Lithuania: Powering your European expansion
Lithuania offers a seamless entry point to Europe with its pro-business environment. Its cost-effective setup, tech-savvy infrastructure, and supportive government policies make it simple to establish and run a company. Whether you’re expanding operations or starting fresh, Lithuania combines accessibility with opportunity, giving you the tools to grow in a thriving European hub.
The business benefits of registering your company in Lithuania
Lithuania has become a prime destination for businesses with its efficient systems and supportive policies. HR leaders and business owners can easily manage operations, compliance, and payroll without unnecessary complications.
Here’s why Lithuania is a great choice for expanding your business:
- Boost innovation with one of the lowest corporate tax rates in Europe.
- Register your company quickly with Lithuania’s efficient online processes.
- Get started without significant upfront investment—low minimum capital required.
- Stay compliant with straightforward, transparent regulations.
- Access Europe’s single market seamlessly as part of the EU.
- Enjoy a cost-effective and tech-friendly environment for business growth.
Lithuania offers a low-cost, high-reward option for businesses aiming to establish a strong foothold in Europe.
In the next section, we’ll explore the options—standard company registration and Employer of Record (EOR)—to help you decide which approach suits your needs.
What is the difference between standard company registration and EOR?
Lithuania provides two key pathways to establish your business, each tailored to specific needs:
Aspect | Standard Registration | Employer of Record (EOR) |
Purpose | Sets up a legal entity, granting full control over operations and finances. | Enables hiring in Lithuania without entity setup; EOR manages compliance and employment. |
Control | Provides complete operational and financial control. | Operational control over employees, while the EOR handles administrative and legal tasks. |
Compliance | Full responsibility for compliance with local laws and regulations. | EOR ensures compliance with labor laws, taxes, and reporting. |
Setup Time | Longer, requiring documentation and legal formalities. | Quick, allowing immediate hiring and operations. |
Cost | Involves entity setup expenses, legal fees, and operational costs. | Service fees to the EOR, often more cost-effective than entity setup. |
Scalability | Ideal for long-term, substantial physical operations. | Highly flexible for scaling a workforce without needing a legal entity. |
Setting up a legal entity in Lithuania gives you full control but comes with time and complexity. For a faster, smoother approach, an Employer of Record (EOR) handles compliance, onboarding, and payroll—no entity needed!
Let’s dive deeper into how an EOR simplifies registration and hiring.
How EORs simplify registering a company in Lithuania
An EOR provides a fast and effective way to establish operations, hire local talent, and ensure compliance—all without setting up a legal entity in Lithuania.
Here’s how an EOR supports businesses entering Lithuania in 2025:
- Skip complex setup procedures with an EOR acting as your legal employer, so you can focus on immediate growth.
- Leave administrative tasks to the EOR, including payroll, taxes, and filings, while you prioritize your business.
- Ensure compliance with Lithuania’s labor laws through the EOR’s local expertise, reducing the risk of legal issues.
- Save costs by avoiding entity setup, freeing up resources for operations and scaling.
- Scale your team flexibly, adapting quickly to market demands without committing to long-term infrastructure.
- Access Lithuania’s talented workforce without navigating the challenges of local hiring practices or geographic barriers.
- Offer competitive, locally compliant benefits to attract top talent, with the EOR managing all administrative processes.
- Reduce legal and compliance risks while expanding confidently under the EOR’s comprehensive guidance.
With an EOR, you can enter the Lithuanian market efficiently and focus on growing your business without worrying about compliance and setup complexities.
Step-by-step guide to registering a company in Lithuania
Lithuania has simplified the process of starting a business, making it accessible and efficient. Here are the steps to set up your company with ease:
Step 1: Choose the right business structure and name
Setting up a business in Lithuania doesn’t have to be a grind. With an Employer of Record (EOR), the back-end work—employee onboarding, payroll, tax filings, and compliance—is handled for you, letting you focus on scaling your business seamlessly.
For businesses opting for the traditional route, selecting the right business structure is essential. This decision impacts legal responsibilities, tax commitments, and operational flexibility, ensuring your expansion aligns with your long-term goals.
Selecting the appropriate business structure is critical as it determines your company’s legal, financial, and operational framework.
Common business structures:
- Private Limited Liability Company (UAB): Ideal for small and medium-sized businesses, offering limited liability to shareholders.
- Public Limited Liability Company (AB): Suitable for larger companies planning to raise capital publicly.
- Sole Proprietorship (IĮ): Best for individual entrepreneurs but comes with unlimited personal liability.
Naming your company:
- Ensure the name is unique and adheres to Lithuania’s naming conventions.
- Verify availability using the State Enterprise Centre of Registers’ online search tool.
Step 2: Submit the required documentation
Once you have finalized the structure and name, prepare and submit the necessary documents to the Centre of Registers.
Documents needed:
- Articles of Association
- Founder(s) identification documents
- Proof of registered office address
- Confirmation of minimum share capital (if applicable)
- Company name reservation certificate
Submission options:
- Online: Use Lithuania’s eGovernment platform for a digital submission.
