Establishment of a Credit Union


Credit union shall mean a credit institution satisfying the economic and social needs of its members and holding a licence to engage and engaged in the receipt of deposits and other repayable funds from the non-professional participants of the market specified by this Law and lending thereof, also authorised to engage in the provision of other financial services stipulated by this Law to the persons specified by this Law and assuming related risks and responsibility. The legal form taken by a credit union as a legal person may only be a cooperative society.

A credit union must provide these licensed financial services:

  1. receipt of deposits and other repayable funds from non-professional participants of the market;
  2. the payment services specified in Article 5 of the Law of the Republic of Lithuania on Payments;
  3. currency exchange (in cash).


Non-licensed financial services shall be:

  1. receipt of deposits and other repayable funds;
  2. lending (including mortgage loans);
  3. administering travellers’ cheques, bankers’ drafts and other means of payment, insofar as this activity is not covered by the payment services indicated in subparagraph 2 of paragraph 2 of this Article;
  4. provision of financial assurances and financial guarantees;
  5. financial mediation (activities of an agent) as provided for by the Law of the Republic of Lithuania on Financial Institutions;
  6. administering of money;
  7. provision of information as well as advice on issues of the granting and payment of a credit;
  8. lease of safes.


Establishment of a Credit Union


A credit union may be established only for an indefinite period, only upon obtaining an authorisation of the supervisory institution to establish the credit union. The articles of association of a credit union being established must be submitted to the manager of the Register of Legal Entities and the credit union must be established within nine months from signing of the articles of association; in the event of a failure to do so within the specified time limit, the articles of association of the credit union shall become invalid and the share contributions and initial membership fees paid earlier shall be reimbursed. A credit union shall be established by accumulating the funds covering the expenses incurred in connection with the establishment thereof from initial membership fees and accumulating the share capital – from share contributions.

The founders of a credit union may be solely natural persons. A credit union may be established by not less than five founders. Founders shall enter into an agreement of the establishment of a credit union.

The following data must be indicated:


  1. the date and venue of conclusion of the agreement on establishment of the credit union;
  2. names, surnames, personal numbers and place of residence of the founders;
  3. the name and registered office of the credit union;
  4. the rights and duties of the founders when establishing the credit union and liability for defaulting on the obligations;
  5. the persons authorised to represent the credit union being established and their rights and duties;
  6. initial membership fee, the procedure for paying and using it;
  7. the smallest and largest amounts of a share contribution and the time limits and the procedure for paying these share contributions;
  8. the amount of a share contribution paid by each founder;
  9. the procedure for reimbursing the share contribution made and the initial membership fee paid where the credit union is not established;
  10. compensation of the costs of establishment and remuneration for establishment;
  11. the procedure for settling disputes between the founders.

A memorandum of association must be signed by all founders.


The founders of a credit union shall draft the articles of association of the credit union and shall submit them for approval to the statutory meeting. The founders must, prior to the statutory meeting, enter the persons who have made share contributions in the register of members. Prior to the statutory meeting, the minimum share capital must be accumulated and the shares of at least 50 persons must be paid up. Prior to the statutory meeting, any of the founders shall have the right to enter into transactions on behalf of and for the benefit of a credit union being established, unless the memorandum of association thereof stipulates otherwise. Where the statutory meeting does not approve these transactions, the obligations based on these transactions shall be jointly and severally guaranteed by the founders who have entered into them.