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How to Acquire a Residence Permit in Lithuania by Registering a Company and Doing Business
Introduction
Lithuania has become one of the most attractive destinations in the European Union for entrepreneurs and investors seeking stability, a business-friendly environment, and access to the EU market. One of the most effective ways to obtain a residence permit in Lithuania is by registering a company and conducting genuine business activity within the country.
Whether you are an entrepreneur from India, Pakistan, Nigeria, or any other non-EU country, Lithuania offers a straightforward and transparent process for obtaining temporary or long-term residency through investment or company formation. This guide explains in detail how to get a residence permit in Lithuania, what requirements you must meet, and how to successfully maintain your business to keep your permit valid.
Why Choose Lithuania for Residence and Business
Lithuania stands out in the European Union for its efficient bureaucracy, low business taxes, and affordable living costs. It’s also strategically located between Western and Eastern Europe, making it a hub for logistics, IT, and international trade.
Main Advantages:
EU Residence and Free Movement – Holding a residence permit in Lithuania allows you to live and travel freely within the Schengen Area.
Business-Friendly Regulations – Lithuania ranks among the easiest countries in Europe for starting a company.
Low Corporate Tax – Small companies with fewer than 10 employees and annual income below €300,000 can pay just 5% corporate income tax.
Advanced Digital Infrastructure – Electronic signatures and e-government systems allow you to manage your company online.
Path to Permanent Residence and Citizenship – After five years of legal stay, you may apply for permanent residence, and later for Lithuanian (EU) citizenship.
Types of Residence Permits in Lithuania
Before proceeding with company registration, it’s important to understand the main types of residence permits in Lithuania:
Temporary Residence Permit (TRP) – usually granted for 1 or 2 years, renewable if business activity continues.
Permanent Residence Permit (PRP) – can be applied for after 5 years of continuous temporary residence.
For entrepreneurs, the temporary residence permit is the first step. It’s issued to non-EU citizens who register and operate a business that contributes to the Lithuanian economy.
Eligibility for a Business-Based Residence Permit
To qualify for a residence permit in Lithuania through business, you must meet several legal and practical conditions.
The key requirements include:
Registering a Lithuanian company (usually a Private Limited Liability Company – UAB).
Being a shareholder and/or manager of the company.
The company must show economic activity — it should employ at least one Lithuanian resident or generate revenue.
Minimum investment amount – usually around €28,000, with at least €14,000 contributed as share capital to the company.
Business plan and genuine operations – migration authorities require proof that the business is real and not a “paper company.”
Step-by-Step Process to Obtain a Residence Permit in Lithuania by Registering a Company
Step 1: Choose the Business Structure
Most foreign investors register a UAB (Private Limited Liability Company) because it offers:
Limited liability protection,
Simple setup procedure,
Flexibility for local or international operations.
Step 2: Register the Company
You can register your company either remotely or in person with assistance of our business immigration consultants.
The registration process typically includes:
Selecting and reserving a company name.
Preparing and signing incorporation documents.
Depositing share capital (minimum €2,500).
Registering with the Lithuanian Register Center.
Obtaining a business address and tax code.
Once the company is officially registered, you’ll receive a company registration certificate (JAR extract), which is required for your residence permit application.
Step 3: Prepare a Business Plan
A strong business plan is essential for convincing the Migration Department that your activity is real and beneficial for Lithuania’s economy.
The plan should include:
Business goals and description of services or products,
Market analysis,
Estimated financial projections,
Number of employees and planned salaries,
Investment details.
The business plan must be realistic and tailored to the Lithuanian market.
Step 4: Apply for a Temporary Residence Permit
Once your company is active, you can apply for a temporary residence permit in Lithuania as a company owner, director, or board member.
You will need to submit:
Valid passport,
Company documents (registration certificate, shareholder information),
Proof of investment,
Business plan,
Proof of sufficient funds and health insurance,
Criminal record certificate,
Residential address in Lithuania.
You can submit your application at the Lithuanian Migration Department or through a Lithuanian embassy abroad.
The processing time is typically 2 to 3 months.
