Go ahead, Indian entrepreneurs, trying to invest in new or emerging markets in Europe, focused on Lithuania. And for good reason. Over the past decade, this country has made great strides in digitalization, business support, and openness to foreign investors. Whereas earlier Lithuania was perhaps mostly known for textiles and agriculture, it is now an epicenter for IT startups, fintech, and logistics.

So, what exactly does an Indian businessman need to know before he decides to open anything here? Do you need a Lithuanian startup Visa? We will do some thoughtful consideration here.

Business Opportunities in Lithuania for Indians

Lithuania is a member of the EU and part of the Eurozone, providing access to a market of over 450 million consumers. The World Bank’s Doing Business ranking (until it was discontinued in 2020) ranked Lithuania in the top 15 countries for ease of doing business.

What this means in practice:

• opening a company takes 1–3 days;
• VAT registration takes an average of 5–7 business days;
• affordable labor and office rental costs;
• government support for innovative sectors.

Popular Areas for Indian Investors

Information Technology and Start-ups

Vilnius presents a strong pull for IT companies: it has a chain of accelerators, state co-financing for innovative projects, and also facilitates the migration of highly-qualified specialists. For example, Indian founders can avail Startup Lithuania business Visa for indian to put up a business in the AI, SaaS, HealthTech industries, or in the field of the investing in Lithuania for indians.

Logistics and Distribution

Lithuania, due to its favorable location between Scandinavia and Eastern Europe, serves as a hub for transshipment of goods. For Indian exporters, the Klaipeda Port is a common entry point to the European market.

Agricultural Sector and Food Industry

Demand for exotic spices, products, and vegetarian food is on the rise. Indian restaurants and small importers have already established themselves in Vilnius and Kaunas. This is a niche market that needs quality filling.

How to Open a Company: Step by Step

1. Choosing the form of ownership: Usually, UAB (analogue of an LLC) is chosen with a single Euro 2,500 minimum authorized capital requirement.
2. Preparing the charter and other relevant documents: Foreigners are advised to work through a local law firm or accountant.
3. Registration at the Center for Registration of Legal Entities.
4. The opening of bank accounts could be done through Lithuanian banks as well as non-European banks.
5. Registration as VAT payers if the turnover exceeds 45,000 euros in a year. Registration for permits/licenses (if applicable).

Know-about taxation:

• Profit tax — 15%.
• VAT — 21% (there can be reliefs on certain goods and services).
• Dividends — 15%; although dividends may be further reduced under the Double Taxation Agreement between Lithuania and India.

Support for New Entrepreneurs

Invest Lithuania

This is the main institution helping foreign investors with advice, finding locations, staffing needs, and networking with the public sector.

Startup Lithuania

This support program for baby companies involves legal aid, incubation programs, and access to mentors and investors.

Enterprise Lithuania

An institution concerned with the promotion of small and medium-sized enterprises, primarily in the export context.

Cultural Touch Points for Indian Entrepreneurs

• Lithuanians are rather formal, especially in the first meetings.
• English is a language of business, especially in the big cities, but documents with the government are in Lithuanian.
• Trust is slowly built, so be prepared for several meetings before signing a contract.

Prospects and Challenges

Lithuania is an open market, but not without its perils. The biggest challenges, for Indian entrepreneurs, are legal bureaucracy and adapting to the local regulations, especially during the first couple of months. However, with the right approach, the country can act as a robust platform to enter Europe.

How to start right: a few practical steps

1. Contact Invest Lithuania before your arrival — it will save you months of time.
2. Consult a tax consultant who knows both jurisdictions —  Lithuania and India.
3. Attend one of the business events in Vilnius —  networking in Lithuania works extremely effectively.
4. Consider co-working spaces as a start —  they provide not only an office, but also a community.

Advantages That Can Change Your Strategy

Starting a business in Lithuania is not only an economic step, but also a strategic decision. The country combines the advantages of a small market (flexibility, support) with access to a large European ecosystem. For Indian entrepreneurs, this is an opportunity to test the European market with minimal risks — and at the same time get a real chance to scale.