Corporate reorganization

Name: Corporate reorganization | Mytax.lt
SKU: 215-1
Price: 748.75 EUR
Availability: InStock

Company reorganization is a process of merging or dividing several companies, aimed at combining their management structures or separating them. Company reorganization is often influenced by the creation of a new business or the merger of several companies.

748,75 € without VAT

Term

It takes 2-3 months.

Included in the price

Complete document preparation;
Online consultations.

Customer service

Fast and professional specialist assistance;
Remote consultations;
Response within 1 business day.

You will have to provide

The company’s director must have a valid mobile electronic signature. If you do not have one, it can be quickly obtained at your mobile service provider’s store, even if you are not a subscriber – the process takes only a few minutes with an identity document. We recommend obtaining the mobile signature after ordering the service to avoid unnecessary delays. A mobile e-signature is the fastest and most convenient way to sign documents electronically, saving time and avoiding bureaucracy;
An extract from JADIS (Register of Participants). We can order it on your behalf;
An extract from JANGIS (Register of Beneficial Owners). We can order it on your behalf.
List of the company’s creditors.
Interim balances of the company (companies).

What is Company Reorganization?

Company reorganization is the process through which one or more companies merge or divide to restructure their management, operations, or ownership. This procedure is often driven by factors such as the creation of a new business entity or the merger of several companies into one unified entity.

The primary objectives of company reorganization include:

Increasing operational efficiency,
Reducing administrative costs, and
Simplifying management structures.

In company reorganization, typically, only legal entities of the same legal form can participate, with some statutory exceptions. This ensures that the companies involved can integrate their operations seamlessly under the reorganization process.

Types of Company Reorganization

Company reorganization can be carried out through two main methods: merger and division. These methods allow businesses to restructure their operations and achieve greater efficiency.

Methods of Merging Legal Entities

Merger: This method involves the creation of a single legal entity from two or more existing companies. In a merger, one company absorbs the others, and the merged entity continues to operate under a unified management structure.
Consolidation: In this process, one or more legal entities are combined into an existing company. The original companies dissolve, and their assets, liabilities, and operations are transferred to the consolidating company.

Methods of Dividing Legal Entities

Split: This method involves dividing an existing company into two or more new legal entities. The rights and obligations of the original entity are transferred to the newly formed companies, each taking on a portion of the original company’s operations.
Spin-off: In a spin-off, a portion of the rights and obligations of the reorganized company are distributed to one or more newly created legal entities. This allows for a more specialized focus for each entity after the reorganization.

Reorganization Procedure

The Lithuanian Companies Law outlines the detailed procedures for company reorganization, ensuring the protection of the key stakeholders involved: employees, creditors, and shareholders. The law provides a structured approach to safeguard the rights of these groups during the reorganization process.

Steps in the Reorganization Procedure
1. Publication of Information
Companies conducting reorganization must publish information about the ongoing process to inform stakeholders and avoid infringing on their rights. According to Article 65 of the Companies Law, the company must:

Publish the information three times, with at least 30 days between publications, in the press or on the legal entity’s registry website, or
Alternatively, publish the information once publicly and send notifications to all creditors via registered mail.

2. Registration and Approval
Once the necessary public notifications are made, the status of the reorganizing and participating entities must be registered with the State Enterprise Register.
Meetings are held to confirm the terms of the reorganization and approve the related documents.

3. Approval by Notaries and the State Enterprise Register
The reorganization process cannot proceed without approval from both the notary and the State Enterprise Register. The notary will require the following documents for review:

Articles of association and statutes of the participating and reorganizing entities.
Terms of the company’s reorganization.
Lists of shareholders and participants of the reorganizing company.
Public announcements about the reorganization.
Annual or interim financial statements of the company.
A certificate confirming no creditors have objected or requested additional security for obligations.
New articles of association and statutes for the reorganized company.
Copies of personal identity documents for the directors of the reorganizing company or participating entities.
Any other documents necessary for smooth progress of the reorganization process.

What is the Most Important Thing to Know About Company Reorganization?

The most important thing to know about company reorganization is that all stakeholder groups—including employees, creditors, and shareholders—are protected by law throughout the entire reorganization process. It is essential that all procedures are conducted according to legal requirements to ensure the rights of these groups are upheld.

If you have any further questions or need assistance, feel free to contact our team. We are always ready to help small, medium, and large business owners navigate the complexities of business law. Our team ensures fast, effective assistance with any issues you may encounter during the reorganization process.

Company Reorganization Cost

The cost of company reorganization services is 599 EUR + notary and Registry Center fees (~ 180 EUR).

For companies that have signed a 1-year accounting service contract, document preparation is free of charge.

Prices are quoted excluding VAT.