9 June 2026
Establish a Branch in Lithuania
Find here how to set up a branch office in Lithuania. You can contact our local agents if you want to open a company in Lithuania.
Foreign companies willing to perform business in the largest state in the Baltic region may open a form of business called a branch office. The branch office in Lithuania is not an independent entity (it is fully dependent on its parent company). Below, our specialists in company formation in Lithuania explain how to set up a branch office in this country.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Lithuanian law (Law on Companies of the Republic of Lithuania) |
Best Used For | It is used to develop business activities, following the same business model of the parent company. |
Minimum share capital (YES/NO) | No minimum capital requirements |
| Time frame for the incorporation (approx.) | 3-4 weeks (basic registration procedures are completed in 3-5 business days) |
| Management (Local/Foreign) | The management of the branch is established by the parent company |
| Legal representative required (YES/NO) | Yes, a local resident representative is necessary |
| Local bank account (YES/NO) | No |
| Independence from the parent company | It represents a sub-division of the parent company, dependent to the main company. |
| Liability of the parent company | The parent company is fully liable for the branch. |
| Corporate tax rate | Standard corporate tax rate is of 17% (special reduced rates of 0% and 7% are available for small companies). |
| Possibility of hiring local staff (YES/NO) | Yes |
| Documents required for the registration | Investors can establish a branch in Lithuania by submitting the following documents: – the application form; – the decision to set up a branch, taken by the board of the parent company; – the parent company’s certificate of registration and incorporation documents; – the founding documents of the branch; – the proof of payment of the registration fee; – documents attesting having a registered address in Lithuania. |
Institution in charge with the registration | State Enterprise Center of Registers |
Tax registration obligations | The branch must apply for a tax registration number and a VAT number. |
| Tax reporting | The branch is liable to the payment of all corporate taxes in Lithuania (but it is taxed only for the income generated in Lithuania, not the company’s global income). As such, it must prepare corporate tax income reports and prepare annual financial statements. |
| Taxes related to operating a branch in Lithuania | Those who will establish a branch in Lithuania will need to pay the following taxes: – corporate income tax (17%); – withholding taxes on interest, royalties (10%); – VAT (standard rate 21%); – social security contributions (1.77% to 3.03% paid by the employers); – income tax on salaries (20% to 32%). |
| Audit obligations (yes/no) | No |
| Audit exemptions | The branch is exempt from audit obligations. |
| When can a branch start its activity? | The activity of the branch can be initiated after all the registration documents, certificates, permits, are issued and the company has hired employees to carry the basic operations of the business. |
| Fees for company registration for a branch | EUR 26,57 |
| Tax number required (yes/no) | Yes |
| Accounting legislation applicable to foreign branches | The Lithuanian Accounting Law |
| Termination of business operations of a branch | – members’ voluntary liquidation; – creditors’ voluntary liquidation; – mandatory liquidation. |
| Institution in charge with the liquidation of a branch | – State Enterprise Center of Registers; – State Tax Inspectorate; – Lithuanian courts (for mandatory liquidation); – the liquidators. |
| Notary proceedings (yes/no) | Yes |
| Ways in which our team can help in registering a branch | Our consultants can help investors establish a branch in Lithuania by preparing the necessary documentation, submitting it with the local institutions, obtaining all certificates, permits and licenses, and opening a corporate bank account. |
How can your team help me incorporate a branch office in Lithuania in 2026?
Our consultants can offer the necessary legal support during the registration of a branch office. Below, we highlight some of the ways in which we can be of assistance:
- present the list of documents necessary for the registration;
- submit the paperwork and obtain the necessary certificates from the local authorities;
- register the branch for tax purposes;
- offer information on the taxes, fees and costs associated with running a business registered as a branch;
- offer ongoing tax/legal/accounting services, in accordance with the needs of your company.
What are the features of the Lithuanian branch office in 2026?
A branch established in Lithuania is not considered a legal entity and its assets are not separated from the foreign company’s assets. The full liability for its actions is taken by the parent company. If the parent company is in process of liquidation, the assets of the branch are also subject to seizure.
What are the steps for the registration of a branch in Lithuania in 2026 ?
