Company set up: what you must do in the first months to avoid surprises from VMI and Sodra

The company is registered, the code received and the bank account opened. Many new entrepreneurs breathe a sigh of relief at this point – and that is exactly when the mistakes begin that surface six months later. Here is what we recommend sorting out in the first months.

1. Accounting policy and document procedures

Every company must keep accounts from the day it is registered. Decide how invoices will be collected, who checks them and where they are stored. A simple rule: no payment without a document.

2. Monthly returns and deadlines

If the company pays salaries or other employment-related payments, personal income tax and Sodra returns must be filed every month (usually by the 15th of the following month). VAT payers file the VAT return by the 25th of the following month and i.SAF data by the 20th. Missed deadlines mean fines and late-payment interest.

3. Registering employees

When hiring an employee, Sodra must be notified no later than one working day before the start of work. The employment contract, timesheet and holiday records must all be in place from day one.

4. How you will pay yourself

An MB member can receive payouts without an employment contract; a UAB owner receives a salary or dividends. Each option is taxed differently. For MB members in 2026 it is especially important to factor in Sodra contributions: the contribution base from January to June is 50% of the amounts paid, and from 1 July – 90%.

5. VAT threshold

Monitor your income: once you exceed the EUR 45,000 threshold, VAT registration is mandatory, and VAT is charged from the very transaction that took you over the threshold. Sometimes it pays to register voluntarily earlier – it depends on your clients and purchases.

6. Annual financial statements

After the financial year ends, the company prepares a set of financial statements and submits it to the Centre of Registers, and files the corporate income tax return with VMI. If the books were kept carelessly during the year, the year-end is when it costs the most.

The most common pain points for new companies

• “I didn't know I had to” – missed filing deadlines in the first months;
• personal and business expenses mixed on one card;
• documents kept in emails, photos and drawers;
• money paid to yourself without decisions and without assessing the taxes.

Advice from Ana Baranova, director of Patikima buhalterė: “The first three months determine what the whole year will look like. If we agree on document handover and a deadline calendar from the start, the owner spends a few minutes a month thinking about taxes, not a few days before the annual reports.”

Let us take this off your hands

We help new companies sort everything out right away: accounting, tax returns, employee documents and payout procedures. You get a clear calendar and know that nothing will be forgotten.

Calculate the cost of accounting · Contact Us · +370 635 87770

Information valid for 2026. Specific obligations depend on the company's activities, so consult an accountant.