Lithuania Legal

Corporate solutions in Lithuania

Register a company in Lithuania with professional assistance. We cover various corporate solutions including accountancy and document preparation.

Assistance in share capital reduction for Public Limited Company in Lithuania

Decreasing the share capital of Public Limited Company (AB) is a strategic move that can assist in restructuring your business, distributing extra funds to shareholders, or improving the financial setup. Our comprehensive services and expert advice will support you in navigating this complex procedure, ensuring compliance with all legal requirements and maximizing the benefits for your business.

Reduce share capital now

Begin the process of reducing the share capital for your Public Limited Company in Lithuania with the help of our professionals. We will guide you through each step of the procedure to ensure a successful and lawful capital reduction.

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Our approach to share capital reduction

We utilize a range of approaches to decrease the share capital of a Public Limited Company in Lithuania, customizing them to suit the individual requirements and situation of your company. Depending on the circumstances, we may reduce share capital using various methods, including:

Stamping shares

This technique includes decreasing the face value of current shares and proportionally reducing the overall authorized shares. It is a simple and affordable method, however, it must be approved by the shareholders.

Exchanging shares

New shares with reduced face values are created in return for current shares, leading to a decrease in overall capital. Despite providing more adaptability, employing this technique may be more challenging.

Reducing the number of shares

Stocks are bought back from investors or eliminated, reducing the overall quantity and thereby the company’s capital. This method can be advantageous for consolidating shareholders or implementing exit plans.

Paying dividends

Paying out earned profits to shareholders in the form of dividends decreases the amount of retained earnings that go towards the authorized shares of the Public Limited Company. The extent of this reduction is contingent on the company’s profits and may not result in a substantial decrease in capital.

The process of recucing share capital of AB and solutions

By adhering to a simplified and clear equity reduction plan, we guarantee a quick and legally sound process. This enables your company to enhance its financial foundation and effectively reach its goals.

Assessment and planning

We start by conducting a comprehensive assessment of your company’s financial objectives and needs. Our team offers professional guidance to assess the feasibility of a capital reduction and assists in selecting the optimal plan of action. We create a customized strategy that aligns with your specific requirements, guaranteeing a definite direction for the future.

Shareholder approval

Getting approval from shareholders is very important. We help to arrange the required resolutions and meetings, keeping detailed records such as agendas, minutes, and notices. Our experts make sure all legal obligations are fulfilled, making the process of getting shareholder approval smooth and compliant.

Legal and regulatory compliance

It is crucial to understand the legal aspects when reducing the share capital of a Public Limited Company. Our team provides expert assistance in complying with share capital reduction regulations and Lithuania business legislation. We can assist in preparing the necessary resolutions and submitting them accurately to the appropriate authorities, to ensure complete compliance.

Financial and accounting considerations

It is crucial to comprehend the financial consequences. Our company offers detailed financial analysis and helps with updating accounting records to show the decreased share capital of the Public Limited Company in Lithuania. We guarantee accurate reporting and adherence to accounting regulations to protect your financial reputation.

Accountancy

Share capital reduction implementation

Executing the reduction needs to be done with caution. We help you with each step, such as disbursing assets to shareholders, giving out dividends, or buying back shares. Our team helps with preparing the required legal documents, organizing communication with shareholders, and making sure all legal obligations are met.

Post-reduction formalities

The process is considered complete when you have updated your corporate documents, informed the necessary authorities, and made changes to the articles of organization for your Public Limited Company. Our full support is available to help you meet all post-reduction formalities and keep your business in compliance with the law.

Tax implications of reducing capital and our assistance

Feel confident in navigating the tax effects of capital reduction with our help. 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 handle the repercussions of capital gains tax from reducing equity. Our team of tax professionals can offer guidance, aid in calculating tax obligations, and enhance your tax plan in Lithuania.

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Withholding tax

Make sure to be aware of any tax obligations related to the capital reduction process. We assist you in adhering to applicable tax laws, aiding you in fulfilling your responsibilities, and directing you on withholding tax obligations.

Stamp duty

Review the implications of stamp duty related to capital reduction. Our team can assist with preparing necessary documentation and ensuring adherence to stamp duty laws, as well as providing guidance on stamp duty responsibilities.

Transfer pricing

Analyze and address any potential impacts of the equity reduction process on transfer pricing. Apart from ensuring adherence to Lithuania 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 today. By filling out the form provided, you can appoint us as your trusted partner in navigating the complexities of share capital reduction, ensuring compliance, and maximizing benefits for your business. Act now to maximize your financial opportunities and make strides towards success!

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