Company registration in The Republic of Lithuania
If you have decided to form a company in Lithuania we will be happy to assist you. The most popular legal form in Lithuania 2021 was Mazoji bendrija (further called – MB), in english it is called Small Partnership, before 2021 the most popular company type was Uzdaroji Akcine Bendrove (further called – UAB), in english it is called a private Joint Stock Company (JSC). It is easy to run and operate such company, transfer ownership to other persons, do necessary accounting. If you are still not aware about their upside and downsides please study our detailed article about UAB vs MB.
Our company is focused exclusively on international companies and foreign nationality clients willing to establish a company in Lithuania. We have many years of expertise in this field. For our clients we as well assist in helping to obtain business visa or residence permit.
Required documents for company formation: passport copy, living place address in native country and contact details.
Company registration duration: 1 week.
Company registration in Lithuania can be performed remotely, no need for personal presence!
For our clients company formation in Lithuania procedure is quite straightforward, because all the paper work will be done by our lawyers. We do not require for clients to deposit their own sharecapital to bank account. During company formation procedure we deposit our own funds to the bank account and after company is registered we withdraw the money from the bank account and transfer the company to the new owner. It is completely safe for clients. After company registration the client will be eligible to open bank account remotely free of charge and deposit required funds for further business development. Still there is no need to have share capital deposited to company’s bank account.
Minimal share capital of company in Lithuania has to be not less than 1,- Eur for MB and 2’500 Eur for UAB. For business immigration and residence permit reasons mostly, higher share capital is required 14’000 Eur for one person, 28’000 Eur for two persons and 42’000 Eur for three persons. We can register a company with any size of share capital required.
There is no restriction for nationalities registering a company in Lithuania!
Company registration address in Lithuania
Each company in Lithuania has to have permanent legal registration address. No worries here as well. For each company we provide registration address in Vilnius city for unlimited time at no extra cost. If required it can be changed to any other address in Lithuania as per clients request.
Center of registers in Lithuania is the government institution where all information and documents about each registered company is kept and archived. Each company has to meet all the requirements set by center of registers to be officially registered in Lithuania.
Types of companies in Lithuania
In Lithuania there are several types of legal forms to do business. Not of them are popular or convenient to do business with. But here we will provide you full information about available legal forms in Lithuania:
- Private Limited Joint Stock Company, UAB;
Minimal share capital 2’500 Eur, minimum 1 shareholder, maximum 250 shareholders, shareholders does not carry any responsibility about conducted business activities by the company. Founders of the company can be any kind of nationalities citizens or any kind of companies. Obliged to hire accounting services since the registration date. Share transfer agreement has to be approved by the local Lithuanian notary pub.
- Public Limited Liability company, AB;
Minimum 1 shareholder, and no limitation for maximum number of shareholders, minimum share capital 40’000 Eur, shareholders does not carry any responsibility about conducted business activities by the company. Founders of the company can be any kind of nationalities or any kind of companies. Such company shares can be listed on public stock exchange listings.
- Small Patnership, MB;
In small partnership there are no shareholders, instead there are so called members. Minimum of 1 member is required and maximum of 10 members are allowed. There are no requirements for minimum amount of capital. It can be as low as 1 Eur. Members of company does not carry any responsibility about conducted business activities by the company. Only natural persons can be members. It has simplified accounting requirements, no obligation to hire accounting services, no requirement for company transfer to be approved by the notary.
- Individual Enterprise, II;
In this kind of company is limited to 1 owner only, you cannot include any additional owners in the company. There are no requirements for minimal capital. Owner is directly response for the activities of the company. In case of bankruptcy all company debts are being transferred to the owner personally to cover.
- Agricultural company, ZUB;
Minimum of two member are required to form agricultural company, there are no limitation to the maximum number of members. As the name of legal form name suggest this company is dedication for agriculture business only. There is no requirements for minimal capital. As well member does not carry any responsibility about conducted business activities by the company.
- Branch or representative office.
This type of company is very similar to regular LLC company, but in this case it is a part of a foreign company or organization which performs all or part functions of mother company. Foreign company is not financially liable for company activities in Lithuania.
As already mentioned before, in 99% of all cases we always suggest to register a limited liability company in Lithuania. Bellow you will find details about company registration requirements and details.
Required documents for company registration in Lithuania:
- Passport copy of owner and director;
- Living place address in native country;
- Contact details;
- Preferred company name if any;
- Required share capital size.
Procedure: After deciding to incorporate a company in Lithuania we will need to get required information mentioned above to start preparing documents for a company transfer on your name. Within a day or two you will receive documents by email to sign with instructions how to properly sign each document. You will also receive an online identity verification link, where you will have to take your selfie and passport in front of the camera, just to be sure that no one is trying to steal your identity. Then signed and scanned documents will have to be sent back to our email address to continue and finalize registration procedure. It will take up to 5 business days to finalize registration procedures. Then we will receive digital registration documents from the center of registers and the whole digital document file you will get it via email. These digitla documents have a lega power and will be sufficient to open a business bank account or apply for a visa. Nowadays center of register does not issue any hardcopies of company registration documents, everything is done online in a digital manner.
Business running costs in Lithuania
While owning Lithuanian company doesn’t cost anything there are some operating expenses if you will be operating your business in daily basis. In sleeping mode, when there are no workers, no transactions and no business at all, there will be no operation or maintenance costs at all, until you will decide to start doing some business activities and employees will be employed in your company. Ta get a rough idea how cheap is to run a business in Lithuania, we are providing some approximate calculations.
- 200 Eur taxes from minimal salary of 740 Eur per month;
- 150 Eur for small commercial premises lease per month;
- 15 Eur for a phone and internet line per month;
- 100 Eur accounting services per month
Company Liquidation in Lithuania
There are cases when clients want to close or liquidate Lithuanian company, they do not want to proceed or they have had business for a limited time of period and now they want to leave Lithuania. Company liquidation procedures are quite difficult and long lasting. An average time to close a company in Lithuania is between 6 to 12 months. If a company was a small business with one or at least few workers, low turn over it is easier and faster to liquidate. If you have decided to close the company, then we will prepare shareholder resolution deciding to close the company and dedicate a liquidator to take care after all procedures required to shut down the company. That’s it. From this point we will do all the rest of on behalf of you.