Types of Lithuanian Companies

There are various forms of business entities allowed in Lithuania, each having its own characteristics, advantages and disadvantages. The Lithuanian law institutes similar regulations for national and foreign entrepreneurs. There are four main kinds of company types which are commonly founded on Lithuanian territory: the public limited company, the private limited company, the general and the limited partnership. Besides these four, Lithuanian law permits the existence of an individual enterprise, which is governed by one person, with full liability, rights to profit and who does not have to provide an initial capital.

a) The Lithuanian Public Limited Company (UAB)
The public limited company may be formed by one or more shareholders, and the maximum number of partners is not stipulated by Lithuanian Law. Establishing a public limited company requires a minimum registered capital of 150.000 LTL (Lithuanian Litas, the currency of Lithuania), which must be formed in a bank account and is divided into shares. The liability of the members is limited to each ones amount of capital invested. The shares of each shareholder may be traded or offered for sale publicly.

b) The Lithuanian Private Limited Company (AB)
This business entity is the most common company in Lithuania. It can be founded by at least one member, and up to 250 members. Shareholders of a private limited company can be natural persons or legal entities, as well as Lithuanian or foreigners. The liability of each member is limited to the extent of his/her contribution to the company's capital, which must be at least 10.000 LTL and is divided into shares. The shares may not be traded or offered for sale.

c) The Lithuanian General Partnership
A general partnership in Lithuania is formed by at least two persons who work jointly on the basis of a partnership agreement. All members are general partners and therefore are fully liable to the partnerships obligations but also have an equal right to management and profit. A general partnership does not have to register an initial capital.

d) The Lithuanian Limited Partnership
The Limited Partnership in Lithuania functions on the basis of a partnership agreement, as the general partnership. It must be founded by at least two members who work jointly under the same business name. Again, a minimum capital is not required, the difference between the two types of partnerships residing in the liability of the members. In the limited partnership at least one member is the general partner who has full liability to the partnerships obligations, while the liability of the limited partner is limited to the extent of his or her contribution.