Change legal entity type of Public Limited Company in Lithuania
Companies frequently contemplate switching their legal structure from a Public Limited Company (AB) for a variety of reasons including conforming to updated regulations, improving tax planning, or enhancing operational efficiency through restructuring.
Moving from one legal entity form to another in Lithuania can be complex, as it entails meeting various legal requirements, completing regulatory filings, obtaining shareholder consent, and managing the transfer of assets and liabilities from the current entity to the new one.
Our expertise
We have expertise in corporate law and regulatory compliance that enables us to assist Public Limited Companies in Lithuania seamlessly transition to a different legal entity type. Our goal is to ensure a smooth process throughout.
Steps and solutions of Public Limited Company legal entity change
Successfully changing the legal entity of a Public Limited Company (AB) requires a carefully planned roadmap. Our strategy is created to simplify every stage of the process, guaranteeing a smooth transition.
Preparation and drafting
The initial and important phase of transitioning a Public Limited Company to a different legal entity requires thorough preparation and creation of key legal paperwork. Our skilled team concentrates on making accurate changes to the company’s charter, shareholder agreements, and required regulatory submissions. We handle all interactions with the appropriate authorities, ensuring strict adherence to legal requirements every step of the way.
Meeting and shareholder approval
At the heart of the transition is the organization of shareholder meetings. These meetings allow stakeholders to participate in conversations and vote on the planned entity conversion. Using our knowledge, we guarantee full compliance with voting rules and minimum participation requirements, leading the process with a systematic method to secure necessary approvals.
Register new legal entity
After receiving shareholder approval, we handle the task of submitting the approved documents to government agencies. Our strategic advice also includes guidance on smoothly transferring assets and liabilities to the newly formed entity. This proactive strategy helps prevent any interruptions in day-to-day business operations, guaranteeing compliance and consistency during the transition.
Business transfer
As part of the comprehensive plan for transition, we manage the process of transferring ownership, business assets, and share capital to the new legal entity. Our primary goal is to ensure that these transfers are carried out promptly and successfully, while maintaining business operations and compliance with regulations throughout the process. We will provide assistance with the following:
- Transfer of the business
- Transfer of ownership
- Transfer of business assets
- Transfer of share capital
Liquidate company
In the event that a Public Limited Company needs to be liquidated, we manage the procedure in compliance with the laws of Lithuania. This involves completing all commitments and guaranteeing a smooth end to the transition process.
Considerations of Public Limited Company legal entity change
When contemplating switching the legal entity type of your Public Limited Company (AB) in Lithuania, it is important to thoroughly assess several key factors. These factors include tax consequences, the anticipated timeline for implementation, and the costs associated with carrying out this change. Each of these factors is crucial in guaranteeing a seamless and lawful transition that is in line with your business goals. A comprehensive understanding of these aspects can assist in reducing risks and enhancing results during the process.
Tax implications
Switching the legal structure of a Public Limited Company (AB) in Lithuania can result in major tax consequences. It is important for companies to take into account possible capital gains taxes that may occur from moving assets to the new entity. Moreover, there might be transfer taxes that apply to the transfer. It is essential to evaluate the future tax obligations of the new entity in order to abide by Lithuania tax regulations.
Timeframe
The length of time needed to change the legal entity type of a Public Limited Company in Lithuania can fluctuate based on the intricacy of the situation and regulatory demands. Normally, this transition can last from a few weeks to a few months. It includes drafting legal paperwork, securing shareholder consent, submitting to government bodies, and guaranteeing a seamless transfer of assets and obligations.
Costs involved
Changing the legal entity type of a Public Limited Company in Lithuania comes with a range of expenses. These can involve fees for legal services in creating required documents and overseeing the process, fees to the government for officially registering the new entity, and additional costs for meeting compliance and regulatory standards. The overall expenses will depend on the extent and intricacy of the transition strategy.
Change legal entity type of Public Limited Company with us
If you are considering changing the legal structure of your Public Limited Company in Lithuania, feel free to reach out to us today for a discussion on how our method can assist you in successfully transitioning while aligning with your unique business goals.