Lithuania Frequently Asked Questions

What sectors are most attractive for investment in Lithuania?

Lithuania offers a variety of sectors that present strong growth potential for investors. Key sectors include:

  • Technology & Innovation: with a focus on AI, machine learning, blockchain, and cybersecurity, Lithuania’s tech scene is rapidly growing, particularly in the startup ecosystem.
  • Fintech: Lithuania is a leading hub for fintech in Europe, supported by favorable regulations and a highly skilled workforce.
  • Healthtech & Biotech: the healthcare and life sciences industries in Lithuania offer opportunities, particularly in digital health, telemedicine, and innovative medical technologies.
  • Renewable Energy & Cleantech: investment opportunities are growing in sustainability and energy efficiency, including wind, solar, and smart-grid technologies.
  • Logistics & Transport: Lithuania’s strategic location as a transport hub in the Baltic region makes logistics and transport a promising sector for investment.

How can I start the process of investing in Lithuania?

To begin investing in Lithuania, you can follow these steps:

  1. Research: explore the investment landscape through resources such as Invest Lithuania, Go Vilnius, and Startup Lithuania.
  2. Consult local agencies: contact agencies such as Invest Lithuania, Go Vilnius, and the Lithuanian Venture Capital Association (LT VCA) for personalised advice on navigating the local regulatory and business environment.
  3. Choose your investment strategy: decide whether you want to invest in startups, joint ventures, or established businesses. You may also consider becoming involved in early-stage funding through venture capital firms.
  4. Engage with local networks: attend events like the Startup Fair Pulse and Investor Forum to network with local investors and entrepreneurs.

Are there any government incentives for foreign investors?

Yes, Lithuania offers various incentives for foreign investors:

  • Tax Incentives: Lithuania has competitive corporate tax rates, and businesses operating in certain sectors or regions may be eligible for tax breaks and exemptions.
  • Investment grants and subsidies: foreign investors may qualify for investment grants, subsidies for infrastructure, or financial support for R&D and innovation projects.
  • EU Funding programmes: as an EU member, Lithuania provides access to numerous EU funding programs aimed at stimulating innovation and development across sectors like technology, renewable energy, and health.

For more detailed information, you can refer to Invest Lithuania or Enterprise Lithuania for tailored advice.

What is the process for establishing a business in Lithuania?

Step 1: Prepare Articles of Association and Founding Documents

You’ll need a Lithuanian business address and a general manager. The documents can be prepared with the help of a legal advisor.

  • Time: 1 day
  • Costs: Only legal fees (if using a legal advisor)

Step 2: Reserve a Temporary Company Name (Optional)

Reserve a company name by submitting a request. The name is reserved for 6 months.

  • Time: 1 day
  • Costs: Approx. 16 EUR

Step 3: Open an Accumulative Bank Account

Open an account for depositing the required share capital of at least 2,500 EUR.

  • Time: Varies
  • Costs: Free or bank fees depending on the bank

Step 4: Transfer Share Capital

Transfer the share capital to the accumulative account. If the share capital exceeds 2,500 EUR, at least 25% should be transferred to the account, with the remainder payable within 12 months.

  • Time: 1 day
  • Costs: Free or bank fees

Step 5: Notarize the Founding Documents

Have your founding documents notarized. If your country has joined the 1961 Hague Convention, the documents must be certified with an Apostille.

  • Time: 1-2 days
  • Costs: Approx. 85-338 EUR (depending on share capital)

Step 6: Register the Company in the Register of Legal Entities

After notarization, submit the documents to the Register of Legal Entities.

  • Time: Up to 3 business days
  • Costs: Approx. 32 EUR

Step 7: Convert the Accumulative Bank Account into a Settlement Account

Once the company is registered, you can convert the accumulative bank account into a settlement account for your business operations.

  • Time: 2-7 days
  • Costs: Depends on the bank

Please refer to the “Steps to start your business in Lithuania” guide developed by Invest Lithuania.

How do I find suitable investment opportunities in Lithuania?

Investors can explore various channels to find suitable investment opportunities:

What is the investment climate in Lithuania?

Lithuania has a stable and investor-friendly climate, supported by:

  • EU Membership: as a member of the European Union, Lithuania benefits from EU regulations and standards, ensuring a transparent and reliable business environment.
  • Skilled workforce: Lithuania has a highly educated workforce, particularly in technology, engineering, and business management.
  • Growing Tech & Innovation Ecosystem: the country has a vibrant startup ecosystem with numerous venture capital firms and government-backed initiatives supporting innovation and entrepreneurship.

How can I access data and research on Lithuanian investment opportunities?

You can access a wealth of information through:

  • Invest Lithuania’s online platform: Provides market analysis, sector-specific data, and detailed reports for investors.
  • Go Vilnius: offers information specific to business opportunities in the capital city.
  • Startup Lithuania: a rich source of information on the startup ecosystem, investment trends, and events.
  • Industry Associations: the Lithuanian Venture Capital Association (LT VCA) regularly publishes reports on market trends, investment activity, and startup performance.

What legal considerations should I be aware of when investing in Lithuania?

Investors should be mindful of the following:

  • Business regulations: Lithuania has a well-established legal framework for foreign investment. However, it is recommended to consult with local legal advisors to ensure compliance with all regulations.
  • Taxation: be aware of corporate tax rates and VAT regulations. Certain sectors and regions may offer tax exemptions or reductions.
  • Intellectual Property (IP): Lithuania adheres to international standards for IP protection, which is crucial for investors in the tech and innovation sectors.

What are the risks of investing in Lithuania?

While Lithuania offers many opportunities, investors should consider potential risks:

  • Market competition: the market for tech startups and investment opportunities is competitive, particularly in high-demand sectors like fintech and AI.
  • Regulatory changes: s in any market, regulations can change, and investors should stay informed about potential shifts in tax policies, labor laws, or industry-specific regulations.

Economic and political factors: while Lithuania has a stable economy, external factors (e.g., geopolitical issues or EU policy changes) could impact market conditions.