_ The decision depends on planned business activities. When establishing legal entities of certain types, the founder of a legal entity must have certain amount of the authorised capital. The amount of taxes directly depends on the form of activities a person has chosen. If a person intends to limit his liability for business failures with his personal or family property, he or she should choose a legal entity of limited civil liability. If there are several or more interested persons wishing to jointly conduct business activities, they should establish a legal entity for these business activities. For example, conducting individual activities is easier than having a company, because there is no management structure or need to perform other formalities necessary for legal entities. The company is owned by a single physical person who is a legal person of unlimited civil liability. Companies’ assets are not separated from their owner’s assets. The owner is liable for the obligations of the enterprise with all his property. This type of business may be owned by individual person who holds title to the property in his or her name or by several individuals – spouses in a co-ownership relationship. The establishment of an individual enterprise is regulated by the Civil Code and the Republic of Lithuania Law on Individual Enterprises. The establishment of such a legal form of business is the most appropriate for a small business start-up as no minimum initial capital is required by law. To establish a private company, you must have a capital of 2900 EUR. Private limited liability company must have between 1 and 250 shareholders. Also, it is mandatory to set up a general meeting of shareholders and the head of a company. The Republic of Lithuania Law on Companies regulates incorporation, activities, and liquidation of UAB. This form of business organization is also considered as the most advantageous due to the mechanism of deciding essential matters for the company. Separate legal entity. May engage in any legitimate activities. May engage in licensed activities upon obtaining the respective license. Registration in 3 days. A minimum amount of capital – NONE (MB members define contributions). No residence requirements to the general manager, other members of other bodies You can make a profit in advance. Having an individual activity is not equal to having a company from a legal perspective. However, it allows you to exercise a variety of activities and provide services. It is recommended when you are sure that you are able to implement your business idea on your own (you can: manufacture textiles, do repair activities, be a lawyer, notary, actor, musician, etc.) Its advantages are: There are lots of different regulations by state depending on business sectors. When starting a business you need to clarify what permits and licenses you need to acquire for your business field There are professions that are regulated by state and in order to exercise them, one is required to attain professional recognition by the state. It is a procedure, upon which a state entitles a person to engage in a regulated professional activity in its territory, considering holding of specific professional qualifications acquired in the other state. Register your company and its name at the Center of Registers. You can do it in only three days’ time and by email with such ease that your company will start operating instantly! Employment procedure must be done according to the labour code. You need to take into account: Other relevant points that you can find in the labour code. The situation of the Lithuanian labour market is monitored by the Labour Exchange Office, which consults both job-seekers as well as job-givers. You’ll receive free information and answers to your questions. If you are from the European Union, the European Economic Area or Switzerland and want to work in Lithuania, you will need neither work nor residence permit. You will only be required to fill out a specific form to legalize your stay in our country. If you are not a citizen of the European Union and intend to work in Lithuania, you will have to obtain a work permit. This should be done before your arrival in Lithuania. A work permit is issued to foreigners for a period of up to two years. You can acquire your work permit at Employment Services Under the Ministry of Social Security and Labour of the Republic of Lithuania. If you want to employ a foreigner, you must apply to the local labour exchange and to register a vacancy. Bear in mind, issuing a work permit might take up to 4 months. You are also recommended to check if you need a residence permit. This type of permit is provided by the Migration Department. To find more info within your business field, here are the handbooks, that include: information on the permissions and licensing procedures for the business, the documents you need to submit, fees, information about recruitment and redundancies, the charges applicable to activities, indicative prices of necessary equipment and practical advice and other information that will help you set up your business.Nature of business
The amount of available capital
Taxes
The degree of personal liability
The number of founders
The degree of complexity of business activities
Types of companies available in Lithuania
Assessment
criteria
Small partnership Private limited liability company Individual enterprise
Minimum number of participants 1 (member) 1 (shareholder) 1 (owner)
Maximum number of participants 10 members. Only physical persons Unlimited. Physical persons or legal entities. 1 owner. Only a physical person can be the owner.
Minimum amount of the capital Not specified Not less than 2500 EUR This requirement is not applicable
Founders (participants) Physical persons Physical and/or legal persons Physical person
Participant’s liability for the commitments of the legal entity A small partnership member has limited civil liability
(a member of a legal entity bears no responsibility for liabilities of a legal entity)A shareholder has limited civil liability (a member of a legal entity bears no responsibility for liabilities of a legal entity) Owner of an individual enterprise has unlimited civil liability (if the assets of an individual enterprise are not enough to meet all the commitments of the enterprise, the owner of the individual enterprise must cover these liabilities with his own assets)
Good Business Tip #4: don’t guess, better test
Info that was useful to others:
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Handbooks (by field)
Consultations
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