Private company. It is a business form where the founder can only be an individual person, and the name must indicate the legal form: “individuali įmonė” or the abbreviation “IĮ.”
Advantages of Private company (IĮ):
- No significant capital is required for establishment.
- Private company can be restructured into a UAB (Private Limited Liability Company), AB (Public Limited Liability Company), or VšĮ (Public Institution).
- Simplified accounting can be used; only tax declarations are required.
Disadvantages of Private company (IĮ):
- The owner is personally liable for the business’s activities and debts.
- Limited growth opportunities, difficulty obtaining bank credit or delayed payments for goods or services.
- Unpaid taxes or debts to clients and other creditors are the owner’s responsibility.
- Debts of the business cannot be written off; the owner must repay them.
- Owners with multiple businesses must either consolidate them into one or choose to keep one and liquidate, transfer to another person, or restructure the others.
Restructuring of Private company (IĮ): IĮ can be restructured into a UAB (Private Limited Liability Company) if the assets of the sole proprietorship, after deducting all liabilities, meet the minimum statutory capital requirement set for joint-stock companies. The status change of the restructured company to IĮ is effective from the date of the restructuring decision.
If you are interested in our services, choose from the following topics: company establishment, company sale, accounting services, company purchase, restructuring companies into UAB.
You can contact us at:
Website: www.parduodaimone.lt
Email: info@parduodaimone.lt
Tel .: +370 607 86 111