In the list below, our consultants in company formation in Lithuania present some of the main aspects you should take into consideration when opening a branch in this country:
- the incorporation procedure of a branch office registered in Lithuania is done following the steps required by the State Enterprise Center of Registers;
- a bank account must be opened for the local branch;
- we mention that, starting with 2021, companies are also allowed to set up their bank accounts at e-money institutions, not only at commercial banks;
- a representative must be appointed;
- it is required to submit a standard application which contains the name of the foreign company and its registered address, the proof of existence in the foreign country, the name of the directors and their personal details and the decision of opening a branch;
- it is also required to provide the decision of appointing a branch representative, the powers owned by this representative, the address of the branch, the passport copies of the representative;
- the procedure is completed with the payment of the registration fee.
What are the administrative fees charged for the registration of a branch in Lithuania in 2026?
In 2026, the registration of a branch office of a foreign company will be charged with a fee of EUR 41,75. For the registration of a branch office or a representative office of a legal entity registered in Lithuania, the fee is EUR 26,57 in 2026.
Below, you can find the main steps you must follow if you want to open a Lithuanian branch in 2026:
What types of taxes can a branch be charged with in 2026?
A Lithuanian branch office can become liable to the payment of local taxes imposed to all businesses operating here (however, it can only be taxed for the income deriving from the activities carried out in Lithuania). Some of these taxes are:
- corporate income tax;
- withholding tax on dividends;
- value added tax;
- employment taxes.
What are the accounting requirements for branch offices in Lithuania?
Even if the parent company is liable for the Lithuanian branch office’s debts and obligations, being registered in this country also implies certain accounting requirements for the local legal entity. From an accounting point of view, a branch office in Lithuania must:
- register for tax and VAT purposes (VAT registration is different for branch offices of EU and non-EU companies);
- the branch must file monthly VAT returns with the Lithuanian tax authorities;
- the parent company must submit annual tax returns on behalf of the branch office;
- all accounting must comply with the Lithuanian accounting regulations.
Why should I choose a branch office over a subsidiary company?
The branch office is easier and cheaper to establish than a subsidiary. Also, the parent company will have a greater control over the branch compared to the subsidiary. Although it has similar tax obligations as the ones of the subsidiary, the subsidiary may have to comply with more regulations.
Must the branch office have a local address in Lithuania?
Yes, a legal address is a mandatory requirement for opening a branch office in Lithuania.
Who can open a branch office in Lithuania?
Any foreign company, regardless of its tax residency, can open a branch office in Lithuania, as long as it meets the requirements imposed by law.
Must the branch have a local director?
Yes, having a local representative is another requirement for opening a branch office in Lithuania.
Are there any share capital requirements for opening a branch office in Lithuania?
No, the law does not impose any minimum amount of money to establish such entity.
Below, you can watch a short video regarding the procedure to establish a branch in Lithuania:
How long does the process of company formation in Lithuania takes for a branch office?
The registration of a branch office can be completed in around 1-2 weeks, once we have gathered all the documentation required for the incorporation.
What are your fees charged for company formation services?
Our team charges various fees for the legal services we offer in connection to company formation in Lithuania. Some of the fees we currently charge in 2026 are:
- EUR 750 – the standard registration fee;
- EUR 1,300 – the fee charged for the registration of a subsidiary company (controlled by a parent company);
- EUR 150 – VAT registration services;
- EUR 250 – EORI registration services.
Observation: please mind that the fees we charge include the official fees imposed by the competent authorities.
Can you assist me in opening branches in other countries?
Yes, foreign investors can rely on us for company formation services in other countries. In the list below, you can observe some of the jurisdictions where we can assist you:
- if you want to establish branch offices in another jurisdiction, such as Brazil, we can put you in contact with our local partners;
- in case you want to set up a branch in Cyprus, this team of local lawyers – Lawyers-Cyprus.com – can help you expand your business and establish Cypriot businesses;
- we also offer company formation services in Asian countries, such as the Philippines, where we can put you in contact with our partners.
If you have any other questions or simply need assistance in setting up a branch office, please contact our company registration advisors in Lithuania.