IV is best suited when the chosen activity is low-risk and intended for one person. This type of activity is very easy to establish and terminate. However, individual activity is not allowed for all business types—some activities may only be carried out by legal entities.
A business license is required for individuals engaged only in certain activities specified by law. This form is suitable for those who can pay income tax in advance and are not VAT payers.
An MB is a good option when all founders are private individuals and their total number does not exceed 10. Founders do not need employment contracts, and they may withdraw funds for personal needs by taking profit advances. Accounting can be handled either by an accountant, an accounting firm, or a member of the partnership.
A UAB can be established by individuals or legal entities. A minimum share capital of 2,500 EUR is required. If the shareholders wish to work in the company, they must sign employment contracts. The company’s accounting must be handled by an employed accountant or an accounting firm.
An AB can be established by individuals or legal entities, and its shares can be publicly traded on stock exchanges. It requires significant share capital, but this can be increased through share issuance. Major decisions are made by the shareholders’ meeting and implemented by a hired CEO.
An IĮ is suitable if the activity is low-risk and intended for one person. The owner does not need an employment contract and may withdraw profit at any time, which results in lower taxation. If needed, the owner can also employ other people.
A VšĮ should be chosen when the goal is to serve public interests and carry out activities beneficial to society. A VšĮ may conduct commercial activities but cannot pursue profit or be converted into a UAB.
A ŽŪB is suited for those whose goal is to coordinate members’ agricultural activities, represent them, and protect their interests.
Submit the completed JAR-5 form to the Centre of Registers; the chosen name is reserved for 6 months.
You will need: a registered company address in Lithuania and an appointed company director.
This account is used exclusively for depositing the company’s share capital. For daily banking operations, the company may choose any other bank.
If the share capital exceeds 25,000 EUR, at least 25% of this amount must be transferred to the accumulation account immediately. The remaining amount can be deposited within 12 months.
Documents must be legalized according to the 1961 Hague Convention requirements. If the incorporation documents are issued in Russia, Ukraine, Belarus, Moldova, Estonia, or Latvia, the Hague Convention requirements do not apply.
Submit the documents only after they have been notarized.
