Setting up a Sole Proprietorship in Lithuania

Definition and Formation

A sole proprietorship (individual enterprise) is a private legal entity with unlimited civil liability, owned by a single natural person.

Only a legally capable natural person can be the founder of a sole proprietorship. The enterprise is considered established from the moment it is registered in the Register of Legal Entities in the Republic of Lithuania.

Establishment of a Sole Proprietorship in Lithuania

Formation period:

Establishing the enterprise takes approximately 5–6 working days.

Costs:

  1. Our services (based on agreement);
  2. Notary fees (may vary depending on the scope of notarial work);
  3. EUR 31 — Register Centre fee;
  4. EUR 17 — temporary reservation of the company name in the Register Centre (EUR 29 if reserved by us).

Our services include:

  1. Consultations regarding the establishment of a sole proprietorship;
  2. Preparation of founding documents;
  3. Representation at the notary and at the Register Centre in Lithuania.

The founding document of a sole proprietorship also serves as its establishment agreement.

The bylaws of a sole proprietorship must specify:

  1. name of the sole proprietorship;
  2. legal form;
  3. registered office of the sole proprietorship;
  4. objectives of the sole proprietorship, indicating fields of activity;
  5. competence of the owner of the sole proprietorship (rights and duties);
  6. procedure for appointing and removing the manager, if not the owner, and their competence;
  7. whether the sole proprietorship prepares financial statements;
  8. official gazette of the Republic of Lithuania where public notices are published when required by the Civil Code and the Law on Sole Proprietorships;
  9. procedure for amending the articles of the sole proprietorship;
  10. duration of activity, if limited;
  11. date of preparation of the articles of the sole proprietorship.

Founder’s action:

Visit a notary to sign the incorporation documents.