In Lithuania’s dynamic business landscape, companies play a defining role in shaping economic growth, innovation, and employment. Among the most important corporate structures are the Akcinė Bendrovė (AB) and Uždaroji Akcinė Bendrovė (UAB).

Both forms of companies have become the foundation for entrepreneurship and investment in Lithuania. Whether you’re a foreign investor or a local entrepreneur, understanding how an akcinė bendrovė works — and how uždarosios akcinės bendrovės steigimas (private limited company formation) happens — is crucial for long-term success.

In this article, we’ll explore the differences, benefits, and practical steps behind these company types, and analyze one of the most influential examples: Akcinė Bendrovė Lietuvos Radijo ir Televizijos Centras.

What Does “Akcinė Bendrovė” Mean?

The term Akcinė Bendrovė literally translates to Joint-Stock Company. It refers to a business entity where the company’s capital is divided into shares, and each shareholder’s liability is limited to the amount they have invested.

This means that investors’ personal assets are protected, even if the business encounters financial difficulties. The structure offers a professional image and provides opportunities to raise funds from public investors.

In simple terms, an Akcinė Bendrovė (AB) is Lithuania’s version of a Public Limited Company (PLC) — the same model used by many global corporations.

Key Features of an Akcinė Bendrovė

Key features of an Akcinė Bendrovė include limited liability, share capital, transferable shares, and independent legal status.

1. Public Shareholding

An Akcinė Bendrovė can issue shares to the public, allowing anyone to invest. These shares may even be listed on Lithuania’s stock exchange (Nasdaq Vilnius).

2. Minimum Share Capital

To register an AB, the company must have a minimum capital of approximately €43,443. This requirement ensures financial stability and credibility.

3. Corporate Governance

An AB typically has three main governing bodies:

• The General Meeting of Shareholders
• The Supervisory Board
• The Board of Directors and the CEO

This structure provides clear accountability and transparency, essential for both private and state-owned enterprises.

4. Legal Protection

The company does not hold shareholders personally responsible for its debts — it limits their risk to their contribution.

5. Ideal for Large Enterprises

ABs are preferred by companies that need significant investment, want to attract shareholders, or operate on a national or international scale.

The Power of Uždaroji Akcinė Bendrovė (UAB)

The Uždaroji Akcinė Bendrovė, abbreviated as UAB, is the most common business structure in Lithuania. It’s equivalent to a Private Limited Company (Ltd) in English-speaking countries.

The word “uždaroji” means “closed,” reflecting that the company’s shares are not publicly traded. Instead, they are owned by a small, defined group of shareholders — often family members, friends, or partners.

Why UAB Is So Popular in Lithuania

More than 90% of Lithuanian companies are registered as UABs. Here’s why:

• Low Start-Up Capital: You can start a UAB with as little as €1,000–€2,500.
• Fast Registration: Thanks to Lithuania’s digital systems, you can register a company in just a few days.
• Limited Liability: Owners are protected from personal financial risk.
• Simple Management: You need only one director (CEO). A board is optional.
• Foreign Ownership Allowed: 100% of the shares can belong to foreign investors.

This balance of simplicity and protection makes the uždaroji akcinė bendrovė ideal for small and medium-sized enterprises (SMEs), startups, and freelancers who want a formal business structure.

Step-by-Step: Uždaroji Akcinės Bendrovės Steigimas

Let’s walk through how to establish a private limited company — the process known as Uždaroji Akcinės Bendrovės Steigimas.

1. Choose the Company Name

Pick a unique business name that includes the legal suffix “Uždaroji Akcinė Bendrovė” or “UAB.”
Example: UAB Baltic Solutions or Uždaroji Akcinė Bendrovė Green Future.

You can check name availability through the Lithuanian Register Centre (Registrų centras).

2. Prepare Founding Documents

You’ll need:

• The Articles of Association (company bylaws)
• A Founding Act or Agreement
• A Shareholder list
• The Decision to establish the company

If non-monetary assets are contributed (such as property or vehicles), an independent appraiser must verify their value.

3. Deposit the Share Capital

You must open a temporary bank account and deposit the minimum share capital (at least €1,000). The company’s registration makes the account permanent.

4. Register the Company

Submit your documents electronically or in person to the Register Centre.
The authorities will officially register your UAB in 3–5 working days if all documents are correct.

5. Register for Taxes

After registration, you must:

• Apply for a VAT number (if turnover exceeds €45,000 annually)
• Register for Corporate Income Tax
• Set up proper accounting records and payroll
• Obtain business licenses if required

6. Start Operations

After receiving your official registration code, you can:

• Open a business bank account
• Sign contracts
• Hire employees
• Launch your services or products

Congratulations — your Uždaroji Akcinė Bendrovė, Lithuania, is now legally active.