Step 5: Receive and Maintain Your Residence Permit
If your application is approved, you’ll receive a temporary residence permit card, valid for one or two years. You can legally live, work, and operate your business in Lithuania during this time.
To maintain your permit, you must:
Keep your company active and compliant,
Submit annual financial reports,
Pay taxes and social contributions,
Avoid long absences from Lithuania (over 6 months in a year).
When renewing your permit, authorities may check whether your business remains legitimate and profitable.
How Many Employees Are Required?
To obtain or renew your residence permit in Lithuania through business, your company should employ at least one Lithuanian or EU citizen on a full-time basis.
Alternatively, if your company invests at least €28,000 in its operations and your shareholding is not less than one-third, this requirement may be adjusted.
Having employees demonstrates that your company is genuine and contributes to the local economy.
How Long Can You Stay in Lithuania?
With a valid residence permit in Lithuania, you can:
Live and work in Lithuania without restrictions.
Travel freely within the Schengen Zone (up to 90 days within 180 days in other Schengen countries).
Renew your permit as long as your business remains active.
After five consecutive years, you may apply for permanent residence, which grants nearly the same rights as EU citizens.
Pathway to Lithuanian Citizenship
One of the most attractive features of obtaining a residence permit in Lithuania is the potential to later acquire Lithuanian citizenship.
The general timeline is:
5 years – Temporary residence (renewed yearly or every two years).
After 5 years – Eligibility for permanent residence.
After 10 years – Eligibility to apply for citizenship, provided you meet language and integration requirements.
Lithuanian citizenship gives you the full rights of an EU citizen, including free movement, work, and residence across all EU countries.
Business Opportunities in Lithuania
To strengthen your residency application, it’s important to operate in sectors that are active and contribute to the economy.
Some popular business sectors among foreign entrepreneurs include:
IT and software development,
Logistics and transportation,
Real estate and construction,
Consulting and marketing,
E-commerce and online services.
The Lithuanian government actively supports innovation and startups through grants and incubators, making it an ideal environment for small and medium businesses.
Tax Benefits for Entrepreneurs
Lithuania’s tax system is transparent and favorable for small companies:
Corporate income tax (CIT): 15% standard rate; 5% for small businesses.
Dividend tax: 15%.
VAT (Value Added Tax): 21%, with EU VAT number eligibility.
No double taxation with many countries due to tax treaties.
By maintaining proper accounting and compliance, your company can operate efficiently with minimal tax burden.
Living Conditions in Lithuania
Lithuania offers high-quality living standards compared to its low cost of living.
Housing: Affordable apartments from €400–€700 per month in Vilnius or Kaunas.
Healthcare: Universal healthcare system accessible for residents.
Education: English-language schools and universities available.
Connectivity: Fast internet and proximity to major EU cities.
The country’s safety, green environment, and modern infrastructure make it a great place for families and entrepreneurs alike.
Common Mistakes to Avoid
Many applicants are rejected due to paper companies or improper documentation. To avoid delays or denials:
Do not register a company without real activity.
Avoid using fake addresses or employees.
Submit a professional business plan prepared by experts familiar with Lithuanian regulations.
Keep transparent accounting records.
Renew your permit on time and provide up-to-date company data.
Using a reliable immigration service provider ensures compliance with all legal and business requirements.
How We Can Help You
Our business immigration lawyers specialize in helping non-EU citizens obtain a residence permit in Lithuania through company registration and real business setup.
Their team assists with:
Company formation and legal address,
Business plan preparation,
Opening a bank account,
Residence permit application and renewals,
Accounting and tax compliance.
With over a decade of experience, our immigration consultants has successfully guided hundreds of clients from India, Pakistan, Nigeria, South Africa, and other countries in securing Lithuanian residence permits and building sustainable businesses.
Conclusion
Obtaining a residence permit in Lithuania by registering and operating a company is one of the most efficient paths to live, work, and build your future in the European Union.
With its business-friendly environment, low taxes, and access to the EU market, Lithuania offers outstanding opportunities for entrepreneurs who want to grow internationally.
By following the correct legal process and partnering with a professional consultancy, you can successfully obtain your residence permit in Lithuania, secure your place in the EU, and open the door to permanent residence and citizenship in the future.
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