Lithuania doesn’t care much about your dreams. It cares about forms, fees, and whether you’ve paid your dues. I’ve watched hundreds of entrepreneurs navigate Eastern Europe looking for a lean setup, and Lithuania often shows up on their radar. Low corporate tax rates, EU access, digital infrastructure—it all sounds appealing. But before you book that ticket to Vilnius, let’s talk money. Real money. The kind you’ll spend just to open the doors, and the kind that drains out every year whether you make a profit or not.
I’m breaking down the exact costs of forming and maintaining a Uždaroji akcinė bendrovė (UAB)—Lithuania’s version of a private limited liability company. These numbers come from official sources, service providers, and my own database. No fluff. Just the data you need to make a rational decision.
What You’ll Pay to Form a UAB in Lithuania
Company formation costs are sunk. Gone. You don’t get them back if you decide to close shop six months later. Here’s what you’re looking at:
| Item | Cost (EUR) |
|---|---|
| Name reservation fee (Registrų centras) | €16.22 |
| Company registration fee (State Enterprise Centre of Registers) | €57.40 |
| Notary fees (average for document certification) | €150.00 |
| Professional legal and documentation fees (average lawyer fees) | €500.00 |
| Total Sunk Costs | €723.62 |
That’s €723.62 ($781 USD) to get the paperwork finalized. Not outrageous by EU standards, but it’s only part of the picture.
The €1,000 Minimum Capital Trap
Lithuania requires €1,000 ($1,080 USD) in share capital. And here’s the kicker: it must be paid upfront. You can’t just promise it later or “inject” it when you feel like it. The money has to sit in your corporate bank account before the registration is complete.
This isn’t a fee—it’s your money, locked inside the company. But it’s still capital you need to have liquid and available at formation. If you’re bootstrapping or testing a concept, that matters. Some jurisdictions let you get away with €1 nominal capital. Lithuania doesn’t.
So your real day-one outlay is €1,723.62 ($1,861 USD). That’s what leaves your personal account to make this entity real.
Annual Maintenance: The Quiet Bleed
Formation is a one-time burn. Maintenance is forever. Or at least, as long as you keep the company alive. This is where most founders underestimate the burden.
| Item | Annual Cost (EUR) |
|---|---|
| Mandatory accounting and tax reporting services | €1,200 |
| Registered office address (virtual office service) | €150 |
| Annual financial statement submission fee | €30 |
| Corporate bank account maintenance and transaction fees | €120 |
| Minimum Annual Total | €1,500 |
Minimum annual maintenance: €1,450 ($1,566 USD). Maximum (depending on complexity and transaction volume): €4,800 ($5,184 USD).
Let me be clear. You’re not getting out of bed for less than €1,450 per year, even if your UAB does absolutely nothing. Zero revenue, zero activity—doesn’t matter. The state still wants its compliance theater.
Accounting Isn’t Optional
You can’t file your own taxes in Lithuania unless you’re a licensed accountant. The bureaucracy doesn’t trust you. So you’ll hire someone. The €1,200 ($1,296 USD) I’ve listed is the bare minimum for a dormant or very simple company. If you have employees, inventory, cross-border invoices, or anything resembling real operations, expect that figure to double or triple.
Most accountants charge monthly retainers. €100–€400/month is the range. You’re not escaping this.
Virtual Office: The Domicile Shell Game
You need a registered address in Lithuania. If you don’t live there, you rent a virtual office. €150 ($162 USD) annually is cheap. Some providers charge €300–€600. But you get what you pay for: a mailbox and a line on the business register. If authorities ever want to verify your “substance,” this address won’t save you.
Banking: The Real Wildcard
I’ve listed €120 ($130 USD) for annual bank fees, but that’s optimistic. Lithuanian banks have tightened compliance since the money laundering scandals of the late 2010s. If you’re a non-resident founder, expect lengthy KYC, requests for proof of funds, business plans, and sometimes outright refusals.
And even if you get an account, transaction fees add up fast. SEPA transfers might be free domestically, but international wires, currency conversions, and monthly account fees can push your real banking costs to €500+ annually.
Some entrepreneurs pivot to EMIs (electronic money institutions) like Revolut Business or Wise. Cheaper, faster onboarding—but you’re not getting the same legal protections or lending access as a traditional bank account.
Is a UAB Worth It?
Let’s do the math. Year one, all-in: €1,723.62 (formation + capital) + €1,450 (maintenance) = €3,173.62 ($3,427 USD). Every year after that: at least €1,450 ($1,566 USD), likely more.
Compare that to Estonia’s e-Residency structure (cheaper but with its own quirks), Cyprus limited companies (higher formation costs but better tax treaties), or even a UK LLP (no corporate tax, but transparency requirements are rising).
Lithuania shines if:
- You’re doing legitimate EU-facing business and need VIES VAT registration.
- You want to hire local talent (good developer pool, reasonable wages).
- You plan to apply for EU grants or public tenders.
- You value proximity to Nordic/Eastern European markets.
It’s less attractive if:
- You’re running a one-person consulting gig with no employees.
- You don’t need an EU VAT number.
- You’re trying to minimize admin overhead.
- You’re non-resident and remote, with no plans to visit regularly.
The 15% corporate income tax (5% for small businesses under certain conditions) is competitive, but it’s meaningless if your maintenance costs eat into thin margins. A company that generates €10,000 in annual profit pays €1,500 in tax but €1,450+ in compliance. You’re left with €7,050. Was the structure worth it? Depends on your strategy.
What They Don’t Tell You
Here are the hidden costs and frictions I’ve seen trip people up:
Director residency expectations. Lithuania doesn’t legally require a resident director, but banks and service providers often prefer it. If you’re the sole foreign director, expect more scrutiny and slower processes.
Dissolution isn’t free. If you decide to close the UAB, you’ll pay for liquidation: notary fees, final accounting, deregistration. Budget another €500–€1,000.
Substance rules. If you’re using the UAB to hold IP, invoice clients, or structure dividends, EU anti-abuse directives are tightening. A Lithuanian shelf company with no employees, no office, and no local operations might get flagged. Substance isn’t just a box to tick—it’s a liability shield.
Language barriers. Most official documents are in Lithuanian. Your accountant will translate and explain, but you’re dependent on them. Misunderstandings cost money and time.
My Take
Lithuania is a pragmatic choice for a real business, not a flag-planting exercise. If you’re serious about operating in the EU, need credibility, and can justify the €1,450+ annual overhead, a UAB makes sense. It’s not a low-maintenance structure. It’s not a privacy haven. It’s a functional tool in a regulated environment.
But if you’re optimizing for minimal friction, testing a side project, or chasing phantom tax savings, look elsewhere. The Baltic states are competitive, but they’re not giving anything away for free. Every euro you spend on compliance is a euro you’re not investing in growth.
I track these numbers across dozens of jurisdictions. They shift. Laws change. Fees creep up. If you’ve registered a UAB recently and your costs differ significantly from what I’ve outlined here, I want to hear about it. And if you’re still deciding where to incorporate, don’t let marketing brochures make the call for you. Run the numbers. Factor in your actual use case. Then decide.