Company formation in Lithuania

Tax and company basics

Corporate income tax is 15%, with a reduced rate available for small companies in their first profitable years. Lithuania is in the eurozone, so there is no currency conversion layer between your entity and SEPA. The standard vehicle is the UAB — a private limited liability company with EUR 1,000 minimum share capital (EUR 2,500 for older-form companies and higher for licensed entities).

Incorporation requirements

• UAB (private limited liability company) registered with the Register of Legal Entities.
• Minimum share capital EUR 1,000, paid into a temporary account before registration.
• One director; a management board is optional for non-licensed companies.
• Registered office in Lithuania; formation possible remotely by power of attorney or e-signature.
• Annual financial statements filed; audit thresholds apply, and licensed firms are always audited.

EMI and payment institution licensing

The Bank of Lithuania licenses electronic money institutions (EUR 350,000 initial capital) and payment institutions (EUR 20,000–125,000 depending on services), plus a lighter small payment institution regime with turnover limits and no passporting. Full licences passport across the EEA, and CENTROlink gives licensed institutions direct access to SEPA without an intermediary bank.

Applications are substantive: business plan and financial projections, governance and fit-and-proper assessments for management and owners, AML/CFT policies, outsourcing and safeguarding arrangements, IT and security audit. Lithuanian-resident senior management and a local office are expected.

Company formation, banking and licensing handled together

We form the entity, prepare the due-diligence file the way an onboarding committee reads it, and take the licence application through to grant where one is required. Ownership chart, licence scope, AML/KYC policy and expected flows by corridor are prepared before any bank sees the file.