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Adv. Ž. Ambrizas
Kaunas, Republic of Lithuania

English
Adv. Žydrūnas Ambrizas Law Firm, based in Kaunas, Lithuania, offers a comprehensive range of legal services tailored to meet the diverse needs of its clients. The firm specializes in company law, providing assistance with company registration in Lithuania, Poland, and Estonia, as well as offering...
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About Business Law in Kaunas, Republic of Lithuania

Kaunas is the second-largest city in Lithuania and a vital commercial hub in the country. Business law in Kaunas is primarily governed by the national legal framework of the Republic of Lithuania. This includes laws and regulations covering company incorporation, contracts, taxation, employment, intellectual property, and commercial disputes. As Lithuania is a member of the European Union, EU regulations also apply to many aspects of doing business. The local business environment in Kaunas is vibrant, with a growing number of startups, international investors, and established enterprises taking advantage of the city’s strategic location and skilled workforce.

Why You May Need a Lawyer

Legal assistance in business is crucial to avoid costly mistakes and ensure compliance with local and national regulations. Common situations where legal help is required include:

  • Setting up a new business or company structure
  • Drafting, reviewing, or negotiating contracts
  • Resolving commercial disputes or debt recovery issues
  • Employment law matters, such as hiring or terminating staff
  • Trademark registration and intellectual property protection
  • Business acquisitions, mergers, or restructuring
  • Tax compliance and changes in tax law
  • Dealing with regulatory authorities or obtaining business licenses

Consulting a lawyer can help protect your interests, clarify your rights and obligations, and reduce the risk of future legal complications.

Local Laws Overview

Business activities in Kaunas are regulated by a set of legal instruments at both the national and local levels. Here are some of the key aspects:

  • Company Law: Businesses can be registered as individual enterprises, partnerships, private limited liability companies (UAB), public limited liability companies (AB), or branches of foreign entities. The Lithuanian Department of Registers administers the business registry.
  • Tax Legislation: Taxes are regulated by the State Tax Inspectorate. Common business taxes include corporate income tax, value-added tax (VAT), and social security contributions.
  • Employment Law: Governed by the Lithuanian Labour Code, covering employment contracts, working conditions, salaries, and termination rights.
  • Intellectual Property: Copyrights, trademarks, and patents are managed under Lithuanian and EU law. Registration is handled by the State Patent Bureau.
  • Contracts and Commercial Transactions: Contract law in Lithuania is based on the principles of freedom of contract, with certain consumer and data protection limitations.
  • Licenses and Permits: Some business activities require additional permits from municipal or state authorities, particularly in regulated industries such as food, healthcare, and transportation.

Adherence to these local laws is vital for operating smoothly and legally in Kaunas.

Frequently Asked Questions

What types of legal business entities can I set up in Kaunas?

You can establish sole proprietorships, partnerships, private limited liability companies (UAB), public limited liability companies (AB), or branches of foreign companies in Kaunas.

How do I register a company in Kaunas?

Business registration is handled online through the Lithuanian Centre of Registers. You will need to choose your business type, prepare required documents, and pay a registration fee.

What are the main taxes that apply to businesses in Kaunas?

Corporate income tax, VAT, and social security contributions are the main taxes. Your business might also be subject to local taxes depending on its activity.

Is it possible for foreigners to own a business in Kaunas?

Yes, both EU and non-EU citizens can own businesses in Lithuania, although non-EU nationals may face some additional requirements.

Do I need a special business license for my activity?

Some activities require additional permits or licenses, especially in regulated industries like health, finance, or food services. Check with local authorities for your specific sector.

What do I need to know about employment contracts?

Employment contracts must comply with the Lithuanian Labour Code and be in written form. The contract should detail job duties, salary, benefits, and termination conditions.

How can I protect my intellectual property?

You can register trademarks, patents, and copyrights through the State Patent Bureau. European and international protection may also be available.

What should I do if my business faces a legal dispute?

Try to resolve the issue amicably first. If that fails, involve a specialist lawyer for negotiation or litigation. Commercial disputes are handled by Lithuanian courts or arbitration bodies.

Are there any incentives for startups in Kaunas?

Yes, Lithuania offers several programs to support startups, including tax incentives, grants, and incubators, particularly for technology-driven enterprises.

How can I make sure my business complies with data protection laws?

Ensure your business adheres to the General Data Protection Regulation (GDPR) and Lithuanian data protection rules, especially if you handle customer or employee personal data.

Additional Resources

Several resources are available in Kaunas and Lithuania to help with business legal issues:

  • Kaunas Chamber of Commerce, Industry and Crafts - Offers guidance on business formation and regulations
  • State Tax Inspectorate (VMI) - Information about taxes, tax returns, and compliance
  • Lithuanian Centre of Registers - Company registration and official records
  • State Patent Bureau - For intellectual property registration and protection
  • Innovation and entrepreneurship centers such as Kaunas Science and Technology Park
  • Law Society of Lithuania - Directory of qualified legal professionals

Next Steps

If you need legal advice or assistance for your business in Kaunas, start by evaluating the specific issue or question you have. Collect all relevant documentation and try to specify your legal goals. Reach out to a qualified business lawyer with experience in Lithuanian and EU law. It is helpful to prepare a list of questions to make your consultation efficient. If your business activity is specialized, consider seeking a lawyer with expertise in your sector. Utilizing the resources and contacts listed above can also provide additional guidance as you navigate business law in Kaunas. Always ensure you rely on verified and up-to-date information when making legal decisions.

Lawzana helps you find the best lawyers and law firms in Kaunas through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Business, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Kaunas, Republic of Lithuania - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.