Operating a Business

flag Lithuania Lithuania: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Personaliné imoné or PI (Sole proprietorship)
Number of partners: Maximum 1 shareholder.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is unlimited.
Uzdaroji ackiné bendrové or U.A.B. (Private limited liability company)
Number of partners: 1 to 250 shareholders
Capital (max/min): Minimum capital of LTL 10,000.
Shareholders and liability: Liability is limited to the capital contributed.
Akciné bendrové or AB (Public limited liability company)
Number of partners: Minimum 1 shareholder, with no maximum.
Capital (max/min): Minimum capital of LTL 150,000, out of which 25% must be deposited upon incorporation.
Shareholders and liability: Liability is limited to the amount contributed.
Tikroji ukiné bendrija or TUB (General partnership)
Number of partners: Minimum 2 shareholders.
Maximum 20 shareholders.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited for all the partners.
Kommanditiné ukiné bendrija or KUB (Limited partnership)
Number of partners: Minimum 2 shareholders.
Maximum 20 shareholders.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited for active partners and limited for sleeping partners
The Competent Organisation
The Company Register of Lithuania is the relevant organisation to be contacted for formalities in setting up a business.
Company Directories
European Business Register
 
Setting Up a Company Lithuania Eastern Europe & Central Asia
Procedures (number) 4.0 5.3
Time (days) 5.5 11.8

Source: Doing Business.

 
Business Setup Procedures
Consult the Doing Business Website, to know about procedures to start a Business in Lithuania.
Trade Register, in Lithuanian.

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The Active Population in Figures

201820192020
Labour Force 1,472,7331,469,9271,465,235

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 76.10%77.55%78.24%
Men activity rate 77.61%79.16%79.34%
Women activity rate 74.67%76.01%77.18%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
Official Statistics Portal
For Further Information About the Labour Market
Lithuania National Labour Law profile by ILO

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Working Conditions

Legal Weekly Duration
40 hours per week; the daily number of hours should not exceed 8.
Retirement Age
61.3 for women and 63.1 for men. The retirement age will gradually increase until reaching 65 years for both men and women in 2026.
Working Contracts
The Lithuanian Labour Code provides for several types of contracts: employment contract concluded for an indefinite period of time; fixed-term, temporary and seasonal contract; employment contract for additional work and secondary work; employment contract with home-workers; employment contract on the supply of services.
A fixed term contract cannot exceed five years.
Labour Laws
Consult the Doing Business Website, to obtain a summary of the labour regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
According to data from Eurostat, the minimum wage is EUR 642 per month in 2021.
Average Wage
According to the Lithuanian Office of Statistics, it amounted to EUR 1,524.2 per month in 2020.
Social Contributions
Social Security Contributions Paid By Employers: Between 1.77% and 2.77%.
Social Security Contributions Paid By Employees: 19.5%.

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Social Partners

Social Dialogue and Involvement of Social Partners
The law provides for the right of workers to form and join independent unions, bargain collectively and conduct legal strikes, but law enforcement is not effective. The Trade Union members may not be less than one-fifth of all the employees in a company.
There are three main trade unions in Lithuania: the LPSK (Lithuanian Trade Union Confederation - LPSK), the Solidarumas and the LDF (Lithuanian Labour Federation - LDF), plus some independent trade unions.
Unions
Lithuanian Trade Union Confederation
Lithuanian Labour Federation
Solidarumas
Unionisation Rate
About 8% of the active population. However, as Lithuanian legislation does not provide for obligatory registration of trade union membership, the exact number of employees represented is only an estimated figure.
Labour Regulation Bodies
Ministry of Social Security and Labour Protection

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Latest Update: November 2022