Company Formation in Lithuania

POSSIBLE OPTIONS TO REGISTER A COMPANY IN LITHUANIA

Purchase of a ready-made company in Lithuania

In addition to the establishment of new companies, we also propose to acquire an already established company, whose authorized capital is fully established. It is possible to purchase a finished company completely remote...
from 1,000 EUR

Company registration by visit to Lithuania

Legal address in the territory of Lithuania and registered capital (2,500 euros) is obligatory. For the establishment of the company you need to be present at the notary in Vilnius...
from 1,200 EUR

Opening a company in Lithuania by a power of attorney

Legal address in the territory of Lithuania and registered capital (2,500 euros) is obligatory. A notarized power of attorney...
from 1,500 EUR

OPEN COMPANY IN LITHUANIA

Lithuania ranks 11th in the world in terms of ease of doing business (World Bank Report «Doing Business, 2020)

The most common form of business presence in Lithuania is a limited liability company – UAB.

Uždaroji akcinė bendrovė (UAB) in translation from the Lithuanian language means Closed Joint-Stock Company. The statutory capital of the UAB is divided into shares which can be sold in whole or in part, donated or hereditary. UAB must have at least one owner/owner (natural or legal person) and at least one director (natural person) authorized to sign on behalf of the company.

Forms of business in Lithuania

There are four main types of company registration in Lithuania for foreign investors and they are:

  • Public society (AB) (is analogous to a Public Company (AB))
  • Private company (UAB)
  • Partnership (TUB) or Limited Partnership (KUB)
  • Branch or representation of a foreign company

All business entities must be registered in a single Register of Legal Entities.

1) Private Limited Liability Company (UAB)

The most common form of business activity in the Republic of Lithuania is a private company with limited liability.

Authorized capital

With the establishment of a private limited liability company, the minimum statutory capital is 2,500 euros. The authorized capital must be formed in the company’s bank account and paid in full. Capital is divided into shares that cannot be sold or sold publicly.

Founder

The founder(s) of a private limited company may be one or more natural or legal persons. The founder may be a non-resident of the Republic of Lithuania.

Obligation

The company and its shareholders have limited liability. The shareholders’ obligation is limited to the sum of the authorized capital.

Board

Decisions in a private limited company are taken by a general meeting of shareholders and there is no requirement for a board or supervisory board.

Auditing

Annual audits are required if turnover exceeds 1.4 million euros.

2) Public Limited Liability Company (AB)

A public limited company is a suitable form of business for large companies in Lithuania.

Authorized capital

When a public limited liability company is established, the minimum statutory capital is 40,000 euros. The authorized capital must be formed in the company’s bank account and paid in full. Capital is divided into shares that can be sold or sold publicly.

Founder

The founders/shareholders of a public limited company may be one or more natural or legal persons. The founder may be a non-resident of the Republic of Lithuania.

Obligation

The company and its shareholders have limited liability for all the company’s assets.

Board

The decision-making body in a public limited company is the board of directors, which consists of at least three members of the supervisory board. The board body of a public limited company is approved by the general meeting of shareholders.

3) Partnership (TUB) or Limited Partnership (KUB)

There are two types of partnership in the Republic of Lithuania. The main difference is the range of responsibilities.

Obligation

Full partnership has unlimited liability for obligations, while limited partnership has limited liability, which means that limited liability partners are liable to the extent of their contributions, and there must be at least one general partner with unlimited responsibility.

Both partnerships with full and limited partnerships require an agreement between the partners signed by all and certified by a notary in the Republic of Lithuania.

4) Foreign affiliate or representative

A foreign company may open its representative offices and branches in the Republic of Lithuania. A representative or a subsidiary is part of a foreign company. At least one member of a branch/representative office of a foreign company must be physically located in Lithuania.

A branch or representation is a division of a foreign company but is not a separate legal entity.

A branch is a structural subdivision of a legal entity which has its registered office and performs the functions of a legal entity. A branch may engage in commercial activity within the limits set by the parent company.

Representation is a sub-unit of the legal entity that has its registered office and has the right to carry out the said transactions, i.e. to represent and protect the interests of the parent company. Mission may not engage in commercial activities

The main feature of the establishment or subsidiary is that the foreign company is liable for all its obligations.

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