Establishment of MB

Setting up a small partnership

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A small partnership (MB) is a private legal entity with limited liability. In simple terms, the members of a small partnership are not liable for the non-performance of their personal assets. Setting up an MB is quite time-consuming, complex, lengthy, and subject to changing circumstances. With the help of experienced professionals, setting up a MB will be simple and easy, because we will take care of everything for you.

Contact the MyTax team of specialists! We are here to help you with the expertise we have built up over many years of work. Working with us on all set-up processes will save you valuable time and costs.

Advantages of MB

Setting up a MB company is new compared to setting up other types of companies. This form of business activity has been operating in Lithuania since 2012 and is becoming increasingly popular. Setting up a MB is particularly popular and convenient when the business is run by a family or by just one person, as the establishment of a small partnership has to be carried out by between one and ten people.

Opening a MB does not require share capital. This makes it much easier to start a business. Each member of the MB can contribute their share of the capital. It is for these reasons that setting up a MB partnership can be a convenient and readily available solution to consider when developing a small business.

Another major advantage is that the participants in the MB are involved in the management themselves. They all form a meeting to decide on all the company’s affairs. If the MB meeting decides, it may appoint one member as a manager or appoint a competent person as manager. Setting up a MB is therefore a great way to run a family business.

Advantages:

• no authorised capital is required;
• limited civil liability;
• participants themselves can take part in governance;
• contributions can be recovered upon withdrawal;
• there are corporate tax breaks. They may be 0%.

Documents needed to set up a MB

Documents you should have to set up a MB:

• the decision of the founder or founders — the document that appoints the person in charge of the partnership and sets out all the rules of the partnership;
• the instrument of incorporation or the memorandum of association — the founder may be one person or several. This document is intended to capture the most important data about the company;
• the company’s articles of association — this document sets out the company’s main objectives and activities, and all important operational and management issues;

Registering and opening an MB usually takes 3–5 working days. Not sure where to start? Your most important task is to come up with a unique name that reflects your activities. That’s it! The MyTax team will take care of everything else. They will help you prepare the memorandum and articles of association of the small partnership and submit all the necessary documents to the Register of Legal Entities.