Estonia vs Lithuania
Lithuania is £223 cheaper in year 1 and £30 a year cheaper after that.
| EstoniaPrivate limited company (OÜ)Start with 1Office | LithuaniaUABStart with 1Office | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £443 | £220 |
| Minimum, per year after | £130 | £100 |
| Typical year 1 | £1,548 | £1,535 |
| Government fee | £228€265 state fee | £50About €57 online |
| Indirect setup | £85–380 | £70–700 |
| Running per year | £130–2,045 | £100–2,100 |
| Share capital | €0.01 | €1,000 |
| Rules | ||
| Directors | No local directorA local contact person is required if run from abroad. | No local director |
| Remote setup | Fully remoteFully online with e-Residency. One trip to collect the card. | Through a providerRemote with an EU e-signature or power of attorney. |
| Audit | No audit below size thresholds | No audit below size thresholds |
| Time to form | 1 to 3 days | 1 to 2 weeks |
| Ease for foreign owners | 5/5 | 3/5 |
| Tax and banking | ||
| Corporation tax | 0% / 22%0% on profit kept, 22% when paid out. | 7% / 17%17%, or 7% under €300k revenue. Qualifying new companies pay 0% for two years. |
| Dividend withholding | None | 15% |
| VAT / GST | 24% | 21% |
| Banking | 3/5LHV and Swedbank are selective. Wise and Revolut are common. | 3/5Many e-money firms are licensed here. Local banks are selective. |
| All company setup fees in EstoniaUse 1OfficeAd | All company setup fees in LithuaniaUse 1OfficeAd | |
Questions
Is Estonia cheaper than Lithuania for company setup?
No. Lithuania is cheaper, at least £220 in year 1 against £443 for Estonia.
Which is cheaper to run each year?
Lithuania, at least £100 a year against £130 for Estonia.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
Estonia, in 1 to 3 days. Lithuania takes 1 to 2 weeks.
How does corporation tax compare?
Estonia: 0% on profit kept, 22% when paid out. Lithuania: 17%, or 7% under €300k revenue. Qualifying new companies pay 0% for two years.
Sources: Estonian Business Register · PwC · EY