bannarTop

GLOBAL INFO

Lithuania

COUNTRY:

Lithuania

QUESTION:

ANSWER:

1.      What are the main types of companies in your country?

Private limited liability company, Public limited liability company,             , Agricultural company, Cooperative company, Individual enterprise.

2.      Which is the most preferred type of company by foreign investors?

Private limited liability company

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

The articles of association of the company are drawn up. If the founder of the company is a single person, the act of establishment of the company must be drawn up; the founders may submit to the Register of Legal Entities an application for temporary inclusion of the name into the Register; the articles of association of the company entitle to opening an accumulation account of the company in the bank; an initial contribution for the subscribed shares is paid. Initial contributions may only be paid in cash.

The amount of the initial contributions must be at least EUR 2500; each shareholder must pay at least 1/4 of the aggregate amount of the nominal value of the subscribed shares and the total share premium of the subscribed shares.

Prior to the signature of the articles of association of the company, the valuation of the contribution in kind intended for partial payment for shares must be made by an independent property valuer; the constituent meeting is convened which must approve the founder’s report of the limited liability company and elect the members of bodies of the company elected by the general meeting of shareholders.

If the supervisory board is elected, it must elect the board, if any, or the manager of the company if the board is not formed before registration of the company. The elected board must elect the manager of the company; The statutes are drawn up and signed; the company is deemed to have been established upon registration thereof with the Register of Legal Entities.

4.      What are the basic rules of shareholders liability for company debts in this company?

Usually they are held jointly and severally liable, however, there can be other rules set out in the shareholders agreement.

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

A company shall have the General Meeting of the board and a single person management organ - the manager. Only a natural person may be elected to serve on the Board. A collegial supervisory organ - the Supervisory Board and a collegial management organ the Board - may be formed in the company. Where the Board is not formed in the company, the functions assigned to the competence of the Board shall be fulfilled by the company manager. In the company's relations with other persons the manager shall act at his own discretion on behalf of the company. The management organs of the company shall act only for the benefit of the company and its shareholders, comply with laws and other legal acts and be governed by the Articles of Association of the company.

6.      How long does the registration procedure of this company take?

Approximately 1 week.

7.      What are the main costs of formation of this company in local currency?

57.34 EUR for the Centre of Registers.

8.      What is the average attorney’s fee of the formation of this company in local currency?

300 EUR

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

All the changes of the company must be registered in the Centre of Registers. The drawing up of the company’s financial statements and the drafting of the annual report of the company shall be established by laws and other legal acts. The annual financial statements of the company shall be approved by the regular Annual General Meeting. If the audit of the company’s annual financial statements is mandatory under laws or provided for in the Articles of Association, only the audited financial statements shall be approved. The annual financial statements of the company together with the annual report of the company and the auditor’s report (where the audit is mandatory under laws or provided for in the Articles of Association) must be submitted to the manager of the Register of Legal Entities within 30 days after the Annual General Meeting.

10.   What are the main auditor requirements?

-        The auditor must have specific license.