Can Foreigners Open a Company in Lithuania?

Yes — Lithuania allows both EU and non-EU citizens to establish and own companies without restrictions. There is no requirement to reside in Lithuania or have local partners in order to register a business. Foreign nationals can be sole founders and directors of Lithuanian companies.

However, some practical aspects (like bank account opening or tax registration) may be more complex for non-residents, especially if they are outside the EU. In such cases, legal representation and local support are strongly recommended.

Legal Forms Available

Foreigners typically choose from the following business structures:

UAB (Private Limited Liability Company)

• Most popular option for business in Lithuania.

• Requires minimum share capital of €1,000.

• Liability limited to company assets.

• Can have a single founder.

• Requires appointing a company director (can be the same person as the owner).

MB (Small Partnership)

• Suitable for smaller businesses or partnerships.

• No minimum capital required.

• Can be managed by members directly, no need to appoint a separate director.

• Not available to legal persons (only individuals can be founders).

Individual Activity (for freelancers)

• Easier registration.

• Personal liability is not limited.

• Suitable for self-employed professionals, consultants, or freelancers.

The choice of legal form depends on the size of the business, number of owners, tax strategy, and residency plans.

Using a Company to Apply for Residency

Starting a company in Lithuania can be used as a legal basis to obtain a temporary residence permit, especially for non-EU citizens.

Key conditions include:

• The company must operate real economic activity in Lithuania.

• It should generate income and pay taxes.

• In some cases, minimum investment or turnover thresholds must be met (e.g. €28,000 annual turnover or employment of at least one Lithuanian resident).

The Migration Department evaluates:

• Business plan viability,

• Real activity (not just formal registration),

• Financial capacity and sustainability.

For this reason, simply registering a company without actual operations is not enough. Legal assistance helps ensure the business is structured to meet migration requirements.

Remote Company Formation

Foreigners do not need to be physically present in Lithuania to establish a company. A company can be set up remotely, using a Power of Attorney (POA).

If you need help establishing a company, contact us here.