The establishment of an MB in Lithuania has the following advantages:
- The establishment of an MB is a relatively simple and quick process. Within 2-3 working days, it is possible to establish an MB and start activity.
- MB has a limited civil liability. MB members do not assume personal responsibility for MB debts and obligations.
- MB does not require authorized capital.
- MB provides an opportunity to manage finances flexibly. A MB member can decide for himself whether to share profits or receive income.
- Each MB member has equal voting rights, which is determined by the size of the MB contribution.
- In the case of MB, there is no need to submit complex annual financial statements or face complex accounting procedures, which helps to reduce administrative costs.
- MB can have an unlimited number of employees.
- There are no other restrictions on MB, such as turnover or profit.
- Since the manager of MB works under a civil contract of management services, the Labor Code does not apply to such relations, therefore the manager’s salary, hours of work, vacation duration are exclusively agreed between MB and the manager. The head of MB is not subject to the minimum monthly salary set by the state, the maximum number of working hours, and time sheets are not filled out. If the head of the MB is also a member of the MB, his salary is taxed at only 15% personal income tax.
- MB owners (members) can work and represent the company indefinitely. MB members are not subject to the minimum monthly salary set by the state, the maximum number of working hours, they do not work for MB according to an employment contract as regulated by the Labor Code, and do not submit declarations to the Social Fund, do not fill out timesheets. If only its members participate in the activities of the MB and there are no hired employees, there is no need to manage work safety documentation and instruct employees.