Best New Business Formation Lawyers in Kaunas

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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 New Business Formation Law in Kaunas, Republic of Lithuania

New business formation in Kaunas, Republic of Lithuania, is governed by Lithuanian national law as well as local regulations specific to the Kaunas municipality. Forming a business in Kaunas involves complying with the Commercial Code of Lithuania, tax laws, employment laws, and various local administrative requirements. The city has established itself as a business-friendly hub, with accessible procedures for company registration, a range of legal forms to choose from, and ongoing support for entrepreneurs. Whether you are a Lithuanian citizen, foreign investor, or a startup founder, understanding the legal landscape is critical for establishing your business successfully in Kaunas.

Why You May Need a Lawyer

Entrepreneurs and investors may require legal assistance in new business formation for several reasons. Common situations where a lawyer's help is essential include choosing the most suitable legal structure for your business, drafting incorporation documents, navigating government regulations, protecting intellectual property, and ensuring compliance with tax and employment laws. If you are dealing with foreign investment, complex partnership arrangements, or unique regulatory requirements, a lawyer can help clarify your obligations and minimize risks. Additionally, legal counsel can be invaluable in resolving disputes, negotiating contracts, and assisting with permits or licenses required by Kaunas authorities.

Local Laws Overview

Several local laws and requirements are especially relevant to new business formation in Kaunas:

  • Legal Forms: Common business structures include private limited liability companies (UAB), public limited liability companies (AB), sole proprietorships, and partnerships. Each comes with specific incorporation, capital, and disclosure requirements.
  • Company Registration: All businesses must be registered at the Register of Legal Entities of the Republic of Lithuania. The process is typically completed online but can also be performed in person.
  • Minimum Capital: For UABs, a minimum share capital of 1000 euros is required. Other forms may have different or no capital requirements.
  • Corporate Governance: Lithuanian law mandates certain governance structures, such as the appointment of directors, shareholders, and sometimes supervisory boards, depending on the business type.
  • Permits and Licenses: Some business activities in Kaunas require additional permits from municipal authorities or sectoral regulators.
  • Taxation: Registration for Value Added Tax (VAT) is mandatory if turnover exceeds certain thresholds. Corporate income tax and social contributions also apply.
  • Employment Law: If you plan to hire staff, you must comply with Lithuanian labor law, including employee contracts and social insurance registrations.
  • Language: Official documents need to be filed in Lithuanian, although international investors may request certified translations.

Frequently Asked Questions

What types of legal entities can I establish in Kaunas?

You can establish a private limited liability company (UAB), public limited liability company (AB), sole proprietorship, general or limited partnership, and branches or representative offices of foreign companies.

How long does it take to register a company?

The registration process typically takes a few business days once all required documents are submitted and approved. Online registration is often faster.

Do I need to be physically present in Lithuania to register a business?

Physical presence is not mandatory. You can appoint a representative or use a licensed service provider to assist with the registration remotely.

What is the minimum share capital for a UAB?

The minimum required share capital for a UAB in Lithuania is 1000 euros.

What official documents are needed for company registration?

You will need articles of association, a founding act or agreement, proof of share capital payment, and identity documents for shareholders and directors.

Are there specific licenses or permits required for my business?

It depends on your business activity. Certain sectors, such as food, healthcare, or transport, require special permits or licenses from local or national authorities.

What taxes am I required to pay?

Companies in Kaunas pay corporate income tax, may be required to register for VAT, and must contribute to social insurance if they hire employees.

Can foreign nationals or companies own businesses in Kaunas?

Yes, foreign individuals and legal persons can establish and own businesses in Lithuania, including Kaunas, without significant restrictions.

How can I protect my business name and intellectual property?

You should register your business name with the Register of Legal Entities and may seek additional intellectual property protection through trademarks, patents, or copyrights as needed.

What ongoing legal obligations will my company have?

Ongoing obligations include annual financial reporting, tax filings, maintaining accurate company records, compliance with employment regulations, and timely renewal of any required permits or licenses.

Additional Resources

If you require further guidance or support in new business formation in Kaunas, the following resources can be helpful:

  • Register of Legal Entities (Registrų centras) - The main governmental body handling company registration and record-keeping.
  • State Tax Inspectorate (Valstybinė mokesčių inspekcija, VMI) - For tax registrations, information, and compliance support.
  • Social Insurance Fund Board (SODRA) - For social insurance matters related to employees and self-employed persons.
  • Kaunas Municipality Business Support Services - Assistance with permits, licenses, and local business support programs.
  • Lithuanian Business Confederation and Chambers of Commerce - Networking and business advisory services.
  • Professional Law Firms and Business Consultants - Assistance with legal and regulatory matters.

Next Steps

If you are considering starting a business in Kaunas and need legal assistance, begin by identifying the business form that best suits your needs. Prepare the necessary documents and review local requirements applicable to your specific industry. Consult with a qualified lawyer or business consultant familiar with Lithuanian laws and the Kaunas business environment. They can guide you through registration, help draft essential documents, and support you in meeting compliance obligations. Reliable legal advice at the onset will help prevent costly mistakes and ensure your new business is set up for long-term success in Kaunas.

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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.