Foreign investors who want start businesses in Lithuania can choose between several types of companies. Among these limited liability companies are very popular.
With a minimum share capital of approx. 2900 Euro, an entrepreneur may open a private limited liability company in Lithuania -Uzdaroji Akcine Bendrove (UAB).
It may be formed by a single shareholder, but the maximum number may not overcome 249. The company formation in Lithuania does not exceed 3 weeks after registration if all the requested papers are in order.
Our company formation agents in Lithuania can offer more information on the requirements for setting up a UAB.
The first step in opening a private limited liability company in Lithuania is checking the availability of the chosen name at the Public Institution Register Centre. If the name it’s available, then a reservation can be made.
The entrepreneur must prepare the Articles of Association containing information about: the name of the company, the fact that is a private limited liability company, the amount of capital, the type of business, the headquarter, shares, company duration if it’s a temporary one and the signing date of the Articles.
If there is only one shareholder, a Constitutive Act must be signed. If there is more than one member, the Memorandum of Association must be signed. The Memorandum must contain information regarding the Articles of Association, the incorporator, the name of the company, information on the shares, the name of the representative, the date of signing it.
A bank account must be opened and the minimum share capital of approx. 2900 Euro must be deposited. A receipt must be issued as a proof of payment.
The documents regarding headquarter must be filled up. A list of the shareholders is also required.
After notarizing the Articles of Association and filling an application, the above documents must be deposited at the Public Institution Register Centre and a Statement of Registration must be received.
The next step is getting a company seal, used in every transaction the newly formed firm will perform.
The last step in incorporating a UAB is applying for the taxes at the Tax-Payer at State Tax Inspectorate. This process mustn’t overcome 5 days after the registration. After you finish the registration procedure, you should hire an accountant. We can recommend you accountants in different countries, if you choose to open other firms in countries from Europe, such as Romania.
The private limited liability company’s activities are ruled by the General Meeting of the Shareholders. Among the rights the General Meeting is entitled to have are the following: choosing or removing the members of the Supervisory Board, amend the Articles of Association, shares related decisions.
There are four reasons for which a private limited liability company in Lithuania may be liquidated: the time frame as stated in the Articles of Association has expired, the General Meeting has decided so, the creditors have filled the bankruptcy forms and if the appropriate Court decided that the company was breaking the law.
Foreign investors who want to open private limited liability companies in Lithuania often wonder how must setting it up will cost them. These costs are shown in the table below:
|Preparing and legalizing the company’s documents||Depends on the notary, on average 100 euros|
|Opening the bank account||Free|
|Registering with the Trade Register||Approximately 60 euros|
|Registering for taxation and VAT||Free|
|Registering for social security||Free|
Our local agents offer more information on these costs.
Below, you can find the answers to the most common questions related to setting up a Lithuanian limited liability company:
No, the company registration process of a UAB is quite simple and can be completed in a matter of days.
No, you must deposit at least 25% of the share capital with registering the company.
No, there are no requirements related to having a local partner for this type of company.
Yes, you can grant us power of attorney and we can register the company on your behalf.
The corporate tax rate in Lithuania is 15%.
For assistance in registering a UAB, please contact our Lithuanian company formation advisors.