Assistance in share capital reduction for Private Limited Liability Company in Lithuania
Decreasing the share capital of a Private Limited Liability Company (UAB) is a deliberate strategic choice that can assist your business in restructuring groups, distributing surplus cash to shareholders, or improving its financial framework. Our comprehensive services and expert advice will support you in this complex procedure, ensuring compliance with legal requirements and maximizing the benefits for your business.
Reduce share capital now
Begin the process of reducing the share capital of your Private Limited Liability Company in Lithuania with our professional guidance. We will provide support at each step to ensure a seamless and lawful capital reduction.
Our approach to share capital reduction
We use a range of techniques to decrease the share capital of a Private Limited Liability Company in Lithuania, designed to suit the individual requirements and situation of your company. Depending on the circumstances, share capital reduction can be achieved through various methods, including:
Stamping shares
This technique consists of decreasing the face value of shares that are currently in existence and simultaneously decreasing the overall number of authorized shares. It is a simple and cost-efficient method, however, it necessitates approval from the shareholders.
Exchanging shares
New shares are issued with a lower nominal value in exchange for current shares, leading to a reduction in total capital. Although this approach provides more versatility, it may be more challenging to execute.
Reducing the number of shares
Shares are bought back from shareholders or eliminated, which reduces the overall number of shares and therefore the capital. This can be advantageous for consolidating shareholders or implementing exit strategies.
Paying dividends
Paying out profits to shareholders as dividends decreases the retained earnings that count towards the authorized shares of the Private Limited Liability Company, but this outcome is contingent on the amount of profits available and may not lead to a substantial decrease in capital.
The process of recucing share capital of UAB and solutions
By implementing a clear and open equity reduction plan, we guarantee a quick and legally sound procedure. This enables your company to streamline its financial setup and reach its goals efficiently.
Assessment and planning
We start by carefully assessing the financial objectives and needs of your company. Our team offers specialized guidance to assess the feasibility of a capital reduction and assist you in selecting the most appropriate course of action. We create a customized plan that fulfills your specific requirements, guaranteeing a straightforward way forward.
Shareholder approval
It is essential to obtain approval from shareholders. We help with arranging the required resolutions and meetings, as well as creating detailed documentation such as agendas, minutes, and notices. Our experts make sure that all legal obligations are fulfilled, making the process of obtaining shareholder approval seamless and compliant.
Legal and regulatory compliance
It is crucial to understand the legal requirements when reducing the share capital of a Private Limited Liability Company. Our team provides expert assistance in complying with the regulations and laws in Lithuania. We assist in creating necessary resolutions and accurately submitting them to the appropriate authorities to ensure complete adherence to the rules.
Financial and accounting considerations
It is crucial to comprehend the financial consequences. We offer detailed financial analysis and help in updating the accounting records to show the decreased share capital of the Private Limited Liability Company in Lithuania. Our firm guarantees accurate reporting and adherence to accounting standards, protecting your financial reputation.
Share capital reduction implementation
Executing the reduction must be done with caution. We will help you with every stage of the process, whether it includes giving assets to shareholders, distributing dividends, or buying back shares. Our team will help with preparing the required legal documents, coordinating shareholder communications, and ensuring adherence to all legal requirements.
Post-reduction formalities
Finishing the procedure includes updating corporate paperwork, informing the necessary authorities, and making changes to your Private Limited Liability Company articles of organization. We provide thorough assistance to guarantee that all post-reduction formalities are met, so your business stays in line with all legal obligations.
Tax implications of reducing capital and our assistance
With our help, you can confidently handle the tax consequences of capital reduction. We offer expert advice on equity gains tax, withholding tax, stamp duty, and transfer pricing to guarantee compliance and enhance your tax planning.
Capital gains tax
Evaluate and control the consequences of capital gains tax related to decreasing equity. Our team of tax professionals offer guidance, aid in assessing tax obligations, and support in enhancing your tax planning in Lithuania.
Withholding tax
Take note of any taxes that need to be withheld as a result of the capital reduction process. We assist you in adhering to tax laws, aiding you in fulfilling your obligations, and advising on the withholding tax obligations.
Stamp duty
Review the stamp duty implications associated with capital reduction. Our team not only assists in preparing the necessary documentation and ensuring adherence to stamp duty laws, but also provides guidance on stamp duty obligations.
Transfer pricing
Investigate and address any potential impacts of the equity reduction procedure on transfer pricing. Along with guaranteeing adherence to Lithuania’s transfer pricing regulations, we offer expert guidance on transfer pricing and assist in establishing arm’s length pricing.
Contact for further assistance
If you are ready to start the process of reducing share capital in Lithuania, contact our team of experts and move forward. By filling out the form provided, you can appoint us as your trusted partner in handling the complexities of share capital reduction, ensuring adherence to regulations, and maximizing benefits for your company. Act promptly to unlock your financial potential and make strides towards success!