The formation of a legal entity covers the process from the decision to set up a Legal Entity in the chosen legal form to its registration in the Register of Legal Entities.
Legal Entity (LE) – an individual, company, or organization that has legal rights and obligations (Oxford dictionary, 2022).
The company to be established in Lithuania must have a registered office and a registered address. Once you have chosen the registered office address, you should obtain the consent of the owner of the real estate where the company will be registered. The consent issued by a natural person should be in notarial form, while the consent issued by a legal person should be in written form, certified by the seal of the legal person and signed by a representative of the legal person.
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The founders have the right to choose their preferred bank. The persons authorised by the LE who are opening a bank account on behalf of the LE must have an identity document and the constituent document (memorandum of association or document of incorporation). Later, after registering the LE, the accumulation account is changed to a current bank account (upon presentation of the registration certificate of the LE, the document certifying the appointment of the manager, the identity document of the manager, and the stamp of the LE).
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In the case of the establishment or purchase of a company, a foreigner entrepreneur who is a participant, shareholder or member of the management body of a company established or purchased in Lithuania may apply for a residence permit in Lithuania if the following conditions are met:
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The process of establishing a company includes previously described stages: collecting the necessary data and documents, reserving the company name, preparing the documents, opening a savings account in one of the Lithuanian banks and forming the authorised capital, notarising the documents, registering the company in the Register of Legal Entities. The process of sale and purchase of an established company is quicker, requires less investment and the company’s authorised capital is already formed. Both the incorporation of the company and the sale and purchase require a power of attorney.
Free advice from public bodies is available for people looking to set up their own business. For example, the State Tax Inspectorate provides advice on taxes. The Employment Service can provide information on support for setting up your first job, etc.
Versli Lietuva (Enterprise Lithuania) also provides all the necessary information. This is an agency set up by the Ministry of Economy to promote entrepreneurship, the development of sustainable and modern businesses, the start-up ecosystem and exports in Lithuania. The website www.verslilietuva.lt offers a wide range of information, from finding ideas to the necessary prerequisites for setting up a business.
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