Company Compliance in Lithuania 2025: Annual Legal Obligations for Businesses

Running a company in Lithuania comes with clear legal responsibilities. Company compliance in Lithuania is not optional, and failing to meet annual legal obligations can lead to fines, restrictions, or even forced liquidation. In 2025, regulatory oversight remains strict, especially for companies operating in Vilnius, Kaunas, and Klaipėda, where most foreign-owned businesses are registered.

This guide explains annual company compliance in Lithuania in a clear, practical way. It is written for foreigners, expats, entrepreneurs, investors, and employers who want to stay compliant with Lithuanian law while focusing on business growth.

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Legal Background in Lithuania

Company compliance in Lithuania is regulated by several core laws and institutions. Understanding this legal framework is essential for meeting annual obligations correctly.

The main legal acts include:

• Law on Companies of the Republic of Lithuania
• Civil Code of Lithuania
• Law on Financial Statements of Entities
• Law on Corporate Income Tax
• Law on State Social Insurance
• Law on Value Added Tax (VAT)

Key authorities involved in company compliance are:

• Centre of Registers (Registrų centras) – company registry and financial statements
• State Tax Inspectorate (VMI) – taxes and declarations
• State Social Insurance Fund Board (Sodra) – employee contributions
• Statistics Lithuania – mandatory statistical reporting

Lithuanian companies, including UAB (Private Limited Liability Company) and MB (Small Partnership), must comply regardless of whether they are actively trading or temporarily inactive.

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Step-by-Step Legal Process

To maintain proper company compliance in Lithuania, businesses must follow a structured annual process. Below is a practical step-by-step overview for 2025.

1. Prepare Annual Financial Statements

Every Lithuanian company must prepare annual financial statements for the previous financial year.

This applies even if:

• The company had no income
• The company was dormant
• The shareholders are non-residents

Statements must follow Lithuanian accounting standards or IFRS (if applicable).

2. Approve Financial Statements

Financial statements must be approved by:

• The shareholder(s) of a UAB
• The members of an MB

Approval is usually done via a written resolution or meeting minutes.

3. Submit Financial Statements to the Centre of Registers

Approved statements must be filed electronically with the Centre of Registers.

Deadline:

• By 31 May 2025 (for companies with a calendar financial year)

Late submission leads to administrative fines and public non-compliance records.

4. File Annual Corporate Tax Returns

Companies must submit:

• Corporate Income Tax Return (PLN204)

Deadline:

• By 15 June 2025

Even loss-making or inactive companies must submit a return.

5. Declare and Pay Taxes

Depending on activity, companies may need to declare and pay:

• Corporate income tax
• VAT
• Withholding taxes
• Advance corporate tax payments

All tax obligations are handled via the VMI online system.

6. Fulfil Employment and Social Security Obligations

If the company employs staff or directors, it must:

• Submit monthly payroll declarations
• Pay social security contributions to Sodra
• File annual employment summaries

7. Submit Statistical Reports (If Required)

Some companies receive mandatory statistical surveys from Statistics Lithuania.

These are legally binding and must be completed on time.

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Key Legal Requirements & Documents

To ensure full company compliance in Lithuania, the following documents and filings are required annually.

Mandatory Annual Documents

• Annual financial statements
  • Balance sheet
  • Profit and loss statement
  • Explanatory notes
• Shareholder approval resolution
• Corporate income tax return (PLN204)
• Centre of Registers filing confirmation

Tax and Employment Documents

• VAT returns (if VAT-registered)
• Payroll declarations (monthly)
• Social insurance contribution reports
• Annual employment summaries

Additional Compliance Requirements

• Updated beneficial owner information (UBO)
• Valid company address registered in Lithuania
• Proper accounting records maintained for at least 10 years

Failure to maintain any of the above can trigger audits or penalties.

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Common Legal Mistakes to Avoid

Many compliance issues arise not from intent but from misunderstanding Lithuanian legal requirements.

Assuming Inactive Companies Have No Obligations

Even if a company:

• Has no employees
• Has no revenue
• Has no bank activity

It must still file:

• Financial statements
• Tax returns

Missing Filing Deadlines

Late filings can result in:

• Administrative fines
• Public non-compliance status
• Restrictions on dividend distribution
• Increased audit risk

Incorrect Accounting Standards

Using foreign accounting rules instead of Lithuanian standards can invalidate financial statements.

Ignoring Director and Shareholder Obligations

Company directors may face personal liability for:

• Failure to submit filings
• Inaccurate declarations
• Misrepresentation of data

Not Updating Beneficial Ownership Data

Failure to update UBO information may lead to:

• Fines
• Banking restrictions
• Compliance flags

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Frequently Asked Questions (FAQ)

What are the annual compliance obligations for companies in Lithuania?

They include financial statements, corporate tax returns, tax payments, and employment/social security reporting.

Do foreign-owned companies have the same obligations?

Yes. All companies registered in Lithuania follow the same compliance rules.

What happens if financial statements are not submitted?

The company may face fines, public non-compliance status, and possible forced liquidation.

Is compliance required for inactive companies?

Yes. Inactive companies must still submit financial and tax filings.

Can directors be personally liable?

Yes. Directors can be held administratively liable under Lithuanian law.

Where are filings submitted?

Through:

• Centre of Registers
• State Tax Inspectorate (VMI)
• Sodra systems

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Conclusion

Company compliance in Lithuania in 2025 requires accuracy, transparency, and punctuality. From financial reporting to tax and employment obligations, compliance protects companies, directors, and shareholders from legal and financial risks.

For businesses operating in Vilnius, Kaunas, Klaipėda, and across Lithuania, meeting annual legal obligations is essential for long-term stability and credibility.