Foreign investors who come to Lithuania can set up companies by using various business forms among which they can choose the most appropriate, in accordance with their needs. The selected structure must be incorporated following the provisions of the Lithuanian Company Law which imposes similar conditions for local and overseas entrepreneurs.
There are also cases in which the business owner needs to make company changes which must follow procedures provided by the same Company Act. Below, our company formation specialists in Lithuania explain how to make changes in a local company. We can also help with various changes you want to make in your Lithuanian company.
What changes can one make in a Lithuanian company?
There are various changes which can be made in a company in Lithuania even after its incorporation. These must be recorded by the shareholders in the company’s statutory documents, but also with the Companies Register in Lithuania.
Here are some of changes which can be made in a company in Lithuania:
- the business owner can decide to change the company’s legal address (registered address);
- the owner of the business can also decide to change the Lithuanian company’s trading name;
- the object or objects of activity of the company can also be amended, if the business direction changes;
- the directors of the company can also be removed and replaced with others, according to the law;
- changes can also be made in the shareholding structure of a Lithuanian company, provided that certain requirements are respected;
- the share capital of a company can also be altered by increasement or by decreasing it;
- the business owner can also decide to the change the structure used for completing its operations.
With a vast knowledge in the company registration in Lithuania, our local consultants can offer detailed information on the changes which can be made in a company.
How to change company information in Lithuania
Some of the most common changes which are usually brought to a Lithuanian company are the change in the trade name and company address as a result of a merger or acquisition. These changes do not need special procedures to be completed, however, they must be reported with the Lithuanian Trade Register and the tax authorities.
The company’s Articles of Association must also be amended following these changes.
Our Lithuanian company formation agents can offer more information on how to change the trading name and legal address of your business.
How to amend a Lithuanian company’s shareholding structure
There are two important changes which can be made in a Lithuanian company’s shareholding structure: the replacement of shareholders and the alteration of the share capital. These are sensitive matters which require assistance from specialists, as the Company Law provides for specific regulations in such matters. Among these, we remind the following:
- – the decrease of the share capital must not affect the activities of the Lithuanian company, otherwise it can lead to company liquidation;
- – the increase of the share capital can be made, however, private companies going public must respect the regulations imposed the Financial Market Authority;
- – the changes in the number of shareholders of the company must not affect the structure of the company;
- – all the decisions with respect to these changes must be made during the Annual General Meeting or an extraordinary meeting of the shareholders;
- – all the changes must be recorded in the minutes of that meeting and reported in a timely manner with the Trade Register.
Additionally, the changes must be reflected in the Lithuanian company’s statutory documents after being approved by the Trade Registry.
You can rely on our local advisors if you want to open a company in Lithuania.
What to consider when making changes in a Lithuanian company
The most important aspect to consider when making company changes in Lithuania is to respect the provisions of the Company Law. The amendments must be submitted to vote in most situations and recorded in minutes.
Once the changes are decided, the director or representative of the company must file a request with the Trade Registry in this sense. There are various forms which need to be filed, based on the changes to be made. It is also important to note that the notification with the Companies Registrar must be done in time, otherwise, penalties can be imposed. At last, the company’s incorporation documents must be amended once the changes have been approved.
If you need more information or assistance in making changes in your Lithuanian company, please contact our local company formation agents.