ESTABLISHMENT OF A SOLE PROPRIETORSHIP
IĮ Establishment
Establishing a sole proprietorship (IĮ) is becoming less popular among new entrepreneurs. One of the main reasons is the limited liability structure, which means that the business owner is personally liable for the company’s obligations with their own assets. This can pose certain risks, especially if the business faces financial difficulties or is unable to meet its obligations. Therefore, before choosing a sole proprietorship as a business form, we recommend considering other options that may provide more security and flexible opportunities for business expansion.
For any questions about setting up an IĮ, you can consult:
Phone: +370 615 32117
Email: [email protected]
OUR SERVICES:
- Free consultations
- Verification and registration of the business name
- Preparation of company founding documents
- Option to order a company stamp if desired
COMPANY ESTABLISHMENT TIMEFRAME:
- 1-2 business days
COMPANY ESTABLISHMENT COST:
- Starting from €180
THE PRICE INCLUDES:
- Document preparation
- Free registered address for the first year
- Register of Legal Entities fees
- Data submission to JADIS (Legal Entity Information System)
IĮ ESTABLISHMENT ONLINE
180€
ex VAT
IĮ ESTABLISHMENT VIA NOTARY
380€
ex VAT
Establishing a Sole Proprietorship (IĮ) Online
Registering a sole proprietorship (IĮ) online is a fast, simple, and cost-effective way to start your business. All you need to do is choose a business name and have a valid electronic mobile signature. We’ll take care of the rest! You can sign all the necessary documents from the comfort of your home, and the entire process will be completed in just one hour. We will:
– Provide free consultation;
– Verify and register the business name;
– Prepare the company establishment documents;
– If desired, we will order a company stamp.
For any questions regarding the establishment of a Sole Proprietorship (IĮ), you can consult:
Phone: +370 615 32117
Email: [email protected]
IĮ Establishment Via Notary
When registering a sole proprietorship (IĮ) through a notary, additional notary fees for document certification must be covered, and a personal visit to the notary’s office is required. Due to these factors, this method is more expensive and less convenient.
However, in certain cases, notary registration is necessary—for example, if the business is being established by a foreign citizen or if non-standard company bylaws or other specific documents are required. In such situations, notary certification ensures legal clarity and compliance with regulations.
For any questions regarding the establishment of a Sole Proprietorship (IĮ), you can consult:
Phone: +370 615 32117
Email: [email protected]
IĮ PROS
No Capital Requirement: There is no statutory capital requirement for starting an IĮ.
Flexible Employment: The owner can work in the business without an employment contract, saving on certain taxes. Additionally, other people can be hired if needed.
Easy Profit Withdrawal: The owner can withdraw business assets for personal use at any time, making profit access simpler.
Conversion Option: If needed, an IĮ can be restructured into a private limited liability company (UAB).
IĮ CONS
Unlimited Liability: The owner is personally liable with their own assets for the business’s debts and obligations in case of failure.
Single Ownership: Only one individual can be the owner, so there can be no co-founders or partners.
Limited Investor Attraction: It is not possible to attract new investors by issuing company shares.
Accounting Complexity: Accounting requirements for an IĮ are not significantly simpler than those for a UAB.
More About Sole Proprietorships (IĮ)
Establishing a sole proprietorship is recommended if your business is entirely low-risk. It is also important to note that a sole proprietorship can only be founded by one person, who cannot own another IĮ. Additionally, a sole proprietorship does not require a minimum share capital, making it a cost-effective option with minimal initial investment. However, it is crucial to understand that all business profits and losses are directly tied to the owner. This means that while the owner receives all earnings, they are also personally liable for any business obligations with their personal assets.
Another key aspect is that a sole proprietorship is often best suited for small businesses, as it has a simple management structure and does not require complex accounting. However, as the business grows or seeks investment, it may become necessary to transition to a limited liability business structure, such as a Small Partnership (MB) or a Private Limited Liability Company (UAB).If you are considering establishing a sole proprietorship, it is essential to evaluate not only its advantages but also the potential challenges.
