When a foreign founder registers a Lithuanian UAB, they typically spend most of their energy on the formation itself: the notary appointment, the share capital, the articles of association, the registered address. By the time the registration certificate arrives, the administrative clock is already running. VMI expects a CIT registration within five business days. If the company will have employees, Sodra registration follows immediately. The first monthly declaration may be due within weeks.

This guide covers the full operational arc: from the moment of registration through the first annual report. It is written for founders who are serious about running a compliant Lithuanian company and want to understand what their accountant is doing on their behalf, and why.

Why international founders choose Lithuania in 2026

Lithuania's company registration figures tell a clear story. New business registrations rose nearly 9% in Q1 2025 compared with the previous quarter, the second-highest growth rate in the EU after Cyprus, according to Eurostat data reported by Verslo žinios. That growth reflects genuine business interest, not administrative activity.

Several structural factors drive this. Lithuania offers the lowest corporate income tax rate among the three Baltic states for small companies: 7% on profits up to €300,000 for companies meeting the small-company criteria. Qualifying early-stage companies can access a 0% rate for the first two years. The country is an EU member with a modern Companies Register (Registrų centras), a digital tax authority (VMI), and infrastructure that accommodates remote management by non-resident founders.

Lithuania also suits founders with specific structural needs: e-commerce operations selling to Baltic and EU consumers, service businesses needing an EU entity for invoicing, holding structures for Baltic real estate or equity investments, and companies that want a leaner tax environment than their home country offers.

UAB formation: what the process actually involves

Unlike Estonia's fully online registration process, forming a Lithuanian UAB requires a notary. The notary certifies the founding documents, which must be in Lithuanian. For non-Lithuanian-speaking founders, a translation and a power of attorney arrangement are standard.

The minimum share capital for a UAB is €2,500. This must be paid in full before registration, into a temporary bank account opened at a Lithuanian bank for this specific purpose. Once the registration is complete, the funds transfer to the company's operational account. The share capital can be used for business purposes from the moment the company is registered.

The registration itself is handled by the Registrų centras (RC). Once submitted, standard processing takes three to five business days. The company receives a registration number, which immediately makes it visible in the public companies register at rekvizitai.vz.lt.

What your articles of association govern

The articles of association (įstatai) are the foundational document of the UAB. They specify share classes, transfer restrictions, decision-making procedures, and profit distribution rules. Standard articles are suitable for most simple structures. Companies with investors, multiple founders, or specific governance needs should consider customised articles drafted with legal advice.

The first 30 days: registrations you cannot skip

Registration with the Registrų centras is only the first step. Within the first 30 days, a newly formed UAB must complete several additional registrations with the tax authority and, if applicable, the social insurance authority.

• VMI tax registration Every UAB must register with VMI (Valstybinė mokesčių inspekcija) for corporate income tax. This is typically done within 5 business days of registration. The company receives a tax identification number (the same as the company registration code).
• Sodra registration If the company will employ staff or pay the director a salary, Sodra (State Social Insurance Fund Board) registration is required before the first payroll. Sodra handles social insurance and health insurance contributions for all employees and directors receiving employment income.
• Beneficial owner registration Lithuanian law requires the ultimate beneficial owner (UBO) of the company to be registered with the RC's beneficial ownership register. This applies to all natural persons who own or control more than 25% of the company, directly or indirectly.
• Bookkeeping commencement Financial records must be maintained from the first day of business activity. All income and expenses must be recorded, even if no revenue has been received yet. Your accountant should be engaged from day one, not from the first invoice.
• VAT assessment If the company expects to exceed the €45,000 turnover threshold within the first 12 months, or trades with VAT-registered EU businesses, early VAT registration should be considered. See Section 05 for the full VAT decision framework.
• Bank account opening A permanent operational bank account is needed once the temporary share capital account closes. Options include Lithuanian banks (SEB, Swedbank, Luminor), which apply enhanced due diligence to foreign-owned companies, and fintech alternatives (Paysera, Revolut Business) which are faster but have transaction limits.

Ongoing filings: monthly and quarterly obligations

Once the UAB is operational, it enters a recurring compliance cycle. The filings vary depending on whether the company has employees, is VAT-registered, and whether it is making advance CIT payments. The table below summarises the standard monthly and quarterly obligations.

