Best Accounting & Auditing Lawyers in Ukmerge

About Accounting & Auditing Law in Ukmerge, Republic of Lithuania

Accounting and auditing in Ukmerge operate under national Lithuanian law that is harmonized with European Union requirements. Businesses and organizations keep books and prepare annual financial statements in line with Lithuanian Business Accounting Standards or International Financial Reporting Standards as adopted by the EU, depending on size and public interest status. Statutory audits are required for public interest entities and for other entities that meet specific thresholds based on size and activity. Oversight is exercised by national authorities and professional bodies, and filings are made to the Register of Legal Entities administered by the Centre of Registers. Although obligations are national, working with professionals familiar with Ukmerge and Vilnius County institutions can streamline filings, inspections, and communications.

Why You May Need a Lawyer

You may need legal support when selecting the proper accounting framework for your entity, designing internal policies, and documenting decisions of directors and shareholders to meet statutory requirements. A lawyer can help determine whether your company needs a statutory audit, prepare or review shareholder resolutions for auditor appointment, and draft or review engagement letters and independence confirmations.

Legal assistance is valuable during tax authority inquiries or audits, disputes about financial reporting, and cases of alleged misstatements or fraud. Counsel can help manage communications with the State Tax Inspectorate, respond to information requests, challenge assessments, and protect confidentiality and legal privilege.

In corporate transactions and financing, lawyers coordinate financial due diligence, representations and warranties, and covenants tied to financial ratios or reporting obligations. Noncompliance can affect dividend distributions, profit appropriation, and loan agreements, so legal review reduces risk.

When receiving grants or participating in public procurement, you may face special reporting and audit requirements. A lawyer can align accounting evidence with contractual conditions and state aid rules. In distress situations, including restructuring or insolvency, legal advice ensures that directors meet recordkeeping and filing duties and avoid personal liability for bookkeeping failures.

Local Laws Overview

Core legislation includes the Law on Accounting, the Law on Financial Statements of Entities, the Law on Consolidated Financial Statements, the Law on Audit of Financial Statements, and the Law on Companies. Tax laws that interact with accounting include the Corporate Income Tax Law and the Value Added Tax Law. The Civil Code and the Law on Insolvency of Legal Persons regulate director duties and creditor protection where accounting quality and timeliness are critical.

Accounting framework selection depends on the entity type and size. Many private entities apply Lithuanian Business Accounting Standards. Listed and certain other entities apply IFRS as adopted by the EU. Public interest entities and entities that cross size thresholds are subject to mandatory audits. Exact thresholds and criteria are set in legislation and should be checked against the most recent version before planning.

Financial statements must be prepared for each financial year and submitted to the Register of Legal Entities at the Centre of Registers after approval by the shareholders meeting or equivalent body, within statutory timelines set by company and accounting laws. Consolidation is required when control criteria are met, subject to exemptions defined by law.

Auditors and audit firms must be licensed and appear on national registers. Appointment is typically made by the shareholders meeting. Independence, quality control, and rotation rules apply, especially for public interest entities. Oversight and quality assurance are exercised by the national authority and the Lithuanian Chamber of Auditors.

Invoices and accounting documents can be issued and stored electronically if legal and technical requirements are met. Electronic signatures that meet Lithuanian and EU standards are recognized. Public sector suppliers use dedicated e-invoicing channels. The official currency is the euro, and documents are generally maintained in Lithuanian. Foreign language documents may be used with appropriate translations upon request by authorities.

Different retention periods apply to primary documents, payroll records, and financial statements. Failure to keep proper books, approve and file accounts, or cooperate with auditors can lead to administrative penalties, restrictions on profit distribution, adverse tax consequences, and in serious or persistent cases, director liability or court actions, including possible liquidation.

Frequently Asked Questions

Do I need a statutory audit for my company in Ukmerge

Mandatory audits apply to public interest entities and to entities that meet size based criteria set by Lithuanian law. Some sectors or funding arrangements also require an audit. Because thresholds and criteria can change, confirm your status each year and document the assessment in board minutes. A lawyer or auditor can verify whether an audit is required.

