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BUSINESS IN LITHUANIA
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1. The most popular forms of legal entities
(companies) in Lithuania, and their differences.
2. Establishment of a company. Steps,
expenditures, and terms.
3. Purchase of a company. Steps, expenditures,
and terms. 4. Taxes and minimum costs for
maintaining a company
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1. The most popular forms of legal entities (companies) in Lithuania, and their
differences.
The most popular and the most common registered legal entities (companies) in Lithuania are:•Private Company Limited by Shares (LTD)•Individual Enterprise (IE)•Public Limited Company (PLC);•Other.
Since September 1, 2012, in Lithuania, it is allowed to establish a new form of a legal entity, which is Limited Liability Partnership (LLP).
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The following table compares the legal entities
Legal form
Liability Number of participants
Minimum amount of authorized capital
Management
LTD Limited civil liability *
1-249 shareholders
10 000 LTL Director; also there could be an executive body, which is the board
IE Unlimited civil liability **
1 owner undetermined IE owner is also a director of the company, although, other person can also be appointed for this position
PLC Limited civil liability*
Number of shareholders is unlimited
150 000 LTL Director; also there could be an executive body, which is the board
LLP Limited civil liability *
1-10 members
Undetermined (Amount of contributions is determined by the members of LLP)
Meeting of the members (there should be an appointed representative) or Sole governing body (director)
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* Limited civil liability: it means that participants (shareholders, owners, or members) with their assets are not liable for the obligations of a legal entity (company).
** Unlimited civil liability: it means that if there is insufficient amount of assets to fulfill the obligations of a legal entity (company), a participant (owner) is liable for company’s obligations, and pays with his/her own assets.
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2. Establishment of a company. Steps, expenditures, and terms.
The main steps of establishing a company: 1.Selection and reservation of a company’s name; 2.Preparation of establishment documents;3.Formation of the authorized capital, opening a saving account in a bank (when needed); 4.Provision of the establishment documents for the notary’s confirmation; 5.Provision of notary’s confirmed establishment documents to the Registry of Legal Entities.
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Expenditures of establishing a company: 1.Temporary inclusion of a company’s name in the Registry of Legal Entities - 56 Lt; 2.Registration of a company in the Registry of Legal Entities – from 107 to 198 Lt; 3.Notary fee - around 400 Lt; 4.Legal services – by appointment; 5.Stamp – around 75 Lt.
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Term for establishing a company: 7 working days and more.
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3. Purchase of a company. Steps, expenditures, and terms
The main steps of selling-purchasing a company: 1.Agreement. Preparation of;2.Paying for shares; 3.Signing sale-purchase documents of the company; 4.Registration of sale-purchase documents at the Registry of Legal Entities.
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Expenditures of selling-purchasing a company:
1.Registration in the Registry of Legal Entities – 10 Lt;2.Extract from the Registry of Legal Entities – 17-32 Lt; 3.Legal services – by appointment.
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Term for selling-purchasing a company: 7 working days and more.
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4. Taxes and minimum costs for maintaining
a company The main taxes in Lithuania: Should be paid each month
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Should be paid each year
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Monthly minimal costs for maintenance of a company:
1. Mandatory monthly taxes (indicated in the table above);
2. Employees’ wages; 3. An accountant: around 300 Litas and more
(when needed);4. Office rent: by agreement (when needed).
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LEGAL HELP, FREE CONSULTATIONS AND ADDITIONAL INFORMATION IS PROVIDED BY:
JURIST CONSULT GROUPA. Juozapavičiaus str. 9A, LT – 09311 Vilnius
Тel. + 370 6 186 1886Тel. + 370 5 2 40 9509Fax: + 370 5 2 40 9509
Email: [email protected]