- starting a business
- 2026
The real annual cost of running a UAB has two layers: a fixed administrative minimum — accounting, a bank account and the mandatory yearly report and declarations that you pay even when the company barely trades — and a variable part: taxes on profit (corporate income tax (CIT) of 17% or 7%) and on the director's salary („Sodra" and personal income tax (GPM)). There is no single "correct" number: a dormant UAB costs far less per year than a working one with a salaried director and profit — yet even a "sleeping" company is never entirely free to keep alive.
In this article we break down every cost line — from bookkeeping and banking to the annual report to Registrų centras and the profit tax — and show where you can realistically save. All rates, thresholds and deadlines here are indicative (2026); always confirm the current figures with VMI, „Sodra" and Registrų centras, as they are updated every year. If you are still deciding whether a UAB suits you at all, start with the broader guide on how to start a business in Lithuania in 2026.
A UAB's cost is not a single tax — it is a subscription: every year the company "eats" its administrative minimum, even when it earns nothing.
What the annual cost of a UAB is made of
To avoid surprises, split the costs into two layers:
- The fixed administrative minimum — what recurs every year regardless of turnover: the bookkeeping service, business bank account fees, the annual financial statements filed with Registrų centras, the CIT declaration to VMI and, if the director is not insured anywhere else, the minimum compulsory health insurance (PSD) contribution.
- The variable part — grows with activity: corporate income tax (CIT) on profit earned, „Sodra" and GPM on the director's or employees' salaries, and 15% GPM on dividends when you pay the profit out to yourself.
It is important not to confuse one-off setup costs with annual upkeep. Registration, the name reservation, the notary and the EUR 1,000 share capital (of which at least 25%, i.e. EUR 250, is paid in before registration) are one-off — we cover them in detail in how much it costs to set up a company in 2026. This article is about what comes next, once the company is already registered.
Bookkeeping: the biggest fixed cost
For most small UABs, accounting is the largest recurring expense after salaries. The reason is simple: a UAB must keep double-entry bookkeeping, prepare an annual set of financial statements and declare its taxes — far more involved than the accounting of a sole activity, so a professional is almost always needed.
The price of bookkeeping varies widely, so no fixed rate can be quoted here — it depends on the number of transactions, on whether you are a payer of PVM (value added tax), whether you have employees, and whether you buy the service from an accounting firm, hire a freelance accountant or employ one in-house. Get the exact price from your chosen accounting provider, and before that decide what you can do yourself — we discuss this thoroughly in do you need an accountant and what you can do yourself. The tidier and more automated your documents, the fewer hours — and euros — your accountant consumes.
Bank account and other fixed fees
A UAB must have a separate business bank account — the share capital is paid in through it and all settlements run through it. The account maintenance fee depends on the bank and the plan, so we will not quote a specific figure here — compare the business plans of several banks and e-money institutions, because over a year the differences add up noticeably.
Smaller but constant items often join the fixed costs too: an accounting or invoicing software subscription, an e-signature, a domain and website upkeep, sometimes insurance. Each looks minor on its own, but together they form a noticeable annual line that is worth budgeting for in advance.
Mandatory annual duties: the report by 06-30 and the CIT declaration by 06-15
Even if the UAB barely operated during the year, it must report to the state. The two most important duties for a calendar-year company:
- The annual set of financial statements to Registrų centras — by 06-30. Every UAB files it, and failing to prepare or filing it late can incur penalties.
- The corporate income tax (CIT) declaration to VMI — by 06-15. It must be filed even when there was no profit and the tax due is EUR 0.
These duties do not "cost" tax in themselves, but in practice they mean accountant's work, so always build them into the annual budget. Confirm the current filing procedure with Registrų centras and VMI.
„Sodra" and the director's salary: when the cost appears
One of the biggest questions is whether the director draws a salary. If so, the salary triggers „Sodra" contributions (VSD and PSD) and GPM, and the employer side raises the real cost of the job. The exact rates of these contributions change every year and we will not quote them here — the „Sodra" calculation base in 2026 rests on the minimum monthly wage of EUR 1,153, and you will most reliably see the final "on paper" and "in hand" amounts by running the numbers.
