Company registration in Lithuania

There are several types of companies in Lithuania. Most popular are a closed joint-stock company (UAB), a small company (MB) and individual enterprise (ĮI). MB and IĮ registration are most often used by micro and small businesses. At the same time, UAB is the most convenient and widespread form of business registration in Lithuania (over 90% of all Lithuanian enterprises are registered as UAB). So further we will describe Lithuanian UAB in more details. Sometimes UAB is called LLC or IBC.

UAB may have not more than 250 shareholders. It is allowed to be a shareholder of Lithuanian company for both individuals and legal entities (including non-residents). Non-resident or a foreigner may also become a manager of a company. When setting up UAB, an employment contract with company’s manager is concluded. In this case, manager does not need a work permit, however, there are certain limitations and peculiarities for an employment of a foreign manager to a Lithuanian company

Every company (UAB) in Lithuania should have a general meeting of shareholders and company’s manager (CEO). A supervisory board can also be established but it is not mandatory. Instead of a sole manager it is also possible to introduce a board of directors

You need to have an accumulative (starter’s) bank account for contributing a share capital of your company. After the company’s registration it shall be modified to a fully-operative settlement banking account. This action requires a personal presence of a manage and provision of an extensive information about the company’s activities and its relations with Lithuania. The timing of opening a settlement bank account depends on the specific situation and company’s background, it may take from 1-2 weeks to several months. It is also possible to open a bank account in other countries or in payment systems (electronic money institutions). We help our clients to assess their chances in advance and then offer the most suitable option.

For the purposes of dissolution of a Lithuanian company (UAB), a meeting of company’s shareholders appoints a liquidator who acquires the rights and obligations of a manager of a company. The liquidator publicly announces about the liquidation of a company and inform all creditors of the company about it. Afterwards, the remaining property of the company under the dissolution procedure is distributed among shareholders in proportion to the par value of their shares. Finally, a tax office issues a certificate of no-debt status for a company being wind up. Usually, a liquidation of a company in Lithuania takes up to 8 months, however, in the event of violations or disputable situations occur, the term may change