BASIC REQUIREMENTS FOR THE ORGANISATION OF ACCOUNTING
- The Lithuanian Register requires every company to prepare and submit its annual report within 5 months of its financial year.
- There is no set month for the start of a financial year
- It is not possible for the company’s head to handle accounting.
- Accounting programs must be used to record all business transactions.
- It is essential to document every business transaction.
- A company’s financial situation, performance, and cash flows should be presented in a reliable, objective, and comparable manner.
- Documents related to accounting must be archived for a minimum of ten years.
ANNUAL FINANCIAL REPORT
- Even companies without any activities during the financial year are required to file annual reports in Lithuania.
- The annual report must be approved at the Annual General Meeting after the end of the financial year.
- There must be 12 consecutive months in the financial year, usually starting on the first of January. However, it can start at any time during the calendar year.
- After a general meeting, the Lithuanian Centre of Registers must receive the annual report.
After 12 consecutive months, the company’s books of accounts are closed and financial statements are prepared, and the financial year starts at any month in the calendar year. It is normal for Lithuanian companies to have the same financial year as the calendar year.
An annual report must be submitted by each Lithuanian company within six months after the end of its financial year to the Lithuanian Business Register. Unless otherwise specified, the annual report must be prepared in Lithuanian and in the official currency of Lithuania (Euro).
Every company registered in Lithuania is required to file an annual report, even if it didn’t conduct any business during the year. If your company’s financial year ends on 31 December, the deadline for the annual report is 30 June of the following year. This means that if the financial year ends on 31 December, the deadline is 30 June.
The annual report must be prepared after all accounting has been completed.
The annual report should include the following: