Laikas pakalbėti apie virtualią bendrovę

Lithuania: Online Incorporation and Beyond
Gintautas Bartkus
“Incorporation of Companies in the Digital Age”
16-17 March, 2018, University of Würzburg

© Deloitte Legal 2018 2
© Vilnius University Law Faculty
E-Lithuania

© Deloitte Legal 2018
3
1st internet bandwidth in CEE
Global Competetiveness Report 2016-2017
1st globally for public WiFi speed
www.ooma.com, 2017
4th in the EU for Bachelors graduates in science, math's,
computing, engineering, manufacturing, and construction
Eurostat, 2014. Age group 20-29
8th globally for overall mobile internet speed
OpenSignal, 2017
13th in DESI 2017
DESI, 2017

4
Doing a Business
0
5
10
15
20
25
30
35
New Zeland Denmark Estonia Lithuania Latvia Germany Austria Poland Spain France
New Zeland Denmark Estonia Lithuania Latvia Germany Austria Poland Spain France
Source: The Word Bank

5
Starting a Business
0
20
40
60
80
100
120
140
New Zeland Estonia Latvia France Lithuania Denmark Spain Germany Austria Poland
New Zeland Estonia Latvia France Lithuania Denmark Spain Germany Austria Poland

6
Starting a Business: Procedures, Time, Cost
Open bank account and deposit minimum capital requirement
Time to Complete: 1 day
Associated Costs: no charge
Obtain a confirmed electronic signature
Time to Complete: 1 day
Associated Costs: EUR 0.5
Check and reserve the name of the company (limited liability company)
Time to Complete: Less than one day (online procedure)
Register at the Company Register, including registration with State
Tax Inspectorate (the Lithuanian Revenue Authority) for corporate
tax, VAT, and State Social Insurance Fund Board (SODRA)
Time to Complete: 3 days
1
2
3
4
Source: The Word Bank

Register of Legal Entities

8
01/07/2001
01/01/2004
01/01/2010
Civil Code of the Republic of Lithuania
Register of Legal Entities
Online Registration

9
• Public limited liability company
• Private limited liability company
• Small partnership
• Agricultural company
• Cooperative enterprise
• General partnership
• Limited partnership
• Individual enterprise
• European company
• European cooperative society
• European economic interest group
• Advocates professional partnership
• Private detective communities
• State enterprise
• Municipal enterprises
• Budget institution
• Non-govermental organization
• Associations
• Charity and relief foundation
• Partnership
• Society of gardeners
• Political party
• Traditional religious community
• Other religious community, association
• Trade union
• Arbitration institution
• European economic interest grouping
• Households
• National bank
• Chamber of commerce, industry and crafts
• The association of Lithuanian chambers of commerce, industry and crafts
• General management and messaging center
32total
13private

10
Public company (19 023) Partnership (9 161)
Budget institution (3 196) Individual enterprise (37 075)
Small partnership (12 712) Trade union (1 793)
Society of gardeners (1 382) Traditional religious community (1 114)
private limited liability company (124 799) Branch of private limited liability company (1 014)
Charity and relief foundation (1 630) Public limited liability company (366)
All others (16 713)

Standard registration procedure

12
1
2
3
4
5
Constitution documents
Temporary name registration (optional)
Bank account and initial contributions
Management
Public notary control
6 Registration

Online Registration

14
Individual enterprise;
Association;
Public institution;
Charity and relief foundation;
Religious community;
Traditional religious community;
Private limited liability company;
Small partnership.
90%
Source: Lithuania Center of Registers

15
Preconditions for Online Registration
Electronically signed
permission to use
premises for the
registered office
Standard founding
documents
Initial consideration for
shares should be paid
only in cash.
Firm name has been
temporary registered in
Legal Entities Register.
Certified electronic
signature

16
9:18 min
Source: https://www.youtube.com/watch?v=JH0YdhGSgao

17
Legal form
2016
total
Among them electronically
2017
total
Among them electronically
number % number %
Private limited liability
company
6347 4399 69,3 6541 4737 72,4
Individual company 267 134 50,2 255 145 56,9
Association 603 177 29,4 478 162 33,9
Public institution 659 418 63,4 691 482 69,8
Charity and relief foundation 66 29 43,9 63 39 61,9
Small partnership 2160 1883 87,2 2987 2717 91,0

18
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2014 2015 2016 2017
Total registered PLLC From which registered electronically

19

20
Number of electronically registered PLLC with one founder
0
1000
2000
3000
4000
5000
6000
2014 2015 2016 2017
95%
90%
90%
89%

Minimal capital
for Private
Limited
Liability
Company
2500
2500 57,2%71347
Total number
of Private
Limited
Liability
Companies
Percent of
Private Limited
Liability
companies
with minimal
capital

22

Virtual Registered Office

24
Architektų st. 56-101,Vilnius
1263 business entities
10 000
addresses
35
legal persons
Source:“Kurk Lietuvai“, Virtualios buveinės įkūrimas“

25
Public consultation: the need for virtual office
Would choose virtual office
instead of physical
For communication with
state institutions, would
choose e- messages
(sent via the online
platform)
A permanent place of
work does not
coincide with the
registered office
Experienced difficulties
with physical address
searches when registering
a legal entity
75% 71% 95%60%
Registered legal
entity in premises
which belongs to
others
89%
Source:“Kurk Lietuvai“, Virtualios buveinės įkūrimas

26
Performed analysis: how much use can bring digital measures?
14,4 mln €134 mln €36 000 €
DenmarkVilnius Estonija
Source:“Kurk Lietuvai“, Virtualios buveinės įkūrimas

Virtual Limited Liability Company

28
Digital Share Certificate (DSC)
1
2
3
4
5
DSC Wallet
Management access to information
Smart contract
Priority right
Contract signed by the digital
signatures
6 Management notification
7 Shareholders register automatically
updated

29

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member
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“Deloitte Global”) does not provide services to clients. Please see www.deloitte.lt to learn more about our global network of member firms.
Deloitte provides audit, tax, consulting, financial advisory and legal services to public and private clients spanning multiple industries. With a
globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality
service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 245,000 professionals
are committed to becoming the standard of excellence.
In Lithuania, the services are provided by Deloitte Lietuva UAB and Deloitte verslo konsultacijos UAB (jointly referred to as “Deloitte Lithuania”)
which are affiliates of Deloitte Central Europe Holdings Limited. Deloitte Lithuania is one of the leading professional services organizations in the
country providing services in audit, accounting, tax, consulting, financial advisory, business advisory and legal services through over 100 national
and specialized expatriate professionals.
© 2018 Deloitte Lithuania

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