Increase of the authorized capital of a UAB

Name: Increase of the authorized capital of a UAB | Mytax.lt
Price: 300.99 EUR
Availability: InStock

Increasing the authorized capital of a UAB is beneficial when seeking a transportation license or issuing additional shares. This service is only for capital increases, not decreases. The entire procedure is carried out remotely, so there is no need to physically visit any institutions. A fast and convenient solution for your business!

248,75 € without VAT

Term

The increase in the authorized capital typically takes about 5 business days from the payment and submission of the required data.

Included in the price

Consultation on authorized capital matters;
We coordinate the entire process of increasing the authorized capital.

Customer service

Remote consultations;
Response to questions within 1 business day;
Experienced and competent legal professionals.

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.
Information about the new amount of share capital, the method of increase (issuance of shares or increase of nominal value), and the source of capital (shareholder contributions, undistributed profits, etc.).

Service Process

Service Order: You place and pay for the service on the website.
Submission of Required Information: We will analyze the documents and ask you to provide the necessary details.
Document Preparation: Once we have all the required documents, we will prepare them for signing.
Remote Submission: We will coordinate a convenient time to submit the documents to the Register Center remotely.
Registration and ESI Order: We will register the amended statutes with the increased share capital and order a new Electronic Certified Excerpt (ESI).

Why is Capital Increase Needed?

A capital increase is typically necessary when a company’s financial obligations grow. Companies with a higher share capital are often viewed as more trustworthy by investors and partners because the increased capital signals the company’s ability to meet financial requirements.

The share capital partially reflects the company’s financial stability and capacity to fulfill its obligations. By increasing the share capital, shareholders can directly contribute additional funds to the company, helping it meet its financial goals, support growth, or address any financial challenges.

How is Capital Increased?

Capital can be increased in two primary ways:

From the Company’s Funds. Increase the Nominal Value of Shares: In this method, the number of shares and their distribution among shareholders remain the same, but the value of each share increases proportionally. This approach allows for an increase in capital without changing the shareholding structure.
By Shareholders Contributing Their Own Funds. Issuing New Shares: The company can issue new shares, which increases the total number of shares without altering the value of the existing ones. Shareholders will then acquire additional shares according to their current ownership proportion.

Once the decision to increase capital is made at the shareholders’ meeting, the company must report this intention to the Legal Entities Register within 10 working days. This can be done either at the Registry Centre service centre or through the Registry Centre self-service system.

Is It Possible to Decrease Capital?

Yes, it is possible to decrease capital, and similar procedures are used as those for increasing it. Capital reduction can be achieved through two primary methods:

Decreasing the Nominal Value of Shares: The company can lower the nominal value of its shares, which reduces the overall capital without altering the number of shares or their distribution.
Reducing the Number of Shares: Alternatively, the company can reduce the number of shares in circulation. This will decrease the capital while maintaining the value of the remaining shares.

Both methods involve legal procedures that must be followed to ensure compliance with regulations and protect the interests of all stakeholders.

Changing the Authorized Capital

Changing the authorized capital is a relatively straightforward process that can be completed quickly and with minimal effort. However, determining the correct capital amount and preparing a sound financial strategy that will benefit the company in any situation can be more challenging.

If you’re considering changing your company’s capital size but are unsure about whether your decision is the right one, consulting with financial experts is a wise choice. Experienced professionals can provide valuable insights, advise you on the best course of action, and support their recommendations with real-world examples to ensure your capital adjustment aligns with your business goals.

Documents Required for Increasing the Authorized Capital of a UAB (Limited Liability Company)

When increasing the authorized capital of a UAB (limited liability company), the following documents are required:

Extract from the State Register (Registrų centras): A copy of the company’s registration details.
Articles of Association (Bylaws): The company’s governing documents outlining the structure and rules.
Securities Statement: Information regarding the composition and distribution of shareholders.
Amount of Capital Increase: The specific amount by which the authorized capital will be increased.
Shareholders’ Monetary Contributions: Proof of the funds being contributed by shareholders to increase capital.
Original Bank-Issued Certificate or KPO: Confirmation of payment for the shares, either from a bank-issued certificate or KPO (confirmation of payment order).
Interim Balance Sheet: If the capital increase is funded from the company’s own funds, an interim balance sheet is required to show the company’s financial position.

These documents ensure compliance with legal requirements and facilitate the proper handling of the capital increase process.