Entity Formation in Lithuania (UAB)

Ready for a permanent Lithuanian presence? We help you incorporate a UAB (Uždaroji akcinė bendrovė) the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest Timing

What forming a UAB in Lithuania means

A UAB (Uždaroji Akcinė Bendrovė) is Lithuania’s private limited company, the standard vehicle for a permanent business presence. When you form one, you become the legal employer and operator in Lithuania, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your Own Company

A UAB makes you the legal employer and operator in Lithuania, with full control of employment terms and a local brand presence.

02

Lower Cost at Scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup Takes Weeks

Incorporation typically takes one to three weeks, and you cannot employ anyone until it completes. Timing the move matters, which is why many companies bridge with an EOR first.

How forming a UAB works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm a UAB is right for you, then prepare the incorporation documents, reserve the company name, and arrange your registered Lithuanian address.

02 — Capital & notarisation

Share capital (currently €1,000, at least €250 upfront) is deposited, and the company is filed with the Centre of Registers, largely online with an e-signature.

03 — Register the company

Corporate tax and VAT accounts are set up with VMI, so you can operate and employ compliantly.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What forming a UAB in Lithuania costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. Lithuania is comparatively low on both. We give you a clear figure before you commit.

Share capital & formation

Minimum share capital is currently €1,000 (at least €250 paid before registration, the balance within 12 months). This is equity you own, not a fee. Plus state registration and e-signature costs, modest by EU standards.

Corporate tax

17% standard. Reduced 7% for small companies (turnover up to €300k), and 0% for the first two years for qualifying new small companies.

VAT

Standard rate 21%, with registration once turnover passes €45k and periodic returns once trading.

Ongoing Obligations

Accounting, monthly payroll (GPM and Sodra), VAT and corporate tax filings, and annual reporting, all of which we can manage for you.

Why form your Lithuanian UAB through Bradford Jacobs

Why companies incorporate in Lithuania through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your UAB runs, not just exists.

  • Beyond registration
  • Ongoing compliance
  • One team throughout

The right specialists, in place

Notary, tax, and accounting partners we have vetted and worked with, including the notarial step Lithuania requires that some neighbouring markets skip entirely, coordinated for you so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

Two decades of formations

Two decades forming and running entities across Europe and the Baltics, with the local knowledge to get a UAB’s EUR 1,000 minimum share capital, notarial formalities, and Registrų centras filing right the first time, and out of the common traps.

  • UAB formations
  • Notary & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your UAB operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The UAB trap that catches foreign founders

A growing business hits a good quarter and someone says, let us just set up a proper Lithuanian company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin.
Reality: incorporation takes one to three weeks and longer with any complication, share capital must be deposited, a registered Lithuanian address and director obligations apply, and you cannot legally employ anyone in the gap.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a UAB needs a shareholder resolution, creditor notification, and a winding-up period. And once it exists, the obligations do not stop: annual accounts, monthly GPM and Sodra filings, corporate tax and VAT returns, and director liability. None of this is a reason not to form a UAB. It is a reason to form it at the right time, with the right partners already in place.

What we handle for your UAB

Beyond incorporation, we can run the full back office for your UAB.

Compliant payroll

Compliant Lithuanian payroll and employment administration, issued and maintained for you.

Accounting & bookkeeping

Ongoing bookkeeping and accounting for your UAB, kept current and audit-ready.

Tax & VAT filings

Corporate tax and VAT returns prepared and filed with VMI on schedule.

Annual accounts

Annual financial statements prepared and approved, then filed with the Register of Legal Entities.

Forming a UAB in Lithuania: your questions answered

Straight answers on forming and running a UAB in Lithuania.

How long does it take to form a UAB?

Usually one to three weeks once documents, share capital, and the registered address are in place, longer with any complication. You cannot legally employ anyone until registration completes, which is why timing matters and why many companies bridge with an EOR first.

Minimum share capital is currently €1,000, with at least €250 (25%) paid before registration and the balance within 12 months. This is equity you own, not a fee. The other real cost is the ongoing accounting and compliance, which we can run for you.

Yes. A UAB can be fully owned and directed by non-residents. You will need a registered Lithuanian address and to complete the Centre of Registers filing, both of which we arrange.

Form a UAB when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (GPM and Sodra), corporate tax and VAT filings, and annual reporting to the Centre of Registers. We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Lithuanian UAB operates smoothly from day one without hiring locally for back office.

Ready to form your company in Lithuania?

Tell us your plans for Lithuania and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified June 2026 (VMI, Centre of Registers, PwC). Figures change; we confirm the current position when we scope your formation.