Clients' Testimonials

Mr. Tibor Janka, director of UAB „Baltum“


yourbusiness.lt services have always been professional and provided in due course from the very beginning of our cooperation. I mean not simply buying a company alone but also approaching the team of yourbusiness.lt for various services afterwards. I would in fact recommend this name to anyone interested in an easy going business startup process in Lithuania.

 

Forms of Business

Most popular forms of companies in Lithuania are:

 

Joined stock company (“UAB“)

This form of the company is the most popular for among the private limited liability companies. Requirements for establishment of UAB are:

  • The UAB is an enterprise whose statutory capital is divided into shares.
  • The UAB is a legal person with limited shareholder liability.
  • Amount of shareholders: 1 – 249 natural or legal persons (Lithuanian citizenship/residence/ registered seat is not a requirement).
  • Minimum amount of authorized capital – 10 000 LTL (approx 2 900 Eur), to be fully paid prior to registration of the company.

Forms of corporate governance:

Mandatory: general meeting, manager.

Non - Mandatory: supervisory board, board.

Lithuanian citizenship is not a requirement for member of any body of corporate governance.

UAB must have the Statute of the company - the legal document governing the conduct of the company's business.

 

Public establishment (“VšĮ”)

VšĮ is the most popular form for public companies. It is a non-profit public legal person of limited civil liability.

Amount of stakeholders: unlimited number of natural or legal persons (Lithuanian citizenship/residence/registered seat is not a requirement).

VšĮ has the right to pursue the economic and commercial activities which are not prohibited by laws and which are inseparably connected with the objectives of VšĮ activities thereof:

  • A public establishment has the right to set up unlimited number of branches and representative offices in the Republic of Lithuania and in foreign states.
  • A public establishment must have at least one bank account (no minimum authorized capital requirement).
  • Bodies of corporate governance – mandatory general meeting of stakeholders and a single-person management body − the head of the public establishment, other bodies upon stakeholders decision.

There are legal restrictions to VšĮ activities. A public establishment is not allowed:

  • to allocate profit of a public establishment to stakeholders, members of the bodies and for the payment of bonuses to the employees;
  • to allocate earned profit for other objectives of activities than specified in the articles of association of the public establishment;
  • to transfer, free of charge, the assets of the public establishment into the ownership or under a trust or loan for use contract to a stakeholder of the public establishment or to a person related thereto;
  • to borrow funds at interest from its stakeholder or from a person related thereto;
  • to safeguard the discharge of the obligations of other persons.

VšĮ must have the Statute of the company - the legal document governing the conduct of the company's business.

 

Small Partnership (“MB”)

Small Partnership (“MB”) fills in the gap between the sole proprietorship and private company, being oriented towards the small business, particularly the family business. It is a private limited liability with the following basic features:

  • No application of the minimum authorised capital.  The participants are free to decide the amount of such contributions in accordance to their business needs. The contributions of members of Small Partnership can be monetary and non-monetary (movable and immovable property), property rights, but work or services shall not be participants’ contribution.
  • Only natural persons might be the participants of the Small Partnership (from 1 to 10 persons).
  • The management of the entity is simplified as there is no need to appoint a director since the assembly of participants may operate as a management body.
  • The participants of the Small Partnership shall be allowed to divide the profit in advance.

 

Association

An association is a public legal person of limited civil liability whose purpose is to coordinate activities of the association members and to represent interests of the association members or to meet other public interests.

  • The minimum number of founders of an association is three natural persons who have reached 18 years of age or three legal persons or a combination of natural and legal persons. The founders of an association shall draft statutes and convene a founding meeting in which statutes shall be adopted and at least one management body shall be set up.
  • An association can carry out economic - commercial activity , which is not prohibited by the law, does not contradict its statutes and the purposes of activities and is necessary to achieve its purposes.
  • An association must have a general meeting of members or any other body (conference, assembly) and the management body (sole or (and) collegiate) An association must have a registered office in the Republic of Lithuania and at least one account in a credit institution.