Private Limited Liability Company
Private Limited Liability Company in Lithuania (Uzdaroji Akcine Bendrove, UAB) is the most convenient form of company registration. About 90% of all firms in the country are registered by residents and non-residents as UAB. It has many advantages for the founder, the main of which is the limited liability of the participants for the obligations of the enterprise. In addition, such a company is easy to sell, to change shareholders, if the need arises, it enjoys the confidence of financial institutions, counter-parties and partners.
Lithuanian legislation has no restrictions regarding the establishment of companies by foreigners. A non-resident can establish a legal entity of various organizational and legal forms here. When founding a company, you need to pay attention to its scope of responsibility, the procedure for forming the statutory fund, and ease of management.
Registration conditions
Following with Lithuanian legislation, a Lithuanian UAB company must have a registered share capital of at least EUR 2,500.
The mandatory management bodies of a Lithuanian company (UAB) are the General Meeting of Shareholders and the CEO. A supervisory board can also be created. Instead of a sole leader, it is possible to create a collegial body – a board headed by its head.
An accumulative bank account is opened for the contribution of the authorized capital, but after registration, it must be reissued into a settlement account. This requires the personal presence of the head, as well as providing information about the company’s activities and its relations with Lithuania.
The opening times depend on the specific situation and the company but can take from two weeks to several months. It is also possible to open a bank account in other countries or not in banks but in payment systems. We help our clients to assess their chances in advance and suggest opening an account in the most suitable institution.
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We provide company registration solutions in Lithuania, our specialists have extensive experience and knowledge about companies in Lithuania. With us, opening Private Limited Liability Company will not be burdened with a lot of paperwork. Register an UAB in Lithuania with our professional assistance.
Timeline
The period of registering an UAB Company in Lithuania engagement is approximately 4 weeks. It is consisting of Engagement planning company incorporation, corporate bank account approval, corporate internet banking approval, engagement completion.
Fees
State fee for the registration of an UAB (private limited liability company) 57.4 euros. The state fee does not include notary fees, which can vary from EUR 102 to EUR 232. Moreover, the state fee for registration as a VAT payer has been excluded.
Compulsory regulation
The number of shareholders can be from 1 to 250. Individuals and legal entities, including non-residents of Lithuania, can be shareholders.
An individual, including a non-resident of Lithuania, can become a manager. When registering a UAB, an employment contract is concluded with the manager. In this case, the head does not need a work permit, however, in the legislation of Lithuania there are certain features of the employment of a foreign director.
Documents
You should provide the list of the following documents:
- Passport
- Proof of address
- Legal address approval
- Name reservation application
- Articles of Organization
- The Lithuania Trade and Companies Register registration number
Consultation about company registration
The specialists of our law company have many years of experience and the necessary knowledge to register a company in Lithuania quickly and easily. Our lawyers, accountants, and business consultants will help you with the process of registering a company in Lithuania and with the further conduct of your business.
Accountancy
Companies in Lithuania are required to maintain accounting records and prepare annual financial statements that include balance, report about incomes and material losses, explanation of reporting.
Taxes
The standard income tax rate is 15%. Income tax is levied on the company's worldwide profit, which includes income earned from commercial activities, passive income, capital gains, and active income of a Lithuanian company. In addition, when calculating the tax rate, expenses related to the company's activities will be deducted.
Bank account
If you decide to open a company in Lithuania, you have to create a Corporate Account. This type of account needs for the main business of the company, for internal expenses, payment for services, and providing net income for private entrepreneurs.
Other types of companies
If you feel like Private Limited Liability Company does not fit your needs, click the button below and you will see other legal forms like Public Limited Company, Holding Company, Branch office and more.
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