Establish a Subsidiary in Lithuania: Features and Steps

Foreign investors have the possibility of establishing a subsidiary in Lithuania. Our consultants, specialized in company formation in Lithuania, can present the main traits of this structure, its tax advantages and can offer full legal representation to those who will opt to incorporate a local subsidiary.

Why open a subsidiary in Lithuania?

A subsidiary established in Lithuania is considered a legal entity, so it can acquire real estate property, hire personnel and conclude contracts without the approval of the foreign company. The most common form a subsidiary takes in the Republic of Lithuania is the private company.

Quick Facts
Definition of a subsidiary	A subsidiary is a legal entity that has its own legal personality and which is independent from the parent company that set it up. The latter is also the main shareholder of the subsidiary, owning at least 51% of the shares.
The main characteristics of a subsidiary	An independent legal entity that has the right to own various assets, including property. It does not need the approval of the parent company on management matters, or owning property and assets. It is set up as one of the legal entities available in Lithuania and it is liable for corporate taxation as per the Lithuanian tax laws.
Law applicable to subsidiaries	– Company Law, – Civil Code of the Republic of Lithuania.
Documents necessary to establish a subsidiary in Lithuania	– information on the parent company from the institutions operating in the home country of the parent company, – the parent company’s incorporation papers, – the declaration of the parent company for the set up of the subsidiary in Lithuania, – the incorporation documents of the subsidiary, – details on the business address of the subsidiary, – information on the appointed representatives.
Capital requirements (yes/no)	Yes
Company types for subsidiaries	– private company, – public company
Registration institutions	– State Tax Inspectorate, – State Insurance Fund Board, – State Enterprise Center of Registers.
Duration of the process to establish a subsidiary in Lithuania	Approximately 1 month.
Taxes imposed to Lithuanian subsidiaries	– the corporate tax, – the value added tax, – withholding taxes, – employment taxes.
Notary public procedures (yes/no)	Yes
EU Parent-Subsidiary Directive applicable in Lithuania (yes/no)	Yes
Minimum capital	EUR 1,000 (private company)/ EUR 25,000 (public company)
Parties involved in the registration process	– Lithuanian notary public, – Lithuanian registration institutions, – our specialists in company formation in Lithuania, – company representatives.
Main incorporation steps	– preparing the registration documents, – selecting a suitable legal entity, – preparing the incorporation documents for the desired legal entity, – opening a corporate bank account, – depositing the minimum share capital, – providing evidence on having a registered address in Lithuania, – registering for taxation with the State Tax Inspectorate, – obtain a tax identification number, – registering for employment.
Incorporation services offered by our consultants	Our consultants can help you establish a subsidiary in Lithuania by offering assistance in any of the incorporation steps mentioned above, as well as full assistance in post-incorporation matters, such as tax compliance and accounting.

What types of shareholders can the Lithuanian subsidiary have?

The shareholders of the subsidiary can be other legal entities.

What is the mandatory documentation required for the registration of the subsidiary?

The following documents are necessary when opening a subsidiary in Lithuania:

a declaration of the parent company’s owners acknowledging the opening of the subsidiary;
information about the parent company issued by the Trade Registerin its home country;
the statutory documents of the subsidiary which must be drafted and notarized by a Lithuanian public notary;
information about the legal address and the local representatives of the subsidiary.

What steps must I take for tax registration purposes?

The tax registration of a subsidiary in Lithuania begins by opening the bank account and depositing the capital. Then, the founder will address the Company Register, the State Tax Inspectorate(for VAT and corporate tax) and theState Insurance Fund Board. As a result, the subsidiary opened in Lithuania will receive a VAT number and a tax identification number.

What are your fees for the registration of a subsidiary?

For our corporate services we charge different fees, in accordance with the level of workload we have to put into each of our partnerships. In 2026, for the registration of a subsidiary we charge EUR 1,300.

What other services can you provide businessmen?

Our clients can also rely on our team of consultants for the following services for company formation in Lithuania:

opening a corporate bank account;
registering for VAT;
obtaining an EORI number.

We invite you to watch a short video on how to establish a subsidiary in Lithuania:

What are the characteristics of the Lithuanian private company?

It can be formed by one or more founders, but the maximum number of shareholders cannot exceed 250. A minimum share capital of EUR 1,000 must be deposited by this form of business in a bank account. The liability of the shareholders is limited by the contribution to the capital.

What are the rules of law that I must observe for the registration of a subsidiary?

If you want to open a Lithuanian company as a private company, then the main rules of law which must be followed in this case are the Company Law and the Civil Code of the Republic of Lithuania (Book Two).

Can I incorporate a subsidiary under a different business form?

Yes. Investors also have the possibility to establish a subsidiary in Lithuania as a public limited company, which has similar traits as the private company, the only difference being that the shares of the public company can be listed on the stock exchange. This entity is usually recommended for large enterprises. Our consultants can help you open a company in Lithuania operating as a public company.

What are the employment rules?

The owners of a subsidiary in Lithuania can hire local and foreign workforce, in accordance with the needs of the company. If you plan to hire foreign employees, you need to comply with the local immigration formalities. Please know that it is also possible to transfer foreign employees to work in the local offices of your company through the intra-company transfer system.

Below, you can read our infographic on how to set up a subsidiary in Lithuania in 2026:

What are the accounting requirements applicable to subsidiaries in Lithuania?

From an accounting point of view, Lithuanian subsidiaries:

must comply with the local legislation, as they are considered Lithuanian tax residents;
they will be applied the corporate tax which is levied at a rate of 17% (the tax has been increased starting with 1 January 2026);
they must register with the local authorities in order to be able to make and receive payments;
they must file VAT returns on a monthly basis and tax returns annually.

What is the alternative to a subsidiary?

Foreign businessmen can also set up a branch office in Lithuania. This structure is set up for commercial purposes, only that the parent company abroad is fully liable for its debts. More so, it has a different tax system, in the sense that it is taxed solely for the income deriving from activities carried out in Lithuania. Please refer to our team to find out if this entity is more suitable to your investment plans and budget.

For assistance in establishing a subsidiary, please contact our company registration consultants in Lithuania.

Partner: Firmengründung in Litauen, Регистрация фирм Литва