Selection of legal form

The main features of a Closed Joint Stock Company (UAB) include:

1. Shareholders: A UAB may be founded by one or more natural and/or legal persons. The shareholders own shares in the company.
2. Transfer of shares: UAB shares are not publicly traded. The transfer of shares is subject to the requirements established by the Law on Companies of the Republic of Lithuania, other applicable legislation and the company’s corporate documents.
3. Limited liability of shareholders: A UAB is a limited liability legal entity. As a general rule, shareholders are not personally liable for the obligations of the company.
4. Share capital: The share capital of a UAB must be at least EUR 1,000 and is divided into shares.
5. Management: A UAB must have a general meeting of shareholders and a company manager. A management board and/or supervisory board may also be established where provided for by applicable legislation or the company’s articles of association.

The main features of a Small Partnership (MB) include:

1. Number of members: An MB may have from 1 to 10 members. Only natural persons may be members of a Small Partnership.
2. Limited liability: An MB is a limited liability legal entity. As a general rule, its members are not personally liable for the obligations of the Small Partnership.
3. Members’ contributions: An MB is not subject to the minimum share capital requirement applicable to a UAB. Members’ contributions, their amounts and the procedure for making them are determined in accordance with applicable legislation and the Small Partnership’s formation documents.
4. Management: The management structure of an MB depends on the chosen management model. The Small Partnership may have a meeting of members and, where the relevant management model is chosen, a single-person management body – the manager of the Small Partnership.
5. Business activities: An MB may engage in any activities that are not prohibited by law. Certain types of activities may be subject to additional requirements established by applicable legislation.
6. Accounting and reporting: An MB must maintain accounting records, prepare and submit financial information, and fulfil its tax obligations in accordance with the applicable legal requirements.

A Joint Stock Company (AB) is a limited liability legal entity whose share capital is divided into shares. This legal form is commonly chosen by larger businesses and may be suitable for companies planning to raise capital from a wider range of investors. AB shares may be offered publicly in accordance with applicable legislation, and the company’s shares may also be admitted to trading on a regulated market. In Lithuania, the share capital of an AB must be at least EUR 25,000.

The main features of a Joint Stock Company (AB) include:

1. Share capital: The share capital of an AB must be at least EUR 25,000 and is divided into shares.
2. Limited liability of shareholders: An AB is a limited liability legal entity. As a general rule, shareholders are not personally liable for the obligations of the company.
3. Shareholders: An AB may have one or more shareholders, who may be natural and/or legal persons.
4. Shares: The share capital of an AB is divided into shares. The issuance, offering, transfer and trading of shares are subject to the requirements established by Lithuanian legislation.
5. Management: An AB must have a general meeting of shareholders and a company manager. Depending on the company’s management structure and applicable legal requirements, a management board and/or supervisory board may also be established.
6. Accounting and reporting: An AB must maintain accounting records, prepare and submit financial information, and fulfil other obligations established by applicable legislation. Depending on the company’s activities and status, additional reporting, auditing and disclosure requirements may apply.
7. Public offering of shares: An AB may offer its shares to the public in accordance with applicable legislation and securities market requirements.
8. Trading on a regulated market: Subject to applicable requirements, the shares of an AB may be admitted to trading on a regulated market. AB status itself does not mean that the company’s shares are publicly traded on a stock exchange.