Doing Business in the United Kingdom VS Lithuania – A Comparison
When choosing a location for expansion, entrepreneurs often compare established markets with fast-developing ones. The United Kingdom and Lithuania each offer benefits depending on your priorities—global reach or tech-friendly infrastructure with lower operational costs.
3E Accounting notes that the United Kingdom is known for its fast online incorporation, legal stability, and international trade access. Lithuania, on the other hand, appeals with its streamlined digital government services, low tax burden on reinvested profits, and thriving fintech scene.
Lithuania: Incorporation is available online with e-signature. Setup is usually completed in 3–5 working days, requiring local representation.
Cost of Living and Business Operations
The United Kingdom: Costs vary by city, with affordable options in regions outside London for startups and SMEs.
Lithuania: Lower rent, labour, and utility costs make it attractive for lean businesses, especially in Vilnius and Kaunas.
Access to Markets
The United Kingdom: Access to international markets via trade agreements and strong digital and logistics networks.
Lithuania: Full access to the EU single market and good connections to Nordic, Baltic, and Eastern European economies.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
The United Kingdom
Lithuania
Business Environment
Stable, regulated, globally connected
Digital-first, EU-regulated, startup-friendly
Corporate Tax Rate
25%
15% (lower for micro-entities)
Capital Gains Tax
Taxed based on asset type
Taxed on distribution only
Ease of Incorporation
Fully online, completed in 1 day
Online with e-signature, 3–5 days
Business Costs
Moderate outside London
Low rent and wage levels
Market Access
Global via trade agreements
EU, Nordic, and Eastern European access
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
Lithuania allows online incorporation with e-signature in 3–5 days. The UK system is faster and fully digital. You can compare both in this UK company registration guide.
The UK government provides business finance support including grants, tax reliefs, and loan schemes.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.