BUSINESS IN LITHUANIA

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

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).

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)

* 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.

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.

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.

Term for establishing a company: 7 working days and more.

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.

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.

Term for selling-purchasing a company: 7 working days and more.

4. Taxes and minimum costs for maintaining

a company The main taxes in Lithuania: Should be paid each month

Should be paid each year

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).

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: info@jcg.ltwww.jcg.lt