Open Company Lithuania, Opening Business Lithuania
Open a Company in LithuaniaUpdated on Friday 05th June 2015
What are the types of legal entities I can register in Lithuania?
Foreign and local entrepreneurs have a vast range of types of businesses which can be opened in Lithuania. The most popular forms are the sole proprietorship, public limited liability company, private limited liability company, general partnership or the limited partnership. The investors can also open state or municipal enterprise, agricultural company, co-operative enterprise, European company, European Economic Interest Grouping. In case the profits are used in order to help charitable actions then non-profit organization can also be opened.
The sole proprietorship can be formed by a single entrepreneur without a minimum share capital. The liability of the entity is owned by this investor. The property owned by the investor is not protected in case the business is liquidated and claims must be covered.
The general partnerships are formed by at least two individuals joined together by the same ideals and purposes under a single name (usually a combination of the general partners’ names). The partners of such business are fully liable for the actions and the entity’s liability and their personal assets are not protected in case of liquidation.
The limited partnership is other form of partnership formed by at least one general partner and a silent partner. The general partner is fully liable for the entity’s actions but also have the rights to decide the entity’s actions. The silent partner must bring a contribution and his/her liability depends on that contribution.
A private limited liability company in Lithuania is a company favorable to the small and medium types of businesses. It requires a minimum share capital of 2900 Euro which is divided into nontransferable share. The advantage of this type of business is that the liability of its members is limited by their contribution to the capital. The maximum number of shareholders in this type of business is 249.
The same liability is applicable to the members of the public limited liability which must bring a contribution summoning at least 43.450 Euro and doesn’t have a maximum number of shareholders. The main difference between the limited liability company and the public limited liability company is that the shares of the last one can be registered on the Stock Market.
What are the steps for incorporation of a company in Lithuania?
In order to open a new business in Lithuania certain steps must be followed: in the beginning the certificate proving that the minimum share capital was deposited must be received in the moment of opening the company’s bank account. This certificate will be used at registration. The next step consists in obtaining a confirmed electronic signature from the Center of Registrar of Certificates. All the names of legal entities must be unique so it is necessary to reserve the name from the Company Register. After that, all the incorporation documents, the certificate from the bank and the certificate of name reservation must be deposited at the Company Register which will also register the entity with the Lithuanian Revenue Authority for corporate tax, VAT, and State Social Insurance Fund Board. After that, a permanent bank account must be opened. This bank account will be used for normal commercial transactions. The last step of incorporation is getting the newly formed entity the official seal of the company.
What is the minimum share capital of UAB and AB in Lithuania?
A private limited liability company in Lithuania - Uzdaroji Akcine Bendrove must deliver a minimum share capital of at least 2.900 EUR while the public limited liability - Akcine Bendrove is based on a share capital of approximately 43,450 Euro.
What documents are required for the incorporation of a company in Lithuania?
All the companies are based on a set of regulations called articles of association. The articles of association are necessary in the process of incorporation and contain information related to the company such as the name, address and form of establishment, details regarding its shareholders such as the names, addresses, the total amount of their contribution to the capital, details regarding the company’s shares such as their value, rights and duties attached to it.
Besides the articles of association, the entrepreneurs must deliver the bank certificate stating the total amount of the capital and the certificate of name reservation.All the company’s members must deliver copies of their ID’s.
In case of a partnership, instead of the articles of association, the partners must deliver the agreement signed between them.
How quickly can I incorporate my company in Lithuania?
A Lithuanian legal entity can be incorporated in approximately 21 working days after delivering all the necessary documents and deposited the share capital.