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Business registration in Kaunas, the second largest city in Lithuania, is an essential step for anyone who wishes to establish and operate a legal business. The process is governed primarily by Lithuanian national law, but local regulations and procedures are also significant. Businesses in Kaunas can be registered as individual enterprises, private or public limited companies, partnerships, or branches of foreign companies. Legal registration is mandatory for engaging in commercial activities, ensuring compliance with local and national requirements and protecting both entrepreneurs and consumers.
While Lithuanian business registration can appear straightforward, there are many circumstances where legal assistance becomes helpful or even necessary. Here are some common situations where you may require a lawyer:
Kaunas follows Lithuanian national rules on business registration, which are largely harmonized with European Union standards. The most relevant legislation includes the Civil Code of Lithuania, the Law on Companies, the Law on Partnerships, and tax-related acts. All businesses must be registered with the Centre of Registers (Registrų centras), which manages the national business register. In addition, businesses may need to register for value-added tax (VAT) if certain turnover thresholds are met. Local municipal requirements in Kaunas may apply for specific activities, such as food service or construction, requiring additional permits or health and safety compliance checks. The official language for business registration is Lithuanian, and official documents must be submitted in this language.
It is also important to note that Lithuania offers various forms of business entities, including Individual Enterprises, Small Partnerships (MB), Private Limited Liability Companies (UAB), and Public Limited Liability Companies (AB). Each has its own registration requirements, management structure, and liability issues. Understanding these distinctions is crucial before proceeding with registration.
The first step is choosing the appropriate legal form for your business, such as an Individual Enterprise, Small Partnership, or Private Limited Liability Company. You then prepare the necessary documents, including the articles of association, and submit them to the Centre of Registers.
Yes, you must have a registered office address in Lithuania, which can be located in Kaunas. This address will be used for official correspondence and must be included in the registration documents.
Not all types of businesses require share capital. However, Private Limited Liability Companies (UAB) must deposit a minimum share capital of 1,000 EUR. Other forms, like Small Partnerships, may have no capital requirement.
If your documentation is complete and correct, registration with the Centre of Registers usually takes from 3 to 5 business days. Mistakes or missing information can cause delays.
Commonly required documents include the company’s articles of association, the founder’s decision, proof of address, and, for some forms, proof of capital contribution. Foreign founders may need legalized translations of certain documents.
No, foreigners are allowed to own and register businesses in Lithuania without a local partner. However, all legal documentation must be provided in Lithuanian, and certain compliance steps must be followed.
Some activities are regulated or require special licenses, such as financial services, healthcare, tourism, or food service. The Kaunas municipality may impose additional local regulations or permits.
Yes, much of the business registration process can be completed online through the Centre of Registers’ electronic system, provided you have access to an approved electronic signature method.
Yes, all registered businesses in Kaunas must comply with Lithuanian tax law, including registration for taxes, regular reporting, and keeping proper financial records. VAT registration may be required based on revenue thresholds or activity type.
If your application is rejected, the Centre of Registers will specify the reasons. You can correct any identified problems and resubmit your documentation. In more complex cases, or if you disagree with the decision, consulting a local business lawyer is advisable.
For further assistance and reliable information, you may turn to the following resources and organizations in Kaunas and Lithuania:
If you are considering business registration in Kaunas, begin by identifying the legal structure best suited to your business objectives. Prepare the necessary documentation and familiarize yourself with the requirements of the Centre of Registers and the Kaunas municipality. If you encounter uncertainty or complex situations, such as cross-border ownership or specialized licensing, consult a local lawyer with expertise in business registration.
Legal professionals can provide tailored advice, review and prepare documentation, and represent you with Lithuanian authorities. Take advantage of initial consultations or information sessions offered by local law firms or business support agencies. By taking these preparatory steps and seeking the right legal guidance, you can ensure a smooth and successful business registration process in Kaunas.
