a Lithuanian company?

• Dividends can be paid once per year, after approval of the annual financial statements

• Interim dividends are also allowed if audited interim financials are available

• Dividends are subject to 15% withholding tax, unless reduced by a double tax treaty (DTT) or exempt under EU Parent-Subsidiary Directive

• Dividends must be paid from retained earnings only and cannot be distributed if the company is insolvent or at risk