The term “Akcinė Bendrovė” (AB) refers to a public limited liability company in Lithuania. Legally defined by Lithuanian civil and commercial law, this structure is ideal for medium to large-scale businesses seeking external investment or planning a public offering.
According to the Law on Companies of the Republic of Lithuania, an Akcinė Bendrovė is a legal entity with limited liability, meaning shareholders are liable only up to the value of their shares.
Historical and Legal Context
The concept of a public limited company originated from European commercial law reforms in the 19th century. Lithuania adopted this model in the early 1990s after regaining independence, during its transition to a market economy.
Governing Law: Akcinių bendrovių įstatymas (Law on Companies)
Enacted: 1994 (with regular updates)
Available in English: Seimas of the Republic of Lithuania
Key Features of Akcinė Bendrovė (AB)
Legal Entity: Separate from shareholders
Minimum Capital Requirement: €40,000
Shareholders: One or more (individuals or legal entities)
Share Types: Ordinary and preference shares
Liability: Limited to share value
Governance Structure: General meeting, optional supervisory board, and board of directors
Public Offering Eligibility: Can be listed on stock exchanges like Nasdaq Vilnius
Formation Process of Akcinė Bendrovė
Name Reservation Submit your company name to the Centre of Registers (Registrų Centras). Approved names are reserved for 6 months.
Share Capital Deposit Open a temporary bank account and deposit €40,000. A bank certificate will confirm the deposit.
Prepare Founding Documents
Articles of Association
Incorporation Act or Founding Agreement
List of Shareholders
Company Registration Submit all documents to the Centre of Registers, including shareholder identities, board members, and financial forecasts.
Register for VAT and Social Security
VAT: Required if turnover exceeds €45,000
Sodra (State Social Insurance): Required if you employ staff
Corporate Governance of AB
Lithuanian law mandates structured governance in public companies to protect both investors and the public.
General Meeting: Supreme authority approving reports, dividends, and electing the board
Board of Directors: Handles daily operations and decision-making
Supervisory Board: Optional unless legally required (especially for listed ABs)
CEO / General Manager: Implements decisions of the board
Accounting and Auditing Rules
Akcinė Bendrovė must use either Lithuanian Business Accounting Standards (BAS) or International Financial Reporting Standards (IFRS), depending on listing status.
Audit is mandatory if any of the following are true:
Revenue exceeds €3.5 million
Assets exceed €1.8 million
Staff exceeds 50 employees
Annual financial reports must be submitted to the Centre of Registers.
Taxation of Akcinė Bendrovė
Tax Type
Rate
Corporate Income Tax
15%
Dividend Withholding Tax
15% (may be lower under DTA treaties)
VAT
21% standard
Social Security
Employer: ~30.98%, Employee: ~19.5%
Lithuania has double taxation agreements with over 57 countries, including Germany, UK, USA, and UAE — making it highly attractive for foreign investors.
Akcinė Bendrovė vs. Uždaroji Akcinė Bendrovė (UAB)
Comparison Factor
Akcinė Bendrovė (AB)
Uždaroji Akcinė Bendrovė (UAB)
Share Capital
€40,000
€2,500
Public Listing
Allowed
Not allowed
Transparency
High (mandatory audit & reports)
Moderate
Best For
IPOs, international operations
SMEs and private companies
Investor Trust
High
Lower but flexible
Famous Akcinė Bendrovė Companies in Lithuania
AB Lietuvos Energija – Energy sector leader
AB Vilniaus Baldai – Major furniture exporter
AB Invalda INVL – Investment and asset management
AB Klaipėdos Nafta – Oil and LNG terminal operator
AB Apranga – Fashion retail leader across the Baltics
All these companies are publicly listed on Nasdaq Vilnius and follow strict EU transparency standards.
Pros and Cons of Choosing an Akcinė Bendrovė
Advantages:
Access to large-scale investment
Professional and transparent governance
Enhanced credibility
Public IPO eligibility
Attractive to foreign investors
Disadvantages:
High initial capital requirement (€40,000)
Mandatory annual audit costs
More regulatory and reporting obligations
Less flexible for small/family-owned businesses
Who Should Start an AB in Lithuania?
You should consider registering an AB if you are:
Planning to attract external funding or go public
Launching a joint venture
Establishing a headquarters for international operations
Operating in energy, finance, retail, or technology sectors
If you’re a startup or SME, start as a UAB, and convert to AB later as you grow.
Foreign Ownership of ABs
Lithuania allows 100% foreign ownership of Akcinė Bendrovė. There are:
No nationality restrictions
No requirement for a local partner
Remote setup is possible through a legal representative
Foreigners choose ABs for:
EU expansion
Investment vehicle via Lithuania’s double tax treaties
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