- In-person: Submit documents at a local Centre of Registers office.
Step 3: Open a business bank account
Opening a business bank account is essential for managing transactions and depositing share capital.
Options:
- Traditional Banks: Banks like Swedbank, SEB, and Luminor provide tailored business banking solutions.
- Digital Banks: Fintech platforms such as Wise or Payoneer offer flexible online banking for international businesses.
Requirements:
- Proof of company registration
- Identification documents of company representatives
- Share capital deposit receipt (if applicable)
However, creating a local bank account in Lithuania can be laborious. An Employer of Record (EOR) simplifies payroll management in Lithuania, ensures compliance with local tax laws, and eliminates risks—letting you focus on business growth.
Step 4: Register for tax and compliance
To operate legally, you must register for taxes and adhere to compliance regulations.
Tax registration:
- Value Added Tax (VAT): Required if your taxable turnover exceeds €45,000 annually. Register with the State Tax Inspectorate.
- Employer registration: If hiring employees, register as an employer for payroll taxes and social security contributions.
Compliance requirements:
- Maintain accurate financial records.
- File annual reports with the Centre of Registers.
- Comply with labor and employment laws.
Traditional entity setup in Lithuania often comes with complex compliance challenges. An Employer of Record (EOR) can help streamline compliance, provide local legal expertise, and eliminate setup burdens, allowing you to focus on growth immediately.
Now, let’s take a closer look at the costs involved in registering a company in Lithuania.
Breaking down the cost of registering a business in Lithuania
If you’re considering setting up a company in Lithuania in 2025, here’s a detailed breakdown of the expenses you should anticipate:
1. Registration costs
- State fee: Registering a private limited company (UAB) online costs approximately €57.72, with an additional €21.98 for reserving a company name.
- Share capital: A minimum share capital of €2,500 is required for a UAB, which must be deposited before registration.
- Legal address and contact person: Non-residents may need to appoint a local contact person or register a legal address, often costing around €100 to €300 per year.
- Notary fees: For in-person registration, notary services may cost between €100 and €200, depending on the complexity of the setup.
2. Annual maintenance costs
- Accounting services: Monthly accounting fees start at €50 and can increase based on transaction volume.
- Annual reports: Submission of financial statements starts at €150 per year.
- Taxes: Corporate income tax (CIT) is 15%, but Lithuania offers reduced rates for small companies under specific conditions. VAT registration is mandatory for businesses with annual revenue exceeding €45,000.
- Legal address renewal: Costs to maintain a registered address can range from €100 to €200 annually.
3. Additional considerations
- E-residency fees: While Lithuania doesn’t offer an official e-residency program, third-party services for remote management tools can range from €50 to €200 annually.
- Banking services: Setting up a business bank account typically involves account setup fees and ongoing monthly charges, which vary by provider.
By choosing an Employer of Record (EOR), you can avoid many of these upfront and ongoing expenses. An EOR simplifies operations by covering compliance, payroll, and administrative requirements for a predictable service fee.
Next, let’s compare the cost-effectiveness of standard registration and using an EOR.
Cost Comparison: Standard Registration vs. EOR
Understanding the financial implications of expanding your business is crucial. Here’s a quick comparison of the costs associated with standard company registration versus using an Employer of Record (EOR):
While traditional registration may suit businesses seeking complete control over local operations, an EOR provides a cost-effective, hassle-free alternative for registering a company in Lithuania.
Next, let’s explore how partnering with an EOR, like Multiplier, can simplify and accelerate your expansion into Lithuania.
Effortlessly establish your presence in Lithuania with Multiplier
Setting up operations in Lithuania unlocks exciting opportunities, but managing compliance, payroll, and local regulations can be daunting. With Multiplier’s Employer of Record (EOR) solution, you can step into one of Europe’s most dynamic markets while we handle the administrative and legal complexities for you.
Why Multiplier is your ideal partner for Lithuania
- Local hiring made easy
Access Lithuania’s talented workforce without the headaches. Multiplier handles contracts, onboarding, and compliance, letting you scale quickly and stress-free. - Payroll, sorted
Get payroll done right, every time. Multiplier takes care of taxes, contributions, and payouts, so you stay compliant with Lithuanian laws without lifting a finger. - HR, all in one place
Simplify team management with a platform that covers everything—onboarding, expense tracking, leave approvals, and more. Total control, zero hassle. - Compliance, done for you
Skip the red tape. Multiplier handles labor laws, tax filings, and employee protections, ensuring you’re always aligned with Lithuanian regulations. - Benefits employees love
Engage top talent with locally attractive, compliant benefit packages. Multiplier manages the details so you can focus on building your dream team. - Support that has your back
With 24/5 expert assistance, GDPR compliance, and enterprise-grade security, you’re in safe hands at every step.
Multiplier ensures every aspect of your growth in Lithuania is handled seamlessly, so you can focus on what matters most—establishing your business.
Book a Demo today to see how Multiplier’s EOR services can simplify your business’ expansion into Lithuania!
