Business opportunities in the Republic of Lithuania

If you have a temporary residence permit, you can carry out business activities in the territory of the Republic of Lithuania by:

o  individual entrepreneurial activity ("FOP" in Ukraine); or

o  opening a company/branch or representative office.

Individual entrepreneurial activity (under a certificate of self-employment/licence)

Individual entrepreneurial activity under a certificate of self-employment

Types of activities – any, except those prohibited by law.

Possibility to start the activity – from the date of registration.

Duration – unlimited.

The basic income tax rate depends on the amount of income.

For example, if the annual income does not exceed EUR 20 000, the rate is 5% of the income.

If the annual income exceeds EUR 20 000, the tax rate increases from 5% to 15% of the income.

If the annual income exceeds EUR 35 000, the income tax is 15%.

The tax period is 1 year. You have to file a tax declaration and pay the tax by 1 May of the following year.

The form of the tax declaration is FR0531.

The tax declaration is submitted in electronic form through the electronic declaration system (link) or in paper form by sending/providing documents to the State Tax Service.

In addition, you have to keep a book of income and expenses and have documents confirming the receipt of income (cheques, invoices, etc.).

If you use a cash register, you have to also keep a book of cash transactions.

You have to use a cash register if you carry out trading activities (trade in food and other goods) in buildings, premises, as well as in kiosks, wagons, mobile homes, a shop on wheels, etc.

Registration procedure:

You need to fill in and submit the Application form REG812 to the State Tax Service of the Republic of Lithuania (VMI).

You can submit the application in person, by post, by e-mail or through the online portal "MY STI/Mano VMI Area".

You can start your business activity from the date of submission of the Application.

After submitting the Application, the State Tax Service will include you in the register of taxpayers and provide you with a certificate of registration of an individual entrepreneur (form FR0469).

Individual entrepreneurial activity under a licence

The types of activities are limited and are set out in the licence (e.g., provision of footwear manufacturing services, watch and jewellery repair, etc.)

A full list of activities that require a licence can be found by following the link.

Possibility to start the activity – from the moment you receive a licence (the licence is issued no later than 4 days after submitting an application for registration).

The licence is valid for 1 year.

The basic income tax rate is fixed.

The tax rate is set annually by municipalities and is payable before obtaining a licence.

The specific rate depends on the type, area of activity, etc.

You can use a special calculator to calculate the tax charged by a particular municipality under the licence by following this link.

The person who has obtained the licence or one of the following family members may carry out the activity: father, mother, child aged 14 or older, ward, guardian (trustee).

The maximum amount of income is EUR 45 000.

If the income exceeds this amount, the excess is subject to income tax at a rate of 15%.

The procedure for obtaining a licence:

You need to go to the "MY STI" portal in the section "Services" > "Licences" > "Business licences" > "Ordering a Business licence".

Instructions for registering on the portal can be found by following this link.

You can also obtain a licence by contacting your local office of the State Tax Service (STI).

A tax declaration is not required for this type of individual entrepreneurship.

To cancel the status of an individual entrepreneur, you have to submit an application in electronic form (via the "MY STI" portal) or in person using the REG812 form to the local office of the State Tax Service (STI).

You have to submit the application within 5 business days from the date of actual termination of your business.

Please note that visits to local STI offices are only possible by appointment.

Contacts can be found by following this link.

Important!

Individual entrepreneurs from Ukraine who arrived in the Republic of Lithuania (i) after 24 February 2022 and (ii) continue to carry out activities on the basis of contracts concluded with clients in Ukraine before arriving in the Republic of Lithuania are exempt from paying income tax.

Incorporation of a company/branch or representative office

Limited liability company (UAB)

The minimum number of participants is 1 person.

The maximum number of shareholders is unlimited.

The minimum amount of the authorised capital is EUR 2 500.

Shareholders' liability is limited (shareholders are not liable for the company's obligations).

Joint stock company (AB)

The minimum number of shareholders is 1 person.

The maximum number of shareholders is unlimited.

The minimum amount of the share capital is EUR 40 000.

Shareholder's liability is limited (shareholders are not liable for the company's obligations).

Private enterprise (II)

The minimum number of founders is 1 person.

The maximum number of founders is unlimited.

There is no requirement for a minimum amount of charter capital.

Founder's liability is unlimited (the founders are liable for the obligations of the private enterprise).

Agricultural company (ŽŪB)

The minimum number of founders is 2 persons (members of the management board).

The maximum number of founders is unlimited.

There is no requirement for a minimum amount of share capital.

Founders' liability is limited (founders are not liable for the company's obligations).

Branches and representative offices

The head office located abroad is responsible for the obligations.

The branch may trade within the volumes clearly defined by the head office.

At least one manager has to reside in the Republic of Lithuania.

For detailed information on the procedure, forms, list of documents, and the cost of registering companies of various organisational forms, please follow this link.

The decision to liquidate a company is made by the shareholders at a general meeting.

The liquidation procedure is carried out by the management board or a liquidator.

The liquidator publicly announces the liquidation in the source specified in the charter, along with written notice to all creditors of the company.

After making settlements with creditors, the property of the liquidated company is distributed in proportion to the nominal value of the shares.

The basic corporate income tax rate for legal entities of any legal form is 15%.