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Establishment of sole proprietorship

We submit documents via the Centre of Registers self-service portal

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Standard timeframe: 3–5 business days

Sale! -20% Save 40,00 €

For family and sole-trader businesses

Sole Proprietorship (IĮ) Registration Online

A sole proprietorship (IĮ) is a simple and flexible legal form for family businesses and individual activities with no initial capital. We prepare all incorporation documents and articles of association and represent you at the Centre of Registers remotely within 3–5 business days.

Initial capital

€0 Share Capital

No need to freeze €1,000 in a bank as with a UAB – you can start operating immediately without a mandatory initial financial contribution.

Zero initial contributions

Income control

Flexible profit withdrawal

The owner may take company funds for personal needs as profit paid in advance. Each withdrawal must be documented, and personal income tax (GPM) and Sodra social security contributions are paid on the amounts withdrawn.

No dividend procedures

Simple management

1 Owner / Manager

The owner is usually also the company manager, although the articles of association may appoint a different manager. No boards or shareholder meetings are required.

Fast decision-making

Business growth

Option to convert into a UAB or MB

As your business grows, an IĮ can be converted into a UAB or MB while keeping business continuity. Conversion involves a creditor notification procedure, so it takes time.

Secure growth path

25+ years of experience in law and taxation

Centre of Registers fees are already included in the service price

Free document corrections

Timeframe: 3–5 business days

Save 20%

Original price was: 200,00€.Current price is: 160,00€. without VAT

without VAT

Original price was: 200,00€.Current price is: 160,00€. without VAT

Total incl. 21% VAT:

193,60 €

By clicking the button, you confirm your order and proceed to secure payment.

Centre of Registers fees are included in the price

Secure 256-bit SSL payment via online banking

Documents prepared by experienced lawyers

MyTax law office – sole proprietorship (IĮ) registration consultations
1400+
Legal entities successfully incorporated

Articles of association under the Lithuanian Law on Individual Enterprises

Protection and compliance

Legal peace of mind and smooth registration

When you set up a sole proprietorship with MyTax, you get more than standard form filling – you get a complete legal and tax foundation. Our senior lawyer Alina Barkuvienė and her team personally oversee every stage of registration, ensuring compliance with the Lithuanian Law on Individual Enterprises.

IĮ articles of association tailored to your business

We prepare the IĮ articles of association, which also serve as the company’s founding transaction. They set out the owner’s decision-making procedure, areas of activity and rules for withdrawing funds.

Notifications to the VMI and tax registration

We prepare and submit all required notifications to the tax administrator (VMI), ensuring your taxpayer status is activated correctly.

Free corrections based on Centre of Registers comments

If the Centre of Registers raises any comments, we will correct the documents free of charge.

Legal comparison

How does an IĮ differ from an MB, a UAB and individual activity?

Objectively compare the advantages, liability and tax rules of each legal form before making a decision. You will find all legal forms and their prices on our company formation services page.

01

Liability

IĮ: Unlimited civil liability – the owner is liable with their personal assets.
MB / UAB: Limited liability – personal assets are protected.
Individual activity: Unlimited personal liability of the individual.
Assess your business risk
02

Initial capital

IĮ: €0 share capital – you can start without freezing any funds.
MB: No minimum capital requirement (can be from €1).
UAB: A minimum share capital of €1,000 paid into a bank is mandatory.
Quick start with no investment
03

Profit withdrawal

IĮ: The owner may take funds for personal needs as profit paid in advance; withdrawals must be documented.
MB: Profit in advance or after the financial year, plus manager service income.
UAB: Only as dividends after the annual financial statements are approved.
Flexible profit management
04

Taxes

IĮ: Corporate income tax 0% / 7% / 17%; on funds withdrawn – personal income tax (GPM) and VSD/PSD on 90% of the amount.
MB: Corporate income tax 0% / 7% / 17%; VSD/PSD on amounts paid out for personal needs.
Individual activity: Personal income tax from 5% to 20% (income is added to other income), PSD/VSD on 90%.
Favourable 7% rate for small businesses

It doesn't get simpler

A clear process: 4 steps to a fully operational IĮ

We do everything remotely. You don’t need to visit a notary or queue at the Centre of Registers.

1

Choosing a name

Provide three preferred company names in order of priority. If the first option cannot be registered, we will use the second and, if necessary, the third.

Duration: ~15 min.

2

Drafting the articles of association

We prepare the IĮ articles of association (which also serve as the founding transaction) in line with Lithuanian law and, if needed, the manager appointment documents.

Duration: 1 business day

3

Signing with an e-signature

The owner signs the prepared incorporation documents remotely with a mobile e-signature (Mobile-ID or Smart-ID) in just a few minutes.

Duration: ~5–10 minutes

4

Registration with the Centre of Registers and STI

The Register of Legal Entities (JAR) approves the company, assigns a legal entity code and issues an electronic extract (ESI), and we submit the required notifications to the VMI.

Your company is ready to operate!

Answers to your questions

Frequently asked questions about registering an IĮ

Didn’t find the answer to your question? Our lawyers will provide an individual consultation free of charge.

Call a consultant: +370 5 2075759

What is the civil liability of an IĮ owner?
A sole proprietorship is a legal entity with unlimited civil liability. This means that if the company’s assets are insufficient to meet its obligations and debts, the owner is liable with their personal assets. If the company becomes insolvent, funds previously withdrawn by the owner may be challenged. That is why an IĮ is best suited to low-risk services, trade or family businesses.
What taxes apply to a sole proprietorship?
An IĮ pays corporate income tax. From 2026 the standard rate is 17%; small companies that meet the statutory conditions pay a reduced 7% rate, and newly established ones may, under certain conditions, pay 0% for their first tax periods. Funds withdrawn by the owner for personal needs are subject to personal income tax (GPM), and from 1 July 2026 Sodra contributions (VSD and PSD) are paid on 90% of the amount withdrawn. MyTax accountants will assess the exact conditions for your situation.
How and when can an IĮ be converted into a UAB or MB?
An IĮ can be converted into a private limited company (UAB) or a small partnership (MB) while preserving business continuity. The decision to convert must be published in a daily newspaper three times at intervals of at least 30 days, or once together with written notice to all creditors, so the process takes time. After conversion, limited liability applies to new obligations; for obligations that arose before the conversion, please consult our lawyers.
What are the accounting requirements for an IĮ?
IĮ accounting is kept in accordance with the applicable accounting legislation, and a set of financial statements is prepared if this is provided for in the company’s articles of association. The company files an annual corporate income tax return with the VMI. MyTax offers a dedicated IĮ accounting service.
What should you know before registering an IĮ?
One person can own only one sole proprietorship. The company name must include the words “individuali įmonė” or the abbreviation “IĮ”. If the owner is married, property held by the spouses in joint ownership is transferred to the IĮ in trust unless the spouses agree otherwise, so family businesses should assess property risks in advance.

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Pre-launch consultation

Unsure about the IĮ form or liability risks?

Book a free legal consultation with MyTax’s experienced lawyers. We will answer your questions about personal liability, converting an IĮ into a UAB/MB, tax optimisation and the registered office address.

call +370 5 2075759

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