The article provides a theoretical basis for these issues, discusses legal issues. A practical survey of overtime work of employees in the information and communications sector and the catering and accommodation sector and remuneration for such work has been conducted with a view to determining whether paid overtime work is an important factor affecting higher wages of employees. Armstrong, M. Average monthly net wage in Lithuania. Aspect: economic activities EVRK 2 and years.
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When intending to set up a business in Lithuania, first decide what legal form of enterprise is the most suitable to achieve the goals of your company. In cases when the goal of the company is not to make a profit, a non-profit organization may be established. Enterprises of all forms are divided into limited and unlimited liability companies.
Sole proprietorship and general partnerships are considered as unlimited liability companies, however, all other forms types of enterprises are limited liability companies.
Limited liability companies are liable for their obligations solely within the company assets. Unlimited liability companies are liable for their obligations over the company assets, i. Before registration of such a legal type of a company, one must evaluate all pros and cons. A partnership may include from 2 to 20 partners. Incorporation and operating basis of a partnership is its joint venture agreement.
Therefore, the partners establishing this type of a company, must prepare the agreement very thoroughly. Joint venture agreement must be certified by a notary. Comandite partners cannot participate in the management of a partnership, i. Small partnership is a limited liability private legal entity.
That means, partners are not liable for obligations of the small partnership personally. Small partnership may have from 1 to 10 partners natural persons. Small partnership may conduct any legal activity. For a business related to higher economical risk, it is better to establish a limited liability legal entity- a public limited liability company AB or a private limited liability company UAB , i. A shareholder of such company risks only by his share in the company, if the business fails.
Incorporation, reorganization and liquidation, management and performance, rights and duties of its shareholders, are regulated by Law on Limited Liability Companies of the Republic of Lithuania. As founders of company natural and legal persons may act, both from the Republic of Lithuania, and abroad. Company is an enterprise, whose authorized capital is divided into shares called stock.
Company is a limited liability legal entity. Meanwhile, the limit of their liability extends only to the face value of their shareholding. AB authorized capital shall not be less than 40 thousand EUR. Shares of such company shall be distributed and traded in stock exchange publicly, according to public circulation of securities legislation. UAB authorized capital shall be minimum 2.
Shares of such company shall not be distributed and traded publicly. As AB has a right to distribute its shares publicly, it has a right to use various information channels and sell its shares to any natural or legal person. Distribution of UAB shares is strictly limited by law, thus the potential resources capital sources for UAB is narrower. Constituent assembly approves the joint-stock company statutory report, elects audit company, elects members of management bodies, solves other general meeting issues.
After the constituent assembly the company shall be registered in the Register of Legal Persons. Starting from the moment of registration the company is considered incorporated and acquires the rights of a legal entity. Law on Limited Liability Companies sets that, at incorporation of a AB, the initial contributions for the signed shares payable only in cash to the savings account of the founded company.
The funds in this bank account may be used by the company only after its registration moment. Any natural and legal persons of the Republic of Lithuania and from abroad, who have legally purchased at least one share of this company become shareholders of a company.
Each shareholder in a company has rights equivalent to the shares of the company owned. The company is leading its activities based on its Articles of Association, which is its major legal document. UAB mandatory management bodies are general shareholders meeting and head of administration. The most important decisions, including the formation of the executive body, shareholders adopt by voting, and the number of votes directly depends on the shares held.
In private limited liability companies audit shall be carried out, if if they satisfy at least two of the following:. A Co-operative company KB is a jointly owned enterprise engaging in the production or distribution of goods or the supplying of services, operated by its members for their mutual benefit, typically economic, social and cultural, established by natural and or legal persons according to the laws. Its members contribute funds to form its capital, share risks and benefits according to the goods and services turnover in the company, and actively participate in the management of the KB.
KB is a limited liability legal person. KB assets are segregated from the assets of its members. A member of KB in accordance with obligations of the KB is liable by his share payable in the company. KB shall consist of minimum 5 members and has a name. KB has a right to:. Any natural and legal persons from the Republic of Lithuania and abroad may become members of a KB. Public institutions may be founded by natural and legal persons from the Republic of Lithuania and abroad.
