EU Inc. vs Lithuanian UAB

The quick answer

The UAB (Uždaroji akcinė bendrovė) is Lithuania's standard private limited company — the default choice for domestic business, and rightly so. The EU Inc. (Societas Europaea Unificata) isn't trying to replace it for purely domestic Lithuanian businesses. But for founders operating — or planning to operate — beyond Lithuania's borders, the comparison changes quickly.

Lithuania cut its UAB capital requirement to €1,000 and has built the EU's most active fintech-licensing hub — its founders are exactly the cross-border profile the EU Inc. targets.

Side-by-side comparison

Feature	EU Inc. (S.EU)	Lithuanian UAB
Formation time	48 hours (digital)	About 1 week
Minimum capital	€1	€1,000
Notary required	No	Notary or online path
Valid in	All 27 EU member states	Lithuania
Fully online formation	Yes (via BRIS)	Yes
Harmonised EU-wide rules	Yes — one rulebook	No — Lithuanian law
Available now	Q1 2027 (law passing 2026)	Yes

What the UAB does well

Vilnius's fintech licensing ecosystem is the busiest in the EU
Universally understood by Lithuanian banks, accountants, and public authorities
Available today — no waiting on the EU legislative calendar

Where the EU Inc. pulls ahead

One entity valid in all 27 member states — hire, contract, and operate anywhere in the EU without subsidiaries or branch registrations
48-hour fully digital formation with €1 minimum capital and no notary
One harmonised rulebook instead of 27 national systems — the same company law whether your customer is in Lithuania or anywhere else in the Union
Built-in EU-wide frameworks from the proposal, including harmonised employee stock options (EU-ESOP) and standardised investment documents (EU-FAST)

Can a UAB become an EU Inc.?

The Commission proposal contemplates that existing national companies can become an EU Inc. through domestic conversion or cross-border merger, division, or conversion — meaning a UAB founded today shouldn't be locked out later. The exact conversion mechanics depend on the final text adopted by Parliament and Council, so treat this as direction of travel rather than settled law.

The bottom line

If your business begins and ends in Lithuania, the UAB remains a sound choice. If your ambitions cross a border — hiring, selling, or raising anywhere else in the EU — the EU Inc. is purpose-built to make that simple in a way no national form, however good, can be. Many Lithuanian founders will end up choosing it not against the UAB, but for everything the UAB was never designed to do.

National requirements are approximate, change with local reform, and may vary by structure and circumstances. EU Inc. figures reflect the European Commission proposal of March 18, 2026, which is subject to amendment before final adoption. This page is general information, not legal advice.