How much share capital does a UAB need?

A UAB's share capital in Lithuania is EUR 1,000 — this is the minimum amount shareholders must form when setting up a private limited liability company. In practice, before registration at the Centre of Registers you only need to deposit at least 25% of that amount, i.e. EUR 250, into a temporary accumulation bank account, while the rest may be contributed within 12 months of the company being registered. Most importantly: share capital is not a tax and does not "disappear" anywhere — it remains the company's own money in the account, which after registration can be used for the business: goods, equipment, salaries or marketing.

This article explains what those EUR 1,000 consist of, how the 25% rule and the accumulation account work, where the capital ends up after registration, when no capital is required at all (the MB case) and how much the setup procedure itself costs. All figures mentioned here are indicative (2026) — before setting up, verify the exact amounts with the Centre of Registers and your bank, and tax questions with VMI (the State Tax Inspectorate).

Share capital is not a tax paid to the state — it is your own company's money, which you can later use for the business.

How much is needed: a UAB's share capital is EUR 1,000

The minimum UAB share capital is EUR 1,000. This is the floor — shareholders may decide to form a larger capital if the business needs it or to project a more solid image to partners. The capital is divided into shares, each with a nominal value; the sum of the shares makes up the total share capital.

A few important details:

• UAB shareholders may be both natural and legal persons, up to 249 of them (a single shareholder is allowed too).
• Capital may be formed in cash or in kind (a non-cash contribution), but a non-cash contribution must be valued under the prescribed procedure, so for beginners the simplest route is a cash transfer.
• Shareholder liability is limited — shareholders are liable for the company's obligations only up to their contribution, not with their personal assets. This is exactly why the UAB is the most popular form for growing companies.

If you are still weighing which form suits you, we cover getting started in how to start a business in Lithuania in 2026

25% before registration: EUR 250 into an accumulation account

You do not need all EUR 1,000 on the day of setup. The law requires that before registering a UAB you deposit at least 25% of the share capital, which on the minimum EUR 1,000 amount is EUR 250. This money is transferred into a specially opened accumulation (temporary) bank account in the name of the company being formed.

An accumulation account differs from a regular current account in that it is opened while the company is not yet registered and is meant only for forming capital — you cannot freely make payments from it until the company is registered. Like any bank account, it has its own IBAN, and the bank's certificate confirming the deposited capital is attached to the setup documents.

Since the IBAN is that account's "address", it is worth understanding its structure — read what an IBAN code is and how it is structured, and you can quickly check the number you enter with our IBAN calculator

The remainder within 12 months: forming the last EUR 750

If you contributed only the minimum EUR 250 at setup, the remainder (up to the full EUR 1,000) must be formed within 12 months of the company's registration. In practice this means the shareholders transfer the remaining EUR 750 into the company account over the year, or cover it with a contribution in kind.

Why do many founders nonetheless deposit the full EUR 1,000 straight away? Because:

• It simplifies accounting — there is no unpaid capital portion or deadline to track.
• The capital immediately becomes working funds — it is company money anyway, and it can work in the business from day one.
• There is no risk of missing the deadline — failing to form the capital on time can have legal consequences, so it is better not to postpone this obligation.

Capital is not a tax: where the EUR 1,000 "goes"

The most common beginner fear is that share capital is just another "setup cost" you have to hand over to the state. It is not. Once the UAB is registered, the money in the accumulation account is transferred to the company's current account and becomes freely usable company funds. It is neither a tax nor a fee — it is your own company's asset.

Essentially, the EUR 1,000 moves from the "founder's pocket" to the "company's pocket". From then on this money can be used for any lawful business expense: buying a computer, paying an accountant, covering the first months' bills. What exactly to do with this money and how to account for it correctly we cover separately — see what to do with share capital after registration

UAB or MB: when no capital is needed at all

If forming EUR 1,000 of capital feels like too big a hurdle, it is worth knowing about the alternative. A small partnership (MB) requires no share capital at all — MB members' contributions are nominal and the law sets no minimum amount.

However, an MB has its own restrictions to keep in mind:

• MB members may only be natural persons, and there may be no more than 10 of them. A legal person cannot be an MB member.
• A UAB is more flexible in this respect — shareholders may be both natural and legal persons, up to 249, so a UAB makes it easier to bring in an investor or sell a stake.

So the choice between a UAB and an MB depends not only on capital but also on who the owners will be, whether you plan to have investors and how you want to share profit. The capital amount is often not the deciding factor here — the EUR 1,000 stays yours anyway.

Example: setting up a UAB with EUR 1,000 capital

Suppose two natural persons set up a UAB with the minimum EUR 1,000 capital and choose electronic registration.

• Capital before registration: they deposit 25%, i.e. EUR 250, into the accumulation account. The remaining EUR 750 will be formed within 12 months.
• Electronic registration at the Centre of Registers: ~EUR 30.
• Name reservation (JAR-5), if desired in advance: ~EUR 16 (valid for up to 6 months).
• Notary: electronically, with standard documents, often not required; if needed — ~EUR 85–338 depending on the capital.

In this example the actual "spent" setup costs are only the state fees and service charges (roughly a few dozen euros), while the EUR 250 of capital stays with the company — after registration it moves into the company account and becomes working funds. All these figures are indicative (2026); verify the exact amount for your situation with the Centre of Registers and a notary.

The setup process and costs: what to expect

Beyond the capital itself, the setup process consists of several steps, each with its own deadlines and fees:

• Choosing and reserving a name (optional): a JAR-5 reservation costs ~EUR 16 and is valid for up to 6 months.
• Preparing the setup documents and depositing capital into the accumulation account (min. EUR 250).
• Registration at the Centre of Registers: electronic ~EUR 30; the official term is ~3 working days, though in reality it often takes 5–10 days.

We describe the detailed sequence of steps in a separate guide, how to set up a UAB in 2026: the steps Do not forget the post-setup obligations either — for example, the annual financial statement for the calendar year must be filed with the Centre of Registers by 06-30.

Check first: accumulation account and IBAN

Before setting up a UAB, take a few simple steps:

• Choose a bank and open an accumulation account to form the capital — be ready to deposit at least EUR 250.
• Check the account's IBAN — to avoid mistakes when depositing capital and later making payments, you can verify the number with our IBAN calculator
• Confirm the current setup fees and deadlines with the Centre of Registers, and tax questions (e.g. how the capital appears in accounting) with VMI or your accountant.

Disclaimer: all figures in this article (EUR 1,000, EUR 250, ~EUR 30, ~EUR 16, ~EUR 85–338) are indicative and current for 2026. This is not legal or tax advice. Requirements and fees change — before making decisions, verify the current information with the Centre of Registers, VMI or "Sodra", or consult an accountant or lawyer.

If you want to set up a UAB without unnecessary mistakes and launch right away with a proper website and e-invoicing, web1o can help from the very first step — from the domain and website to automating your business processes. Start with the practical tools: check your future account number with our IBAN calculator and book a free consultation, where we will discuss your business launch plan.