Dissolve a Company in Lithuania
Clear. Compliant. Hassle-Free Dissolution Services from AM Law
Dissolving a company can feel like a major step—but with the right legal support, the process can be smooth, straightforward, and stress-free. Whether you’re closing your business voluntarily, responding to shareholder decisions, or complying with regulatory requirements, AM Law is here to guide you through every step of the company dissolution process in Lithuania.
With years of legal expertise and a team of specialists in Lithuanian corporate law, we ensure that your company’s closure is managed efficiently, legally, and with minimal risk or liability.
What Does It Mean to Dissolve a Company?
Company dissolution is the official legal procedure to end a company’s existence. Once dissolved, the company is removed from the Register of Legal Entities in Lithuania, and it can no longer operate, hold assets, or enter into agreements.
Dissolution involves halting business operations, resolving debts, notifying stakeholders, and finalizing legal and financial responsibilities. AM Law provides full-service solutions, ensuring your company is dissolved properly and in full compliance with national laws.
Why Dissolve a Company?
There are several situations that may require the formal dissolution of a business in Lithuania:
- The company has achieved its objectives and is no longer active
- Shareholders have voted to end operations voluntarily
- The company has remained inactive for a long period
- The business is financially unviable or undergoing restructuring
- Regulatory violations require legal closure
- A parent company wants to dissolve its Lithuanian branch or subsidiary
Regardless of the reason, it’s critical to handle dissolution the right way to avoid future legal or financial issues. AM Law helps businesses close cleanly and legally—so you can move forward without loose ends.
Types of Company Dissolution in Lithuania
Depending on your situation, company dissolution in Lithuania can be carried out in different ways:
Voluntary Dissolution
This occurs when shareholders or directors decide to close the company voluntarily. It’s often part of a planned exit or a business strategy. Voluntary dissolution is the simplest and fastest type when the company is solvent and has no legal disputes.
Compulsory Dissolution
This is mandated by the court or government authorities, often due to unpaid debts, legal non-compliance, or failure to submit required filings such as annual reports or tax returns.
Dissolution of Foreign-Owned Companies
Foreign companies that own Lithuanian subsidiaries or branches may also wish to close them for strategic reasons. AM Law provides bilingual and cross-border support to simplify this process and meet both Lithuanian and international legal requirements.
The Step-by-Step Dissolution Process
Dissolving a company in Lithuania involves a clearly defined legal process. At AM Law, we manage each phase with precision, ensuring compliance, speed, and clear communication.
Step 1: Decision to Dissolve
The process begins with a formal resolution by the shareholders or board of directors to dissolve the company. This document must outline the reasons for dissolution and appoint a liquidator to manage the process.
Step 2: Public Notification and Legal Registration
The decision must be registered with the Centre of Registers and published in the Public Announcements Register. This informs creditors and stakeholders that the company is entering dissolution.
Step 3: Settling Financial Obligations
All outstanding debts must be paid. This includes taxes, social security contributions, employee wages, and invoices to suppliers or service providers.
Step 4: Asset Evaluation and Liquidation
If the company owns assets—such as real estate, equipment, or intellectual property—these must be appraised, sold, or distributed according to the shareholders’ agreement. The liquidator manages this step under AM Law’s guidance.
Step 5: Employee Dismissals
If employees are still on the payroll, contracts must be lawfully terminated, and all required compensations must be paid in accordance with Lithuanian Labor Law.
Step 6: Final Reports and Deregistration
Once all obligations are settled, the liquidator prepares the final financial statements. These, along with a formal application for deregistration, are submitted to the Register of Legal Entities. Once approved, the company is officially dissolved.
Required Documents for Dissolution
AM Law takes care of all the necessary documentation, including:
- Shareholders’ resolution on dissolution
- Appointment of the liquidator
- Financial statements and balance sheets
- Employee termination documents
- Notifications to tax authorities and social security institutions
- Final application for deregistration
Each case may require additional documents depending on the company’s activities and financial standing. We ensure that every document is correct, complete, and submitted on time.
How Long Does It Take to Dissolve a Company?
The typical time frame for company dissolution in Lithuania is 3 to 6 months, depending on:
- The complexity of company structure
- Amount of outstanding debts or taxes
- The number of employees
- Whether it’s a local company or a foreign-owned entity
With AM Law’s expertise, we reduce delays and keep the process moving efficiently.
Common Challenges in Company Dissolution
While company dissolution is a legal right, it comes with potential hurdles that require professional attention:
- Unpaid debts or unresolved legal claims
- Inactive company with missing financial records
- Disagreements between shareholders
- Language and cross-border documentation issues for foreign owners
Our experienced legal team anticipates and resolves these issues, providing end-to-end support tailored to your situation.
Why Choose AM Law for Company Dissolution?
When dissolving your company, you need a partner who knows the process inside and out—and who can act quickly and reliably. AM Law stands out for:
- ✅ Decades of corporate legal experience in Lithuania
- ✅ Bilingual support for foreign investors and directors
- ✅ Transparent pricing and no hidden fees
- ✅ Fast document preparation and expert coordination
- ✅ Full compliance with Lithuanian legal standards
Our legal team acts as your personal advisor and representative throughout the dissolution journey.
Real Case Example: Dissolving a Foreign Subsidiary
A Scandinavian logistics company decided to close its Lithuanian operations due to centralization. AM Law provided full legal representation, drafted all resolutions, managed tax clearance, and handled employee dismissals. The entire process was completed in just under four months, with zero complications or residual liabilities.
Frequently Asked Questions (FAQs)
Can I dissolve a company with unpaid taxes or debts?
Yes—but the process will require court approval or creditor negotiations. AM Law can assist in either scenario.
What if the company has been inactive for years?
Even inactive companies must be dissolved legally. AM Law helps retrieve old records and restore compliance before closure.
Do all shareholders need to be present?
No. AM Law can represent you via power of attorney, making it convenient for foreign or absentee shareholders.
Will I be liable after dissolution?
If the dissolution is handled correctly, shareholders and directors will not be personally liable for the company’s actions after deregistration.
Begin Your Company Dissolution Today
If you’re ready to close your company in Lithuania, don’t leave the process to chance. Let the professionals at AM Law manage the legal and administrative work so you can focus on your future.
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