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SMALL PARTNERSHIP ESTABLISHMENT (MB)

MB Establishment

A Small Partnership (MB) is one of the most popular legal entities in Lithuania. This business structure is highly favored due to its simple management requirements and tax advantages. An MB can be established in two ways: online or through a notary.

For any questions about setting up an MB, you can consult:

Phone: +370 615 32117

Email: [email protected]

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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 €129

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€

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MB ESTABLISHMENT VIA NOTARY

369€

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Establishing a Small Partnership (MB) Online

Establishing a Small Partnership (MB) Online is a cheap and quick way to start a business. All you need to do is come up with a business name and have an electronic mobile signature, and you can leave the rest to our team. You will be able to sign the documents without leaving your home. The entire process will take you only 1 hour. 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.

Establishing a Small Partnership (MB) Online Will Cost You

169€

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

When establishing a Small Partnership (MB) through a notary, you will incur additional notary fees for document certification, and you will also need to travel to the notary’s office. For these reasons, this method of establishment is more expensive and less convenient than online registration. However, when a foreign citizen or an individual requiring specific and non-standard company statutes or other documents is establishing the company, the only option is to set up the MB through a notary.

Establishing a Small Partnership (MB) Through a Notary Will Cost You

369€

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.
     
    Founders Must Be Individuals: Only individuals can be founders of an MB, which limits the ability to attract partnerships or investments from other legal entities.
     
    New Legal Entity Form: As a relatively new legal entity in Lithuania, the regulations governing Small Partnerships may change frequently, which can create uncertainty for business owners regarding compliance and operational procedures.

More About Establishing a Small Partnership (MB)

Small Partnership (MB) is a limited liability legal entity, which means that its members are not personally liable for the company’s failures. Only individuals can be founders of an MB, making it more challenging to attract new investments from other companies compared to a private limited company (UAB). Additionally, a Small Partnership can have up to 10 members, but this does not mean that the number of employees can’t exceed this limit. With an MB, you can engage in any activity that does not contradict the laws of the Republic of Lithuania. One of the main advantages of establishing a Small Partnership is that there is no requirement for a minimum share capital; the initial contribution can be as low as 1 euro. Establishing an MB is suitable for small or family businesses, as founders typically do not invest large sums of money to start the business. It’s common for individuals who have a close relationship to establish an MB together, allowing them to engage in a joint venture that can generate income. The legal and tax framework for Small Partnerships is also appealing to new entrepreneurs. Since an MB is not required to hire an accountant, this can save costs that can be used for business development. However, if your business activity becomes sufficiently established, it is advisable to have someone or a company oversee the accounting.

Do you have questions? Contact us NOW!

 
 
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