How to set up a UAB in 2026: step by step

To set up a UAB (private limited liability company) in 2026, you go through eight steps: reserve a name, prepare the incorporation documents, open an accumulative account and pay in the capital, sign the documents with an e-signature or before a notary, register the company at the Registrų centras (Centre of Registers), become a taxpayer with VMI (the State Tax Inspectorate), arrange insurance with „Sodra" (the State Social Insurance Fund), and open a settlement account. The minimum UAB share capital is EUR 1,000, but before registration you only need to pay in at least 25% — that is EUR 250; in practice the whole process can be completed in 5–10 working days.

This article walks through each stage, its cost and its timeline so incorporation holds no surprises. One key note upfront: every fee, tax rate and amount mentioned here is indicative (2026), so verify it at the official sources before you start — the Centre of Registers, VMI and „Sodra" — or check with an accountant. If you are still deciding whether to form a company at all, begin with the broader guide on how to start a business in Lithuania in 2026 and come back here once you have settled on a UAB.

With an e-signature and EUR 250 of starting capital, you can handle the UAB paperwork in under a week — the longest part is not the bureaucracy but the decision to begin.

Do you really need a UAB? A quick fit check

A UAB is a limited liability legal entity: you are liable for the company's obligations with the capital you contributed, not with all of your personal assets. UAB shareholders can be both natural and legal persons, up to 249 of them. That makes a UAB convenient when you plan to bring in an investor, work with a team, or sell part of the business.

Before filling in documents, compare the alternatives:

• MB (small partnership) — also limited liability, but its members can only be natural persons (no more than 10), and there is no share capital requirement. If there are several individual founders and you would rather not lock up capital, review how to set up an MB in 2026, step by step.
• Individual activity or a business certificate — the simplest start for one person, but you are liable with all your assets. We break down the tax differences in detail in our comparison of individual activity, the business certificate and the MB.

The profit tax often argues for a UAB too: new small companies may pay 0% CIT (corporate income tax) in their first 1–2 years, provided the company has fewer than 10 employees, annual income under EUR 300,000, and is not part of a group of related companies. After that, small companies are taxed at 7%, the standard rate is 17%, and distributing profit as dividends adds a further 15% GPM (personal income tax).

Step 1: choose and reserve the name (~EUR 16)

First you need a name that does not clash with those already registered. To lock in your choice, you can reserve it by submitting form JAR-5 — this costs about EUR 16 and the reservation is valid for up to 6 months. During that window no one else can take the name while you finish the remaining steps.

Reservation is optional if you incorporate immediately, but it protects you from someone grabbing your chosen name while you gather documents. How to check availability, craft a legally acceptable name and not lose it is covered separately in how to choose and reserve a company name.

Step 2: the incorporation documents

Once the name is clear, you prepare the incorporation documents. The main ones are:

• The incorporation act (a single founder) or the incorporation agreement (several founders).
• The articles of association — the company's core "constitution".
• Founding meeting documents plus details of the director and the registered address.

If you choose the standard (template) documents from the Centre of Registers self-service, the process can be fully digital. If you want custom articles or have an unusual shareholder structure, a notary will certify the documents — more on that in the next step.

Step 3: the accumulative account and share capital

Before registration you open an accumulative (formation) account at a bank or payment institution and pay the share capital into it. The proportion to remember: the minimum UAB share capital is EUR 1,000, but before registration you must pay in at least 25%, i.e. EUR 250. The remainder can be contributed within 12 months of registration.

The bank issues a certificate confirming the paid-in capital, which you need when registering the company. How much to pay in immediately, how to use it later for operations, and the most common questions are explained further in how much share capital a UAB needs.

Step 4: signing — e-signature or notary (~EUR 85–338)

The incorporation documents must be signed. There are two routes:

• By e-signature through the Centre of Registers self-service — the cheapest and fastest way, when you use template documents and every founder has a qualified e-signature.
• Before a notary — needed if you draft custom articles or a more complex structure. The notary's fee depends on the size of the share capital and is about EUR 85–338.

For most new UABs that start with minimum capital and template documents, the electronic route is both cheaper and quicker.

Steps 5–7: registration, VMI and „Sodra"

Once the documents are signed, the company is registered at the Centre of Registers. Electronic registration costs about EUR 30, and the legal registration term is about 3 working days. In practice, depending on how accurate your documents are and the workload, allow 5–10 working days.

After the company is registered:

• VMI — the UAB automatically becomes a taxpayer. You separately need to assess PVM (value added tax): registration is mandatory when turnover over the last 12 months exceeds EUR 45,000 (for foreign businesses not established in Lithuania there is no threshold — the obligation starts from the first transaction). The standard VAT rate is 21%. Do not forget the deadlines: the CIT return is filed with VMI by 06-15.
• „Sodra" — if the company will have employees or a working director, they are covered by social insurance; verify the exact contributions and procedure with „Sodra".
• Centre of Registers — an annual financial statement is filed by 06-30 each year (for the calendar year).

Step 8: the settlement account

The final step is the settlement (operating) account through which the company receives and pays money. You can open it at the same bank where you held the accumulative account, or choose a payment institution (EMI). Before signing contracts and sending invoices to partners, it is worth checking your future IBAN structure — the IBAN calculator and validation tool helps with exactly that.

Example: what it costs to set up a UAB electronically

Say you are setting up a UAB on your own, with template documents and minimum capital, without a notary:

• Name reservation (JAR-5): ~EUR 16 (optional).
• Registration at the Centre of Registers, electronically: ~EUR 30.
• Total state fees: about EUR 46.

To that, add EUR 250 of share capital — this is not a fee but your own money, which stays in the company and can be used for operations. If a notary is required, budget an extra EUR 85–338 depending on the capital. So the minimum out-of-pocket electronic start comes to a few dozen euros in fees plus the capital. You can find the full cost breakdown, including accountant and bank nuances, in the overview of how much it costs to set up a company in 2026.

Check before you sign

Before submitting documents, review the critical points once more, because mistakes are costly in time:

• Name — unique and, if needed, reserved.
• Capital — at least EUR 250 of the EUR 1,000 in the accumulative account.
• Account details — check the future IBAN using the IBAN calculator.
• Taxes and contributions — verify the rates, the VAT threshold (EUR 45,000) and „Sodra" obligations at VMI and „Sodra".

These steps help you avoid the most common rejection reasons and speed up registration.

Disclaimer: all rates, fees, thresholds and deadlines in this article are indicative (2026) and provided for general understanding — this is not tax or legal advice. The specific figures depend on your situation and may change, so before making decisions always verify the current rules with VMI, „Sodra" and the Centre of Registers, or consult an accountant or lawyer.

web1o helps you not only set up a UAB but also build a solid digital start — from the company name to a website that brings in your first clients. If you want a smooth, error-free process, check your future account with our IBAN calculator and book a free consultation about your business launch.