At Lawhill, we make it simple to establish a Small Partnership (Mažoji Bendrija, MB) in Lithuania. Whether you’re a local or foreign entrepreneur, our expertise ensures a seamless company formation process, including assistance with opening bank accounts, remote formation options, and comprehensive legal support.
STEP-BY-STEP PROCESS
At Lawhill, we simplify the entire process of setting up a Small Partnership for you. Here’s how we do it:
- Consultation: We start by understanding your business goals and advising you on the most suitable structure for your needs.
- Name reservation: We assist in selecting and reserving a unique name for your company, ensuring compliance with Lithuanian naming regulations
- Preparation of documents: Our legal experts prepare all the necessary documents, including the partnership formation agreement and registration forms.
- Remote formation services: With Lawhill, you don’t need to be physically present in Lithuania. We offer fully remote company formation services, including document submission, local representation, and communication with authorities.
- Registration with the Registry: We handle the submission of all required documents to the Lithuanian Centre of Registers to finalize your company registration.
- Obtaining VAT registration (if needed): For companies engaged in VAT-applicable activities, we guide you through the VAT registration process to ensure compliance.
- Business launch: Once the company is officially registered, we provide continuous support to help your business thrive in Lithuania.
- Bank account: After the company is formed, we assist in opening a bank account remotely, ensuring compliance with all necessary regulations and documentation.
KEY REQUIREMENTS
A Small Partnership requires a member contribution starting from as little as €1. These contributions function similarly to share capital in other business structures, representing the members’ ownership and rights within the partnership.
A Small Partnership can be established by 1 to 10 members who are natural persons.
The management structure of a Small Partnership can consist of either a members’ meeting acting as the governing body or a combination of the members’ meeting and an appointed manager. Both members and the manager can be non-residents, providing flexibility for international entrepreneurs.
Every Small Partnership must have a registered office in Lithuania. We can provide a registered address to meet this obligation.
WHY CHOOSE A SMALL PARTNERSHIP (MB)?
A Small Partnership is an excellent business structure for small and medium-sized enterprises due to its flexibility and simplicity. Key benefits include:
- No starting capital: A Small Partnership requires a member contribution starting from as little as €1, providing flexibility and accessibility for entrepreneurs.
- Limited liability: Members are not personally liable for the company’s obligations, ensuring their personal assets are protected.
- Simplified accounting: MBs benefit from less complex accounting procedures, reducing administrative burdens.
- Flexible director compensation: The director’s salary in a Small Partnership is highly flexible, allowing it to be adjusted based on the company’s financial performance. This adaptability provides a significant advantage for businesses looking to align compensation with their operational success, all while adhering to Lithuanian tax regulations.
- Remote establishment: A Small Partnership can be formed entirely remotely, allowing founders to complete the process without traveling to Lithuania.
ADDITIONAL SERVICES
At Lawhill, we provide comprehensive accounting and payroll services tailored to meet the needs of your business. From bookkeeping to tax filings, we ensure your financial records are compliant with Lithuanian regulations. Our team handles payroll management, ensuring timely and accurate payment for your employees.
Navigating the banking system in a foreign country can be challenging. We assist you in opening local and international bank accounts, guiding you through compliance requirements and documentation. Whether for operational needs or capital deposits, we streamline the process to secure your accounts efficiently.
Establish a professional presence in Lithuania with our virtual office services. We provide a legal address required for company registration and offer correspondence management to ensure you never miss important communication. This service is ideal for businesses operating remotely or without a physical office in Lithuania.
Certain industries in Lithuania require specific licenses to operate legally. At Lawhill, we help you obtain necessary licenses such as transport, pharmaceutical, Virtual Asset Service Provider (VASP), and temporary employment licenses. Our experts ensure the application process is smooth, saving you time and effort while adhering to all legal requirements.
We offer a full range of legal services tailored to businesses, including contract drafting, regulatory compliance, dispute resolution, mergers, and acquisitions. Our experienced legal team ensures that your business is fully protected and operates within the framework of Lithuanian and EU laws.
F.A.Q
Forming a Small Partnership in Lithuania typically takes 1 to 2 weeks after receiving all necessary documents from the client, making the process both efficient and straightforward
- Corporate Income Tax: 6% for companies with an annual turnover of up to €300,000; 16% for companies with an annual turnover exceeding €300,000.
- Dividend Tax: A flat rate of 15% applies to distributed dividends.
- Value Added Tax (VAT): Standard VAT rate in Lithuania is 21%.
- Member of NATO and the EU: Lithuania has been a stable and secure member of NATO and the European Union since 2004, offering businesses access to one of the largest markets globally.
- Competitive Tax Environment: Lithuania boasts one of the lowest corporate tax rates in the EU, including special tax incentives for small businesses and startups.
- Strong Economic Growth: Ranked 1st in the EU for real GDP per capita growth from 2000 to 2020, Lithuania is an emerging leader in economic development.
- Fast and Simple Business Setup: Lithuania offers a straightforward process for company registration, making it easy for businesses to get started quickly.
- Multilingual and Skilled Workforce: The vast majority of young professionals in Lithuania are proficient in English, with many also fluent in other major European languages, ensuring smooth business communication.
- Strategic Geographic Location: Positioned at the crossroads of Europe, Lithuania provides excellent logistics and connectivity, making it a strategic hub for businesses targeting the European and global markets.
- Modern Digital Infrastructure: As a leader in digital innovation, Lithuania offers a robust infrastructure, ideal for startups, fintech companies, and tech-driven businesses.
- Business-Friendly Policies: Lithuania fosters a startup-friendly ecosystem with government incentives and grants for innovative businesses, including tech and green energy industries.