Registration of a Permanent Establishment (PE)


If a company wishes to expand without setting up a subsidiary, it has the following options:

What are the requirements for establishment of PE in Lithuania?

A foreign company is treated as having a permanent establishment in Lithuania, if activities of that foreign company is permanently conducted in the territory of Lithuania without being organized in any other form. 

Pursuant to the Lithuanian Law on Corporate Income Tax a foreign entity shall be considered to be operating through a PE in the territory of Lithuania where:
  • it permanently carries out activities in Lithuania; or
  • carries out its activities in Lithuania through a dependent representative (agent); or
  • uses a building site, a construction, assembly or installation object in Lithuania; or
  • it makes use of installations or structures in Lithuania for prospecting or extracting natural resources, including wells or vessels used for that purpose.


When is it considered that PE started its activity in Lithuania? 

A foreign entity is considered to have started its activities as of the date of concluding the first transaction in Lithuania.

Is PE registered in the Register of Legal Entities?

PE is not registered in the Register of Legal Entities and requires registration with the Tax Authority in the Register of Tax Payers.

What information is required for the registration?

  • extract from the Commercial Register;
  • a copy of passport, residence address, email, telephone number of a person who represents the foreign company;
  • Chief Accountant’s name, surname, residence address, email, telephone number, a copy of passport.

How long does it take to register the Tax payer?

Approximately 5 working days.

What are other obligations in relation to PE?

In case PE is created, a foreign entity is obliged to keep accounting records, submit tax returns and provide all supporting documentation and registers to the Tax Authority upon request.

To whom shall I apply for more information?

Please feel free to contact Lina Lapyte by e-mail: lina.lapyte@leinonen.lt or phone number: +370 618 79158.

You may also file our contact form and we will get in touch with you. 
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