Starting a Consulting Company in Lithuania: Why It Is a Smart EU Base in 2026

A consulting business does not need factories, warehouses or heavy infrastructure. What it needs is a credible legal base, reasonable taxes, access to international clients and an administrative system that does not consume the founder’s time. Lithuania offers all of these advantages within one European Union jurisdiction.

Starting a consulting company in Lithuania can be particularly attractive for management consultants, marketing specialists, IT consultants, HR advisers, business strategists, project managers and other professionals who provide services internationally. Foreign citizens can own a Lithuanian company, work with clients across the EU and manage most administrative obligations digitally.

Why Choose Lithuania for a Consulting Business?

Lithuania combines EU credibility with relatively straightforward company administration. A Lithuanian company can enter contracts, issue invoices and receive payments in euros while operating within the EU legal and commercial framework.

This can be valuable for consultants whose clients prefer dealing with an EU-registered company. It also removes currency complications when invoicing customers across the Eurozone and provides access to the SEPA payment network.

Lithuania is not simply a low-cost registration destination. It has developed a substantial professional and global business services sector. According to Invest Lithuania, the country is home to more than 100 global business service centres employing approximately 26,000 professionals. This has created a strong environment for financial, technological, operational, compliance and management expertise.

Attractive Corporate Taxes for Small Consulting Companies

One of the main reasons to start a consulting company in Lithuania is its tax system for small and newly established businesses.

From 2026, the standard Lithuanian corporate income tax rate is 17%. However, qualifying small companies with annual revenue not exceeding €300,000 may apply a reduced 7% corporate income tax rate.

A newly established company may qualify for a 0% corporate income tax rate during its first two tax periods. To receive this benefit, the company must satisfy several conditions. Its revenue must not exceed €300,000 during each relevant period, its participants must be natural persons, and the company must comply with restrictions concerning related entities, ownership transfers, restructuring, suspension and liquidation.

The reduced rates are not automatic. Eligibility should be assessed according to the company’s ownership structure and the founder’s interests in other businesses. The current rates and qualification conditions are explained by the Lithuanian State Tax Inspectorate.

Corporate income tax is calculated on taxable profit rather than total revenue. This means that legitimate business expenses related to earning income may generally be deducted before the company’s taxable profit is calculated. Depending on the business, these expenses may include professional software, advertising, subcontractors, equipment, office costs, accounting and business travel.

When profits are distributed to an individual shareholder as dividends, Lithuania generally applies a 15% personal income tax. A double taxation agreement may provide a different withholding treatment for a foreign tax resident. The owner must also consider the tax rules of their country of residence.

VAT for Consulting Services in Lithuania

The standard VAT rate in Lithuania is 21%. A Lithuanian company generally becomes liable to register for VAT when the value of transactions treated as taking place in Lithuania exceeds €45,000 during the current or previous calendar year. VAT registration can also become necessary in other circumstances, including certain transactions involving businesses in other EU countries.

International consulting companies often benefit from the EU’s business-to-business VAT rules. When general consulting services are supplied to a VAT-registered business in another EU member state, the place of taxation is usually the customer’s country. The consultant normally issues the invoice without Lithuanian VAT, while the customer accounts for VAT through the reverse-charge mechanism.

The same treatment does not necessarily apply to private customers or to services covered by special VAT rules. The customer’s status, location and the exact nature of the service must therefore be checked before invoicing. The European Commission’s cross-border VAT guidance provides a useful overview.

Businesses that need assistance can apply for VAT registration in Lithuania before reaching the domestic threshold. Voluntary registration may be practical when the company works mainly with VAT-registered business clients or has significant VAT-bearing expenses.

MB or UAB: Which Structure Is Better for Consultants?

Most consulting businesses in Lithuania choose between an MB, or Small Partnership, and a UAB, or Private Limited Company. Both provide limited liability, meaning the owners are generally not personally responsible for the company’s obligations beyond the applicable legal limits.

