In Lithuania, when people talk about growing a serious business, one name keeps showing up akcine bendrove. That’s Lithuanian for a joint-stock company. It’s more than a fancy title, though. For investors, entrepreneurs, and legal professionals, this type of company has clear rules, strong protections, and room to grow.
Let’s break down what an akcine bendrove really means, how it works, who it’s for, and what’s needed to start one. No fluff. Just the facts, the process, and helpful answers.
What is an Akcine Bendrove?
An akcine bendrove (also known as akcinė bendrovė in singular form or akcinės bendrovės in plural) is a legal entity in Lithuania that’s structured as a joint-stock company. The capital is split into shares, which are owned by shareholders.
Each shareholder holds part of the company, depending on how many shares they own. The shares can be sold, transferred, or traded, depending on whether the company is private or public.
There are two common types:
- Uždaroji akcinė bendrovė (UAB): Private limited liability company. Think of small to medium-sized companies.
- Akcinė bendrovė (AB): Public joint-stock company. These can be listed on stock exchanges and attract larger investors.
Why Akcine Bendrove Matters in Lithuania
Lithuania is a country with a growing economy, smart digital systems, and access to the EU market. Setting up an akcine bendrove gives foreign investors, local entrepreneurs, and businesses a safe, flexible, and legal way to operate.
It comes with:
- Limited liability: Personal assets are not at risk.
- Capital access: Raise money by offering shares.
- Legal protection: The entity is separate from the owners.
- Clear rules: Set by the Civil Code and Lithuanian law.
This structure is ideal for bigger projects, long-term investment, and companies planning for growth.
Who Should Choose Akcine Bendrove?
Not every business needs this setup. A small bakery or freelance graphic designer might do fine with simpler forms like individual activity or a sole proprietorship.
But akcine bendrove fits best when:
- You’re building a large company or startup with multiple investors
- You need to raise authorized capital
- You plan to operate in foreign markets or the EU
- You want a proper board of directors
- You’re concerned about personal liability
- You want a structure that can scale
UAB vs. AB What’s the Difference?
Here’s a quick comparison of the two types of akcine bendrove:
| Feature | UAB (Private) | AB (Public) |
| Full Name | Uždaroji akcinė bendrovė | Akcinė bendrovė |
| Ownership | Limited number of shareholders | No limit on number of shareholders |
| Share Trading | Restricted | Shares can be sold or listed |
| Minimum Capital | €2,500 | €40,000 |
| Management Structure | Director or Board | Board of Directors + Supervisory Board |
| Reporting | Less strict | Full public financial statements |
| Ideal For | Small to medium businesses | Large or public companies |
Both fall under the umbrella of akcinės bendrovės, but the structure depends on your goals.
Key Terms You’ll Hear Often
- Steigimo dokumentai: Incorporation documents or founding papers
- Turi būti: Must be (used in legal rules)
- Akcininkų: Shareholders’
- Bendrovės struktūra: Company structure
- Bendrovės pavadinimas: Company name
- Juridinis asmuo: Legal entity
- Akcinės bendrovės valdymas: Corporate governance
Legal Framework and Governance
Every akcine bendrove in Lithuania works under the Lithuanian Civil Code and follows Company Law. You need clear documents that show:
- Who the shareholders are
- How shares are divided
- The governance setup
- What powers the board has
- How profits and dividends are handled
An AB needs a Supervisory Board and a Board of Directors. A UAB can manage with a Managing Director or a board, depending on company size.
Shareholders have rights to:
- Vote in general meetings
- Receive dividends
- Sell or transfer shares
- Request company info
- Monitor how money is spent
Capital and Shares
Every akcine bendrove needs authorized capital. That’s the money put into the business by the founders.
- For UAB – Minimum is €2,500
- For AB – Minimum is €40,000
Capital is divided into shares. Each share gives ownership and the right to a portion of the company’s profit.
Shares can be:
- Ordinary: Standard shares with voting and dividend rights
- Preference: Fixed dividends, fewer voting rights
All shareholders are listed in the shareholder register, and share changes must be updated with the Register of Legal Entities.
How to Register an Akcine Bendrove in Lithuania
Here’s the process of setting up your company in simple steps:
Step 1: Choose a Name
Make sure the name is not already taken. It must include either “UAB” or “AB” depending on the type.
Step 2: Prepare Documents
You’ll need:
- Articles of Association
- Founding Act (or Founding Agreement for multiple founders)
- Data about shareholders, board members, and the manager
- Address for company headquarters
Step 3: Open a Bank Account
Deposit the initial capital. The bank will provide a certificate needed for registration.
Step 4: Register the Company
Submit your documents to the Register of Legal Entities. This can be done online using e-signature tools.
Step 5: Get a Tax Number
After registration, register with the State Tax Inspectorate (VMI) to get a tax ID and handle VAT, payroll taxes, and other duties.
The full setup usually takes 2 to 3 weeks.
Tax Requirements
Akcinės bendrovės must follow tax rules, which include:
- Corporate tax rate: 15 percent
- Dividend tax: 15 percent (reduced in some cases)
- VAT: 21 percent if revenue crosses the threshold
- Annual reports: Required for all companies
- IFRS: Required for public companies (AB)
The company must file profit and loss accounts, balance sheets, and financial statements with the public registry each year.
Rights and Responsibilities of Shareholders
Shareholders are the real owners of an akcine bendrove. But their liability is limited to the value of their shares.
They’re responsible for:
- Electing the board
- Approving major decisions
- Accepting or rejecting financial statements
- Sharing in the profits through dividends
But they’re not liable for company debts with their personal assets. That’s the benefit of limited liability.
Foreign Investors and Market Access
Lithuania welcomes foreign investors. There’s no restriction on non-residents owning shares in an akcine bendrove. You can even set up a UAB fully remotely using online tools.
Benefits for foreign investors:
- EU market access
- Full control of operations
- Low bureaucracy
- Strong legal system
- Protection of assets
- Option to buy existing companies
Legal support and registration agents make the process smoother for non-Lithuanian speakers.
National and EU Support Programs
Lithuania offers many support programs for akcinės bendrovės through:
- Nacionalinis Paramos Portalas: National support platform
- Europos Parama: EU structural funds and grants
- Verslo Parama: Business incentives and subsidies
- Savivaldybės Parama: Municipal support for local business
These programs are especially helpful for small businesses, startups, and innovative sectors.
Mistakes to Avoid
Here are a few common errors when setting up an akcine bendrove:
- Skipping tax registration
- Choosing the wrong company type (UAB vs AB)
- Missing updates to the shareholder register
- Not holding annual general meetings
- Delayed submission of financial statements
- Forgetting to change company data in public records
Stay updated with Lithuanian law and hire a legal adviser when needed.
Final Thoughts
An akcine bendrove isn’t just a company. It’s a legal tool to build something bigger, protected by strong rules and open to real ownership and investment.
For entrepreneurs, investors, and companies wanting to play the long game in Lithuania or across the EU, this structure opens real possibilities. With clear responsibilities, tax benefits, and legal protection, the akcine bendrove is one of the smartest choices out there.
Whether you’re starting small with a UAB or going public as an AB, one thing is clear if your company plans to grow, this is a structure that works.
