Private company Europe

Private stock companies (UAB)

UAB is limited liability private legal entity. Assets of UAB are separated from their shareholders’ assets. The authorized capital of a private company may not be lower than LTL 10.000 (EUR 2.900) It must have between 1 and 250 shareholders. The mandatory bodies of a company are the general meeting of shareholders and the head of a company. The Republic of Lithuania Law on Companies regulates incorporation, activities and liquidation of UAB. This form of business organization is also considered as the most advantageous due to the mechanism of deciding essential matters for the company. The shareholders of AB or UAB may be Lithuanian or foreign individuals or legal entities. There are no restrictions or special encumbrances set forth in respect to foreign shareholders under the Law on Companies of the Republic of Lithuania. Lithuanian laws do not restrict in any way the participation of foreigners in the management of Lithuanian companies. Foreign citizens may be freely elected either to the supervisory council or the board or the position of CEO. However, if such foreign citizens are employed in the company (employment is mandatory only for the CEO), they must obtain temporary residence permits.

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