Company registration in Lithuania

Registering a Lithuanian company is the smaller half of the job. The larger half is deciding which of three profit tax rates it falls under, because that is settled by the shareholder list and by the first two tax periods, both fixed at formation.

What else the country holds for a product business is described on the Lithuania page, and the same service in other countries under company registration.

Three rates, and what puts a company in each

Nought per cent, first and second periods

Open to a small entity whose income in each period stays at or below 300,000 euros, whose participants are only natural persons, and which is left alone for three consecutive periods.

Seven per cent afterwards

The reduced rate for a small entity that meets the conditions of the profit tax law and whose income in the tax period does not exceed 300,000 euros. It applies once the opening periods are behind.

Seventeen per cent as standard

The rate on taxable profit of Lithuanian entities and permanent establishments for tax periods beginning in 2026. Everything outside the small entity definition lands here.

What the relief asks for

• Income of no more than 300,000 euros, tested separately for the first and for the second tax period.
• Participants who are natural persons only: one company in the list is enough to close the door.
• No suspension, liquidation or reorganisation across three consecutive tax periods, counting the first and second.
• No transfer of shares to new participants inside those same three periods.
• The entity must fall outside the conditions that exclude a small entity from reduced rates.

How the opening periods are counted

The relief is attached to tax periods, not to calendar years. A company set up in 2025 is in its second tax period in 2026 and may take the nought per cent for it, if the conditions hold. Where income in the first period went over the ceiling but stayed under it in the second, the second may still be taxed at nought.

What the numbers look like side by side

Value added tax sits separately. The standard rate is 21%, with reduced rates of 12%, 9% and 5% for the supplies the law lists, and the profit tax rate does not move it.

What the register needs before the entry

Since 1 May 2023 the minimum authorised capital of a UAB is 1,000 euros, down from 2,500. Founders subscribe the shares and pay initial contributions in money into an accumulation account opened for the company being formed. That money is usable only after the entry, and the entry follows the contributions. The founding agreement fixes the schedule for paying the shares in full, and it cannot run longer than twelve months.

Sources: the 17% standard rate, the rates for small entities and the conditions attached to them — the State Tax Inspectorate on the 2026 changes to the profit tax law; rates of value added tax — the same authority; the minimum authorised capital and the payment of shares — the Law on Companies.