Nominee Services in Lithuania
The lawyers of Company in Lithuania UAB would like to highlight the risks associated with the appointment of nominee board members and owners for the Lithuanian company.
Nominee director (Board member) is a person who registers a company in his/her own name with the Lithuanian government authorities, while the company is managed by third parties. The nominee director is usually not involved in (and often has no idea about) the actual business activity of the company.
Board member of a Lithuanian company is a person who manages the company and is responsible for all its activities. The management Board of a company may have one or more board members. It is the Board member who has the authority to sign on behalf of the company and have access to the company’s bank account.
Beneficiary owner of a Lithuanian company is a person or several persons who directly or indirectly own a legal entity (at least 25% of its equity capital) or significantly impact its decision-making.
According to the Lithuanian law, a Board member shall be appointed by the owners of the company’s by drawing up a minute of the general meeting of owners. If the nominee Board member and the nominee owner are the same person, the actual beneficiary of the company has no right to change the management Board of the company and may have no right to access the company’s accounts without the consent of the nominee director. Company share ownership can only be transferred to a new owner under a notarised company purchase agreement – otherwise it shall not be considered legal.
In view of the above, the fate of a Lithuanian company registered to a nominee director/owner is completely in his/her hands, and, in case of disagreement with the actual beneficiary, the latter may completely lose control over the company.
Beware of fraudsters offering nominee services and highlighting only the benefits that your company can get without highlighting the high risks and the fact of violation of Lithuanian law.
When you become a client of Company in Lithuania UAB, you can receive all the necessary services in one place: setting up a company, accounting services and advice, assistance in obtaining the necessary licenses and permits, legal support for your Lithuanian company, advice on opening a bank account.