Lithuania is a country that welcomes foreign investments. The process for Lithuania company formation, along with the low costs associated with it, make this Baltic jurisdiction an attractive business destination.
Backed up by a suitable legislation that promotes foreign investments and other competitive criteria, investors can find here a reliable business environment. This is why it is recommended to open a business in Lithuania as a foreigner.
Please mind that the Lithuanian legislation distinguishes between investors arriving from the European Union (EU) and the European Economic Area (EEA) and those who are third party nationals (outside the EU/EEA).
| Quick Facts | |
|---|---|
| Can foreigners open a company in Lithuania? | It is possible to open a business in Lithuania as a foreigner without any impediments, as foreign investments are actively encoraged here. |
|
Is it difficult to open a company as a foreigner? |
No, the registration process applicable to foreigners is the same as the one available for the residents/citizens of Lithuania. |
|
Do foreigners need special approval for business purposes? |
Given that Lithuania is a member state of the European Union (EU), rules may vary based on the nationality of the foreigner. |
| Is it costly to start a business? | The costs to open a business in Lithuania as a foreigner are one of the lowest in Europe. |
| Bureaucracy level in Lithuania |
In 2023, Lithuania ranked as the 34th economy at a global level (from 193 economies) on bureaucracy efficiency (World Bank study). |
| What are the benefits of starting a business in Lithuania? |
It can be a good idea to open a company in Lithuania as a foreigner considering the following: – Lithuania is an EU member state, offering free access to the entire EU market (500 million consumers); – it has a skilled workforce; – it is a good market for investments in green energy, fintech, IT, manufacturing; – businesses can obtain various incentives and government grants; – companies operating in research and development can obtain tax deductions and exemptions. |
| Types of operating costs of a business |
Accounting, employment, rent and utilities, corporate taxes (example: tax on income, VAT), etc. |
| How many businesses are registered on an annual basis? |
14,515 new entities (at the level of 2022, the latest statistical data available reported by the Official Statistics Portal) |
| What was the region with the largest business registration share? |
Vilnius (the capital city) |
| Corporate insolvency | 1,079 (in 2024) |
| Law regulating foreign investments |
Law on Foreign Capital Investment in the Republic of Lithuania, the Law on Investments |
| Does Lithuania apply a visa system for business purposes? |
It depends on the nationality (EU citizens are exempt from any visa formalities, while non-EU investors have to complete visa obligations) |
| Residency requirements for foreign shareholders |
Foreigners can become the shareholders of a Lithuanian company without meeting residency obligations. |
| Minimum salary |
EUR 1,038 per month (in 2025) |
| What types of businesses are popular in Lithuania? | Retail, wholesale, trade activities, technical activities, construction, transportation |
For these 2 categories of foreigners, different immigration procedures apply, which can, of course, influence the steps that must be taken by those who plan to set up a business in Lithuania. Our consultants in company formation in Lithuania can offer advice on the current immigration policies.
Table of Contents
Why select Lithuania for investment purposes?
Investors can start a business in Lithuania knowing that they will enter a stable market, that is an EU, NATO and Eurozone member. It is also a signatory state of many double tax treaties, which offer a set of tax advantages to foreigners obtaining taxable income in this country.
It is recommended to set up a business in Lithuania because this country offers a set of competitive advantages. The country offers a straightforward incorporation process, that has low costs compared to other European countries, an advantageous tax system and a variety of employment contracts that could meet the needs of all types of businesses.
We recommend you complete the process of company formation in Lithuania in several industries, which perform very well on the local market, some of which benefit from various tax incentives. In the list below, you can find out which are some of these sectors:
- manufacturing;
- IT and fintech;
- finance;
- transport and logistics;
- renewable energy;
- biotechnology.
Open a business in Lithuania as a foreigner – a more efficient registration process
It is advisable to open a business in Lithuania as a foreigner given that the legislation concerning company registration has recently been modified to better accommodate the needs of foreign businessmen. First of all, the entire process on company registration in Lithuania can now be fully completed online, as new digital tools have been implemented.
Thus, any individual who will open a business in Lithuania as a foreigner can benefit from an improved registration system, which brings the following novelties:
- the Lithuanian authorities provide digital forms available in the English language;
- the reservation of a company name can be made online and investors can obtain a rapid response concerning their reservation and final registration that will be accepted;
- investors can use remote digital signature when completing online forms;
- the company registration certificate can be issued as a digital document.
The procedure can be completed on the new online platform, Self Service of the State Enterprise Centre of Registers, after creating an account based on the type of authorization the foreigner has (e-resident card, for example). In the infographic below, you can read highlights useful for foreigners opening businesses in Lithuania:
Employment matters
Any investor who will open a business in Lithuania as a foreigner is interested in the characteristics of the employment market, because in most cases, newly founded companies will need local workforce. Lithuania has a skilled, educated workforce, but investors also have the possibility of hiring foreign workforce, which can be EU/EEA or non-EU/non-EEA.
For the latter category, a set of immigration procedures will need to be addressed, the employer being actively involved in the visa/residency steps that must be completed for the foreign employee. Regardless of the nationality/residency of the employee, work relationships must be established through an employment contract, and in this sense, business owners dispose of the following legal documents:
- remote work contracts;
- temporary employment contracts;
- part-time work contracts;
- fixed-term work contracts;
- permanent employment contracts;
- seasonal work contracts;
- apprenticeships contracts.
Having employees in Lithuania implies paying employment taxes, following the personal income tax system. Please mind that when you will open a Lithuanian company, as an employer, you will be required to pay a personal income tax on the salaries of the employee in amount of 20% to 32% from the value of the salary.
There are also social contributions associated with employment, and here, the employer has to pay a small tax rate, of only 1,77%. Employment also results in the payment of health insurance contributions, and our consultants in company registration in Lithuania can provide further information on the current tax rates.
What is the data on registered Lithuanian businesses?
In order to have a clear image of the Lithuanian business market, it is important to know how many business are registered here, how many of them are active, what categories of businesses are best represented on the local market, the turnover of such businesses, etc.
This is why our consultants invite those who want to start a business in Lithuania to read the following section, which collects the latest data provided by the Official Statistics Portal:
- the total number of legal entities registered in Lithuania accounted for 122,458 by 1st of January 2023 (this number does not take into consideration natural persons developing a business activity in their own name);
- the largest number of companies can be observed in Vilnius (98,811 registered companies, out of which 42,079 were active businesses);
- according to the institution, on a year-to-year basis, by 1st of January 2023, the number of small and medium sized companies increased by 8%;
- when referring to the sectoral turnover, the wholesale and retail trade was the most important business activity (accounting for EUR 59 billion).
Some of those who open a Lithuanian company will inevitably end in closing down the business, due to lack of capital, misplaced investments and other business issues or simply because they don’t want to continue their business activity. It must be noted that the number of bankruptcies is rather low (around 1,000), compared to the number of yearly registrations (14,000).
Investors who want to open a company in Lithuania are invited to address our team. With our help, you can easily open a business in Lithuania as a foreigner and discover the advantages of company setup, investment opportunities, tax benefits and numerous others, therefore do not hesitate to contact us.