Small Partnership (MB) Registration in Lithuania
A small partnership (mažoji bendrija, MB) is the simplest form of a limited liability legal entity in Lithuania. It is popular with freelancers, consultants and small family businesses: an MB needs no minimum capital, its members are not liable for its obligations with their personal property, and its management and accounting are simpler than those of a private limited liability company (UAB). Company in Lithuania UAB team will help you register an MB in Lithuania – on a visit to Vilnius or remotely by power of attorney.
Main features of a small partnership
- Limited civil liability: members are liable for the obligations of the partnership only with its property
- Members can only be natural persons, and an MB may have no more than 10 members
- No minimum capital: the members agree on their contributions themselves
- The highest body is the meeting of members; appointing a head of the partnership is optional
- Members can work in the partnership without an employment contract
- Simplified accounting is available for small entities
MB or UAB?
An MB suits small businesses run by their owners: it is faster and cheaper to establish and to manage. A UAB is the better choice if you plan to attract investors, have a legal entity as a shareholder or apply for a financial licence. A detailed comparison: UAB vs MB in Lithuania.
Stages of MB registration
- Consultation and choice of the name of the partnership (name reservation, if needed)
- Preparation of the incorporation act and the articles of association
- Registered office address: consent of the owner of the premises or a business address
- Signing of the documents electronically or before a notary
- Submission of the documents to the Register of Legal Entities (Registrų centras) and payment of the state fee
- Registration of the partnership and, if required, VAT registration
Basic conditions of MB registration:
