Can a foreigner set up a company in Lithuania?

Yes — a foreigner can set up a company in Lithuania and own it 100%. There is no requirement to live in Lithuania or hold Lithuanian citizenship: a foreign national can be the sole owner (shareholder), the sole manager (director) and register the company remotely — signing the documents with a qualified electronic signature or through an authorised person acting under a notarised power of attorney. The most popular form for foreigners is the private limited company (UAB), whose share capital is EUR 1,000.

In this article I explain whether you really need a place of residence in Lithuania, which legal form to choose, how remote registration works with an e-signature and a power of attorney, when a notary is needed, how much it costs and which taxes a foreign owner faces. All rates, thresholds and amounts here are indicative (2026) and for general understanding — always check the current figures at the Register of Legal Entities, VMI and "Sodra", as they are updated every year.

Citizenship and place of residence do not limit the right to own a Lithuanian company — what usually matters is not where you are from, but how you sign the founding documents: with an e-signature or through a representative.

Can a foreigner really set up a company without a residence permit?

Yes. Lithuanian law does not restrict company formation based on the founder's citizenship or residence. Both European Union and non-EU nationals can equally:

• own the company 100% — be the sole shareholder, with no local partner;
• be the sole manager (director) while living abroad;
• register the company remotely, without physically travelling to Lithuania.

It is important to separate two things. Owning and forming a company is one matter, while the right to live and work in Lithuania is quite another. You can be an owner and director without living in Lithuania and without a residence permit. But if you plan to relocate here, work through your company, or obtain residence via business, that is a separate immigration question — check it with the Migration Department, because those conditions follow their own rules, unrelated to the formation itself. In other words, the right to incorporate is the same for everyone, while the conditions for living and working in Lithuania depend on your citizenship and status.

Which legal form should a foreigner choose?

For a foreigner the choice of form also matters because of who can even be a member or shareholder:

• UAB — the most flexible option. Shareholders can be both natural and legal persons (up to 249), so a Lithuanian company can even be owned by a company registered abroad. Liability is limited, and the share capital is EUR 1,000.
• Small partnership (MB) — members can only be natural persons (up to 10), and no share capital is required. A foreign individual can be an MB member, but a foreign company cannot — this matters if you want the owner to be another business.
• Individual activity and the business certificate — these are activity forms for natural persons, where tax residency and taxation nuances are important. Whether a foreigner can use them and how they would be taxed depends on the specific situation — check the details with VMI.

Which form suits you by income, risk and admin burden is compared in detail in my article on individual activity, the business certificate or MB.

Remote registration: e-signature and power of attorney

A foreigner can set up a company without travelling to Lithuania. In practice there are two routes:

• Qualified electronic signature. If you hold a qualified e-signature issued in Lithuania or another EU state and recognised under eIDAS, you can sign the founding documents remotely and submit them to the Register of Legal Entities electronically — the fastest and cheapest route.
• Notarised power of attorney. If you do not have an e-signature (common for non-EU nationals), you can authorise a trusted person or lawyer in Lithuania to handle the setup on your behalf. The power of attorney is usually certified by a notary, and documents issued abroad may need translation and an apostille.

Whichever route you choose, the company will need a registered (registered office) address in Lithuania — this can be the address of owned or rented premises with the owner's consent. The address requirement applies equally to residents and foreigners, so it is worth arranging before you file the founding documents. I describe the whole remote process — from the e-signature to filing the documents — in how to set up a company remotely with an electronic signature.

When do you need a notary?

A notary is usually needed when not all founders can sign electronically, or when the company is set up through a power of attorney. The indicative notary fee is about EUR 85–338, depending on the share capital. For a foreigner, notary costs can be joined by translation and legalisation (apostille) of foreign documents — check the exact procedure and price with a specific notary, as it depends on your country and the documents submitted. If all founders have a suitable e-signature, a notary is often not needed at all, and the setup stays cheaper.

UAB share capital and the cost of setting up

Setting up a UAB works the same way for a foreigner as for a Lithuanian resident. The key figures (2026, indicative):

• Share capital — EUR 1,000. Before registration you must pay at least 25% (EUR 250) into an accumulation account, and the rest within 12 months.
• Electronic registration at the Register of Legal Entities — about EUR 30.
• Name reservation (form JAR-5) — about EUR 16 (the reservation is valid for up to 6 months).
• Notary, if needed — about EUR 85–338.
• Registration term — about 3 business days at the Register (realistically more often 5–10).

I describe the whole UAB setup step by step in how to set up a UAB in 2026.

Which taxes does a foreign owner face?

A company's taxation does not depend on the owner's citizenship — what matters is the company itself and its activity. The main 2026 rates:

• Corporate income tax (CIT) — 17% standard; 7% for small companies. New small companies may pay 0% for the first two years, if they have fewer than 10 employees, annual income does not exceed EUR 300,000, and they are not part of a group.
• Dividends — 15% personal income tax (GPM). How much is left "in hand" for an owner living abroad may also depend on a double taxation treaty between Lithuania and your country — check this with VMI.
• Value added tax (VAT) — 21% standard, with reduced rates of 12% and 5% for certain goods and services.

Note that profit is taxed in two layers: first at company level with corporate income tax, and then, when dividends are paid to the owner, with a further 15% GPM. So when planning the return for an owner living abroad, count both stages, not just one.

For VAT registration there is one nuance for a foreigner, depending on where the company is established:

• For a business established in Lithuania, the VAT threshold is EUR 45,000 over the last 12 months.
• For a business established abroad (not established in Lithuania) there is no such threshold — the obligation to register for VAT can arise from the very first transaction.
• When selling to individuals in other EU countries, the EUR 10,000 distance-selling threshold applies.

Example: what it costs to set up a UAB remotely

Suppose a non-EU national wants to set up a UAB remotely and will be the sole shareholder and director. Indicative figures (2026):

• State fees: registration at the Register of Legal Entities about EUR 30 + name reservation about EUR 16 = about EUR 46.
• Share capital: EUR 1,000, of which at least EUR 250 is paid into an accumulation account before registration.
• Notary (if set up via power of attorney): about EUR 85–338, plus possible document translation and apostille.
• Term: about 3 business days at the Register, realistically more often 5–10.

Note that capital is not an "expense" — it remains your company's property and is later used for its activity. So the net setup cost usually consists only of state fees and, if needed, the notary — the rest of the capital simply "moves" into the company's account.

What else to arrange after registration?

Once the company is registered, the practical part remains: a business bank account, bookkeeping, VAT registration if needed, and often a website and a flow of first clients. For a foreigner, opening a bank account sometimes takes longer due to identity and activity checks, so it is worth arranging early and having documents ready. A UAB practically always needs an accountant. I lay out the whole start — from choosing a form to the first invoice — in my guide on how to start a business in Lithuania in 2026.

Check your numbers with calculators and official sources

Before you set up a company, it is worth running your own numbers: taxes, prices with VAT and the dividend amount left "in hand". Start with the free set of calculators and always verify the current thresholds at VMI, "Sodra" and the Register of Legal Entities.

Disclaimer: all rates, thresholds and amounts in this article are indicative (2026) and for general understanding only — this is not tax or legal advice. Always check the current figures at the official VMI, "Sodra" and Register of Legal Entities sources, or consult an accountant or lawyer.

Are you a foreigner who wants to start a business in Lithuania the right way — with a website, client flow and automated invoices from day one? web1o helps you build fast websites and organise everyday processes so your start is smooth. Begin with the free calculators and, if you need a concrete plan, book a free consultation.