Do you need a business bank account and how to open one?

If you are setting up a UAB (private limited company), a business bank account is mandatory: before the company is registered you must open a capital-accumulation account for the share capital, and after registration it is converted into a regular settlement account. For individual activity (self-employment), a separate business bank account is not always mandatory, but strongly recommended — it separates personal money from business flows and simplifies bookkeeping and settlements with the VMI (State Tax Inspectorate). In short: for a legal entity an account is a necessity; for individual activity it is a very useful choice.

In this article we explain when a business bank account is required, how a UAB opens its capital and settlement accounts, how traditional banks differ from "fintech" providers (Paysera, Revolut, Wise), and why the IBAN matters. All amounts and deadlines below are indicative (2026); always verify current procedures and fees on the Registrų centras (Centre of Registers) and VMI websites.

A business bank account is not a formality: without one a UAB cannot even be registered, and for individual activity it draws a clear line between personal and business money.

Is a business bank account mandatory: the answer by business form

Whether you must have an account depends on the legal form you choose:

• UAB — mandatory. Before registration you need a capital-accumulation account for the share capital, and later a settlement account for day-to-day operations. Without the bank's certificate confirming the deposited capital, the company simply cannot be registered.
• MB (small partnership) — practically necessary. An MB has nominal share capital (no minimum amount is required), so a capital-accumulation account is not obligatory, but as a legal entity an MB almost always uses a separate bank account for settlements.
• Individual activity (IV) — recommended, but not always mandatory. A natural person may receive income into a personal account, yet a separate business account makes bookkeeping and oversight far easier.

If you are still choosing a form, we walk through the whole path from name to first employee in how to start a business in Lithuania in 2026.

The UAB capital-accumulation account: first step for share capital

When forming a UAB, the minimum share capital is EUR 1,000. Before the company is registered you must pay at least 25%, i.e. 250 EUR, into a capital-accumulation account; the remainder can be contributed within 12 months of registration. This account has a special purpose: until the company is registered, the funds cannot be used freely — they simply "wait" for capital confirmation.

Once the contribution arrives, the bank issues a certificate of the deposited share capital. This certificate is submitted with the incorporation documents to the Centre of Registers (or to the notary, if you incorporate through one). For exactly how much capital is needed, how it can be contributed in cash or assets, and what to do with the balance, see how much share capital a UAB needs.

From the capital account to the settlement account

After the UAB is registered at the Centre of Registers (online registration costs about 30 EUR, with a turnaround of about 3 business days, in reality often 5–10), the capital-accumulation account is converted into or replaced by a regular settlement account. From that moment the share-capital funds become freely usable for the company's operations: paying suppliers, receiving customer payments, paying salaries and taxes.

So that you forget nothing right after registration — from activating the account to bookkeeping and taxes — we prepared a practical I registered a company: start checklist, where the business account is one of the first items.

Bank or "fintech": Paysera, Revolut, Wise and traditional banks

For accumulating capital and for daily settlements you choose between two worlds — traditional banks and electronic money institutions ("fintech").

Traditional banks (e.g. Swedbank, SEB, Luminor):

• Advantages: they accept a UAB share-capital accumulation account and issue the required certificate; a broad service range (loans, cards, cash operations); high reliability, convenient when working with the public sector.
• Disadvantages: opening an account can take longer, and the monthly maintenance fee is often higher (check the exact price with the bank).

Fintech / electronic money institutions (e.g. Paysera, Revolut, Wise):

• Advantages: fast remote onboarding, often lower fees, convenient international and multi-currency payment features.
• Disadvantages: not every provider accepts a UAB share-capital accumulation account with a certificate; some issue a non-Lithuanian, other-EU-country IBAN; certain services (cash, credit) may be limited.

Important: if you are forming a UAB, first make sure the chosen provider actually opens a capital-accumulation account with a capital certificate — not all "fintech" do. That is why many use a traditional bank for the capital and add a fintech for daily or international payments. Check exact fees with each provider, as they vary by package and change over time.

Individual activity: a separate account is recommended, but not always mandatory

When you run individual activity under a certificate, the law does not require a separate bank account — income may be received into a personal one. Still, a separate business account has strong advantages:

• Clean bookkeeping. Individual-activity expenses can be deducted using the 30% expense allowance or actual documented expenses — in the latter case, a tidy account showing all business payments makes justifying the expenses much easier.
• A cleaner relationship with the VMI. Separated business and personal flows reduce questions in the event of an audit.
• Professionalism. Clients pay more willingly into a business account than a personal one.

In practice, even for small-scale activity a separate account pays off through the time saved on bookkeeping alone.

IBAN: why it matters for your business account

Whichever provider you choose, your account will have an IBAN (International Bank Account Number). Lithuanian IBANs begin with the country code LT, followed by a check digit, the bank code and the account number. The IBAN ensures that international and domestic payments reach the correct recipient, so it is important to state it without errors on invoices and contracts.

When choosing a fintech, note whether the provider gives a Lithuanian (LT) or another country's IBAN — some clients or public-sector systems are more used to an LT IBAN. How an IBAN is read and what each part means is explained in IBAN code: what it is and its structure, and you can verify a specific number with the IBAN calculator.

Example: what it costs to open a UAB account and register the company

Say you are forming a UAB online and preparing for the capital-accumulation account. Indicative (2026) costs:

• Name reservation (JAR-5): about 16 EUR — optional but useful; the reservation is valid for up to 6 months.
• Capital-accumulation account and capital: from 250 EUR — this is the minimum 25% of EUR 1,000 share capital that must be deposited before registration (this money stays yours — it is not a fee, but the company's capital).
• Online registration at the Centre of Registers: about 30 EUR.
• Notary (if incorporation is non-standard): about 85–338 EUR — depending on the amount of capital; using standard electronic documents often avoids the notary.
• Registration turnaround: about 3 business days at the Centre of Registers, in reality often 5–10.

As you can see, the account and capital are not a heavy burden: you actually "spend" only the registration (about 30 EUR) and possibly the name (about 16 EUR) fees, while the 250 EUR of capital remains the company's property. The monthly account maintenance fee should be assessed separately — it depends on the bank or fintech package, so confirm the exact price with the provider.

Check before you open a business account

Before signing a contract with a bank or fintech:

• Verify the IBAN. Make sure the IBAN you receive is correct and suitable for your clients — you can do this quickly with the IBAN calculator.
• Confirm the capital-certificate option. When forming a UAB, make sure the provider opens a capital-accumulation account and issues the certificate — you will find the requirements on the Centre of Registers website.
• Assess the tax context. For individual activity or a UAB, check the applicable rates and obligations on the VMI and Sodra websites — they change.
• Compare packages. The monthly fee, payment costs and IBAN country differ between providers.

Disclaimer: all figures mentioned in this article (EUR 1,000 share capital, 250 EUR capital portion, about 16 EUR name reservation, about 30 EUR registration, about 85–338 EUR notary fees) are indicative and current for 2026. This is not tax or legal advice. Before making decisions, verify the current information on the official VMI, Sodra and Centre of Registers websites, or consult an accountant or lawyer.

web1o helps new businesses not only start in an orderly way, but also build a professional website and digital tools so your first clients find you right after registration. Want to quickly verify an account number or discuss your whole start-up plan? Use our IBAN calculator and book a free consultation.