LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS
the partners on the management of a partner - ship. There is no minimum share capital require - ment to conclude a partnership agreement. 5.3 REITs Real estate investment trusts are becoming more popular in Lithuania. Trusts are usually operated in private form, but some are public – ie, used more as a crowdfunding platform. Under Lithu - anian law, there are no general restrictions on the participation of foreign investors in real estate investment trusts, however they are subject to the same requirements as Lithuanian investors (it depends on whether an investor is consid - ered professional or non-professional). Activities of REITs are monitored by the Bank of Lithuania. REITs are simply another type of investment vehicle for real estate development; there are no clear advantages to using them in Lithuania. 5.4 Minimum Capital Requirement As of 1 May 2023, the minimum share capital required to set up a private limited company is EUR1,000. A small partnership can be estab - lished with a minimum share capital of EUR1, but this type of entity is not popular with devel - opers. 5.5 Applicable Governance Requirements A private limited company can have a four-tier governance structure, comprising the following elements: • a general meeting of shareholders; • a supervisory council; • a board (of directors); and • a CEO. It is not obligatory to form a supervisory coun - cil and/or board in a private limited company. Supervisory councils are rarely established in
private limited companies but boards are formed quite often, particularly in larger private compa - nies. Unlike existing practice abroad, in Lithuania a board does not have direct executive pow - ers. Instead, it is responsible for the strategic management of the company, the election of the CEO and some other decisions related to the company (decisions to invest in other com - panies, etc). Also, only natural persons can be members of a board. 5.6 Annual Entity Maintenance and Accounting Compliance Each entity is required to have a CEO. Account - ing services can be outsourced. The annual entity maintenance costs comprise the salary of the CEO and the costs for accounting services, and vary for each company. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Under Lithuanian law, a person, company or oth - er organisation is entitled to occupy and use real estate for a limited period of time under lease or gratuitous lease agreements. 6.2 Types of Commercial Leases There are no different types of commercial leas - es in Lithuania. 6.3 Regulation of Rents or Lease Terms In general, rents and lease agreements are freely negotiable, provided they do not infringe certain imperative norms established in the Civil Code. Certain market standards of commercial leases
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