To establish a company in Lithuania, you can choose from several legal forms of entities: a Small Partnership (MB), a Private Limited Liability Company (UAB), or a Public Limited Company (AB). One of the simplest legal forms is the Small Partnership (MB).
A Small Partnership is a private legal entity with limited civil liability – a company whose members are all natural persons. Only natural persons can be founders of a Small Partnership, and the number of founders may not exceed 10.
A Small Partnership is registered after the founding agreement is concluded, the articles of association are signed, and the required documents specified by law are submitted to the Register of Legal Entities. Upon registration, all founders become members of the Small Partnership.
There is no mandatory share capital requirement for establishing a Small Partnership. However, the contribution of each member must be specified—either as a monetary contribution (amount) or a non-monetary contribution (value). Such contributions may be minimal.
Members of a Small Partnership may provide services to the partnership under civil contracts concluded with it for service provision and/or work performance. The total value of services and work provided by a member under such contracts may not exceed EUR 100,000 per calendar year.
When establishing a Small Partnership, its registered address must be specified. The owner of the premises must provide consent for the registration of the company’s registered office at the chosen address. If the founders do not have a qualified electronic signature in Lithuania, the incorporation documents must be certified by a notary. If such a signature is available, the company can be established directly through the Register of Legal Entities without a notary.
It is important to note that a Small Partnership may engage in any commercial activity permitted by its articles of association, not only in Lithuania but throughout the EU. However, certain types of activities in Lithuania and other countries may require permits or licenses.
In summary, choosing a Small Partnership as a business form to operate in Lithuania and the EU is currently one of the most cost-effective and efficient options.
For more detailed information about company formation, please contact: giedrius.abromavicius@aattorneys.legal.
Attorney Giedrius Abromavičius