Setting up an MB

Setting up a small partnership - where to start?

MB and UAB are probably the most popular legal forms of companies. If you want to start a business, but you do not plan very high income, a large team and expansion, the establishment of a small association is more suitable for you. A company of this legal form can be established by more than one person (it can also be one). It is often a group of people who are united by one goal, hobby, desire to act in one direction and get financial benefits from it.

A small partnership (MB) is a private legal entity with limited civil liability, consisting of no more than 10 members. If the planned plans are not implemented or the company experiences other problems, its members are not responsible for it with their assets. The establishment of a small association is very suitable for beginners or small entrepreneurs. Of course, in order to establish a small association, it is necessary to have a clear vision of the activity, goals and come up with a suitable name. All the steps of the establishment process can be done by yourself online, or you can entrust it to specialists.

Setting up a small partnership very suitable for start-ups or small businesses. Of course, to setting up a small partnershipIt requires a clear vision, objectives and a suitable name. All the steps in the incorporation process can be done by yourself online ator you can leave it to the professionals.

If you are not in the mood to delve deeper into what documents and in what order they must be filled out and to whom they should be submitted, contact us. The establishment of your small association will happen quickly and smoothly. If you have any questions on this topic, we are also happy to answer them.

Who can set up an MB?

As already mentioned, the establishment of an MB company is suitable when there are up to 10 persons who want to start a business together. Very often, members are connected not only by the desire to make a profit, but also by a common idea, attitude, etc. It can be a team of like-minded people or family members. If you are interested in a small community, starting such a company with people you know and trust is very beneficial. MB members can make various resolutions themselves, so in this case mutual communication is extremely important.

Advantages of small partnerships

✓ such a company can carry out any activity that is not prohibited by law; ✓ there is no requirement to have specified minimum authorized capital, as in the case of a UAB. Members can deposit as little as one euro or several; ✓ if the business fails, MB members risk only their own contribution, while personal property remains protected; ✓ members can withdraw profit in advance; ✓ members can work without concluding employment contracts, which allows to avoid taxes related to remuneration; ✓ members draw up the association's regulations and plan their activities; ✓ the small community can operate without a main leader; ✓ the manager, if he works alone, can withdraw the profit according to the service contract by charging 15 percent. personal income tax; ✓ during the initial period of activity, no other taxes may be required, except PSD, if the members of the association are not prohibited in other ways; ✓ a member of the small community can withdraw his contribution and withdraw from the community. You may also sell or otherwise transfer your rights to another person. Кто может настроить МБ?

✓ such a company can carry out any activity not prohibited by law;
✓ there is no requirement to have a specified minimum share capital, as in the case of a limited liability company. Members can contribute as little as a euro or more;
✓ In the event of a business failure, the members of the MB risk only the contribution they have made, while their personal assets remain protected;
✓ members can withdraw profits in advance;
✓ members can work without an employment contract, which allows them to avoid payroll taxes;
✓ Members create their own rules and plan their activities;
✓ a small partnership can operate without a chief executive;
✓ a manager working alone can withdraw the profits under a service contract subject to 15% personal income tax;
✓ during the initial period of operation, no fees other than PSD may be due if the members of the partnership are not otherwise insured;
✓ a member of a small partnership may withdraw his/her contribution and leave the partnership. They may also sell or otherwise transfer their rights to another person. 

Are there disadvantages?

The legal form of an MB can sometimes be inconvenient because:

- only natural persons can be founders or members (in the case of an LLC, legal persons);
– the number of members may not exceed 10;
- There are no rules on voting and profit distribution, which can lead to misunderstandings and requires regulations drawn up by lawyers;
- Accounting for an MB is generally no simpler than for an LLC.

Stages in setting up a small partnership

The establishment of a small partnership is currently easily completed electronically and includes the following steps:

Setting up a small partnership is currently easily executed electronically and includes the following steps:

✓ come up with a name for the new MB, the founders, the registration address and other necessary information;
✓ the desired name must be reserved at the Registry Centre. It cannot duplicate the name of another existing company or brand name. Come up with a name that you like, that fits your business, and that is easy to pronounce and remember. If you are planning a website or social networking page for your community (and you probably are), it would be a good idea to have a domain name that matches your company name, so check to see if it is already taken;
✓ filling in the necessary forms and documents and once you have drawn up the right company statutes, you'll need to hand everything over to the Legal Registration Centre (or we'll be happy to do it for you);
✓ after the company registration capital must be created and paid into the BoP's bank account.

The establishment of the MB is completed when the Registry Center registers it. The entire process can take as little as 2-7 business days if you trust us to take care of everything for you. Do you have any questions? Contact the given contacts.

By the way, that's not all. We certainly won't leave you to your own devices. We can help you familiarize yourself with relevant company management documents, information on business financing options, etc. i.e. documented at, information on business finance options, etc.

The most important documents

The incorporation documents and other information of the small partnership are as follows:

- Name of MB;
– details of all the founders - names, surnames, ID numbers, addresses, etc;
- the amount or other assets contributed by each founder;
- the nature of the business;
- address of registration;
- The contract establishing the MB;
- MB regulations;
– kt.

When electronically creating a new small partnership, setting up cannot be used for founders without qualified electronic signatures (smart-ID). Such signatures are easily available from mobile operators (Bitė, Tele2, Telia, Teledema). Electronic signatures are used to sign MB memorandum of association and all others Documents. We also serve our customers online. This is how we set up your company Price is greatly reduced, as it cuts out a lot of costs and makes everything much faster and more convenient.

Small association taxes

If you are interested in a small partnership, the taxes related to its formation and operation are probably also interesting. The good news is that a new MB, which does not yet have any profit, may not pay them in the first months of its operation. Of course, at the end of the year when your small association was established, the taxes will still have to be paid - but you will have time to prepare and prepare for them.

Mandatory taxes:

✓ National Insurance of 9 or 26.3% of the minimum wage when no benefits apply;
✓ VAT is payable if the MB is VAT-registered;
✓ Annual corporation tax is due by 31 May of the following year if a profit has been made;
✓ if the MB has registered immovable property, it pays property tax;
✓ if the MB uses one or more cars, there is a pollution tax;
✓ there may be other charges depending on the nature of the activity.

What does the service include? 

✓ Setting up a small partnership.
✓ A certified electronic extract of the small partnership.
✓ Completing the JADIS and JANGIS lists.
✓ A template of the management contract between the MB manager and the MB.
✓ An MB member's booklet with information on the various legal and tax nuances of MB.
✓ -20% discount for a personal tax consultation or for accounting training for managers of MBs - "Get your bookkeeping in order" (the discount code will be sent to you after the purchase of the MB set-up).

Have you decided to start an MB, but don't want to waste time? Do you have a business idea that you want to implement in practice, but the questions still do not fit in your head? Contact us. We will carry out the entire process of establishing a small association quickly and smoothly. We will also consult on related issues. We serve customers all over Lithuania remotely.