Which accounting standards should my business use

Most private Lithuanian companies use Lithuanian Business Accounting Standards. Listed companies and certain other entities apply IFRS as adopted by the EU. If you plan to raise capital, obtain bank financing, or operate cross border, consider whether IFRS is appropriate even if not strictly required. Seek professional advice before changing frameworks.

When and where must I file annual financial statements

Annual financial statements are prepared after year end, approved by the shareholders meeting or equivalent, and then submitted to the Register of Legal Entities managed by the Centre of Registers within the statutory deadlines. Keep evidence of approval and submission. Late or missing filings can trigger penalties and restrictions on dividends.

Can I keep my accounting records in English

Lithuanian is the working language for official records, but foreign language documents are often acceptable with Lithuanian translations upon request by authorities. Agree on document language with your accountant and plan for translation to avoid delays during inspections or audits.

Are electronic invoices and signatures valid

Yes, electronic invoicing and qualified electronic signatures are recognized in Lithuania if they comply with legal and technical standards. For supplies to public sector bodies, specific e invoice systems are used. Keep procedures for electronic document integrity, authenticity, and archiving.

How long must I keep accounting documents

Retention periods depend on the document type and are set by Lithuanian law. Financial statements and certain registers must be kept for long periods, while some primary documents have shorter minimum periods. Establish a written retention policy that meets legal requirements and business needs.

What happens if my company fails to maintain proper books or misses filing deadlines

Consequences may include administrative fines, interest on tax underpayments, restrictions on profit distribution, and increased scrutiny from tax and registry authorities. In serious cases, directors can face liability and the court may impose measures against the company. Early legal and accounting intervention helps mitigate risks.

How are auditors appointed and can shareholders change the auditor

The shareholders meeting usually appoints the statutory auditor or audit firm and approves the engagement terms. Replacement is possible but must comply with legal procedures, and reasons should be documented to safeguard independence and transparency. Inform the authorities where required.

What is the role of the audit committee and do we need one

Certain entities, especially public interest entities, are required to have an audit committee to oversee financial reporting, internal control, and auditor independence. Smaller entities are generally not required to have one but may establish similar oversight at board level. Check your status each year.

How do tax inspections interact with financial audits

Statutory audits focus on financial statements, while tax inspections focus on tax compliance. Findings from one may inform the other. Maintain reconciliations between financial and tax records and ensure that positions with judgment are properly documented. Engage legal counsel to manage complex or contentious tax matters.

Additional Resources

Authority of Audit, Accounting, Property Valuation and Insolvency Management under the Ministry of Finance - national oversight of accounting, auditing, valuation, and insolvency.

Lithuanian Chamber of Auditors - professional body for statutory auditors and audit firms, education and quality assurance.

State Enterprise Centre of Registers - Register of Legal Entities for filing annual financial statements and related documents.

State Tax Inspectorate under the Ministry of Finance - tax administration, taxpayer services, and audits.

Bank of Lithuania - regulator for financial sector entities with special reporting and audit requirements.

Ukmerge District Municipality Administration and local business support centers - practical guidance on local procedures and contacts with regional state offices.

Next Steps

Define your objective, such as confirming audit requirements, remedying late filings, preparing for a tax inspection, or aligning with IFRS. Clarify your entity type, group structure, and any public interest characteristics.

Gather key documents: incorporation documents, prior year financial statements and audit reports, current trial balance, accounting policies, board and shareholder minutes, major contracts, loan agreements, and any correspondence with authorities.

Consult a lawyer experienced in Lithuanian accounting and audit law and, where needed, a licensed auditor. Ask about their experience with entities of your size and sector in Ukmerge and Vilnius County, expected timeline, and fee structure. Confirm conflicts of interest before sharing confidential information.

Agree on scope in a written engagement letter, including deliverables, deadlines, responsibilities, and confidentiality. Establish a point of contact for communications with the State Tax Inspectorate, the Centre of Registers, and any auditors.

Implement recommended actions promptly, such as approving and filing overdue accounts, documenting framework selection, appointing an auditor, updating internal policies, and preparing for inspections. Schedule periodic reviews so that your company remains compliant as thresholds and laws evolve.