An MB is usually the more flexible option for an independent consultant or a small team. It can be established with a contribution starting from €1, can have up to ten members and does not require the same formal management structure as a UAB. However, all MB members must be natural persons.

A UAB is more suitable for consulting firms that intend to expand, employ a larger team, introduce corporate shareholders or attract investors. It requires at least €1,000 in share capital and must appoint a director. The UAB structure is also more widely recognised internationally as a traditional private limited company.

The right decision depends on the number and type of owners, the expected method of paying the founder, future investment plans and the company’s intended scale. A more detailed comparison is available in our guide to MB vs UAB in Lithuania.

A Digital and Business-Friendly Administration

Lithuania has invested heavily in electronic public services. Companies can communicate digitally with the State Tax Inspectorate, submit tax declarations online and manage many corporate changes through electronic systems.

A company can often be established electronically within several business days when the founders have suitable electronic identification and all documents are prepared correctly. Foreign founders who do not have access to Lithuanian electronic identification can complete the process through a local representative or another appropriate formation procedure.

Both EU and non-EU citizens may establish a company in Lithuania, and a foreign founder can own 100% of its shares or membership rights. No Lithuanian shareholder is required. Every company must nevertheless have a registered address in Lithuania and satisfy applicable identification, documentation and anti-money-laundering requirements.

This digital environment is particularly convenient for consulting businesses because they can be operated with a relatively light physical presence. Contracts, invoices, accounting documents and client communication can all be managed electronically.

Access to EU Clients and Skilled Professionals

A Lithuanian consulting company receives a company code and, following successful VAT registration, an EU VAT number that can be verified through the VIES system. This makes it easier to demonstrate the company’s legal and tax status to customers throughout the European Union.

Lithuania also offers a multilingual and highly educated workforce. A growing company can recruit professionals in finance, technology, marketing, data, compliance, customer support and project management without moving its headquarters to a larger and more expensive European market.

For an independent consultant, this provides a clear growth path. The business can begin as a one-person operation and later add employees, subcontractors or specialised departments while keeping the same Lithuanian legal entity.

Do Consulting Companies Need a Licence?

General business and management consulting normally does not require a special licence in Lithuania. Under the current EVRK 2.1 classification, business and other management consultancy activities are generally covered by code 70.20.

However, the word “consulting” can include many different services. Investment advice, regulated financial services, legal practice, statutory auditing, healthcare advice and certain other professional activities may require qualifications, authorisation or registration with a supervisory institution.

The company’s activity description and EVRK code should therefore reflect the services it will actually provide. Selecting a general consulting code does not allow a company to perform an activity that is regulated under separate Lithuanian or EU legislation.

How to Start a Consulting Company in Lithuania

The process begins with choosing between an MB and a UAB, selecting a company name, preparing an accurate activity description and obtaining a Lithuanian registration address. The founders must then prepare the incorporation documents, register the company and arrange a business payment account.

After registration, the company should establish an accounting system, determine whether VAT registration is required and prepare compliant service agreements and invoices. Consultants working with international clients should pay particular attention to VAT treatment and the tax residency of the owner.

Professional assistance with company registration in Lithuania can simplify the process for foreign founders. BalticIncorp can handle the formation documents, registered address, ownership arrangements and communication with Lithuanian institutions. Ongoing accounting services can also be arranged after incorporation.

Is Lithuania the Right Country for Your Consulting Company?

Lithuania is particularly suitable for consultants who want a credible EU company, competitive taxation and access to international markets without unnecessarily complex administration. The possibility of a 0% corporate income tax rate during the first two tax periods, followed by a potential 7% reduced rate, makes the country especially attractive to new and relatively small consulting businesses.

Combined with digital government services, full foreign ownership, euro payments and a growing professional services ecosystem, Lithuania provides a practical foundation from which consultants can serve clients across Europe and beyond.

The final structure should always be selected according to the founder’s residence, expected revenue, client locations and plans for withdrawing profits. When these elements are evaluated before incorporation, starting a consulting company in Lithuania can be both tax-efficient and operationally straightforward.