SMALL PARTNERSHIP ESTABLISHMENT (MB)
MB ESTABLISHMENT
A small partnership (MB) is one of the most popular legal forms in Lithuania. This business structure is particularly attractive due to its simple management and tax benefits. MB can be established in two ways: online, through the register center’s online system or through a notary.
For any questions about setting up an MB, 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
- Free provision of a registered address
- Option to order a company stamp if desired
COMPANY ESTABLISHMENT TIMEFRAME:
- 1-2 business days
COMPANY ESTABLISHMENT COST:
- Starting from €169
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)
MB ESTABLISHMENT ONLINE
169€
ex VAT
MB ESTABLISHMENT VIA NOTARY
369€
ex VAT
Establishing a Small Partnership (MB) Online
Registering a Small Partnership (MB) online is the fastest and most cost-effective way to start a business. All you need is to choose a company name and have a valid electronic mobile signature—our team will handle everything else. The entire process is conducted remotely, allowing you to sign the documents without leaving your home. It takes just 1 hour to complete. We will:
– Provide free consultation;
– Verify and register the business name;
– Prepare the company establishment documents;
– Provide a registration address for free;
– If desired, we will order a company stamp.
For any questions regarding the establishment of a Small Partnership (MB), you can consult:
Phone: +370 615 32117
Email: [email protected]
MB Establishment Via Notary
For any questions regarding the establishment of a Small Partnership (MB), you can consult:
Phone: +370 615 32117
Email: [email protected]
MB PROS
No Minimum Share Capital Requirement: Unlike a private limited company (UAB), which requires a minimum initial capital of 2,500 euros, there is no statutory capital requirement for establishing a Small Partnership (MB).
Limited Liability for Members: In the event of the company’s failure, MB members do not risk their personal assets since the Small Partnership is a limited liability legal entity.
Voluntary Withdrawal: MB members can voluntarily withdraw from the business by transferring their rights to another person or simply withdrawing their contribution.
Profit Distribution Flexibility: The profits of a Small Partnership can be distributed to its members even before the end of the financial year. However, if the company incurs a loss by the end of the financial year, or if the portion of profit allocated to a member is less than the total amount they received, the member must return the excess amount that exceeds their share of the year’s profit.
MB CONS
Relatively Complex Accounting: The accounting for a Small Partnership (MB) can be quite complex, requiring careful tracking of income, expenses, and profit distribution among members, especially as the business grows.
More About Establishing a Small Partnership (MB)
A Small Partnership (MB) is one of the most popular forms of economic activity in Lithuania due to its limited liability and favorable tax system. MB members are not personally liable with their own assets for the company’s obligations, so the business risk is significantly reduced. Only natural persons can be founders, and the number of members is limited to 10. However, there is no restriction on the number of employees, so you can hire as many as needed. One of the greatest advantages of an MB is that there’s no requirement for a minimum authorized capital, allowing you to start a business without significant investments. An MB can engage in any activity that doesn’t contradict the laws of the Republic of Lithuania, providing entrepreneurs with the flexibility to choose their desired field.The tax advantages are also significant: members can withdraw funds through a civil management contract, paying only 15% personal income tax (PIT) on the withdrawn amount.
Social insurance contributions are voluntary (except for the mandatory health insurance – PSD), which is often already paid through another workplace or covered by the state. Additionally, an MB isn’t required to hire an accountant, reducing expenses; however, as the business grows, it’s recommended to seek professional accounting assistance. For all these reasons, an MB is an optimal solution for entrepreneurs, offering flexibility, financial advantages, and minimizing risk.
