🇱🇹 Annual Compliance — Lithuania

Assuming the 5% corporate tax rate applies automatically to all small companies

Fix: Verify that your company meets all criteria: fewer than 10 employees, annual revenue under €300,000, and all shareholders are natural persons (not other companies). If a legal entity holds even one share, the reduced rate is not available. Review eligibility each year, as exceeding the thresholds triggers the standard 15% rate.

Underestimating the compliance burden of a Lithuanian fintech licence

Fix: An EMI licence requires a minimum initial capital of €350,000, a robust AML/KYC framework, a local compliance officer, and ongoing regulatory reporting to the Bank of Lithuania. Budget 6–12 months and €50,000–€150,000 in professional fees for the application process alone. Consider starting with a lighter-touch licence (e.g., payment institution) if your business model allows it.

Not paying the full €2,500 share capital before registration

Fix: Unlike Estonia, Lithuania does not allow capital deferral. The full €2,500 must be deposited in a bank accumulation account before you can file for registration. Plan your banking arrangements in advance, especially if you are a non-resident — opening even a temporary account may require documentation.

Neglecting the requirement for a Lithuanian registered address with real substance

Fix: Lithuanian authorities and banks increasingly scrutinise whether the registered address reflects genuine economic activity. A virtual address is legally sufficient for registration, but banks and the Tax Inspectorate may request evidence of actual operations. If your business has no Lithuanian employees or activity, be prepared to explain the company's connection to Lithuania.