„In recent years, around 16-17 thousand new legal entities are registered in the country annually. Last year, due to favorable tax conditions, the registration of small partnerships rapidly surged, and this boom continued for the first few months of this year. Although starting a business is not always smooth for everyone, statistically it can be said that the vast majority of businesses are successful at least in their first year,“ says Paulius Rudzkis, data analyst at the Register Center.
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The Register Center analyzed financial reports of approximately 10.5 thousand new companies. When analyzing companies’ financial results, business newcomers are considered those companies that were registered in 2024, so the past year 2025 was the first full financial year for these companies.
Analysis of financial reports for 2025 submitted by companies registered in the Legal Entities Register in 2024, conducted by data analysts at the Register Center, showed that 69% of companies increased sales revenue last year, 13% of companies’ revenues decreased over the year, and about one in five companies reported having no revenue.
„Among the companies generating the highest turnovers, one can traditionally see new subsidiaries established by groups of companies operating for some time, likely intended for the expansion of the entire group’s activities. However, there are also successfully starting newcomers in logistics, transport, or IT sectors. The highest revenue growth was recorded by companies starting activities in the growing transport, IT, and pharmaceutical markets,“ says P. Rudzkis.
The total turnover of all companies registered in 2024 and submitting their financial reports for 2025 reached 1.6 billion euros last year, while in 2024 these companies’ turnover was 571 million euros. Among the sectors generating the most revenue are representatives of wholesale and retail trade, manufacturing, construction, and transport sectors.
In 2025, more than half (52%) of all business newcomers operated profitably, i.e., earned pre-tax profit. Slightly more than one in four companies (29%) ended the year with losses, and another 19% of companies declared neither profit nor loss. Last year, 58% of newcomers operated profitably, and 28% operated at a loss.
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According to P. Rudzkis, the highest profits among new companies are usually recorded by companies controlling corporate groups, as well as companies operating in the IT, pharmaceutical, and logistics sectors, which show the highest profitability.
The pre-tax profit of profitably operating companies last year amounted to 353 million euros, while companies operating at a loss incurred pre-tax losses of 74 million euros.
The analysis of financial results of newly registered companies was carried out based on financial reports submitted to the Register Center by companies registered in 2024 up to July 7 of this year. In total, over 10.5 thousand financial reports from small partnerships, private limited companies, joint-stock companies, and agricultural companies were used for the analysis.
By the way, about 260 legal entities registered in 2024 have not survived until now and have been deregistered.
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