The 7 Different Types of Companies in Lithuania

In the world of business, it’s no secret that there are thousands of different types of companies. There are small local firms, global corporations, and everything in between. The only constant is that all these companies exist to meet a certain objective, or serve a particular need. That being said, it’s important for you to understand what type of company you are before planning your business in Lithuania. This article will help you understand your chances of opening a company in Lithuania, as well as the different types of businesses you’ll encounter along the way.

What Is a Company?

A company is a legal entity, formally established by two or more natural or legal persons with a common purpose, or with a share capital and a managerial board of directors. The proceedings of a company are managed by the board of directors and the members of the company. The primary function of a company is to increase profits and create jobs.

A company has a legal personality, meaning that it can enter into contracts, own property, and enter into a legal dispute. In order to form a company, certain requirements are required. One of the most important ones is that the company’s shareholders must have the right to own the company’s shares. This means that they have the right to form a company by owning the shares, and they have the right to transfer the shares by transferring the company.

Limited Company

A company established for a specific objective, such as to sell widgets to local customers. This type of company is not permitted to engage in other activities, such as manufacturing and/or selling other products. A foreign investor is permitted to own up to 49% of a limited company. Another possible purpose of a limited company is to establish a branch of a foreign company in Lithuania.

The main advantages of a limited company are its simplicity, its low cost, and the fact that it can be dissolved. The main disadvantage of a limited company is the inability to expand its activities.

Private Limited Company

A private limited company (hereinafter – private company) is the most common type of company in Lithuania. It is a legal entity that can be formed by two or more natural or legal persons, but only one of them (the company’s “ organizer ”) can own the shares. The shares in a private company can be either common or preferred, according to their nature. The shares of a private limited company can be held individually or be held as part of a mutual fund, a collective investment fund, or an investment trust. The shares of a private limited company must be registered and, in general, they cannot be transferred without an explicit written authorization from the owner.

Public Limited Company

A public limited company is formed by one or more natural or legal persons. It can be formed under the laws of any country, but must be registered in its country of formation. A public limited company can be formed for any lawful purpose.

A public limited company can issue shares, which are traded on the stock exchange. A public limited company can also issue bonds, which guarantee returns from the profits of the company. Public limited companies are also useful for foreign investors, as shares can be purchased and sold freely.

Private Company

A private company is formed by one or more natural persons. Unlike a public limited company, a private company can be formed for any purpose. Private companies are formed to conduct any lawful activity. A private company must have at least one shareholder, and shares in a private company cannot be transferred without the permission of their owner. A private company can also be incorporated as a limited liability company, or a joint-stock company.

Investment Company

An investment company is a financial institution that provides mutual funds. An investment company can be either a public limited company or a private company. Investment companies offer a range of investment products, including stocks, bonds, etc. Investment companies are only allowed to conduct business in the country where they are registered.

Mutual Fund Company

Mutual funds are financial institutions that offer shares in a company that provide a single investment product. Mutual funds have a variety of investment products, including stocks, bonds, gold, oil, etc. Mutual funds are only allowed to conduct business in the country where they are registered.

Clubs and Associations

A club or an association is a non-profit organization, which is formed by one or more natural or legal persons. The most important thing to remember about a club or an association is that it is formed for a lawful purpose. Associations and clubs must also have their statutes and bylaws approved by the government.

Conclusion

You can open a company in Lithuania for a variety of purposes. From a private limited company to a mutual fund company, there are many different types of companies available to suit your needs. Remember that the type of company you choose will greatly impact your business, so make sure to do your research before choosing a company type for your company.