Filing	Authority	Deadline	Applies when	What it covers
Monthly payroll declaration (GPM313)	VMI	15th of following month	If payroll	Personal income tax withheld from employee and director salaries
Sodra monthly declaration	Sodra	15th of following month	If payroll	Social and health insurance contributions for all insured persons
VAT return (PVM declaration)	VMI	25th of following month	If VAT-reg.	Output VAT on sales, input VAT on purchases, and net VAT payable
CIT advance payment	VMI	15th of month 3, 6, 9, 12	If prev. tax >€289	Quarterly advance payments toward the annual CIT liability
Payroll transparency report (DAS)	VMI via Sodra	Monthly	If employees	Remuneration structure data required under the EU Pay Transparency Directive from June 2026

Companies with no employees and no VAT registration have significantly lighter monthly obligations. Many early-stage UABs in this position need only quarterly CIT advances (once profitable) and annual filings. This is one reason Lithuania suits lean international businesses: the minimum compliance burden is manageable.

What your accountant handles and what requires your input

A good Lithuanian accounting firm handles all of the above filings on your behalf, provided they receive the underlying data: bank statements, invoices issued and received, and payroll instructions. Your obligation as director is to provide that data accurately and on time. Delays in sending invoices or bank statements typically propagate directly into filing delays.

VAT: when you need it and when you want it

VAT in Lithuania operates at a standard rate of 21%, with a reduced rate of 9% for certain goods and services (books, media, heating, accommodation). The registration threshold is €45,000 of taxable turnover in the preceding 12 months.

Mandatory registration

Once turnover crosses €45,000 within any rolling 12-month period, the UAB must apply for VAT registration with VMI. The application must be submitted before the threshold is crossed, not after. Late registration carries penalties.

Voluntary registration

A company can register for VAT before reaching the threshold. For B2B companies invoicing other VAT-registered businesses, early registration is usually worth it: it allows the company to reclaim input VAT on its own purchases and signals EU tax compliance to business customers who perform supplier checks.

Cross-border VAT considerations

Companies selling digital services or goods to EU consumers in other member states must assess their One Stop Shop (OSS) obligations. The OSS threshold of €10,000 on cross-border B2C sales to EU consumers means that many e-commerce UABs reach OSS obligations before they reach the Lithuanian domestic VAT threshold.

The annual report and CIT return

Every Lithuanian UAB must file an annual financial report with the Registrų centras within four months of the end of the financial year. For companies on the standard calendar-year basis, this means the annual report is due by 30 April. The annual CIT return (PLN204) is filed with VMI by the same date.

What the annual report contains

The annual report includes the balance sheet, profit and loss statement, and notes to the financial statements. The required level of detail depends on company size. Micro-companies (two of three: revenue under €700,000, assets under €350,000, fewer than 10 employees) file a simplified report. Small companies file a condensed report. Medium and large companies file full reports and may require audit.

Company size	Revenue	Assets	Employees	Report type	Audit
Micro	Under €700k	Under €350k	Under 10	Simplified	Not required
Small	Under €8m	Under €4m	Under 50	Condensed	Not required
Medium / Large	Over €8m	Over €4m	50 or more	Full IFRS / LAR	Required

CIT rates in 2026

The applicable CIT rate determines how much is owed with the annual CIT return:

Rate	Applies to	Conditions
15%	Standard rate	All UABs not qualifying for reduced or startup rates
7%	Small company reduced rate	Taxable profit under €300,000, fewer than 10 employees, annual revenue under €300,000, and no related-party connections that would otherwise disqualify
0%	Startup rate	Company less than three years old, fewer than 10 employees, annual turnover under €300,000. Applies for the first two profit-making years only. Cannot be combined with 7% rate in the same year.

1Office pricing for annual compliance

Running your company through my1Office

Managing a foreign company from abroad creates an information gap: founders often do not know what has been filed, what is due next, or what their current financial position looks like until their accountant sends a summary. my1Office is 1Office's client portal, designed to close that gap.

Opening a my1Office account is included with all 1Office Lithuania formation and accounting packages. You can access it at my.1office.co. If you have an existing accounting arrangement, your 1Office accountant will configure the account and walk you through the initial setup.

Frequently asked questions