"Lithuania offers a predictable EU legal environment, eurozone access, and a supervisor familiar with cross-border fintech models. For founders and investors, the jurisdiction's appeal rests on precise statutory features rather than marketing claims. The following focuses on incorporation choices, governance standards expected by EU supervisors, licensing mechanics, and structuring considerations that matter when capital, compliance, and scale must align."
"The private limited liability company UAB is the default vehicle for operational businesses. The minimum share capital is 1,000 euros, there can be a single shareholder and a single director, and there is no general requirement for the director to be a Lithuanian resident. A local registered office is mandatory. Ultimate beneficial owners must be reported to the register at a 25 percent control or ownership threshold."
"Lithuania's standard corporate income tax rate is 15 percent, with a 5 percent rate available for qualifying small companies. The participation exemption can eliminate tax on dividends received where shareholding and holding period conditions are met, and outbound dividends are generally subject to 15 percent withholding tax unless relieved under the EU Parent-Subsidiary Directive or double tax treaties. The standard VAT rate is 21 percent."
Lithuania provides a predictable EU legal environment, eurozone membership, and a financial supervisor experienced in cross-border fintech models. The private limited liability company (UAB) is the standard operational vehicle, requiring minimum share capital of 1,000 euros, permitting single shareholder and director structures, and mandating a local registered office; director residency is not generally required and ultimate beneficial owners are reportable at a 25 percent threshold. Standard corporate income tax is 15 percent with a 5 percent small company rate; participation exemptions and withholding rules apply. The standard VAT rate is 21 percent. R&D incentives include a triple deduction and accelerated depreciation. Lithuania hosts a leading number of electronic money institutions and sets statutory initial capital for e-money institutions at 350,000 euro.
Read at London Business News | Londonlovesbusiness.com
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