A company in Lithuania: 0% corporate tax for the first two years
The Lithuanian UAB may be the most rational entry point into doing business in Europe. Share capital is just €1,000, and only a quarter of it — about €250 — needs to be paid in before registration. The rest can follow within a year. Better still: new small companies (under 10 employees and under €300,000 in annual revenue) pay no corporate tax at all for their first two tax years.
After that, the rates stay reasonable: 17% standard corporate tax, 7% for qualifying small companies. VAT is 21% standard with reduced rates of 12% and 5%, and VAT registration becomes mandatory once turnover passes €45,000 in a rolling 12 months.
Registration happens remotely — by power of attorney or qualified e-signature. Over 90% of Lithuanian companies use the UAB form, and the requirements are minimal: one shareholder, one director (the same person is fine, no residency needed), a Lithuanian legal address, and notarised articles of association. Our full cycle takes 7–14 days.
Our registration fee is €2,500 — the most affordable option in our lineup. Bank account opening is €500, and the VAT number is free. Ongoing support after launch: bookkeeping at €500 per month, legal address at €100 per month.
One detail worth knowing if relocation is on your mind: a founder holding at least 33% who actively manages the company can pursue a Lithuanian residence permit. We handle that process too.
Come to a free consultation and we’ll see whether the Lithuanian UAB fits your plans.