Law on Companies of the Republic of Lithuania
What the law regulates
The Law on Companies (No. VIII-1835) governs the two forms of limited liability companies in Lithuania: the private limited liability company (UAB) and the public limited liability company (AB). It sets the rules for incorporating a company, its share capital and shares, the rights and duties of shareholders, the management bodies, and the reorganisation, transformation and liquidation of a company.
Who it applies to
Every UAB and AB registered in Lithuania — including companies fully owned by foreign individuals or foreign companies. Matters not covered by this law are governed by the Civil Code.
Key points for company owners
- Founding documents. A company is founded with a founding act or agreement and its articles of association, and comes into existence when it is registered in the Register of Legal Entities.
- Share capital. The capital is divided into shares; the law sets the minimum share capital and how it is paid, increased or reduced.
- Management bodies. The general meeting of shareholders and the director (manager) are mandatory; a board and a supervisory board are optional for a UAB.
- Annual decisions. The general meeting of shareholders approves the annual financial statements and decides on the distribution of profit.
- Shareholder register. Data on the company’s shareholders must be submitted to the JADIS information system and kept up to date.
- Changes. Amendments to the articles of association, a change of director or registered office, and similar changes must be registered with the Register of Legal Entities.
Official text: Law on Companies, No. VIII-1835 (English translation) (Register of Legal Acts of the Seimas, e-seimas.lrs.lt). English translations there may not include the latest amendments — the Lithuanian version prevails.
This overview explains the law in plain English for business owners. It is not legal advice and does not replace the official text; laws change, so always check the current version. For advice on your situation, contact us.