Expanding an Indian company into the EU: why the Baltics are the way in

For an Indian company, the EU is one market of 27 countries with shared rules on products, competition and trade. Where you enter it still matters. This guide explains why the Baltic states, and Lithuania in particular, can be a practical first base, and what to think about before you set up.

The EU-India picture in 2026

Trade between India and the EU is large and growing. According to the European Commission, the EU was India’s third-largest trading partner in 2025, with goods trade worth €118 billion, and EU-India goods trade grew by 83.7% over the last decade.

The bigger change is the free trade agreement. The EU and India concluded negotiations on 27 January 2026, and on 11 September 2026 the Commission proposed to the Council that the agreement be signed and concluded. At the time of writing (October 2026), the agreement has not yet entered into force, and separate negotiations on investment protection and geographical indications are still listed as ongoing. Tariff cuts and other benefits will only apply once the agreement is in force, so check the Commission’s EU-India page for the current status before you price anything around it.

Why the Baltics, and why Lithuania

Lithuania is not the biggest EU market, and that is part of the point. It is a manageable place to set up an EU entity, test your offer and build a team, while selling across the single market. Some reasons Indian companies look at it:

• Speed and cost of setting up. Invest Lithuania, the national investment agency, says a company can be set up in a matter of days, and that the process can be done online.
• Taxes. Invest Lithuania lists a corporate profit tax of 0 to 16%, a 6% rate on qualifying income under its patent box, and VAT at 21%. Which rate applies depends on your situation, so take tax advice.
• Talent and sectors. Invest Lithuania highlights sectors including technology, business services, fintech, life sciences, advanced manufacturing and cybersecurity.
• Free help to start. Invest Lithuania offers free advice to foreign companies, from site visits to hiring a first employee.
• Existing ties. The Embassy of India in Vilnius opened in 2023, and India and Lithuania have a double taxation avoidance agreement signed in 2011. The Embassy notes that Indian IT services and manufacturing groups already operate in Lithuania.

The Baltic states also share the euro, the Schengen area and EU membership with the rest of the bloc, so a base in Vilnius or Kaunas gives you EU-wide reach.

Choosing how to enter

There is no single right structure. The common options, from lightest to heaviest:

1. Export directly to EU customers or through a distributor, with no EU entity at all.
2. Work through a distributor or agent in one or more EU countries.
3. Open a branch of your Indian company.
4. Set up a subsidiary, typically a private limited company (UAB in Lithuania).

Many companies start with a distributor or a single pilot customer, then set up an entity once there is steady revenue. A subsidiary makes sense when you need to sign contracts locally, hire, hold stock, or reassure EU customers that they are dealing with an EU company. Capital, registration and banking rules are set by Lithuanian law: check them with Invest Lithuania and a local lawyer or accountant before you decide.

Product and market rules

The single market means one set of rules for many products, but those rules are detailed. Two to know early:

• CE marking. Many products, such as electrical equipment, machinery, toys and medical devices, must carry the CE mark before they can be sold in the EU. Your Europe explains that there is no central EU body that issues a CE certificate: the manufacturer assesses conformity, prepares technical documentation and signs an EU declaration of conformity, using a notified body where the law requires third-party testing.
• Sector rules. Food, cosmetics, chemicals, data and financial services all have their own EU and national rules. Budget time and money to understand them before launch.

If you sell software or services, contracts, data protection and invoicing rules will matter more than product certification.

Moving your people

Most Indian companies want at least one trusted person on the ground. Two routes are commonly used:

• Intra-corporate transfer (ICT). For managers and specialists who have worked for your group for at least 6 months (3 months for trainees) immediately before the transfer. The EU Immigration Portal says the permit runs for up to 3 years for managers and specialists and 1 year for trainees, and family members can apply at the same time.
• EU Blue Card. For highly qualified staff hired by the Lithuanian entity, with a contract of at least 6 months and a salary above a threshold linked to the national average wage.

Local hires are usually needed too. Lithuanian staff bring language, networks and local credibility that no transfer can replace.

Finding buyers and partners

An entity on its own does not create sales. Before you set up, it helps to know:

• who your first five EU customers are likely to be, and in which countries
• whether you will sell direct or through distributors
• what certifications and references your buyers will ask for
• how your pricing compares once logistics, duties (until the FTA applies) and local margins are added

Trade fairs, introductions through trade agencies and targeted outreach all help. Warm introductions can shorten the path to a first meeting.

How Mavericks Go helps

Mavericks Go takes companies into new markets: a market briefing and entry plan, introductions to local distributors, buyers and counterparts, trade missions, a presence at the Mavericks editions, and support after you land. Mavericks Connect makes the introductions, and every Go deal is screened against EU sanctions. We make the right introductions. We do not guarantee deals: the deals are yours.