Procedures And Documentation Required For Company Registration In Lithuania

Registering a company in Lithuania involves a series of procedures and the submission of specific documentation. These steps are essential to comply with the legal requirements and establish a legal entity in the country. In this article, we will outline the key procedures and documentation needed for company registration in Lithuania.

Determine the Type of Legal Entity:

The initial step is to determine the type of legal entity suitable for your business. Lithuania recognizes several types, including private limited risk companies (UAB), public limited obligation companies (Stomach muscle), partnerships, and branches of foreign companies. Each type has its own characteristics and requirements.

Reserve an Organization Name:

Before proceeding with organization registration, it is necessary to reserve a unique organization name. The name reservation should be possible online through the Lithuanian State Enterprise Center of Registers (VRM). It is advisable to direct a name search beforehand to ensure accessibility.

Prepare the Articles of Affiliation:

The next step is to prepare the Articles of Affiliation. This document outlines the organization's purpose, structure, share capital, rules for decision-production, and other relevant arrangements. The Articles of Affiliation should be notarized.

Share Capital Requirements:

For a UAB, the base share capital required is 2,500 euros, while a Stomach muscle should have a base share capital of 40,000 euros. The share capital can be as money, assets, or a mix of both. Proof of share capital deposit is required during the registration process.

Appointment of Directors and Shareholders:

A Lithuanian organization should have no less than one director. The director can be of any ethnicity and should be no less than 18 years old. Shareholders can be people or legal entities, and there is no restriction on foreign ownership.

Notarize the Articles of Affiliation:

The authorization of the Articles of Affiliation is a mandatory step. This involves getting a legal official's certification of the document. Authorization should be possible at a legal official office in Lithuania.

Prepare and submit the following registration documents:

For company registration, the following documents must be produced and submitted:

Application for incorporation (available on the VRM website)

Articles of Association Notarized

Proof of share capital investment

Identification documents (passports or ID cards) for shareholders and directors

Forms of consent from the directors

Lease or ownership documentation for the registered office

Formalise the Company:

Once the relevant paperwork have been created, they must be submitted for registration to the Lithuanian State Enterprise Centre of Registers. Registration can be conducted online or in person by submitting paper copies of the required documents. At this point, the registration price must also be paid.

Get a Tax Identification Number:

After the organization is registered, it should get a tax identification number (VAT number) if applicable. This should be possible by applying to the Lithuanian State Tax Inspectorate. The VAT number is necessary for tax purposes and directing business activities.

Open a Ledger:

To facilitate business transactions, it is necessary to open a ledger in Lithuania. The organization's share capital should be deposited into this record, and it will be used for everyday monetary operations.

Register with Government managed retirement Foundations:

As an employer, it is mandatory to register the organization with the State Social Insurance Asset Board (SODRA). This registration ensures compliance with government managed retirement commitments for employees.

Register with the Register of Legal Entities:

Following organization registration, it is essential to register with the Register of Legal Entities. This step is necessary to get a legal entity code and update the organization's data when necessary.

Maintain Compliance by Fulfilling continuous requirements: Registered companies in Lithuania have continuous requirements that must be met in order to remain in compliance. These responsibilities include:

Keeping correct accounting records: In compliance with Lithuanian accounting regulations, registered companies must keep accurate and up-to-date accounting records. Annual financial statements are required.

Yearly general meetings: Companies are obligated to hold yearly general meetings in order to discuss and make decisions on critical issues concerning the company's operations and performance. These meetings' minutes should be documented and maintained on file.

Annual reports must be submitted to the Lithuanian State Enterprise Centre of Registers by registered enterprises. These reports contain information about the company's financial situation, shareholders, directors, and other pertinent information.

Companies are required to file tax returns with the Lithuanian State Tax Inspectorate. The tax returns include the company's income, expenses, and other tax-related information.

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