Lithuania Simplifies Company Registration for Foreigners in 2025

Lithuania is solidifying its reputation as one of Europe’s most welcoming business destinations by making company registration easier than ever for foreigners in 2025. Streamlined digital tools, regulatory updates, and supportive infrastructure mark a new era of accessibility for international entrepreneurs and investors.

Key Improvements in 2025

Remote and Online Registration

Foreigners can now register companies fully remotely—no need for physical presence in Lithuania. Applications, signatures, and required documents are handled online, making the entire process fast and accessible from anywhere in the world.

Multilingual Support and Simplified Documentation

Registration documents and online portals are now available in both Lithuanian and English. This enables foreigners to prepare all necessary paperwork, including Articles of Association and applications, without language barriers or costly translation delays.

Reduced Minimum Capital and Fast-track Setup

• The most common company type for foreigners—a private limited liability company (UAB)—can be set up with a minimum authorized capital of €1,000.

• If using an electronic signature, registration documentation can be completed entirely online, with typical processing times as fast as 3–5 business days.

• Foreign owners are not required to have local partners; 100% foreign ownership is allowed.

Flexible Account Opening Options

Alongside traditional banks, foreigners can now use e-money and credit institutions to open the required company accounts, making it easier to handle initial capital contribution and ongoing finances.

Increased VAT Threshold

For small businesses, the mandatory threshold for VAT registration was raised in 2025 to €55,000 annual turnover. This relieves new entrants from immediate VAT obligations and simplifies compliance in the early stages of business.

Company Registration Process for Foreigners

Step	What’s New in 2025
Choose Company Structure	Standard forms available in English
Name Reservation	Online reservation with rapid response
Document Preparation	Bilingual templates; remote digital signature accepted
Capital Deposit	Can be done via local banks or credit/e-money institutions
Online Application Submission	Fully remote portal; English user interface
Incorporation Confirmation	Electronic issuance of registration and founding documents
Tax & Social Security Setup	Streamlined post-registration compliance; higher VAT threshold for relief

Additional Opportunities for Foreigners

• E-Residency Program: Lithuania continues to develop digital identity options enabling full remote access to self-service government portals, company formation, and local banking.

• No Residency Requirement: Directors and shareholders do not need to be Lithuanian residents or citizens.

• Equal Rights for Foreigners: Non-EU citizens may need some extra documentation for certain services (like banking), but the registration rights remain the same as for Lithuanians.

Why Lithuania?

• EU Single Market Access: Incorporation in Lithuania opens the door to the EU’s 500+ million consumer market.

• Business-Friendly Taxation: Corporate income tax as low as 5–15% for small and standard companies, with additional incentives for start-ups and high-innovation sectors.

• Modern Digital Infrastructure: Ranked among the EU’s best for e-governance, digital services, and internet speed.

• Local and International Support: Assistance available for foreign companies through consultants, law firms, and official state agencies, making market entry smooth and compliant.

Conclusion

In 2025, Lithuania has removed traditional hurdles and implemented digital, user-friendly solutions that make company formation simple and efficient for foreign investors. From remote online incorporation to English-language support and a raised VAT threshold, starting a business in Lithuania is now among the easiest and most transparent processes in the EU. For anyone considering expanding to Europe, Lithuania offers unmatched speed, flexibility, and opportunity.