Close a Company in Lithuania
Exit with Confidence: Legally Shut Down Your Business in Lithuania with Professional Guidance
Whether you’re restructuring your operations, winding down due to strategic changes, or stepping away from business entirely, closing a company in Lithuania is a process that demands careful attention to legal and administrative detail. Ensuring your business is dissolved lawfully protects your interests, avoids future liabilities, and gives you a clean slate for future ventures.
At AM LAW FIRM, we specialize in guiding local and international clients through the full company liquidation process in Lithuania—from initial consultation to final deregistration. With years of experience, a multilingual team, and a personalized approach, we make your business exit compliant, efficient, and stress-free.
When Should You Consider Closing a Company in Lithuania?
There are many reasons why business owners choose to dissolve their Lithuanian company. These may include:
- A shift in strategic direction
- Completion of a business project
- Decrease in demand or profitability
- Relocation to another country
- Group restructuring or mergers
- Dormant or inactive company status
Regardless of the cause, it is essential that the closure follows proper legal and tax procedures to ensure all liabilities are settled and that the company is legally erased from the public register.
Legal Framework for Company Closure in Lithuania
In Lithuania, closing a company—officially known as liquidation or deregistration—is regulated by the Law on Companies and overseen by the Register of Legal Entities. The process includes legal, tax, and financial elements and must comply with state authorities such as:
- State Tax Inspectorate (VMI)
- State Social Insurance Fund Board (Sodra)
- Lithuanian Centre of Registers
- Creditors and contractual partners (if any)
Skipping steps or failing to notify relevant institutions can lead to future penalties, tax audits, or legal complications. That’s why our experienced legal team at AM LAW is here to handle everything for you—from start to finish.
Step-by-Step: How to Close a Company in Lithuania
1. Initial Legal Consultation
We begin by reviewing your company’s current status—whether it’s active, dormant, or in debt. Our lawyers assess your best options for liquidation and explain all the necessary procedures.
2. Shareholder Decision
Company closure must be initiated by a decision of the shareholders or the sole owner. This decision is formally recorded and submitted to the Register of Legal Entities.
3. Appointment of a Liquidator
A liquidator (often the company owner or a trusted third party) is appointed to manage the closure. The liquidator is responsible for overseeing debt settlements, notifications, and legal procedures.
4. Notification to Authorities
We notify all relevant public institutions about your intention to liquidate, including the tax office (VMI) and social insurance agency (Sodra). Creditors, if any, are also informed.
5. Settling Debts and Obligations
Any outstanding debts, taxes, or employee-related obligations must be settled. If necessary, we assist in preparing final financial reports and coordinating with accountants.
6. Asset Distribution
If the company holds assets (property, bank funds, inventory), these must be sold or distributed to shareholders according to Lithuanian law.
7. Final Submission to Register
After a statutory notice period and confirmation that no obligations remain, we submit all required documents to the Centre of Registers to remove the company from the registry.
8. Official Deletion
Once the Register of Legal Entities processes the documents, your company is officially removed. You will receive a confirmation of deregistration.
Voluntary vs. Compulsory Liquidation
There are two main ways to close a company in Lithuania:
✅ Voluntary Liquidation
Initiated by the company’s owners when the business is solvent and closure is a strategic or operational decision.
⚠️ Compulsory Liquidation
Ordered by a court due to bankruptcy, legal violations, or failure to comply with obligations. This is more complex and time-consuming.
At AM LAW FIRM, we assist with both types, ensuring legal clarity and protection throughout the process.
How Long Does It Take to Close a Company in Lithuania?
The standard timeframe to close a company via voluntary liquidation is approximately 4 to 6 months, depending on:
- The complexity of the business structure
- Outstanding debts or assets
- Government response times
- Whether VAT deregistration is required
Our legal team ensures that every stage moves forward without unnecessary delays. For dormant companies with no activity, the closure may be completed faster.
Common Challenges in Company Closure — and How We Solve Them
🧾 Unresolved Tax Issues
Our tax experts work directly with the State Tax Inspectorate to confirm compliance and submit any required declarations.
⚖️ Outstanding Contracts or Debts
We manage communications with creditors and provide legal representation where disputes arise.
📚 Missing Company Documents
Our legal team helps recover or reissue missing records, ensuring proper submission to authorities.
💻 Remote or Foreign Ownership
If you’re not located in Lithuania, we manage the entire process remotely, with power of attorney and digital documentation options.
Our Services for Company Closure in Lithuania
When you work with AM LAW FIRM, you get a comprehensive package that covers:
- Legal consultation on closure options
- Drafting of shareholder resolutions
- Appointment and representation of liquidator
- Communication with tax, registry, and social insurance authorities
- Debt and asset management assistance
- VAT deregistration (if applicable)
- Final deregistration and legal closure
- Remote document processing for foreign owners
We tailor our approach based on your company’s legal form—whether it’s a UAB (Private Limited), MB (Small Partnership), or another legal entity.
Why Choose AM LAW FIRM?
At AM LAW FIRM, we understand that closing a company is more than just a legal procedure—it’s an important step in your business journey. That’s why we provide:
- ✅ Years of Legal Experience in Corporate Dissolution
- ✅ Multilingual Team (Lithuanian, English, Russian)
- ✅ Remote Handling for International Clients
- ✅ Transparent Fees & Timelines
- ✅ Full Confidentiality & Compliance
We treat your exit as seriously as your entry—ensuring every document is accurate, every deadline met, and every regulation followed.
FAQs – Closing a Company in Lithuania
Do I need to pay taxes during liquidation?
Yes. All tax obligations must be cleared before deregistration. We help calculate and settle any outstanding taxes.
Can I close my company if it has debts?
Yes, but creditors must be notified and debts resolved. In some cases, insolvency or bankruptcy proceedings are required.
How much does it cost to close a company?
Fees vary based on the company’s size and complexity. Contact us for a customized quote.
Can I close my Lithuanian company from abroad?
Yes. We offer remote services via power of attorney, allowing you to handle everything without visiting Lithuania.
Ready to Close Your Lithuanian Company?
Let us guide you through the legal, financial, and administrative steps of dissolving your company the right way. Whether you’re restructuring your global operations or simply stepping back, we’re here to help you exit smartly, securely, and legally.
Citizenship of Lithuania
Citizenship
- Acquisition of citizenship of the Republic of Lithuania by virtue of birth.
- Restoration of citizenship of the Republic of Lithuania.
- Oath of Allegiance to the Republic of Lithuania.
- Naturalisation.
- By way of exception.
- Simplified procedure.
Right to reinstate citizenship of the Republic of Lithuania to persons who had citizenship of the Republic of Lithuania and until 15 June 1940 and their descendants who have not acquired citizenship of the Republic of Lithuania before 2011-04-01.
We could help you to get citizenship in Lithaunia.
For jobseekers:
We are searching employees from Europe who would want to work in Lithaunian companies.
For employers:
We are dealing with recruitment companies all over the world and can suggest a variety of employees.