The Official Development Agency of the City of Vilnius

Opening Affiliates and Representative Offices

Why this is a good idea?

Having an affiliate or representative office can be a great way for companies to expand and grow their operations without having to worry too much about the burden on their resources. An affiliate or representative office is structurally detached from the main company and has the ability to run its affairs, meaning it can manage and grow a new local operation without the mother company having to intervene and micro-manage.

What are the differences between affiliates and representative offices?

Affiliate. The law allows granting all the rights held by the company to its affiliate, but no more than the company itself has.

Representative office. A representative office has the complete list of rights defined by the laws, including to represent the company’s interests and to defend them, to conclude transactions and to carry out other actions on behalf of the company, as well as to carry out import and export operations under appropriate conditions.

What do you need to know before opening affiliates and representative offices abroad?

When it comes to affiliates and representative offices, it’s essential to know that they are governed by the laws of the country in which they are incorporated. This means that when a foreign legal entity (organization) opens an affiliate or representative office in Lithuania, the legislation of the Republic of Lithuania applies.

Founding procedure in Lithuania

Founding an affiliate or representative office is fairly straightforward. You need to follow these four steps:

1) Governing body of a company (board or head) adopts a decision on founding an affiliate or representative office.
2) Statute of the affiliate or representative office is drawn, which among other things, establishes the competence of the affiliate or representative office.
3) Statute together with other additional documents is submitted to the notary for certification.
4) Documents certified by the notary are included into the Register of Legal Entities.

You might also be interested in:

Choosing your business form

Choosing your business form

There are some things you need to consider when choosing the right business type for your company. That’s why we’ve put together a guide that will take you through all you need to know.
Find out more
Choosing the type of company

Choosing the type of company

The type of company you choose will be determined by the kind of activity and company formation you require.
Find out more
Setting up a business

Setting up a business

Setting up a business in Lithuania is straight-forward and stress free. All you need to do is check that you have all the necessary documents before you apply.
Find out more
By using this site, you consent to the use of cookies for analytical purposes, advertising and personalized content. For more information,read here.