Starting a business

249 (shareholders). Natural persons or legal entities.

Simplified accounting procedure Republic of Lithuania Law on Accounting, Republic of Lithuania Law on Financial Statements of Entities, business accounting standard

Simplified accounting procedure, the requirement to produce a set of annual financial statement is not applicable. If the provisions of an individual partnership provide for drafting of financial statements.

Republic of Lithuania Law on Accounting, Republic of Lithuania Law on Financial Statements of Entities, business accounting standards

Contributions by members of small partnerships can be of monetary or non-monetary form. The value of non-monetary contributions is agreed upon by all members of the small partnership.

Profit is distributed proportionally according to the amount of the contributions made, unless the provisions of the small partnership provide otherwise.

Profit can be distributed in advance. In the event it becomes clear following the end of the financial year that the advanced distribution of profit exceeds the established amount, the surplus has to be recovered.

Founders (members) of the small partnership can choose one of the two structures of the small partnership:

– when the small partnership is a meeting of members of the small partnership, which is its management authority.  In this case, the small partnership does not have other bodies, only a representative elected by its members, however, all the operational decisions are made during meetings of members of the small partnership;

– when the small partnership is the meeting of members of a small partnership and the single-person management body, i.e. the head of the small partnership, with whom a civil agreement is concluded.

Private limited liability company must have a general shareholders’ meeting and a single-person management body, i.e. the head of the company.

A collegiate supervisory body, i.e. a supervisory council and a collegiate management body, i.e. the board, can be established.

A job agreement is concluded with the head of the company.

Usually, the owner of an individual enterprise is a single-person management body, i.e. the head of the company.

When another person is appointed the head of an individual enterprise, this person acts on behalf of the individual enterprise, and the owner of the individual enterprise acts only within his competence as a meeting of members.

Depending on the structure of a small partnership, the following persons may act on its behalf:

the meeting of members of a small partnership, the latter represented by its representative or

the head of the small partnership, i.e. the single-person management body.

Procedure

Time to complete

Associated costs

More details

1. Prepare articles of association, along with founding act/founding agreement

1 day (after receiving all required information and documents)

Only legal costs, if carried out by legal advisor

You will need: 
- a Lithuanian business address (required for the company registration documents);
- to appoint a general manager.

2. Reserve a temporary company name (optional)

1 day

Approx. 16 EUR

Submit an application (form JAR-5) to the Register of Legal Entities. This name will be reserved for 6 months.

3. Open an accumulative bank account

1-2 days (due to bank’s risk management procedures)

Free (or bank fees)

This accumulative bank account is only used for depositing share capital. Later any bank can be chosen for operations. Minimum required share capital – 2500 EUR.

4. Transfer share capital to that accumulative account

1 day

Free (or bank fees)

Please note: 
- if the share capital is higher than 2500 EUR, then at least 25% must be transferred to the accumulative account (with the remaining amount paid in 12 months).

5. Notarise the founding documents at a registered notary’s office

1-2 days

Approx. 72 - 290 EUR (depending on the amount of share capital)

If your country has joined the 1961 Hague Convention, your documents need to be certified by an Apostille. List of countries
In countries that are not listed, documents issued by foreign institutions should be legalized. 
In Lithuania, legalization or certification by Apostille is not required for documents issued in Russia, Ukraine, Belarus, Moldova, Estonia and Latvia.

6. Register the company in the Register of Legal Entities

Up to 3 business days

Approx. 57 EUR

The documents may be submitted to the register only after they have been notarised. (step 5).

7. Convert the accumulative bank account into a settlement account

2-7 days (depends on the bank)

Depends on the bank