What are the types of companies in Lithuania?

LIMITED LIABILITY COMPANY (UAB)

• The Lithuanian Limited Liability Company (Lithuanian: Uzdaroji Akcine Bendrove - UAB) needs to have a sole director which does not necessarily have to be a Lithuanian citizen.
• The shareholders can be either individuals (which are not required to be Lithuanians) or legal entities established anywhere in the world.
• The UAB needs to have a name which is not already in use by any other Lithuanian legal entity.
• The minimum authorized capital for registration of a UAB is € 2,500.
• In order to finalize the registration of the company, the new UAB needs to open a deposit bank account in its name, to which the authorized capital is transferred. After the establishment of the company, the deposit account can be converted to a standard operational account and used for day-to-day activities of the company.
• The UAB needs to have an address in Lithuania. A virtual office is acceptable for the registration of the company.
• It is not mandatory for the shareholders/directors to physically visit Lithuania in order to incorporate a UAB. Nomad Law’s company formation services include the preparation of an appropriate Power of Attorney,under which our lawyers can represent the incorporators in communication with relevant institutions and establish the company without the physical presence of the clients.
• The registration itself takes three business days, counting from the submission of the documents to the Lithuanian Centre of Registers. The preparation/collection of all required documents, the Power of Attorney,opening of the deposit bank account (for the authorized capital – Nomad Law’s incorporation package includes bank account opening as well) takes up to two weeks.

SMALL PARTNERSHIP (MB)

• The Small Partnership (Lithuanian: Mazoji Bendrija – MB) needs to have a sole manager, which does not necessarily have to be Lithuanian.
• The shareholders must be individuals (Lithuanian or foreign citizens, but not companies).
• The number of the members of the management board (if the management board is formed) is limited to 10.
• Requirement for the minimum authorized capital is not applied, therefore, there is no need to open a depository bank account in order to finalize the incorporation.
• The MB must have an address in Lithuania (virtual offices are acceptable).
• It is not mandatory for the shareholders/directors to physically visit Lithuania in order to incorporate a MB. Nomad Law’s company formation services include the preparation of an appropriate Power of Attorney, under which our lawyers can represent the incorporators in communication with relevant institutions and establish the company without physical presence of the clients.
• The registration itself takes up to three business days, counting from the submission of the documents to the Lithuanian Centre of Registers. The preparation/collection of all required documents and the Power of Attorney takes up to a week – twice as fast as for the UAB since there is no requirement to open a bank account prior to establishing the company.