Holding Companies in Lithuania: Incorporation Guide

Find here the main characteristics of holding companies in Lithuania. You can rely on us if you want to open such a company in Lithuania.

Quick Facts
Legal entities used	Private limited company, public company.
Incorporation method	Holding companies in Lithuania are incorporated following the standard registration procedure established by the law.
Incorporation time	The basic incorporation procedures can take around 5 business days. However, investors can expect to complete all incorporation requirements in a period of up to 15 business days.
Types of assets owned by the holding	Holding companies in Lithuania are set up for the purpose of owning and controlling other companies. Thus, it can hold a variety of assets belonging to these companies, but it can’t engage in economic activities.
Requirement for local bank account (Yes/No)	Yes
Residency requirements for the founder(s)	Founders do not have to be Lithuanian residents when starting a holding, but if they plan to live on a long-term basis in this country, they need to obtain a residence permit. However, residency obligations will appear for other individuals involved in the management of the company.
Advantages	Holding companies in Lithuania can provide the advantage that they can be tools for asset protection or estate planning. They also benefit from tailored tax advantages, in the form of tax exemptions.
Precautions	They can be very complex structures, with very complex compliance requirements. The holding can also be legally responsible for its subsidiaries and the incorporation costs and the operating costs can represent a financial burden.
Shareholding structure	A holding can own at least 51% of a company’s shares and the shareholding can go up to 100%. However, it can also own less than the majority of shares, as long as the share percentage it offers the company the right to vote and to decide upon various corporate matters.
Minimum capital	EUR 1,000 for UAB (reduced from EUR 2,500 since 2023).
Taxation	– exemption on the payment of capital duties; – the transfer of shares is not taxed; – exemption on capital gains as long as the holding holds minimum 10% of a company’s shares for at least 2 years.
Control	The holding has control of the management of all its subsidiaries. However, the management of these subsidiaries is responsible for the subsidiaries operations (the holding does not intervene).
Registered agent requirements	Not specified.
Accounting and reporting	The company is liable to reporting on its financial activities to the Lithuanian tax authorities.
Number of double taxation treaties	58

What is a holding company?

A holding company refers to a legal entity that is incorporated in Lithuania for the purpose of owning shares in other companies (known as subsidiaries).

What company types are most suitable for a holding company?

The Lithuanian holding company can take one of the following forms: the private limited liability company (UAB) or the public limited liability company (AB).

How much does it cost to register a legal entity in Lithuania?

There are various costs and fees that must be considered when opening a company in Lithuania. For instance, our team charges EUR 750 for a standard registration package for a limited liability company (to this, you must consider startup costs, minimum share capital, state fees, etc., which are not charged by us). We recommend you address our consultants for tailored information.

In what other ways can your team assist me?

If you want to set up a company in Lithuania, you can rely on our team for separate corporate services, as reflected below:

assistance in opening a corporate bank account;
assistance in obtaining a VAT number.

Do you charge fees for the legal services offered outside the standard registration package?

Yes. If you want to benefit from the corporate services we provide outside our standard package for company formation in Lithuania, please know that we will charge additional fees. For instance, if you want to set up a bank account through our consultants, we will charge a fee of EUR 900, while for VAT registration services, we have a fee of EUR 150.

What are the main incorporation requirements?

No matter the type of structure chosen for the holding company, the following requirements must be met upon incorporation:

at least one shareholder must be appointed upon the registration of any type of business form;
a minimum share capital is required – EUR 1,000 in the case of a UAB and EUR 25,000 in the case of the AB;
the UAB must have at least one manager, while the AB must have minimum 3 managers;
audit requirements are mandatory for the AB, while for the UAB these are mandatory only if a certain annual income is registered.

Is it possible to increase the capital of a holding company?

Yes. The shareholders of a holding company have the right to increase the company’s capital, but for this they need to submit a decision to increase the capital to the Register of Legal Entities, the institution which is in charge with the registration of local businesses. The decision must also include the company’s amended articles of association; otherwise, it is considered invalid.

Can I sell the shares of the companies I own?

Yes. A holding can sell the shares of its subsidiaries. The procedure can involve specific taxes or tax exemptions. For instance, there aren’t any capital gains taxes applied to the sale of shares in the case in which the subsidiary is a company registered in the European Economic Area (EEA). Please address our consultants for further information on the tax policies that can arise from this procedure.

What are the t axation principles for holding companies in Lithuania ?

In the list below, our team of specialists in company formation in Lithuania presents some of the tax principles applicable to holdings:

no capital duties for holding companies buying shares in other companies;
a participation exemption regime is available in the case of distribution of dividends;
the transfer of shares is exempt from taxation in the case of holding companies in Lithuania, provided certain requirements are met.

The infographic below presents how to open a Lithuanian holding company:

What are the main taxes in Lithuania?

With regard to taxes, the following apply:

the basic corporate tax rate is 17% on the profit of the company;
dividends obtained from domestic shareholding can be taxed at a rate of 17%, but exemptions apply for corporate shareholders in the case in which they own at least 10% of the company’s shares and if the shareholding was maintained for at least 12 months (the same applies for foreign shareholding);
the taxation of capital gains is charged at a rate of 17%;
where the taxation of capital gains is done for shareholders who are natural persons, there is a EUR 500 annual tax exemption, while anything above is subject to personal income tax (15% for shares held for more than 5 years, otherwise the progressive rates from 2026) (differences can appear between domestic and foreign shareholders in certain situations);
the company can also benefit from the provisions of the double tax treaties signed here – currently, there are 58 such documents.

Below, you can watch a short video on holding companies in Lithuania:

For full information on the advantages of holding companies, please contact our Lithuanian company formation advisors.