Small partnership is a limited liability legal entity. It is the new legal form and those who wish to start their business may establish small partnerships from the 1st of September, 2012.
Small partnership is very convenient and attractive to small, family businesses and beginners; to those who would like to start their own business, however, still do not dare because of high costs or complex process of establishing enterprises.
Features of a small partnership:
- Rapid and cheap establishment.
- No need of the minimum authorised capital, the assets owned by a member and transferred to a small partnership can serve as contribution. Money or assets can serve as contribution but not work and services.
- The assets of a small partnership consist of contributions from participants. The value of the contributions is determined by the mutual agreement among the participants. This legal form is based on the cooperation based on personal characteristics.
- Only natural personal can be the founders; the number of founders cannot exceed 10.
- A natural person who made a contribution or who undertook to make a contribution to the small partnership as well as a natural person who acquired the rights of a member can become a member of the small partnership.
- No need to employ the director (simplified management).
- No compulsory labour relations (no employment contracts are concluded).
- Possible governing bodies of a small partnership: only the member meeting which thereby serves as the governing body, or the member meeting of the manager.
- Simplified requirements for bookkeeping (financial statements are not compulsory).
- Possibility to allocate profit for the period shorter than a financial year.
- Small partnership perfectly suits for the development of family business as it is based on reliance.
Small Partnership registration fee – 850 Lt/ 246.18 Eur (within 4 business days).