What are the similarities and differences between Lithuanian MB and UAB company types?

Similarities between the Lithuanian UAB and MB company types:

• Both entities can be owned and managed by foreign individuals, local directorship is not mandatory.
• Both UAB and MB fall under the spectrum of limited liability legal entities, meaning that shareholders and members share limited risk - only the entity can lose the assets contributed to it, but not the owners.
• Both entities are granted a Lithuanian tax resident status from the moment of incorporation.
• Both types of companies can conduct business activities in Lithuania and abroad (certain limitations might apply for licensable activities – contact us to find out about your case in particular).
• The accounting and reporting requirements are very similar.

Differences between the Lithuanian UAB and MB company types:

• Different acceptance processes for new members
• Profit distribution and taxation is a bit different. Small partnership is more flexible from the tax perspective.
• Small partnership is mainly designed for smaller businesses, engaged in activities which do not require licensing or sophisticated legal structuring as it cannot have legal entities in its ownership structure.