There is also another situation: a sole shareholder-director who takes no salary and is not insured anywhere else must still pay at least the minimum PSD contribution — around 80.48 EUR per month. So even a fully dormant UAB with an uninsured director carries this small but constant line.
You will most reliably see what an employee or a salaried director really costs in the salary calculator, and we explain the full employer-cost logic in the cost of a job to the employer in 2026.
Profit tax: 17%, 7% or 0%
When a UAB earns profit, it is taxed with corporate income tax (CIT). Three key figures apply in 2026:
- Standard CIT — 17% (it was 16% in 2025).
- For small companies — 7% (it was 6%), if you meet the employee and income criteria.
- For new small companies — 0% for the first two tax periods, if there are fewer than 10 employees, annual income does not exceed EUR 300,000 and the company is not part of a group.
When you pay the profit out to yourself as dividends, an additional 15% GPM applies. If turnover over the last 12 months exceeds EUR 45,000, an obligation arises to register as a PVM payer (standard PVM — 21%); the PVM itself passes through the company but adds to the administrative burden. We lay out the full UAB tax picture in what taxes a UAB pays in 2026.
Example: a dormant and a working UAB
Let us compare two simplified scenarios (indicative figures only).
A. A near-dormant UAB — no salary and no profit. The annual cost consists of: bookkeeping (minimal, but not zero), bank account fees, preparation of the annual report by 06-30, a zero CIT declaration by 06-15 and, if the director is not insured elsewhere, PSD of around 80.48 EUR per month. There is no tax on profit, but the administrative minimum still adds up — a "zero" UAB does not cost EUR 0.
B. A working small UAB — say, annual profit before tax of EUR 10,000. If the company meets the small-company criteria, CIT at 7% = EUR 700; if these are the first two years and the 0% criteria are met — EUR 0; at the standard 17% rate it would be EUR 1,700. Say 7% applies: EUR 9,300 remains. Paying it out as dividends, 15% GPM = EUR 1,395, so the owner would receive EUR 7,905. Add the fixed administrative minimum on top of all this, and if the director takes a salary — „Sodra" and GPM as well.
These numbers show the point: you control the variable part through the legal form and the reliefs, but the fixed minimum always remains.
How to reduce the cost of running a UAB
A few practical directions:
- Match the accounting to real volume. Few transactions — an outsourced service is enough; an in-house accountant only pays off as flows grow. At the start, consider what you can handle yourself.
- Automate the document flow. Tidy, digital documents and invoicing software cut the accountant's hours — which directly cuts the bill.
- Compare bank plans. Business account fees differ; periodically review whether you are paying for what you actually need.
- Use the tax reliefs. The small-company 7% and new-company 0% CIT rates can meaningfully reduce the variable part if you meet the criteria.
- Think through the salary-to-dividend mix. The right balance depends on profit and your situation, so it is better to calculate the scenarios than to guess.
- Do not keep a "sleeping" UAB without a purpose. Even an inactive company accumulates obligations and can generate PSD and bookkeeping costs — if there are no plans, this needs to be weighed.
Check your own numbers
Before making financial decisions, check the real amounts: the fastest way to estimate a director's or employee's salary and job cost is the salary calculator, which shows gross, net, GPM and „Sodra" contributions at once. Always confirm the current CIT, PVM, GPM and „Sodra" rates with VMI and „Sodra", as they are refreshed every year.
Disclaimer: all rates, thresholds, deadlines and amounts in this article are indicative (2026) and intended for general understanding — this is not tax or legal advice. For a specific decision, always confirm the latest figures with VMI and „Sodra" or consult an accountant.
If you want the cost of running your UAB planned out, and your accounting, invoices and reports to run as automatically as possible, web1o will help you build a clear plan. Start with the free salary calculator and book a consultation — together we will review your numbers and find where you can save.