Lithuania

Operating a business in Lithuania

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Different types of companies	Number of partners/ shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
Sole proprietorship (PI)	Maximum 1 shareholder.	No minimum capital.	Liability is unlimited.	LTL 200
Private limited liability company (UAB)	1 to 249 shareholders	EUR 2,900	Liability is limited.	LTL 800
Public limited liability company (AB)	Minimum 1 shareholder, no maximum.	EUR 43,450	Liability is limited.	LTL 800
General partnership (TUB).	Minimum 2 shareholders. Maximum 20 shareholders.	No minimum capital.	Liability is unlimited for all the partners.	LTL 800
Limited partnership (KUB).	Minimum 2 shareholders. Maximum 20 shareholders.	No minimum capital.	Liability is unlimited for 1 partner and limited for the others	LTL 800

Business setup procedures: For incorporation purposes, founders shall execute an agreement on establishment or an establishment act (in case of a sole proprietorship). The founders shall also approve the articles of association as well as fill in standard application forms to be provided to the Register of legal persons where the companies are registered. All above documents shall be duly approved by the Lithuanian notary public and afterwards provided to the Register of legal persons. Registration of a company takes 7 days after all the necessary documents have been executed and submitted to the Company Register.
The competent organization: The Company Register of Lithuania is the relevant organization to be contacted for formalities in setting up a business.

Working conditions

Legal weekly duration

40 hours per week ; the daily number of hours should not exceed 8.

Retirement age

60 for women and 62,5 for men.

Working contracts

The Lithuanian Labour Code provides for several types of contracts: employment contract concluded for an indefinite period of time ; fixed-term, temporary and seasonal contract, ; employment contract for additional work and secondary work ; employment contract with home-workers ; employment contract on the supply of services.

A fixed term contract can not exceed 5 years.

Cost of labor

Minimum wage: The general minimum monthly wage is 231 EUR.
Average wage: The average wage is situated around 650 EUR.
Social contributions: Social security contributions paid by employers: 31%.
Social security contributions paid by employees: 3%.

Social partners

Bargaining power

The Trade Union members may not be less than one-fifth of all the employees in a company.

There are 3 main trade unions in Lithuania: the LPSK (Lithuanian Trade Union Confederation - LPSK), the Solidarumas and the LDF (Lithuanian Labour Federation - LDF), plus some independent trade unions.

Unions

Lithuanian Trade Union Confederation
Lithuanian Labour Federation

Unionization rate

About 14% of the active population. However, as Lithuanian legislation does not provide for obligatory registration of trade union membership, the exact number of employees represented is only an estimated figure.

Labor regulation bodies