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Sole traders don't legally need a separate business account โ companies do
If you're registered as individuali veikla or on a verslo liudijimas, a second personal account is usually enough โ separation is for your own sanity, not the law. An MB or UAB is different: a business account in the entity's name is required from formation.
Table of Contents
Do You Actually Need One?
Depends entirely on your structure, and the answer surprises people.
Individuali veikla (sole trader)
- โ Not legally required to keep business funds separate
- โ You can invoice from a personal account
- โ But mixing makes your annual declaration much harder
- โ And harder to evidence if questioned
UAB (limited company)
- โ Required โ the company is a separate legal person
- โ Needed for share capital at formation
- โ Company funds must not be mixed with personal
- โ Non-negotiable, so the question is which provider
Our honest recommendation for sole traders
Lithuanian law doesn't force you to separate business money under individuali veikla โ but open a second free account anyway. It costs nothing, takes ten minutes, and turns your annual declaration from an archaeology exercise into a copy-paste job. You don't need a "business account" as such; a second personal account is often enough.
What Structure Are You?
| Structure | Separate account required? | What to open |
|---|---|---|
| Individuali veikla (sole trader) | No | A second personal account is usually sufficient |
| Verslo liudijimas (business certificate) | No | Same โ separation is for your own sanity |
| MB (small partnership) | Yes | Business account in the entity's name |
| UAB (limited company) | Yes | Business account, needed from formation |
If you're not sure which structure suits you, our individuali veikla guide covers the sole trader route and when a company starts making more sense.
Provider Comparison
Lithuania's fintech sector means business banking here is unusually competitive โ this is one area where being in Vilnius genuinely helps.
| Provider | Type | Sole trader | Company | Notes | |
|---|---|---|---|---|---|
| Revolut Business | Fintech | โ | โ | Lithuanian IBAN, fast onboarding, strong FX | Open |
| Paysera | Fintech | โ | โ | Lithuanian provider, widely accepted locally | Open |
| Wise Business | Fintech | โ | โ | Best for multi-currency and international clients | Open |
| Swedbank | Bank | โ | โ | Full-service, deposit guarantee, branch access | Open |
| SEB | Bank | โ | โ | Full-service, established lending relationship | Open |
| Luminor | Bank | โ | โ | Full-service | Open |
โ Verify before publishing. Business account monthly fees, transaction pricing, onboarding requirements and which providers accept non-resident directors all need confirming from each provider's official business pages. Business banking terms differ substantially from personal ones โ don't assume the personal fees we've verified elsewhere apply here.
The Lithuanian advantage, again
Revolut and Paysera are licensed in Lithuania and issue Lithuanian IBANs. For a Lithuanian company invoicing Lithuanian clients, that means the account behaves as fully domestic โ which is not the case in most other EU countries, where a Revolut IBAN is foreign and creates friction. If you're running a business here, this is a genuine reason to consider fintechs seriously rather than defaulting to a traditional bank.
What You Need to Open One
Sole trader (individuali veikla)
- Your asmens kodas and ID
- Registration certificate for the activity
- For fintechs, often just identity documents and a description of the activity
Company (UAB)
- Company registration documents from the Centre of Registers
- Articles of association
- Director's and beneficial owners' identification
- Proof of business address
- Description of the business activity โ expect real questions here
- Source of funds documentation for the share capital
Expect due diligence, and prepare for it. Lithuania is an EU financial centre, which means its institutions apply serious anti-money-laundering scrutiny. Vague answers about what your business does, where the money comes from, or who ultimately owns it will slow or stop your application. Have a clear, documented explanation ready โ this is normal compliance, not suspicion of you personally.
How to Choose
If you're a freelancer with local clients
A second free personal account, or Revolut/Paysera. You need a Lithuanian IBAN and clean separation, not a full business banking relationship.
If you invoice international clients
Wise Business is usually strongest โ multi-currency accounts and mid-market exchange rates. If a meaningful share of your income arrives in another currency, the FX saving will exceed any fee difference. See sending money abroad.
If you're forming a UAB
You need an account for share capital at formation. Traditional banks are the conventional route and give you a lending relationship; fintechs are faster to onboard. Check which your company formation agent works with.
If you'll want credit or a mortgage
Go traditional. A documented banking relationship with Swedbank, SEB or Luminor is what lenders assess. Fintech history doesn't build that.
If you handle cash
You need a traditional bank. Fintechs have no branch network.
Working out whether to be a sole trader or a company?
The tax difference is significant, and it changes above a specific threshold.
Common Mistakes
Running individuali veikla through one personal account
Legal, but it makes your annual declaration far harder than it needs to be. Separate it.
Mixing company and personal money
For a UAB this isn't untidiness โ it's a legal problem. The company is a separate person.
Choosing on monthly fee alone
If you receive foreign currency, the exchange rate matters far more than a few euros of account fee.
Being vague in onboarding
Compliance teams need a clear description of your activity and funds. Vagueness reads as risk.
Assuming personal account terms apply
Business pricing is structured differently. Check the business schedule specifically.
Not planning for credit
If you might want to borrow later, start building a traditional bank relationship now.
Frequently Asked Questions
Do I need a business account for individuali veikla?
Not legally โ Lithuanian law doesn't require sole traders to separate funds. But a second free account makes your annual declaration dramatically easier and is worth the ten minutes.
Can I use Revolut for business in Lithuania?
Yes. Revolut Business issues Lithuanian IBANs, so it functions as a fully domestic account for local invoicing โ unlike in most other EU countries. Note this is separate from Revolut's investing offering, which doesn't support the Lithuanian investment account regime.
What do I need to open a company account?
Registration documents, articles of association, director and beneficial owner identification, proof of address, a clear description of the business, and source of funds documentation.
Can a non-resident open a Lithuanian business account?
Sometimes, though scrutiny is greater and some providers decline. Requirements vary considerably โ check with the specific provider before forming a company on that assumption.
Which is best for international clients?
Wise Business, generally โ multi-currency accounts and mid-market exchange rates. The FX saving typically outweighs fee differences if a meaningful share of income is in another currency.
Will a fintech account help me get a business loan?
Generally not. Lenders assess a documented banking relationship, which traditional banks provide and fintechs don't.
How long does opening take?
Fintechs are usually days; traditional banks longer, especially for companies with complex ownership. Build it into your formation timeline.
Related Guides
Disclosure and disclaimer. Some links on this page are affiliate links, which may earn us a commission at no cost to you and do not affect our recommendations. General guidance, not financial or legal advice. Business banking terms change โ confirm directly with the provider, and take professional advice on company structure.