What can you do with share capital after registration?

After registration, share capital stops being "frozen" and becomes the company's working funds: the money moves from the accumulation account to the settlement (current business) account and is used for the business — equipment, goods, rent, salaries or marketing. The one thing to keep in mind: a UAB's share capital (EUR 1,000) is the company's money, not your personal money — you cannot simply take it into your own pocket without a legal basis (a salary, dividends or a loan being repaid).

In this article we explain what happens to the capital right after registration, what you may and may not do with it, how to withdraw money legally, and whether you have to keep EUR 1,000 sitting in the account. All amounts and rates here are indicative (2026) and for general understanding — always check the current figures at the Register of Legal Entities, the State Tax Inspectorate (VMI) and "Sodra". If you are still planning your launch, start with the overview guide on how to start a business in Lithuania 2026.

Share capital is not a "tax to the state" and not money that must sit in the account forever — it is your own start-up funds that you can put to work immediately.

What happens to share capital right after registration?

During incorporation a UAB opens an accumulation account — a temporary account used only to collect the share capital. Before registration you pay in at least 25% of the capital, i.e. EUR 250 (you can pay in the rest within 12 months). While the company is not yet registered, this money is "frozen" and cannot be used.

During incorporation the bank often issues a certificate confirming the paid-in capital — it is needed for registration. Once the Register of Legal Entities registers the company, the bank receives the registration data, closes the accumulation account and moves the funds to the settlement (current) business account. From that moment the capital becomes freely usable company money, and the company gets its permanent account number for settling with clients and suppliers.

How to choose a bank or fintech and when a business account is required at all is covered in do you need a business bank account, and the structure of the account number itself — the country code, bank identifier and check digits — is explained in the IBAN guide. It is worth setting up a clean business account right away, because every payment will pass through it and must be clearly separated from personal money.

Share capital is the company's money, not yours

From the moment of registration a UAB is a separate legal entity with its own assets, liability and account. The share capital belongs to the company, not to you as an individual — even if you are the sole shareholder (a UAB can have up to 249 shareholders, both natural and legal persons).

The practical consequence is simple: you cannot just withdraw EUR 1,000 from the company account "for yourself" the way you would from a personal account. Every movement of money needs a basis — a purchase invoice, an employment contract, a dividend decision or a loan agreement. That is exactly what limited liability means: business money is separated from personal money and used according to the rules. For how much capital is really needed and why it is EUR 1,000, see how much share capital a UAB needs.

What you can do with share capital

Capital is start-up working funds you can use for anything connected to the company's activity. In practice, EUR 1,000 often goes straight into the first purchases:

• Buy equipment and tools — computers, tools, furniture, software.
• Acquire goods or materials — your first stock for resale or production.
• Pay rent and utilities — for an office, warehouse or workshop.
• Pay salaries — to yourself (as director) and to employees; payroll taxes are calculated on them.
• Cover operating costs — bookkeeping, marketing, a website, a domain, licences or subscriptions.
• Settle with suppliers and partners against the invoices you receive.

In other words, there is no "minimum balance" you must keep untouched — the capital can go into the business the same week.

The one important rule is documents. Every purchase must be made in the company's name: the invoice or purchase document is issued to the UAB, not to you personally. That turns the spending into company expenses that reduce taxable profit and, where relevant, allow you to deduct input VAT (value added tax). Messy documents, or ones issued to your own name, create bookkeeping problems later.

What you cannot do with share capital

• You cannot take it as personal money without a legal basis (a salary, dividends or repayment of a shareholder loan).
• You cannot pay dividends out of the share capital — dividends are paid only from earned and taxed profit, not from the initial capital.
• You cannot "reduce" the registered capital below EUR 1,000 without carrying out the formal capital reduction procedure and registering it with the Register of Legal Entities.
• You cannot cover personal expenses — personal purchases, holidays or household bills — with company money.

These limits also protect you: when business and personal money are clearly separated, limited-liability protection works and the bookkeeping stays clean. Taking money "for yourself" without a basis becomes, in the accounts, either a debt to the company that must be repaid or hidden salary — both are expensive later, in taxes and in stress.

How to withdraw money from the company legally

You can take money out of a UAB, but only through a chosen legal route:

• Salary. If you work in your own company, you pay yourself a wage; personal income tax (GPM) and "Sodra" contributions are calculated on it. GPM is progressive, and the exact rates and "Sodra" amounts should be checked at VMI and "Sodra".
• Dividends. Paid from earned, already-taxed profit and taxed at 15% GPM. Importantly, dividends can be paid only when the company is profitable — you cannot distribute the initial capital as dividends.
• Repayment of a shareholder loan. If a shareholder lent money to the company under a loan agreement (for example, to top up working funds), the company can repay that amount — it is not income, but a repayment of debt.

Which route to choose depends on whether the company is already profitable and on the overall tax burden. So it is worth modelling the salary-and-dividends mix in advance and checking the current GPM and "Sodra" rates in the official sources. Above all — never mix personal and company money "out of habit": every transfer to yourself must have a clear legal basis.

Do you have to keep EUR 1,000 in the account at all times?

No. Share capital is not a reserve you must keep untouched — it is an accounting figure showing how much the owners put into the company. When you spend the capital on equipment or goods, the cash in the account falls, but the registered amount of share capital (EUR 1,000) does not change — it stays recorded in the company's articles and at the Register of Legal Entities.

The registered capital itself (increasing or decreasing it) can only be changed through a separate procedure approved by the shareholders and registered by the Register of Legal Entities. A reminder on the amounts: a UAB must have at least EUR 1,000 of share capital, while a small partnership (MB) has no share capital at all (it is nominal), so MB members (up to 10 natural persons) do not face this question.

Example: how a UAB puts EUR 1,000 to work

Say you set up a UAB with EUR 1,000 of share capital. Before registration you paid the mandatory EUR 250 (25%) into the accumulation account and committed to pay the remaining EUR 750 within 12 months. After registration the flow is:

1. The bank moves EUR 250 from the accumulation account to the settlement account — the money becomes free to use.
2. In the first month you pay in the remaining EUR 750, so the account holds the full EUR 1,000 of capital.
3. Say you spend EUR 500 on a laptop, EUR 300 on your first stock and EUR 200 on a website and domain. The account balance drops almost to zero — and that is entirely normal.
4. The registered share capital still stays at EUR 1,000 — it does not shrink just because you used the money for the business.

Once the company starts earning profit, you can pay part of it out as dividends (taxed at 15% GPM) or pay yourself a salary (with GPM and "Sodra" contributions on it). But you cannot pay dividends from the initial EUR 1,000 of capital.

Check the account and the numbers with tools and official sources

Before moving capital or paying suppliers, make sure the recipient's account number is correct — check it quickly with the IBAN checker. And always verify the current tax rates (for example, the 15% dividend GPM) and "Sodra" contributions at VMI and "Sodra", and the capital and registration requirements 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 to launch in an orderly way — with a business account, a website and clear money flows from day one? web1o helps small businesses quickly build a website and organise their everyday processes. Check your recipients' accounts with the IBAN checker and, if you need a concrete plan, book a free consultation.