Structure of Payment for Legal Services of Company in Lithuania UAB

For both the client and the legal company, it is important to know the structure of payment for legal services. Company in Lithuania UAB offers a number of transparent options of payment for legal services according to the needs of company’s clients. The reasonableness requirements apply to any and all forms of determining the cost of legal services, including hourly fees, fixed fees and advance/deposit system of payment. The cost of legal services of our company meets the reasonableness requirements, as evidenced by the fact that reasonable rates are used for its calculation and a reasonable amount of time required for the provision of high-quality legal services is taken into account.

This feature based on many years’ experience of participating in a large number of legal projects allows our clients to order services from our company as needed while having a full understanding of how the cost is calculated. When determining the cost of legal services, the main goal of our company is to agree upon the structure of payment for legal services, which will best meet the interests of our clients from the very start of the project implementation, and avoid misunderstanding and misinterpretation.

The structure and amount of payment for services provided by Company in Lithuania UAB depends on the type and scope of work to be performed and work completion time, as well as on how often the work will be performed and how complicated the legal issue under consideration is. The payment structure will be agreed upon with each client in advance on an individual basis and will be specified in the contract signed by the two parties, namely our company and the client’s representative.

Company in Lithuania UAB offers three legal fee structures: fixed fees, hourly fees and combination arrangements. Advance payments and deposits are payment mechanisms that may apply to these fee structures rather than a separate method of calculating legal fees. The applicable fee structure and payment schedule are agreed in writing before the engagement begins. All proposed payment structures and their conformity to the legal issue of the company’s clients will be discussed in detail during the first consultation offered free of charge and, after they are agreed upon and confirmed by both parties, will be specified in the contract.

When determining the structure of payment, the main goal of our company is to be as transparent as possible to our clients in terms of payment for legal services and avoid misunderstanding or misinterpretation when it comes to payment, thereby establishing trust-based and open relationships with all clients of Company in Lithuania UAB.

Three payment options offered by our company

Fixed legal fees

Company in Lithuania UAB can offer a fixed fee for the following services provided by our company:

• Setting up a company in Lithuania
• Registered address service in Lithuania
• Proxy representation
• Preparation of a package of documents for a Lithuanian company
• Accounting support for a Lithuanian company provided on a monthly basis
• Submission of an annual report for a Lithuanian company

Fixed fees are payable according to the payment schedule agreed in the Engagement Letter. Unless otherwise agreed, fees of EUR 500 or less are payable in full before services commence; fees exceeding EUR 500 but not exceeding EUR 2,000 require a 50% advance payment, with the remaining 50% payable upon delivery; and fees exceeding EUR 2,000 require a 40% advance payment, followed by the agreed milestone payments. These arrangements are consistent with the Company’s published Payment Terms. The main advantage of a fixed fee is that it provides certainty about the price of the services included in the agreed scope. The fee remains unchanged while that scope remains the same. If the client requests additional services or unforeseen circumstances materially expand the work, any additional fees must be agreed in writing before the additional work begins, in accordance with the Company’s Payment Terms.

Hourly legal fees

An hourly fee for legal services provided by Company in Lithuania UAB is the most common method used to pay for legal services. An attorney will keep track of the time spent on investigating the client’s request and providing the legal service itself. All legal projects are unique and payable depending on the amount of time spent on their implementation, since in most cases it is not possible to calculate the cost of implementation without a close investigation and review of the project. The Company’s standard hourly rate for legal services is EUR 150, exclusive of applicable VAT. Hourly engagements are invoiced monthly in arrears unless a different arrangement is specified in the Engagement Letter. Each invoice includes a summary of the work performed, time recorded and applicable fees. The Company provides an initial cost estimate and informs the client where the expected fees are likely to exceed that estimate by more than 20%, in accordance with its Payment Terms.

Deposit system of payment for legal services

Advance payments and deposits are transferred to the Company’s designated bank account in accordance with the signed Engagement Letter. The Company does not operate a separate regulated client trust account. Deposits are held in the Company’s general business account as funds on account and are applied against fees invoiced as work progresses. The Company maintains records of the deposit balance and its application to the client’s invoices, in accordance with the published Payment Terms. If an unused deposit balance remains after completion of the engagement, the Company will refund that balance within fourteen (14) calendar days after the final invoice, in accordance with its Payment Terms. At the client’s request, the unused amount may instead be applied to a new engagement, subject to written agreement between the parties.

Our company is always aimed at providing high-quality legal services to our customers in all areas of our practice. We are always open to dialogue, flexible in determining the cost of services and ready to discuss payment terms with you on an individual basis.