The number of founders is not limited. Law on Associations of the Republic of Lithuania sets procedures of management, operation, reorganization and liquidation of associations. Since 1 May. European Economic Interest Grouping is a private legal entity, which aims to help its members to pursue or expand economic activity, to achieve better performance, but its purpose is not to make profits.
Therefore, EEIG is not allowed:. EEIG members may be companies and other legal persons with a registered office and central administration in the territory of the EU. EEIG members can also be natural persons engaged in industrial, commercial, craft or agricultural activity or who provide professional or other services in EU.
The incorporation agreements with other documents must be submitted to the State Enterprise Centre of Registers, which manages the Register of Legal Persons. From the date of registration of legal entities EEIG can register their name, to have all the rights and obligations, to conclude agreements and to perform other legal actions.
EEIG members have unlimited joint and several liability for its debts and other obligations. Any member of the group may transfer his part to another Group member or a third party, fully or partially, but only with a unanimous agreement of the other Group members.
The EEIG does not pay income tax, and its performance taxation is transferred to the participants. Revenue share:. Societas Europaea. The aforementioned law ensures implementation of European Council Regulation No. SE may be formed in one of four possible ways: by way of merger, by establishing a management holding European company, by establishing a subsidiary SE, by transforming an operational AB into a SE. In the incorporation of an SE, companies of at least two EU member states must participate.
The authorized capital is divided into shares. The law provides that the office of the SE must be in the EU territory, in the same state where it has its headquarters — its permanent governing body location. However, the office may be transferred to another EU member state.
According to the management form approved in its Articles of Association, the SE can be controlled in accordance with a two-tier or one-tier management system. Although the SE requires considerable initial capital, however, this legal form allows to search your company for with the most favorable environment, because the fees are paid according to the laws of the state where its registered office is.
SE keeps accounting of one company, so you can reduce administration costs, legal expenses, which are resulted in due to differences in the legal environment. Ventos g. Skype Facebook. You are here:. Small Partnership Small partnership is a limited liability private legal entity. In private limited liability companies audit shall be carried out, if if they satisfy at least two of the following: Sales revenues in excess of 3.
KB has a right to: engage in activities compatible with the law and purposes, specified in the Articles of Association; open its bank accounts in the Republic of Lithuania and banks abroad; manage its own property, use it and dispose of according to law; join cooperative alliances, also join other organizations according to other laws; enter into transactions, assume property obligations; identify prices, rates and tariffs of its products, works and services; borrow funds from its members under contract according to the Articles of Association; determine its organizational structure, establish branches and representative offices, be founder of other companies and organizations.
Incorporation documents of KB are the Articles of Association and the incorporation agreement. The Articles of Association is the document by which the KB is guided in its activities.
KB founders must consist of at least 5 natural and or legal entities. Each KB founder must become a member. The KB founders conclude the KB incorporation agreement, prepare a draft of Articles of Association, convene a constituent assembly. Incorporation agreement is a public document. As for the number of members of the EEIG must consist of at least: Two companies or other legal entities, which have their central administrations in different EU member states, or two natural persons who have their principal activities in different EU member states, or a company or other legal entity, the central administration in one EU member state and the person who has his principal activity in another EU member state.
The official address must be in the EU. Regulations and legislation do not set minimum capital limit of the EEIG. Revenue share: in case of a group member is a resident person of the Republic of Lithuania, is subject to ordinary personal income tax as stipulated by law; in the case of a group member is a legal entity, is subject to income tax according to Law on Income Tax of the Republic of Lithuania.
Formal SE feature — the name of a company begins or is followed by the abbreviation SE. Sprendimas Jaja IT.
LEGAL FORMS OF ENTERPRISES
The topic of this document is to describe methodology of statistical monthly survey on trade and catering enterprises, estimation of short-term changes in turnover VAT excluded , number of persons employed, hours worked, wages and salaries in Statistics Lithuania. This document is organized in 8 parts. Part 1 defines the Survey purpose, Part 2 lists the Legal bases. Part 4 describes the Survey population and parameters estimated. Part 5 deals with Methods used. Part 6 is devoted to Data sources and periodicity of data compilation. Part 7 gives information on release of the survey results to users format, release dates, modes of dissemination.
Translation of "EVRK" in English