Register Your Company in Lithuania

Lithuania’s transitional VASP regime ended on 31 December 2025. Former VASP registration no longer permits a company to provide regulated crypto-asset services, and it does not automatically convert into a MiCA CASP licence.

From 1 January 2026, a Lithuania-based crypto business must hold CASP authorisation from the Bank of Lithuania unless it qualifies for the separate notification route available to certain already-regulated financial institutions.

MiCA CASP authorisation is generally required when a business professionally provides one or more of the following services:

(a) custody and administration of clients’ crypto-assets;

(b) operation of a crypto trading platform;

(c) exchange of crypto-assets for funds or other crypto-assets;

(d) execution, reception or transmission of client orders;

(e) placement of crypto-assets;

(f) crypto-asset transfer services;

(g) crypto investment advice; or

(h) crypto-asset portfolio management.

The appropriate CASP license scope depends on the company’s actual business model, target clients and whether it controls client funds, private keys or crypto-assets.

MiCA minimum capital requirements depend on the services provided:

(a) €50,000 for certain order execution, placement, transfer, advisory and portfolio management services;

(b) €125,000 where the business provides crypto custody or exchange services; and

(c) €150,000 for operating a crypto-asset trading platform.

A CASP must also maintain prudential safeguards equal to at least the higher of the applicable minimum capital requirement or one quarter of its fixed overheads from the previous year.

Applicants must disclose their direct and indirect qualifying shareholders and demonstrate that the shareholders and management are of good repute. The management body must have the knowledge, skills and experience required to operate the business.

The company must also maintain an appropriate operating centre in Lithuania. The CASP application should cover corporate governance, AML/CFT controls, ICT systems and security, client-asset protection, complaints handling, outsourcing arrangements and business continuity.

Once authorised and following the required notification, a Lithuanian CASP can provide its approved crypto-asset services in other EU Member States without applying for a separate CASP license in every country.

Lithuania may be suitable for crypto exchanges, custodial wallet providers, crypto transfer businesses and fintech companies that want a regulated EU presence and are prepared to maintain genuine local operations. It is not intended as a low-substance or simple registration jurisdiction since the Bank of Lithuania expects an operational business rather than an empty-shell company.

Digital Lawyers helps startups, founders and international crypto businesses assess whether CASP authorisation is required and identify the correct MiCA service categories.

Our support may include:

(a) reviewing the proposed crypto business model;

(b) defining the appropriate CASP license scope;

(c) structuring a Lithuanian company and its ownership;

(d) preparing a CASP licensing roadmap;

(e) coordinating governance, AML/CFT and compliance documentation;

(f) reviewing outsourcing and operational arrangements;

(g) coordinating with Lithuanian legal, tax and compliance specialists; and

(h) supporting communications and responses during the Bank of Lithuania application process.

The objective is to create a clear and practical licensing structure that supports regulatory compliance, investor due diligence and long-term expansion across the EU.

The most common legal form for a crypto or technology business in Lithuania is a private limited liability company (UAB). An ordinary UAB requires minimum share capital of €1,000 and may be established by local or foreign shareholders.

A company applying for a Lithuania CASP license must separately meet the MiCA capital, governance and prudential requirements applicable to its authorised services. These requirements should not be confused with the minimum share capital required to incorporate an ordinary UAB.

The standard Lithuanian corporate income tax rate is 17%. Eligible small companies with annual income not exceeding €300,000 may qualify for a 0% rate during their first two tax periods and a reduced 7% rate in subsequent periods, subject to the applicable conditions.

Lithuania also provides tax incentives for innovative businesses. Qualifying research and development expenses may be deducted three times, while certain profits from the commercialisation of internally developed R&D assets may qualify for a reduced 7% corporate tax rate.

The standard VAT rate in Lithuania is 21%. The exchange of cryptocurrencies that function as a means of payment for fiat currency or other cryptocurrencies is generally treated as a VAT-exempt financial service.

However, the exemption does not automatically cover every crypto-related activity. Custody services, platform fees, software subscriptions, consulting, token sales and other digital supplying crypto-related services should be assessed separately based on the nature of the service and the location and status of the customer.

Where ordinary goods or services are paid for in cryptocurrency, the normal VAT rules continue to apply.

Dividends paid to individual shareholders are generally subject to 15% personal income tax. Dividends and other distributed profits received by corporate shareholders are generally subject to a 17% rate, although a participation exemption may apply where a qualifying corporate shareholder holds at least 10% of the voting rights for an uninterrupted period of at least 12 months.

International groups should also review the Lithuanian withholding-tax treatment of interest, royalties, management fees and other intercompany payments. Applicable EU rules and double-tax treaties may reduce or eliminate tax, depending on the recipient, ownership structure and commercial substance.

A Lithuanian UAB must maintain proper accounting records and prepare and file annual financial statements. Crypto companies should record token sales, crypto trades, exchange fees, wallet transfers and payments made or received in crypto using a consistent euro valuation methodology.

Transactions should be supported by invoices, agreements, wallet records and exchange statements. A Lithuanian UAB must prepare and file annual financial statements. A statutory audit is required only where the company falls within a mandatory-audit category or meets the applicable Lithuanian thresholds. An authorised CASP must also submit the reports required by the Bank of Lithuania.

Clear crypto accounting and corporate records are important for annual tax filings, CASP compliance, banking reviews, investor due diligence and future fundraising.