Business Closure Services Lithuania
Professional, Hassle-Free Company Closure Solutions by AM Law
Closing a business is a significant step. Whether you’re winding down due to strategic decisions, economic changes, or group restructuring, the process demands legal precision, proper planning, and compliance with Lithuanian regulations. At AM Law, we provide expert business closure services in Lithuania, helping companies navigate the legal and administrative process with confidence and peace of mind.
Whether you own a private limited company (UAB), a branch of a foreign enterprise, or a subsidiary in Lithuania, our experienced legal team ensures a smooth, stress-free closure process tailored to your specific situation.
Why Choose Business Closure Services?
There are many reasons why businesses decide to close their operations. Some are strategic, while others are unavoidable:
- The business has fulfilled its objectives or reached the end of its lifecycle
- Declining revenues or long-term unprofitability
- Shareholders opting to dissolve the company and pursue other ventures
- Inactive companies that are no longer conducting business
- Restructuring within a corporate group or merging with another entity
- Tax or regulatory challenges that make continuation impractical
Regardless of the reason, AM Law ensures that the closure is legally compliant, financially organized, and risk-free for directors, shareholders, and other stakeholders.
What Is Business Closure?
Business closure is the formal and legal termination of a company’s operations, including its removal from the Register of Legal Entities in Lithuania. The process involves halting commercial activities, settling all outstanding liabilities, notifying authorities and creditors, and distributing remaining assets.
Closure must follow strict procedures set by Lithuanian law to protect the rights of creditors, employees, and shareholders. AM Law handles the entire process so that you don’t face delays, legal complications, or future liabilities.
Types of Business Closure in Lithuania
Business closure may occur in several forms, depending on the circumstances of the company.
Voluntary Business Closure
This is the most common type and occurs when shareholders or owners decide to close a solvent company. It’s often part of a strategic business decision or a planned exit. AM Law handles all required documentation and registration procedures for a voluntary company closure.
Compulsory Business Closure
A court-ordered closure occurs when a company fails to meet legal obligations—such as unpaid taxes, unresolved debt, or failure to submit annual reports. In such cases, AM Law provides defense, representation, and closure support to minimize damage to stakeholders.
Closure of Foreign Branches or Subsidiaries
International companies may wish to close their Lithuanian branches or subsidiaries due to internal restructuring or market withdrawal. Our firm offers bilingual and cross-border coordination to ensure seamless closure with respect to both local and foreign legal requirements.
Step-by-Step Business Closure Process
1. Shareholder Decision
The business closure begins with a resolution by shareholders. This decision must be officially recorded, and a liquidator is appointed to oversee the winding-down process. AM Law can act as the liquidator or assist with legal representation.
2. Registration and Notification
The liquidation decision is submitted to the Centre of Registers, and public announcements are published. Creditors must be informed and given a chance to submit any claims during a legally mandated period.
3. Debt Settlement
All debts—including tax obligations, supplier invoices, and employee wages—must be paid before the company can officially close. AM Law will work with your accountants to settle liabilities and avoid any legal issues.
4. Asset Liquidation
If the company has assets such as property, vehicles, or stock, these must be evaluated and sold or transferred. The proceeds are used to settle outstanding debts. Any remaining funds are distributed among shareholders based on their equity.
5. Final Reports and Deregistration
Once all activities are completed, the liquidator prepares final financial statements. The company is then officially removed from the Lithuanian Register of Legal Entities, and the business is considered legally closed.
What Documents Are Required?
The documentation required for business closure varies by case, but typically includes:
- Shareholder resolution on company closure
- Appointment of liquidator
- Notifications to creditors and employees
- Liquidation balance sheet and final financial reports
- Application for company deregistration
- Official publication in the Public Announcements Register
AM Law prepares, reviews, and submits all necessary documents, ensuring accuracy and timely processing.
What About Taxes and Employees?
Taxes and employment contracts must be handled with care to avoid penalties or litigation.
Tax Obligations
Before closure, the company must settle any outstanding taxes with the State Tax Inspectorate (VMI). This includes VAT, corporate income tax, and social security payments. AM Law will help prepare and file the necessary returns and clearances.
Employee Termination
If the company has staff, all employment contracts must be legally terminated, and final payments must be made, including salaries, unused vacation compensation, and severance (if applicable). We assist in ensuring full compliance with Lithuanian Labor Law and proper employee notification.
Timeline for Business Closure in Lithuania
On average, a voluntary business closure in Lithuania takes 3 to 6 months, depending on:
- The size and complexity of the company
- Existing debts and obligations
- Availability of required documentation
- Communication with public institutions and stakeholders
AM Law ensures the most efficient timeline possible, avoiding delays through proactive management and clear communication.
Why Choose AM Law for Business Closure?
Choosing the right legal partner can make the difference between a smooth closure and a legal nightmare. Here’s why companies trust AM Law:
- Experienced legal team specializing in business dissolution
- Multilingual support for foreign investors and directors
- Full-service assistance, from decision to deregistration
- Transparent communication and fixed pricing options
- Minimal involvement required from company shareholders
Whether your company is a local UAB or part of a global organization, we tailor our services to meet your needs.
Real-World Example
A UK-based software development firm decided to wind down its Lithuanian subsidiary after consolidating operations. AM Law took over the entire business closure process, including employee terminations, asset sales, and final tax clearance.
The client praised AM Law’s transparency, speed, and professional handling, closing the subsidiary in just under four months without legal complications.
Frequently Asked Questions
Can I close a company with outstanding debts?
Yes, but it requires court involvement or formal insolvency procedures. AM Law can assist with creditor negotiations or legal representation.
Do I need to be in Lithuania to close my business?
No. We can represent foreign shareholders or directors via power of attorney. Most of the process can be handled remotely.
Is closure the same as bankruptcy?
Not always. Voluntary closure involves settling debts and exiting the market responsibly. Bankruptcy is used when debts exceed assets, and the business cannot pay what it owes.
What if the company has not been active for years?
Even inactive companies must be legally closed. Otherwise, penalties or administrative sanctions may apply. AM Law specializes in closing dormant or non-operational businesses.
Close Your Business the Right Way with AM Law
If your company is no longer active, viable, or aligned with your business goals, let AM Law guide you through a legally compliant and stress-free business closure in Lithuania.
From handling legal filings to communicating with authorities, we manage everything—so you can move forward without complications or legal risk.
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