Main types of companies in Lithuania
The next kinds of companies can be signed up in Lithuania following the Company Law:
- The sole proprietorship;
- The private limited liability company, proximately known as the UAB;
- The open limited liability company, or the AB;
- The partnership, able to be usual or limited and known as the KUB.
Companies from abroad are also permitted to operate on the Lithuanian market through subsidiaries which are usually signed as limited liability companies, arm offices, and liaison or representative offices.
Set Up company in Lithuania
The company signs up operation in Lithuania begins with a reservation for the trade title with the Centre of Registers, followed by the readiness and notarization of the company’s Memorandum and Articles of Association.
Following these, the next steps have to be completed:
- Opening the corporate bank account where the share capital is accumulated;
- Completing the incorporation papers together with information company’s shareholders and directors with the Trade Register;
- Signing up for tax and VAT intentions;
- Signing up for employment and social insurance intentions;
Once the Trade Register issues the Lithuanian company’s Certificate of Incorporation, the needed business permits for the operating has to be obtained. These are issued specific authorities in the field of activity of the company.
A quick comparison between legal forms in Lithuania
|Evaluation Criteria||Small community (MB)||Closed Joint - Stock Company (JSC)||Public limited liability company (AB)||Individual company (IĮ)||Public Institution (Public Enterprise)|
|Number of participants||From 1 to 10 members (natural persons only)||From 1 (unlimited)||From 1 (unlimited)||1 owner (natural person)||Participants (unlimited) or 1 owner. Natural and legal persons may be established.|
|Minimum capital size||There is no fixed, can both monetary contribution and tangible contribution||2500 €||25 000 €||There is no||Indefinite|
|Responsibility||Limited liability (the company is solely responsible for its assets)||Limited liability (the company is solely responsible for its assets)||Limited liability (the company is solely responsible for its assets)||Unlimited civil liability (the owner responds with all his property)||Limited liability (the company is solely responsible for its assets)|
|Decision-making (voting) principle||1 member - 1 vote, however, when the MB has a manual, the regulations may stipulate otherwise||If all the shares of UAB providing voting rights are of the same nominal value, each share in the general meeting gives one vote||If all shares of AB holding voting rights are of equal nominal value, each share in the general meeting gives one vote||The decisions are made by the owner||Participants make decisions by vote. 1 voter by 1 vote|
|Accounting||Optional accountant (bookkeeping can also be managed by MB members under SAS 38)||A compulsory bookkeeper or a contract with a bookkeeping company||A compulsory bookkeeper or a contract with a bookkeeping company||Optional accountant||A compulsory bookkeeper or a contract with a bookkeeping company|