1. PROCEDURE FOR ESTABLISHING A COMPANY
The procedure for setting up a company is almost the same, regardless of the legal form of the company. The general rules of establishment are established in the Civil Code of the Republic of Lithuania, and in detail in the laws regulating the activities of individual companies.
Stages of establishment:
- Choice of company form;
- Company name selection, verification and ordering;
- Choice of the company’s registered office address (registration of the company’s registered office in the premises belonging to another person requires the owner’s consent);
- Preparation of documents in the usual or electronic way;
- Opening a bank account (for some forms);
- Approval of founding documents.
There are two ways to start a business:
- Preparing all documents in writing and applying to a notary;
- Electronic registration with electronic signature.
2. TITLE VERIFICATION
When deciding to start a new business, you need to think carefully about choosing the right name.
In particular, the legislation governing the formation of names must be taken into account.
It is important to keep in mind that your name cannot coincide with the name or trademark of another company, so the desired name should be checked not only in the company names but also in the trademark databases.
It is also recommended that you do not create names that are misleadingly similar to other companies’ names or trademarks, as you may later receive claims that may be costly to you.
Here are links to where you can check your desired business name:
- Database of company names
2. National Trademark Database
3. European Community Trade Marks Database
4. International Trademark Database
Note:
When checking your name, follow the instructions provided to look over your name correctly.
1 Legislation:
- Rules for making symbolic names of companies, institutions and organizations
2. Provisions of the Register of Legal Entities (see section IX)
3. FIRST STEPS AFTER ESTABLISHING A COMPANY
STAMP PRODUCTION
The head of a private limited company (UAB) wishing to order a seal (without the coat of arms of the Lithuanian state or municipality) must apply directly to the manufacturer of the seal. Documents required to order a stamp:
- Document of election or appointment of the manager;
- Identity document and, if the order is placed by an authorized person, identity document and power of attorney.
MANAGEMENT OF THE MANAGER
The head of a UAB may formally act on behalf of the company (for example, sign contracts) only when an employment contract has been concluded with him. It shall be signed by the manager or a person authorized by him. It is important to know that the same person can be a manager in more than one company. The employment of the manager must be notified to “Sodra”.
OPENING A CURRENT ACCOUNT IN THE BANK
This is the conversion of the UAB savings account opened at the time of establishment into a current account, through which settlements will be possible. Documents required for opening a current account:
- UAB Statute;
- UAB Stamp;
- Document of election or appointment of the manager;
- Identity document or, if the bank is represented by an authorized person, identity document and power of attorney.
4. TAXPAYER REGISTRATION
The newly established UAB is automatically registered as a taxpayer in the territorial branch of the State Tax Inspectorate (SME). However, the data in the STI must be specified by filling in and submitting a special application.
Registration as a value added tax (VAT) payer can be mandatory or voluntary.
Abbreviations
- UAB – a limited liability company;
- STI – State Tax Inspectorate;
- VAT – value-added tax.
5. RELATED INFORMATION
Legislation: