- starting a business
- 2026
You've set up a company? Great — but remember that the entry in the Register of Legal Entities is not the finish line, it's the start. The full business launch checklist has eight steps: form chosen → company registered → tax registration with VMI and "Sodra" → bank account → bookkeeping or accountant → VAT monitoring → invoicing → website, domain and client flow. Only once you have done all of them do you have a genuinely operating business rather than a piece of paper — so keep this checklist close during your first weeks.
In this article we go through each step in order — what to do right after registration, roughly how much it costs and where people most often slip up. All rates, thresholds and amounts here are indicative (2026) and for general understanding only; always verify the current figures at the Register of Legal Entities, VMI and "Sodra", as they are reviewed every year.
Registering the company is only about 10% of the work. The remaining 90% — taxes, bank account, bookkeeping and first clients — decides whether the business survives its first year.
Step 1. Form chosen — check it still fits
Your legal form drives everything: taxes, liability and day-to-day admin. If you choose an MB (small partnership), no share capital is required and it can have from 1 to 10 members — natural persons only. A UAB requires share capital of EUR 1,000, of which at least 25% (EUR 250) must be paid in before registration and the rest within 12 months; a UAB may have both natural and legal shareholders (up to 249). Both of these forms give limited liability — business debts do not reach your personal assets. If you plan a smaller scale, formally you also have individual activity and the business certificate (income cap — EUR 50,000 per year).
If you are still weighing this decision, start with the full guide to starting a business, and you will find the concrete first-week actions in the separate first-week checklist article.
Step 2. Registration: name, capital and the Register
Before registering the company, you usually reserve the name — the JAR-5 form costs about EUR 16 and is valid for up to 6 months. The electronic registration at the Register of Legal Entities itself costs about EUR 30, and if the founding documents cannot be handled with an e-signature, you will need a notary — about EUR 85–338, depending on the capital. The registration term is officially about 3 business days, though in practice often 5–10. For a UAB, the minimum capital of EUR 250 must be paid into an accumulation account before registration.
The name is not a mere formality: it must be free both at the Register and as a domain. How to align your company name with the web address and avoid the "name free but domain taken" situation is covered in the article on the company name and domain.
Step 3. VMI and "Sodra": sort out your tax registration
A registered company automatically enters the taxpayer register, but you yourself need to work out which taxes apply to you. UAB and MB pay corporate income tax (CIT): the standard rate is 17% (up from 16%), for small companies it is 7%, and for new small companies it can be 0% in the first 1–2 years (if fewer than 10 employees, income up to EUR 300,000 and the company is not part of a group). When profit is taken as dividends, a 15% personal income tax (GPM) applies.
If you chose individual activity, GPM is calculated on profit progressively: up to EUR 20,000 of profit the effective rate is about 5%, from EUR 20,000 to EUR 42,500 it rises gradually from 5% to 20%, and above EUR 42,500 a progressive 20/25% scheme applies; you can deduct expenses using either the 30% norm or actual documents. A key 2026 change — from 2026-07 the "Sodra" base for the self-employed rises to 90% of taxable income (it was 50%), while the PSD (compulsory health insurance) minimum is about EUR 80.48 per month. If you pick the business certificate, the VSD (state social insurance) contribution is 8.72% or 11.72% of the MMA base (EUR 1,153/month).
Do not forget the deadlines: the CIT return to VMI is filed by 06-15, and the annual report to the Register of Legal Entities — by 06-30.
Step 4. Bank account: when it is mandatory
For a UAB, a bank account is needed already at incorporation — the minimum EUR 250 of capital is paid into an accumulation account, which later becomes a settlement account. For an MB and individual activity a separate business account is not always legally mandatory, but it is almost always necessary in practice — to separate personal and business funds and to make bookkeeping easier. When an account is truly required and how to choose a bank or EMI is covered in the article do you need a business bank account.
Step 5. Bookkeeping: accountant or DIY
UAB and MB must keep double-entry accounting and submit annual reports, so most need an accountant. Bookkeeping for individual activity or a business certificate is simpler — you can handle much of it yourself, especially while turnover is small. Where the line runs between "do it yourself" and "hire a specialist", what you can do on your own and when mistakes cost dearly is compared in the article do you need an accountant, what can I do myself. And once more the deadlines, so they do not catch you out: CIT return — by 06-15, annual report to the Register — by 06-30.
Step 6. VAT: watch the EUR 45,000 threshold
VAT (value added tax) registration becomes mandatory when income over the last 12 months reaches EUR 45,000 (the 2026 threshold is unchanged). The standard VAT rate is 21%; from 2026 reduced rates of 12% (accommodation, passenger transport, catering, culture) and 5% (books, medicines) apply. If you sell to private individuals in other EU countries, also watch the EUR 10,000 distance-selling threshold. Important: for a foreign (non-established in Lithuania) business there is no VAT threshold — the obligation arises from the first transaction. So well before you reach EUR 45,000, prepare your registration so the obligation does not surprise you in the middle of a strong month.
Step 7. Invoicing and automation
Your first client means your first invoice. At the start you can issue them manually, but as turnover grows and the VAT threshold approaches, that becomes a source of errors and wasted time. How to set up invoice numbering, automatic sending, reminders about unpaid amounts and integration with accounting is covered in the article on invoice automation.
Step 8. Website, domain and client flow
A company that cannot be found on Google effectively does not exist for clients. So the last — but far from least important — item on the checklist is your website, domain and client flow. It is worth reserving the domain together with the name, and planning the website budget in advance: how much projects of different levels really cost is explained in the article how much a website costs in Lithuania. How we build fast, client-attracting websites is on the web development page, and you can estimate your project's approximate price in minutes in the price configurator.
Example: what a UAB launch costs and when taxes kick in
Say two people set up a UAB electronically. The registration "minimum" would look like this:
- Name reservation (JAR-5): about EUR 16.
- Electronic registration at the Register of Legal Entities: about EUR 30.
- Share capital paid in before registration: EUR 250 (this is not a tax, but your own money in the account).
Registration fees alone would come to about EUR 46 (EUR 16 + EUR 30); if a notary is needed, add another about EUR 85–338. Then taxes kick in: if the company meets the conditions (fewer than 10 employees, income up to EUR 300,000, not part of a group), CIT can be 0% for the first 1–2 years, later 7% for small companies or the 17% standard; profit taken as dividends — 15% GPM. Where the VAT obligation appears we already saw: EUR 45,000 over 12 months.
Note: your exact tax burden depends on the size of your profit, the share of costs and the form you chose, so it is worth running the numbers through a calculator rather than guessing.
Check your numbers: configurator, VMI and "Sodra"
Before you decide, run your own numbers. You can quickly estimate the website and digital-launch budget in the price configurator, and always verify the current tax rates and thresholds at VMI and "Sodra", and if needed at the Register of Legal Entities.
Disclaimer: all rates, thresholds and amounts in this article are indicative (2026) and for general understanding only — this is not tax or legal advice. Always check the current figures at the official VMI, "Sodra" and Register of Legal Entities sources, or consult an accountant.
Want your new business to look solid from day one — with a fast website, a clear domain and a flow of clients? web1o helps small businesses move from an entry in the Register of Legal Entities to a business that actually works online. Estimate your project's approximate price in the price configurator and, if you want a concrete plan, book a free consultation.