MB vs UAB setup costs: a comparison

The setup fees for an MB and a UAB are almost identical — the electronic registration at the Register of Legal Entities costs about EUR 30 for both, and a name reservation (if you need one) is about EUR 16 regardless of the form. The real cost difference lies not in the registration fee but in share capital and notary services: a UAB must have EUR 1,000 of share capital (at least 25%, i.e. EUR 250, deposited before registration, with the balance within 12 months), while a small partnership (MB) needs no share capital at all. Because an MB is more often set up without a notary, in pure setup costs it usually works out cheaper — but the final answer depends on how you register and on your growth plans.

In this article we break down each part of the setup cost — the Register fee, the name reservation, the notary and the share capital — and show when an MB is cheaper and when a UAB is worth it. If you are just starting and unsure about the form, it helps to begin with the general guide on how to start a business in Lithuania in 2026. All fees, thresholds and amounts here are indicative (2026) — check the current prices at the Register of Legal Entities, VMI (the State Tax Inspectorate) and "Sodra", as they are updated every year.

At the registration window an MB and a UAB cost almost the same — the difference is made by the EUR 1,000 share capital and the notary bill, not by the Register fee itself.

Setup fees: where MB and UAB costs match

The registration procedure itself is nearly identical for both forms, so the price is similar. Indicative (2026) fees that are the same for an MB and a UAB:

• Electronic registration at the Register of Legal Entities — about EUR 30. The same amount applies to both forms when you register remotely with a qualified electronic signature and use standard founding documents.
• Name reservation (JAR-5) — about EUR 16, valid for up to 6 months. It is optional, but it protects your chosen name while you handle the paperwork; the price is the same for both forms.
• Registration time — about 3 working days at the Register, though in practice it often takes 5–10 days. Time is a cost too: the longer you wait, the later you issue your first invoice.

As you can see, the "window" costs of an MB and a UAB differ minimally. For a full breakdown of every small fee, see the article on how much it costs to set up a company in 2026.

Share capital: the biggest cost difference

This is where MB and UAB costs diverge the most:

• UAB share capital — EUR 1,000. Before registration you must deposit at least 25%, i.e. EUR 250, into an accumulation bank account, with the rest within 12 months. Note: capital is not a "lost" fee — this money stays with the company and can be used for its activity. Still, you need at least EUR 250 of free funds to start.
• An MB needs no share capital. Members may make nominal contributions or none at all, so you can start an MB with practically no initial capital — a big advantage when funds are tight.

Who may set up the company also differs. An MB is set up only by natural persons, up to 10 of them. A UAB may have both natural and legal persons as shareholders — up to 249. If you plan to bring in a company as an investor or many stakeholders, the UAB structure is more flexible, and that can justify the higher initial cost.

Notary: an MB is more often set up without one

The second source of cost difference is the notary. If notary services are needed, they cost about EUR 85–338 depending on the share capital. In practice:

• An MB is often set up remotely, without a notary — by signing standard founding documents with an electronic signature. In that case notary costs are avoided entirely.
• A UAB can also be set up remotely with template documents, but a notary is used more often, especially when the founding terms are non-standard or there are several shareholders. The notary bill then adds to your setup costs.

So the biggest practical cost difference comes from two things combined: the UAB capital requirement and the more frequent notary bill.

Example: two setup-cost scenarios

Let us compare two indicative (2026) scenarios. All amounts are approximate and for general understanding only.

Scenario A — MB, remote, no notary:

• Register of Legal Entities: about EUR 30
• Name reservation: about EUR 16
• Notary: EUR 0 (not needed)
• Share capital: EUR 0 (not required)
• Indicative setup costs: about EUR 46

Scenario B — UAB, minimum capital, with a notary:

• Register of Legal Entities: about EUR 30
• Name reservation: about EUR 16
• Notary: about EUR 85–338 (depending on capital)
• Indicative setup fees: about EUR 131–384
• In addition, before registration you need at least EUR 250 of share capital (it stays with the company rather than being lost)

The difference is clear: in pure fees the MB in this example costs about EUR 46, while the UAB with a notary costs several times more, plus EUR 250 of free funds for capital. If you set the UAB up remotely without a notary, the fees would approach those of the MB (about EUR 46), but the EUR 250 capital requirement would remain.

When is an MB cheaper, and when is a UAB worth it

In pure setup costs an MB is almost always cheaper than or equal to a UAB — because the capital requirement and often the notary fall away. An MB is usually chosen by:

• solo businesses and small partners (up to 10 natural persons) who want to start without initial capital;
• those who want minimal setup and admin costs and flexible profit distribution.

A UAB is worth choosing, even with higher setup costs, when:

• you plan to bring in a legal-entity investor or have many stakeholders (up to 249 shareholders);
• you need a more conventional, "investor-familiar" structure with shares.

Before choosing on setup price alone, compare the forms more broadly — by taxes, liability and admin — in the article MB or UAB: which to choose in 2026. If you are still weighing simpler forms, the comparison of individual activity, business certificate and MB is useful, because sometimes the cheapest start is not a legal entity at all.

Costs do not end at setup

When choosing a form it is worth looking beyond the day of registration to the annual costs, which are similar for both legal forms:

• Bookkeeping. Both an MB and a UAB must keep accounts — usually a hired accountant or a service; this is a recurring monthly cost.
• Annual financial statements to the Register of Legal Entities — due by 30 June (for the calendar year). This obligation applies to both forms.
• Corporate income tax (CIT) return to VMI — due by 15 June. The standard CIT is 17%, for small companies 7%, and for new small companies it can be 0% in the first two years (if fewer than 10 employees, income up to EUR 300,000 and the company is not part of a group). These reliefs can apply to both an MB and a UAB.
• Distributing profit. When profit is paid out as dividends, a 15% personal income tax (GPM) applies. The "Sodra" contributions of an MB member and manager — VSD (state social insurance) and PSD (compulsory health insurance) — depend on the chosen payment method; check the exact rates at "Sodra".

In other words, cheaper setup does not mean cheaper operation — the overall cost picture depends on your income, profit and how you pay out your earnings.

Check your own numbers

Before choosing a form, it is worth budgeting not only for setup but for the whole project — including a website, bookkeeping and everyday tools. You can put together a quick indicative estimate with the web1o price configurator, and always verify the current fees, thresholds and contributions at the official sources: VMI, "Sodra" and the Register of Legal Entities.

Disclaimer: all fees, 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.

Have you set up an MB or UAB and now need an orderly start — a website, client flow and automated invoices from day one? web1o helps small businesses build a fast website and organise everyday processes. Put together an indicative project estimate with the price configurator and, if you need a concrete plan, book a free consultation.