A UAB (uždaroji akcinė bendrovė, a private limited company) is the standard legal form for a foreign-owned business in Lithuania. You do not need to be a Lithuanian citizen, an EU citizen, or even a resident of Lithuania to found one – but there are specific steps, documents, and a minimum share capital to plan for. This guide walks through what a foreign founder actually needs to do.
1. Who Can Found a UAB?
Shareholders of a UAB can be individuals of any nationality or legal entities registered anywhere in the world – Lithuanian law does not require a Lithuanian or EU shareholder. The company itself, however, must have a registered address in Lithuania. If you do not yet have your own office there, this is commonly arranged through a registered-office or virtual-office service until the business has its own premises.
Being a shareholder or even a director of a UAB does not, by itself, give you the right to live in Lithuania. If you plan to manage the company from inside the country rather than remotely, you will typically need a residence permit on a business or employment basis – see our guide to Lithuanian residence permits and visas for how that works alongside setting up a company.
2. Minimum Share Capital
Following a 2023 amendment to the Law on Companies Limited by Shares, the minimum share capital for a UAB is €1,000, lower than the €2,500 that was required before the change. This amount has to be paid into a temporary bank account and confirmed before the Register of Legal Entities completes the registration. Confirm the current figure with your bank or lawyer before transferring funds, since company law is amended from time to time.
3. Registering Remotely: Power of Attorney and a Notary
Most foreign founders are not in Lithuania when the company is formed, and in practice very few incorporate a UAB in person. The common solution is to grant a notarized power of attorney to a local representative, such as a Lithuanian lawyer, who then attends the notary and handles the registration with the Register of Legal Entities on your behalf.
If a founder is a foreign company rather than an individual, its own registration documents usually need to be apostilled (for countries party to the Hague Convention, including the United States) and translated into Lithuanian before the notary and the register will accept them. We explain the apostille process itself in our guide to the apostille in the United States.
4. Documents You Will Typically Need
- a valid passport or ID for each individual founder;
- for a corporate founder, its certificate of registration, apostilled and translated;
- the articles of association, which can be drafted in Lithuanian and English;
- minutes of the founders’ meeting, or a sole founder’s written decision, establishing the company;
- a bank certificate confirming the share capital has been paid in;
- confirmation of the company’s registered address in Lithuania.
5. Registration and What Happens Automatically
A UAB legally exists only from the moment it is entered into the Register of Legal Entities (Juridinių asmenų registras), maintained by the Centre of Registers (Registrų centras), a state enterprise under the Ministry of Justice. One practical convenience: tax registration is automatic. The Register of Legal Entities passes the new company’s data directly to the Taxpayers’ Register, so there is no separate visit to the State Tax Inspectorate (VMI) needed just to register the company for tax purposes.
6. Corporate Tax: What Changed in 2026
From January 1, 2026, Lithuania’s standard corporate income tax rate is 17% (up from 16%). Small companies that meet the statutory criteria for a “small business” continue to benefit from a reduced rate, which also rose, to 7%. A newly registered small business that meets the legal criteria can qualify for a 0% rate on its profit for its first two tax periods – this relief was extended in 2026 from one year to two. The exact criteria for what counts as a qualifying “small” or “new” company are set out in the Law on Corporate Income Tax and are not something to assume from a blog post – confirm your eligibility with VMI or your accountant before relying on any reduced rate.
7. After Incorporation
Once the UAB is registered, the founders’ temporary capital account is normally converted into (or replaced by) the company’s regular business bank account, and the company can start operating, invoicing, and hiring. If you intend to employ staff in Lithuania or bring in foreign employees of your own, Lithuanian employment law has its own requirements, which are worth reviewing separately before you sign your first local employment contract.
Get Help Before You Sign Anything
Forming a UAB is straightforward on paper, but the details that matter – the wording of the articles of association, how the power of attorney is drafted, which documents need an apostille, and whether you personally will need a residence permit – depend on your specific situation and nationality. Our lawyers in Lithuania regularly assist foreign founders through the whole process. Visit our business law services page for the full picture, or book a free 15-minute consultation to discuss your company before you start gathering documents.
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