Subsidiary / Branch Setup Lithuania
Subsidiary and Branch Setup in Lithuania – Expand with Confidence
Lithuania is rapidly becoming one of Europe’s most attractive destinations for international business expansion. Thanks to its stable economy, strategic EU location, skilled workforce, and streamlined company registration procedures, many foreign investors are setting up subsidiaries or branches in Lithuania to access the Baltic and European markets.
At UAB “AM Law”, we specialize in helping foreign companies establish a legal presence in Lithuania—whether through a branch office or a fully registered subsidiary company. With our expert legal, tax, and business consulting services, you can enter the Lithuanian market confidently and compliantly.
Why Lithuania?
Setting up in Lithuania provides significant advantages for businesses with global ambitions:
- EU and Schengen Area access
- Competitive tax regime (corporate income tax from 0%–15%)
- Highly educated, multilingual workforce
- Modern infrastructure and digital governance
- Business-friendly environment for foreign investors
Whether you want to establish a sales office, a back-office team, or a full-fledged operational base, Lithuania offers the ideal conditions for growth.
Subsidiary vs. Branch – What’s the Difference?
Before starting your expansion, it’s essential to understand the legal, tax, and operational differences between a subsidiary and a branch in Lithuania.
Subsidiary (UAB – Private Limited Liability Company)
- A separate legal entity from the parent company
- Has its own name, capital, management, and liability
- Responsible for its own accounting and taxes
- Ideal for long-term operations and larger investments
- Can enter into contracts independently
- Can receive local funding or tax incentives
Branch Office (Filialas)
- Not a separate legal entity
- Acts as an extension of the foreign parent company
- Must operate under the parent’s name and legal framework
- Cannot independently own assets or liabilities
- Must report financials of the Lithuanian activity to the parent
Choosing the right structure depends on your business goals, risk appetite, and plans for future expansion. AM Law can guide you through this decision based on your specific situation.
Step-by-Step: Setting Up a Subsidiary in Lithuania
If you choose to form a subsidiary (usually a UAB, or Private Limited Liability Company), here’s how the process typically works:
1. Initial Consultation and Structure Planning
We start by assessing your business needs, proposed activities, and tax considerations to determine the best company structure.
2. Name Reservation and Verification
We ensure your chosen company name is available and meets the Lithuanian Business Register requirements.
3. Document Preparation
We draft and translate all necessary documents, including:
- Incorporation act
- Articles of association
- Power of attorney (if signing via a representative)
- Information about shareholders and directors
4. Share Capital Deposit
The minimum capital requirement is €2,500. This can be deposited into a temporary bank account, and withdrawn after company registration.
5. Registration with the State Enterprise Centre of Registers
We file all documents electronically or in person to register your company.
6. VAT and Tax ID Registration
If applicable, we help you register for VAT, obtain a Tax Identification Number (TIN), and comply with Lithuanian tax laws.
7. Bank Account Opening
We assist in opening a permanent corporate bank account with a Lithuanian or EU-based financial institution.
8. Ongoing Legal and Accounting Support
We offer accounting, payroll, and compliance services so your new subsidiary operates smoothly from day one.
Setting Up a Branch in Lithuania
Setting up a branch office is generally faster and less complex than forming a subsidiary, but it comes with certain limitations. Here’s what the process involves:
1. Prepare Foundational Documentation
Required documents include:
- Parent company’s certificate of incorporation
- Articles of association of the parent company
- Decision of the parent company to open a branch
- Power of attorney for branch representative
2. Translate and Legalize Documents
All foreign documents must be translated into Lithuanian and, in some cases, apostilled or notarized.
3. Register with the Lithuanian Business Register
We submit the registration form and accompanying documents to the Centre of Registers.
4. Tax and Payroll Setup
We register the branch with the Lithuanian Tax Inspectorate and help establish local payroll or employee contracts if necessary.
Tax and Compliance Obligations
Subsidiary (UAB):
- Subject to 15% corporate income tax
- Must file annual financial statements and tax returns
- Eligible for incentives like 0% CIT for small companies and R&D credits
Branch Office:
- Profits from Lithuanian activities taxed at 15%
- Must maintain local accounting for Lithuanian transactions
- Parent company is liable for the branch’s obligations
Our legal and accounting team ensures that your company—whether branch or subsidiary—remains compliant with all Lithuanian corporate and tax obligations.
Supporting Services by AM Law
In addition to setting up your business structure, we provide a full range of ongoing support services, including:
- Virtual office address and mail forwarding
- Resident director or manager services (if needed)
- Accounting and bookkeeping
- Payroll services
- Annual report filing and tax declarations
- Legal advisory for commercial operations
- Intellectual property and employment law support
We act as your local partner, helping you overcome every legal, linguistic, and administrative barrier.
Why Choose AM Law?
✅ In-Depth Knowledge of Lithuanian Business Law
Our team includes lawyers, accountants, and business advisors fluent in Lithuanian legal and commercial frameworks.
✅ Fluent in International Business Practices
We understand the unique needs of foreign investors and bridge the gap between your home market and Lithuania.
✅ Full-Service Support Under One Roof
From registration to reporting, we handle every detail so you can focus on growing your business.
✅ Transparent Pricing and Timelines
We provide clear, fixed-fee packages and realistic timelines so there are no surprises.
Start Your Expansion into Lithuania Today
Whether you’re entering the Lithuanian market for the first time or looking to restructure an existing presence, UAB “AM Law” is here to guide you. With our deep expertise and business-first approach, we make setting up a subsidiary or branch in Lithuania seamless, secure, and strategically sound.
Citizenship of Lithuania
Citizenship
- Acquisition of citizenship of the Republic of Lithuania by virtue of birth.
- Restoration of citizenship of the Republic of Lithuania.
- Oath of Allegiance to the Republic of Lithuania.
- Naturalisation.
- By way of exception.
- Simplified procedure.
Right to reinstate citizenship of the Republic of Lithuania to persons who had citizenship of the Republic of Lithuania and until 15 June 1940 and their descendants who have not acquired citizenship of the Republic of Lithuania before 2011-04-01.
We could help you to get citizenship in Lithaunia.
For jobseekers:
We are searching employees from Europe who would want to work in Lithaunian companies.
For employers:
We are dealing with recruitment companies all over the world and can suggest a variety of employees.