We advise both domestic, foreign companies and individuals on all matters related to starting business in Lithuania and creating necessary corporate structures. While incorporating companies, we normally help with the following matters:
Knowledge & Insights
Choice of a local corporate form
By joining the European Union (EU), the European Union law became a part of the Lithuanian national law. This means that nationals of other Member States can take advantage of the freedom of establishment and the freedom of provision of services in Lithuania. Thus, the services can be provided in Lithuania without establishment (subject to the exceptions set out by national law and permitted by the EU law), provided that the provider of services being a national of the other Member State, pursues the activity on a temporary basis. Currently, if a person is willing to establish a legal entity in the Republic of Lithuania, the following forms are available:
The most common type of limited liability companies chosen by investors or entrepreneurs in Lithuania are either a private stock company (“UAB”), or a public stock company (“AB”). Public stock company or “AB” is more suitable for the large businesses with more complicated shareholdings schemes or those companies who intend (A) to place securities in the financial markets and (B) attract financing from public sources. For example, the shares of the “AB” type of company can be publicly traded, and the company may acquire its shares on the stock exchange. The “UAB” type of company cannot publicly trade in securities or acquire its own shares. This type of company is more appropriate for private business. Customarily, it takes about from fifteen (15) to thirty (30) days for the company to be incorporated. The company is deemed being established once it has been included into the Register of the Legal Entities of the Republic of Lithuania.
Use of foreign words for the name of a Lithuanian company
The recent Resolution of the Government of the Republic of Lithuania dated 5 Decemeber of 2012 stipulates that the name of a legal entity must meet the norms of standard Lithuanian language. The Register of Legal Entities having received an application to make a temporary entry of the name of a legal entity in the Register of Legal Entities, must seek the approval of the State Commission of the Lithuanian Language on the compliance of the suggested name in question with the norms of standard Lithuanian language. A foreign name can however be registered as a brand (trademark) and be used by a company in public dealings.
It is, however, permitted to register a name of a legal entity without complying with the rules of the standard Lithuanian language if the relevant legal entity is related to a foreign legal person or other organization. Thus, the foreign companies are still permitted to register its affiliates in Lithuania using the same brand name.
Currently, credit institutions opening accounts in the name of a company are seeking the information on the ultimate beneficial owners. The Register of Legal Entities does not require the shareholders that are corporations to submit information on the natural person who ultimately holds more than 25% of the interest in a legal person.
Šulija Partners Law Firm Vilnius, registered office Jogailos street 11, Vilnius, LT-01116, Lithuania, fax +370 52051926, e-mail: info@SulijaPartners.com
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