This article looks at the formation and setup of a company in Lithuania.
The Company law and the Civic Code of the Republic of Lithuania set out the legal framework for the formation of companies in Lithuania.
How to set up a company in Lithuania - choose your company type
There are four types of company types in Lithuania:
public limited company (AB)
private limited company (UAB)
general partnership (TUB)
limited partnership (KUB) branch
The most common type o company formation in Lithuania is a limited liability (UAB). Businesses are required to register with the Register of Legal Persons.
How to set up a company in Lithuania - requirements
1. The articles of association of the company are required to be drawn up. Where the director/shareholder of the company is a single person, the act of establishment of the company must be drawn up.
2. The director/shareholder may submit to the Register of Legal Entities an application (form JAR-5) for temporary inclusion of the name into the Register.
3. Opening of a company bank account as per the articles of association.
4. Subscribed shares are paid. You must make an initial share capital contribution of EUR 2,500.
5. Approval of company formation by a general meeting between the shareholders.
6. Drawing up and signature of statutes.
Following the above steps, the company formation will have been completed and established upon registering with the Register of Legal Entities.