Akcinė Bendrovė vs Uždaroji Akcinė Bendrovė

Criteria	Akcinė Bendrovė (AB)	Uždaroji Akcinė Bendrovė (UAB)
Type	Public joint-stock company	Private limited company
Minimum capital	~€43,443	~€1,000–€2,500
Share trading	Publicly tradable	Private, closed ownership
Shareholders	1 or more	1–250
Management	Requires board & supervisory council	Only a director required
Best for	Large enterprises, listed companies	Small & medium-sized businesses
Complexity	High	Low
Registration time	2–3 weeks	3–5 days

Both company forms provide limited liability and strong investor protection, but the right choice depends on your business goals.

Case Study: Akcinė Bendrovė Lietuvos Radijo ir Televizijos Centras

One of the best examples of a successful Akcinė Bendrovė Lithuania is the Lithuanian Radio and Television Centre, officially known as Akcinė Bendrovė Lietuvos Radijo ir Televizijos Centras.

Overview

• Legal form: Akcinė Bendrovė (AB)
• Ownership: 100% state-owned through the Ministry of Transport and Communications
• Industry: Broadcasting, telecommunications, and IT infrastructure
• Headquarters: Vilnius, Lithuania

History and Significance

Founded in the early 20th century and reorganized after Lithuania’s independence, the company became a cornerstone of the national communication infrastructure.

It manages radio and television transmission networks, operates data services, and even provides internet connections under the MEZON brand.

This organization illustrates how an Akcinė Bendrovė structure can maintain state control while still operating under corporate efficiency principles.

The company is governed by strict corporate rules — a Supervisory Council, Board, and CEO — ensuring accountability and compliance with Lithuanian corporate law.

Lessons from This Example

• Transparency matters: ABs follow public accountability standards, just like listed companies.
• Strategic flexibility: An AB can combine public ownership with private-sector agility.
• Economic impact: Companies like this strengthen Lithuania’s digital and media ecosystem.

Thus, Akcinė Bendrovė Lietuvos Radijo ir Televizijos Centras proves how Lithuania’s corporate framework can balance government oversight with competitive business operations.

Benefits of Doing Business in Lithuania

Whether you’re forming an Akcinė Bendrovė or an Uždaroji Akcinė Bendrovė, Lithuania offers one of Europe’s most favourable business environments:

1. Stable Economy and EU Membership

Lithuania is part of the European Union and Eurozone, offering direct access to the EU market and free trade across Europe.

2. Low Corporate Tax Rates

Corporate income tax is only 15%, and small companies may qualify for a 5% rate.

3. Digital Administration

Almost all incorporation processes — from registration to document signing — can be done online using electronic signatures.

4. Bilingual and Skilled Workforce

Most Lithuanian professionals are highly educated and speak English and Russian fluently.

5. Innovation-Driven Culture

The country supports startups and tech ventures through innovation grants and accelerators.

Choosing Between UAB and AB

When deciding which company form suits you best, consider these questions:

1. How large will your operations be?
   • For small and medium businesses → UAB.
   • For large-scale or investor-driven businesses → AB.
2. Do you plan to issue public shares?
   • If yes, choose Akcinė Bendrovė.
   • If not, Uždaroji Akcinė Bendrovė is sufficient.
3. How much capital can you invest?
   • If limited → start as UAB, later convert to AB.
4. Do you want simplicity or prestige?
   • UAB = simplicity.
   • AB = prestige and credibility.

The Future of Business Growth in Lithuania

Lithuania’s business landscape continues to evolve. With government initiatives supporting digital transformation, both Akcinė Bendrovė and Uždaroji Akcinė Bendrovė in Lithuania are positioned for growth.

Foreign investors find Lithuania particularly attractive due to its efficiency, educated workforce, and stable legal framework. As more EU and global entrepreneurs enter the market, the number of UAB and AB formations continues to grow steadily each year.

Final Thoughts

Whether you choose to form an Uždaroji Akcinė Bendrovė (UAB) or an Akcinė Bendrovė (AB), both structures empower you to grow within Lithuania’s secure and modern business environment.

• The UAB model is perfect for startups and medium-sized firms seeking flexibility, quick setup, and limited liability.
• The AB model fits corporations aiming for expansion, investment, and long-term influence.

And with successful examples like Akcinė Bendrovė Lietuvos Radijo ir Televizijos Centras, it’s clear that Lithuania’s corporate ecosystem is not only strong but also built for innovation and sustainability.

So if you’re planning uždarosios akcinės bendrovės steigimas or exploring opportunities for your Akcinė Bendrovė Lithuania, you’re stepping into a country where business growth and professionalism go hand in hand.